Fair Trade Commission on attack on Samsung management structure reform
Cho Eun Ae | eunae@ | 2018-05-11 10:50:50

: Kim Sang-jo (second left) The head of the Fair Trade Committee is speaking at a policy meeting held at the Korea Chamber of Commerce and Industry on May 10. By Yunhap News

Kim Sang-jo, head of the Fair Trade Commission, stated, "There are many methods to reform the Samsung Group`s governance structure. However, the government cannot propose it. After all, Lee Jae-yong should make his own decision." The business community is concerned that the government`s policy may lead to unintended costs.

Kim also said, "On May 10, the 10th Chamber of CEOs in the 20th Chamber Lounge of the Korea Chamber of Commerce and Industry held a meeting with a group of professional managers, mentioning," Samsung`s ownership structure is not sustainable and Samsung knows it well.” Kim pointed out, "It was necessary to sell Samsung Life`s electronic stake in the report at the time of the economic reform agenda. The overall cost of the Korean economy will increase as the decision is delayed." Kim said that the chaebol policy direction will be "balanced so that it does not fall into a certain angle," and explained the process and contents of the reorganization of the Fair Trade Act. Chairman Kim said, "Among the contents, there is a direct link to the ownership structure and trading practices of large corporations such as holding companies, public corporations, and private companies." We will actively participate if the business proposes a discussion. "

He also called for "unacceptable work" to seriously hinder fair economic growth and innovation growth and urged them to improve on a preemptive basis. Furthermore, in the case of improving corporate governance, Chairman Kim advised that "controlling shareholder (total number) work should stop holding shares in non-listed and unlisted subsidiaries."

The business community, meanwhile, cautioned that reforms could lead to additional costs, which could lead to a decline in productivity. In fact, Kim met with reporters after the meeting and said, "We need change, but if we fix the framework as one, there was a concern among executives that the specific circumstances of each group could not be reflected and unintended costs could arise. I have said that changes and efforts are needed to take into account the specific circumstances of the group." Among the top 10 group business executives attended the meeting, including vice chairman Kim Jong-dong, vice chairman Kim Jeong-dong, vice chairman Yun Jeong-keun, vice chairman Jeong Gyeong-hyun of Hyundai Motor.

By Cho Eun Ae eunae@

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