Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
KNOC, KOCOAL chiefs ordered to quit
By Park Jae-hyuk
KNOC CEO Kim Jung-rae
By Park Jae-hyuk
KOCOAL CEO Baek Chang-hyun
KIDP CEO Jeong Yong-bin
The government is considering dismissing the heads of state-run enterprises embroiled in alleged recruiting irregularities unless they voluntarily step down, sources within the government said Monday.
Rumors are going around that the Ministry of Trade, Industry and Energy urged some of the chief executives to resign. These include Korea National Oil Corp. (KNOC) CEO Kim Jung-rae, Korea Coal Corp. (KOCOAL) CEO Baek Chang-hyun and Korea Institute of Design Promotion (KIDP) CEO Jeong Yong-bin.
According to KIDP on Monday, Jeong already announced his resignation a few days before the Board of Audit and Inspection (BAI) announcement earlier this month on the alleged corruption of the chief executives of public firms.
Kim allegedly forced subordinates to employ his friends as senior managers. Baek had been suspected of hiring a former CEO’s relative and an employee’s daughter without due process. Jeong allegedly allowed a former CEO’s daughter and a friend’s daughter to pass the document screening without assessment.
The BAI demanded the ministries in charge of the public institutions take strict measures. It also asked for investigations of the former CEOs and executives involved in the scandal.
The law allows the ministers to dismiss directors of public institutions or suggest to the President to dismiss them if they are derelict of their duties. Trade Minister Paik Un-gyu can dismiss Jeong, who is the chief of a quasi-government institution. In the cases of Kim and Baek, Finance Minister Kim Dong-yeon can ask President Moon Jae-in to dismiss the two chief executives of these public enterprises.
Baek is reportedly considering resigning from his post.
However, KNOC CEO Kim has strongly opposed resigning from his post, dismissing the government forcing him to step down as a rumor.
“The government can exert its own authority in changing the heads of public firms,” he wrote on Facebook. “Why does the government make me a shameless person, but wields its own authority?”
Since the BAI’s announcement, the former CEO of Hyundai Heavy Industries has claimed he and his company did nothing wrong. The trade ministry also denied the rumor it asked the CEOs to step down.
Considering that the ministry aims to punish those mired in scandal, however, the CEOs will likely have no choice but to accept the charges of their alleged misconduct.
Meanwhile, Kangwon Land, a state-run casino operator facing multiple personnel scandals, apologized Monday for its former CEO recruiting interns unfairly in 2013.
“CEO Ham Seung-hee, who took office in November 2014 after the scandal, has taken strict measures against corruption, adopting a zero tolerance policy,” the company said in a press release.