hankyoreh

By Kim Jin-cheol, staff reporter

Kim Seo-min looked distressed as he knocked back a cup of soju. The television at the corner of the bar was showing news related to Woongjin group filing for court receivership. “I think it is really bad and I feel as if my dream has collapsed.”

As he criticized Woongjin group’s ‘moral laxity,’ he looked disappointed with the fact that success stories of salarymen, which were once rare, have now disappeared. “It used to be like this all the time. Salary man is just a salary man. Just keeping that position is good enough.”

Kim, 41, is just an ordinary citizen. He graduated from a four-year college in Seoul and found a job without much difficulty. After some time dating, he and his partner got married and had a son, then a daughter who are now in middle and elementary school, respectively.

He thought things weren’t that bad. He had thought that if he worked hard he would be able to get by. But as his work years went by, as his kids grew up and as his wife’s hair turned gray, he felt growing anxiety. Having at most 10 years left until he has to retire, Kim is worried about being able to pay for his children’s university tuition when he is already struggling to pay for their private academies and save for his retirement.

“The price of the house keeps falling while I’m struggling to pay the mortgage…”

His anxiety was turning into bitterness. “I thought keeping myself healthy, working as hard as possible and saving as much as I can was the only way, but I don’t think that is all now. There is something that cannot be solved just by trying hard.” He said that ordinary people need more than effort to get by.

“Why would parents nowadays say ‘a kid needs to meet a good grandfather’? Why would they say that now the age of rags to riches is over?” His voice was getting louder. He had not read newspapers or watched the news because he was too busy making a living. But this year, when the issue of chaebol bakery businesses came up, he became interested in ‘economic democratization.’ With the presidential election approaching and everyone talking about this problem, he had to look into this, too.

He said with conviction, “Chaebol are at the center of this kind of problem.” He asked, “Is it normal for a five year old kid having stocks worth millions of dollars? Would they have paid the proper amount of tax for that?”

As of last September, there were eighty-two minors who owned more than one million dollars worth stock. These days, chaebol have the generational transfer of power to their 3rd and 4th generation, and they are getting ready for 4th and 5th generation, too.

If chaebol give their stock to their children little by little, they can evade taxes. That is why there are now more minors who are stock millionaires.

Money isn’t the only problem. It does not merely end with the succession of property, but they take over management of the company. This made Kim feel further deprived. “Most of them are made head of the company despite the fact that they are incompetent. It’s just because of their family ties. They go study abroad with a glut of money they have, and they even study abroad within the country at international schools these days. Then they enter their grandfather’s or father’s company and are promoted up to the executive level without showing much results. It seems a matter of course, but sometimes I feel a surge of anger. Regular people have to worry about getting fired, and being able to work until retirement age while somebody lives like royalty just because he has a wealthy father.”

According to Economic Reform Research Institute (ERRI), a part of People’s Solidarity for Participatory Democracy it takes the head of chaebol family six and half years on average to become an executive while it takes an ordinary employee more than twenty-one years. “Maybe stock rich babies is a story of a different world, but we have to work in the same company and socialize together with executives in their twenties and thirties. Do chaebol families have some kind of special blood?

"I am not denying the capitalist system itself," emphasized Kim. "I’m not saying it’s bad for an intelligent man to work hard and make a fortune that he then legally leaves to his children. But illegal inheritance is what upsets us ordinary people," he said.

"Chaebol CEOs don’t get punished for any of their illegal actions, like embezzling money from the firms, handing over the company’s stocks to their children or raising slush funds to lobby politicians. The bigger problem is that these things happen so often that most people grow accustomed to them."

Since 1990, 10 of the most influential chaebol chairmen were sentenced 23 years in prison altogether. But none of them have actually served all their time. All of them were given suspended sentences on their final judgment and most were granted a special pardon. "No influential people will obey the existing regulations since they know that they will be exempted from punishment," said Kim.

On ‘economic democratization’ Kim said, "I don’t have a detailed understanding of the subject. I’m not even sure whether it has direct influence over me or my family. But at least the society should provide a chance for fair competition and there should be no violation of laws. If that happens, my hard work and my children’s future will hold some value."

He also commented, "If economic democratization is realized, both chaebol and ordinary citizens alike will be punished for their crimes while guaranteed to be rewarded for their hard work. Children will learn by watching these real life examples. Even if economic democratization happens, there will be no abrupt changes in my life. I’ll still be house poor. There will be no decrease in children’s education expenses and I will still be worried about my retirement life. But at least, it would be a world worth living in. Of course, it would be much better if a better welfare system is guaranteed in the longer run-more job security, higher salaries and less worries about kids’ tuition or retirement."

Kim said he has been observing this year’s presidential election with interest despite his distaste for politics. Kim is trying to find a candidate who truly cares about ordinary citizens. "All candidates are talking about economic democratization. I don’t know the specifics of their positions, but there surely needs to be a reformation of the chaebol-centered system. This reformation will eventually lead to more evenly distributed wealth and better living for ordinary people. It’s awkward thinking that using a Samsung Galaxy phone and driving a Hyundai Sonata will only hand wealth to Lee Kun-hee and Chung Mong-koo. Unfairness and injustice should disappear from this society. This world should be a place where one can reap as much as one has sown. Unfairness has to be eradicated."

Regarding Woonjin Group’s recent situation, Kim said, ”Ordinary people’s last hope has been betrayed ridiculously. If there seems to be no hope in the presidential election this year, I will prepare a backup plan. I heard moving away is a common trend these days. Although the US or Australia is out of my league, I might consider Jeju Island or the country side as my last resort.“ Putting down his soju cup, Kim’s face was still full of mixed feelings.

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