Korea's knowledge economy minister on Saturday warned that growing calls for economic democracy should not lead to an assault on local conglomerates.
"Conglomerates have and will continue to contribute to the local economy. (I) oppose indiscriminate attacks on those companies," Knowledge Economy Minister Hong Suk-woo said in a conference held by the Federation of Korean Industries.
The FKI, led by GS Group chairman Huh Chang-soo, is the country's largest business lobby with membership that includes more than 600 of the country's largest businesses.
The remarks come as lawmakers drum up support for economic democracy in a country where critics say family-controlled conglomerates, known as chaebol, wield significant clout often at the expense of small- and medium-sized companies.
Chaebol have played a key role in boosting South Korea's export-driven economy in recent decades, though they have long been a target of public criticism over their perceived abuse of economic power.
The minister, however, pointed out that most of the criticism of chaebol stems from their wrong business practices, such as delaying payments or demanding excessive discounts from smaller suppliers.
Hong went on to say that conglomerates and small- and medium-sized firms should step up concerted efforts for shared growth.
"People have their own definitions of economic democracy, but it seems the term relates to nurturing the economy by finding balance among different (economic) entities," he said.
The minister also said South Korea's exports are estimated to have logged 'minus' growth in July despite an overall on-year increase in exports in the first half. (Yonhap News)
