'Chaebol sniper' picked to head anti-trust regulator

By Yoon Ja-young

Prof. Kim Sang-jo

President Moon Jae-in tapped a progressive professor nicknamed “chaebol sniper” as head of the country’s anti-trust agency, Wednesday.

Moon nominated Kim Sang-jo, an economics professor at Hansung University in Seoul, as chairman of the Fair Trade Commission (FTC), according to Cheong Wa Dae.

The nomination signals the administration’s strong drive to reform conglomerates which were involved in the corruption scandal that removed former President Park Geun-hye from office.

“President Moon tapped Prof. Kim because he believes Kim is the right person to reestablish the relationship between small and big companies,” said Cho Hyun-ok, the senior presidential secretary for personnel management.

Cho said the nomination of the FTC chairman reflects Moon’s determination to create a fairer market environment in order to revitalize the livelihood of ordinary people.

Kim also told reporters that he will do his utmost to establish a fairer business environment for small- and medium-sized companies.

“I think the establishment of a fairer market environment is essential for the revitalization of the economy,” Kim said.

Born in Gumi, North Gyeongsang Province, the 55-year-old majored in economics at Seoul National University.

He got a Ph.D. in economics at the same school.

After starting work as an economics professor in 1994, he began leading small shareholder activism following the Asian financial crisis.

Kim has been calling for structural reform of corporate governance structure at conglomerates.

He also participated in the People’s Solidarity for Participatory Democracy, the country’s leading NGO, pushing for a consensus on the need for chaebol reform.

The professor joined Moon’s camp during the presidential election, devising policies related to chaebol reform and anti-trust regulations.

While meeting with reporters, he said that a bureau in charge of investigating chaebol should be re-established to help small businesses suffering from their power abuse.

The bureau was set during the late President Kim Dae-jung government, but was scrapped in the following administration of President Roh Moo-hyun amid demand for deregulation by conglomerates.

In a media interview, the professor said that it was his idea to focus on the biggest conglomerates. President Moon pledged that he would focus on reform of the country’s top four chaebol, Samsung, Hyundai Motor, SK and LG. Pointing out that it is unrealistic for the FTC to regulate over 3 million businesses, Kim has said that strengthening supervision on the top four chaebol will lead to changes in other conglomerates as well.

He also supports revising the Commercial Law to introduce diverse measures to restrict chaebol owner families from abusing their power in management. By strengthening the rights of small shareholders and the National Pension Fund, which holds a major stake in key conglomerates, he believes the market will work more efficiently.

The revised law is likely to lead to the introduction of an electronic voting system and voting through mail, as well as the restriction of large shareholders’ rights in selecting auditors. The multiple derivatives suit, which enables shareholders of a mother company to file lawsuits against executives of affiliates, is also in the reform plan.