There should be right decision based on principles
Many Japanese economists have said in the past that one of the main reasons why the Korean economy was able to develop so quickly was because of fast decisions made by the owners of Korean conglomerates.
While many large Japanese companies were run by professional managers, who were reluctant to make important decisions on their own, Korean companies such as Samsung and LG were able to move rapidly in terms of investments and other plans.
This, some say, has allowed the conglomerates to play a major role in the development of the economy.
However, others accuse them of making all the profits and leaving everyone else out to dry ― such as taking advantage of subcontractors and irregular workers. But the reality is that the economy would not be what it is today without them.
As such, there have apparently been close ties among the government, political parties and conglomerates in setting up policies and making economic decisions.
And then things turned around. Since the Roh Moo-hyun administration, there have been moves to regulate the activities of chaebol owners who had been regarded as "untouchables."
During the Lee Myung-bak administration, more than a few conglomerate owners stood trial for everything from fraud to embezzlement, something that would have been unimaginable in the past.
Some of them have been handed down prison terms; and owners like SK Chairman Chey Tae-won are still in jail, along with his brother Jae-won. Others like Hanwha Chairman Kim Seung-yeon and CJ Chairman Lee Jae-hyun have been in and out of prison, with Kim slowly making a comeback to his former office.
Amid these circumstances, the government and political parties have carefully been suggesting the possibility of providing parole for some of the chaebol owners in prison.
Kim Moo-sung, chairman of the ruling Saenuri Party, said such an initiative would be necessary to boost the economy at a time when momentum is beginning to move in a positive direction. Even Rep. Park Jie-won of the main opposition party spoke about the need to pardon those who have paid the price for their wrongdoings.
Deputy Prime Minister and Finance Minister Choi Kyung-hwan for his part said that he strongly proposed to President Park Geun-hye the need to offer leniency to chaebol owners who are behind bars.
While the environment is such that most parties concerned are eager to get chaebol owners back behind their desks, negative issues have been popping up. For one, people such as Cho Hyun-ah, the former vice president of Korean Air, have been creating headlines, stirring up negative feelings about conglomerates.
But the reality is that some of the major decisions concerning investments ― the top 10 conglomerates are sitting on 125 trillion won in cash ― are not being made because of the delicate situation involving their owners.
The decision is up to Cheong Wa Dae which is currently being rocked because of the leakage of information by its staff. Whether or not President Park will mention the predicament of chaebol owners in prison during her New Year speech is unclear. We can only hope that the parties involved will make the right decision based on principles.
Many Japanese economists have said in the past that one of the main reasons why the Korean economy was able to develop so quickly was because of fast decisions made by the owners of Korean conglomerates.
While many large Japanese companies were run by professional managers, who were reluctant to make important decisions on their own, Korean companies such as Samsung and LG were able to move rapidly in terms of investments and other plans.
This, some say, has allowed the conglomerates to play a major role in the development of the economy.
However, others accuse them of making all the profits and leaving everyone else out to dry ― such as taking advantage of subcontractors and irregular workers. But the reality is that the economy would not be what it is today without them.
As such, there have apparently been close ties among the government, political parties and conglomerates in setting up policies and making economic decisions.
And then things turned around. Since the Roh Moo-hyun administration, there have been moves to regulate the activities of chaebol owners who had been regarded as "untouchables."
During the Lee Myung-bak administration, more than a few conglomerate owners stood trial for everything from fraud to embezzlement, something that would have been unimaginable in the past.
Some of them have been handed down prison terms; and owners like SK Chairman Chey Tae-won are still in jail, along with his brother Jae-won. Others like Hanwha Chairman Kim Seung-yeon and CJ Chairman Lee Jae-hyun have been in and out of prison, with Kim slowly making a comeback to his former office.
Amid these circumstances, the government and political parties have carefully been suggesting the possibility of providing parole for some of the chaebol owners in prison.
Kim Moo-sung, chairman of the ruling Saenuri Party, said such an initiative would be necessary to boost the economy at a time when momentum is beginning to move in a positive direction. Even Rep. Park Jie-won of the main opposition party spoke about the need to pardon those who have paid the price for their wrongdoings.
Deputy Prime Minister and Finance Minister Choi Kyung-hwan for his part said that he strongly proposed to President Park Geun-hye the need to offer leniency to chaebol owners who are behind bars.
While the environment is such that most parties concerned are eager to get chaebol owners back behind their desks, negative issues have been popping up. For one, people such as Cho Hyun-ah, the former vice president of Korean Air, have been creating headlines, stirring up negative feelings about conglomerates.
But the reality is that some of the major decisions concerning investments ― the top 10 conglomerates are sitting on 125 trillion won in cash ― are not being made because of the delicate situation involving their owners.
The decision is up to Cheong Wa Dae which is currently being rocked because of the leakage of information by its staff. Whether or not President Park will mention the predicament of chaebol owners in prison during her New Year speech is unclear. We can only hope that the parties involved will make the right decision based on principles.
