hankyoreh

By Hwang Joon-bum　
　　
A distressing undercurrent has continued to develop between the Cheong Wa Dae (the presidential office in South Korea or Blue House) and Samsung. A Cheong Wa Dae official said Sunday that they have a love-hate relationship with Samsung. Another key official recently said they have not finished their reckoning with Samsung. This means the subtle war of nerves between the two sides over negative comments made by Samsung Electronics Chairman Lee Kun-hee about government economic policy and possible disagreement about the active use by pension funds of their stockholders rights is still ongoing.
The expression that launched this clash came on March 10, when Lee Kun-hee said the government’s economic policy deserved nearly a failing grade. When Lee made his comments about the government’s economic performance, Cheong Wa Dae advisors were outraged, saying they would not stay put. A key Cheong Wa Dae official said, “Lee would not have made his statement if he did not think the Republic of Korea was actually the ‘Republic of Samsung.’”
Samsung immediately moved to put out the flames. A high-ranking Samsung official called a high-ranking Cheong Wa Dae official to explain that Lee did not give out praise very often, and that his comments actually meant the government was doing well. The Cheong Wa Dae, however, put strong pressure on Samsung, saying their explanation did not make sense.
The high-ranking Cheong Wa Dae official called Cheong Wa Dae again prior to Lee’s departure from the country on March 31 and asked if Lee might explain while on his trip, but wondered whether that would be necessary as the issue had settled down. This angered a Cheong Wa Dae official, who shot back saying the matter had not settled down. Ultimately, on his trip, Lee directly explained that he meant that economic growth had done well, but his meaning had been mistakenly conveyed.
The Cheong Wa Dae reportedly feels wounded by Samsung. The Cheong Wa Dae also has a number of complaints. These primarily include the fact that President Lee Myung-bak has since the beginning of his term espoused business-friendly policies, relaxed regulations and even supported exports with a high-exchange rate policy, but Samsung and other major corporations have amassed trillions of won in cash while being remiss in creating jobs or investing.
The Cheong Wa Dae, however, remains unable to push Samsung.
A Cheong Wa Dae official said, “We may not like Samsung, but the reality is that we cannot ignore their power and level of contribution, and this friction is not good.”
For the Lee Myung-bak administration, which has limited power, cooperation with Samsung, which has close to unlimited power, will remain absolutely essential to produce late-term economic results.
　　
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