hankyoreh

Lee Jae-woong, the former CEO and founder of Daum Communications, had harsh words for the Federation of Korean Industries, which asked for leniency in the prosecutors' investigation of SK chairman Chey Tae-won. Lee criticized the group for attempting to shelter Chey, questioning the connection between "entrepreneurial spirit" and improprieties such as breach of trust and embezzlement. His comments are absolutely warranted, and the FKI should reflect more deeply on them given that they come from another entrepreneur.
In late 2011, the FKI sent a petition to prosecutors asking for leniency in their investigation of Chey, who is suspected of embezzling large sums of money while investing in futures. The organization asked the prosecutors to go easy on the SK chairman in order to avoid hurting "entrepreneurial spirit," arguing that even an indictment without detention could have a negative impact on the South Korean economy. On Jan. 5, prosecutors said that the crime was perpetrated through collusion by Chey and his younger brother Chey Jae-won, the SK Group's executive vice chairman, but while they arrested Chey Jae-won, they decided to indict Chey Tae-won without detention. While there is no way of knowing what part, if any, the FKI petition played in this, prosecutors did say they considered the potential effect on the group's business activities and the economy.
The same calls for legal leniency in the name of protecting the economy have been voiced by FKI every time some impropriety by a conglomerate family has surfaced. Petitions were circulated at the time of slush fund scandals involving Samsung chairman Lee Kun-hee and Hyundai chairman Chung Mon-koo, and the group asked for leniency based on potential harm to company performance and the national economy when Hanwha chairman Kim Seung-yeon was being investigated for an act of physical violence. It has likewise asked for pardons on the same grounds when company owners have faced the judicial system.
This is not something that can simply be dismissed as the actions of an interest group speaking for its member companies. Not only does the FKI have more influence than any other group, but the argument is so limp that it borders on obstinacy. Repeatedly, we have seen improprieties by group owners causing great suffering not only to companies but to the national economy. The FKI should be showing the kind of rationality and responsibility appropriate to a group speaking for the business world, not working to impede law and order based on a sense of privilege. It certainly does stand in stark contrast with the way the group has called for strict enforcement of the law and other hard-line tactics for labor disputes and struggles for survival rights.
Chey Tae-won was granted a special pardon in 2008 after being sentenced to time in jail by the Supreme Court for large-scale accounting fraud in 2003. Now he is suspected once again of embezzling company money in what is being called a typical example of moral hazard and abuse of authority. The prosecutors should be investigating this matter in strict fairness.

Please direct questions or comments to [englishhani@hani.co.kr]