hankyoreh

President Moon Jae-in talks with the leaders of South Korea’s four leading conglomerates at the Blue House on Wednesday. From left are LG Group Chairman Koo Kwang-mo, SK Group Chairman Chey Tae-won, Hyundai Motor Group Chairman Chung Eui-sun and Samsung Electronics Vice Chairman Kim Ki-nam. (Blue House photographers’ pool)

South Korean President Moon Jae-in had a luncheon at the Blue House on Wednesday with representatives of South Korea’s four main business groups: Samsung, Hyundai Motor, SK and LG. It was the first time he had met for a roundtable with those groups.

With the current feud between the US and China and other rapid changes to the global economic environment, we are at a moment that urgently calls for close cooperation between the government and business. It is a positive thing when the president and businesspeople candidly share their views on the economic realities we confront.

But the representatives of the four groups acted inappropriately when they used the meeting as an occasion for proposing a pardon for Samsung Electronics Vice Chairman Lee Jae-yong. Even if we grant that businesses play a more important role now than ever before, the idea of equality before the law is a basic principle of democracy and the rule of law that must be upheld.

Moon said that “excellent results were achieved at [last month’s] South Korea-US summit thanks to the support of the four groups during my visit to the US.”

It was a message of thanks to the four groups for their announcement of plans for 44 trillion won (US$38.98 billion) in investment in areas such as semiconductors, batteries and electric vehicles, which helped usher the summit to a successful conclusion. South Korea and the US reached an agreement toward comprehensive cooperation, including the establishment of global supply chains for high-tech items in areas such as semiconductors, batteries and EVs.

For South Korean businesses, the US-China feud and global supply chain changes represent both a challenge and an opportunity. As major economies around the world work to overcome the pandemic, cooperation between governments and businesses has been intensifying.

But South Korea also has to concern itself with the issues of domestic investment and reduced opportunities for job creation. Moon shared a message of encouragement that also read as a plea, stressing that “if large corporations lead the way, SMEs and middle-market partner businesses can advance alongside them and more components, materials and equipment will be exported, creating more domestic jobs.”

Hyundai Motor Chairman Chung Eui-sun responded by saying he would “create more opportunities.” We need to ensure that this pledge of joint effort by the government and businesses amounts to more than just talk.

SK Chairman Chey Tae-won asked Moon to consider a proposal for Lee Jae-yong’s pardon on behalf of five business organizations. Samsung Electronics Co-Vice Chairman Kim Ki-nam stressed that “investment decisions on semiconductors and other areas need to be made, and that can be accomplished more quickly when the group head is there.”

Previously, the Korea Chamber of Commerce and Industry and four other business organizations requested a pardon for Lee, and similar requests have also come from the religious community. Opinion surveys show that six out 10 South Koreans support a pardon.

If we consider how angry the South Korean public was over Lee’s illegalities at the time of the government influence-peddling scandal, these findings seem to suggest feelings of concern about the economy and businesses.

But we can only reiterate that a pardon for Lee should be addressed with great caution, as it would be damaging to the principle of equality before the law.

In a press conference held the same day in front of the Blue House, civic, social and labor groups such as the Citizens’ Coalition for Economic Justice, People’s Solidarity for Participatory Democracy, the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions stressed that they “oppose the abuse of a pardon or parole of Lee Jae-yong as a political repayment for economic investment, or as a way of legitimizing corporate crimes by a chaebol group based on sheer economic logic.”

In another press conference that day, Democratic Party leader Song Young-gil shared an apology for a scandal involving former Minister of Justice Cho Kuk and pledged to “set right the values of fairness and justice.”

Lee is also currently facing trial over charges related to the illegal merger of Samsung C&T and Cheil Industries and allegations of accounting fraud. Both sets of charges conflict with the idea of management emphasizing “Environmental, Social and Corporate Governance,” which has become a major theme in the business world.

Responding to the pardon proposal, Moon said he “understand[s] the difficulties,” adding that they were “many aspects that the South Korean public agrees about.”

“I am well aware that the economy is operating in a different way from before, and that it demands a bold role from business,” he continued.

His remarks sounded a different note from the Blue House, which had previously said that the calls for a pardon had “never been considered.” It’s enough to raise concerns that Moon might be leaning in the direction of a pardon.

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