'Chaebol reform is road to advanced nation'

Rep. Park Young-sun of the main opposition Minjoo Party of Korea speaks during an interview with The Korea Times at the National Assembly on May 25. / Courtesy of Park Young-sun's Office

By Kim Hyo-jin

Park Young-sun, a four-term lawmaker and member of the main opposition Minjoo Party of Korea (MPK), is spearheading a legislative drive to uproot unfair business practices perpetrated by family-run conglomerates, or chaebol.

Nicknamed the “chaebol sniper,” Park has submitted a series of bills aimed at improving the structure of corporate governance by limiting the power of owners and their appointed family members.

Park says reforming how chaebol are run is a prerequisite for the nation to become an advanced country.

“Korea is monopolized by chaebol, which produce over 70 percent of commodities. Small- and medium-sized firms are marginalized,” she told The Korea Times.

“It’s like we’re stuck in a bottleneck. To evolve into an advanced country, we need to adopt and share rules for justice.”

In the 19th National Assembly, she proposed a bill aimed at confiscating profits made through breaches of trust or embezzlement of funds exceeding 5 billion won.

The bill appeared to target Samsung Chairman Lee Kun-hee’s three scions ― Samsung Electronics Vice Chairman Lee Jay-yong, Hotel Shilla President Lee Boo-jin and Cheil Industries President Lee Seo-hyun ― and his former right-hand men Lee Hak-soo and Kim In-joo who reaped illegal profits by issuing warrant bonds for Samsung SDS at half the market value in 1999.

She pushed for the bill, insisting the confiscation of funds be carried out to redress the injustice of corporation heads swelling their bank accounts while the majority of ordinary people earnestly pay their taxes.

Park also sponsored a revision bill to the Fair Trade Act aimed at regulating public foundations affiliated to conglomerates to prevent them from holding voting rights. She argued tax exemptions given to these foundations have been abused by conglomerate owners.

“Expedience has allowed chaebol owners to pass their fortunes on to successors intact. And it got worse while the ruling party under the previous Lee Myung-bak and incumbent Park Geun-hye administrations slipped through the bills backing their deviant practices,” Park said. “I will look through them and seek revisions in the 20th Assembly.”

When asked how probable she thinks it is that the pending chaebol reform will pass the Assembly, she replied, “It will happen when the President and Assemblymen have the same purpose.”

She stressed that the upcoming presidential election is a crossroads that will decide whether the country can gain momentum for growth or not.

“This is our last chance. If the next government still devises policies that favor the conglomerates, we will be degraded to a South American economic model.”

Potential chairwoman

Parties are now getting ready for the presidential election in December 2017. Following the unexpected general election wins in April 13, expectations are higher than ever that an MPK victory in the presidential election is possible.

The party is expected to make “economic democratization” a key slogan once again as it did during the general election campaign.

Political watchers say that Park, the lawmaker who fought against monopolization and unfair practices by the conglomerates, could achieve synergy if she becomes the party’s leader.

The TV journalist-turned-politician has a high profile and holds a leading position in the party. She served as the floor leader and acting chairwoman in 2014 and a member of the emergency planning committee, the party’s interim leadership, during the run-up to the general election.

Park has yet to confirm that she will run in a chairmanship race scheduled for late August; but the importance of the upcoming presidential election is foremost in her thinking.

“I’m mulling over what will be the best way to achieve a presidential election victory,” she said, describing the chairmanship race as a “prelude” to the presidential election.

“We need to put up a leader who can assure the public that the MPK can be a competent ruling party. To do so, he or she should be able to convey a balanced view, neither too conservative nor progressive.”

Park believes that for a presidential election victory, the openness of the primary is as important as the leader maintaining a neutral political orientation.

“Some have said that preparations for the MPK primary election are tainted by a narrow mindset. And I think we should accept the criticism,” she said, referring to the atmosphere in which party members are exclusively advocating in favor of former Chairman Moon Jae-in as the potential presidential candidate.

She insisted that the primary should become a “melting pot” to draw attention from the public and gain further momentum for the presidential race.

“We should be open to anyone who is considering a presidential bid. Open competition between multiple potential candidates will provide us with the competitiveness in the final contest.”

Confident diplomacy

Park has been critical of the government policies toward North Korea. She said they have been based on empty rhetoric and the measures against the North’s provocations were the outcomes of “emotional responses” and a “lack of confidence.”

“President Park Geun-hye enthusiastically banged the drum about trust-building process on the Korean Peninsula during the 2012 presidential campaign and the Unification Bonanza in the early stages of her presidential term. Now, I’d like to ask her what their substantial content was,” she said.

She regards the closure of the inter-Korean Gaeseong Industrial Complex and the Seoul-Tokyo sex slavery deal as failed diplomatic moves.

The joint complex, established in 2004, was closed down in February in response to the North’s fourth nuclear test and its long-range rocket launch earlier this year. The shutdown of the last remaining symbol of inter-Korean cooperation prompted a backlash from the opposition camp.

The sex slavery deal has also been criticized by the opposition bloc and the victims of Japan’s wartime sexual enslavement for failing to obtain acknowledgement from Japan to accept legal responsibility for the issue and for being made in a rush without proper consultation with the victims.

“In both cases, the government seemingly made decisions under the United State’s influence,” Park said. “It was a self-made mistake. While leaning toward Beijing, Seoul must have faced a backlash from Washington.”

Park said that Seoul should seek leverage by holding dialogue with the North.

“The key is inter-Korean dialogue. It will reduce maneuvering room on the Korean Peninsula for the bigger powers,” she said.