By Baek Byung-yeul
President Moon Jae-in has finally offered an olive branch to Samsung Group, from which he has been keeping his distance, in the name of eradicating the “deep-rooted evils” of the former Park Geun-hye administration.
This is the first time for President Moon to attend an event organized by Korea's largest business group and meet its leader, Vice Chairman Lee Jae-yong.
On Monday, Moon visited Samsung's mobile factory in the northern Indian city of Noida.
It also marked the first time Moon met the Samsung heir who resumed his work since he was given a suspended sentence in February for bribing former President Park Geun-hye in February.
Choeng Wa Dae told reporters Moon's face-to-face meeting means nothing but encouraging Samsung which has been in fierce competition with Chinese phone makers in the Indian market, but financial circles expect Moon's meeting with Lee could be a positive signal for the country's business operators.
“There was huge welcoming movement in Moon's meeting with Lee,” said a high-ranked executive at one of Korea's largest business associations.
“Korea's conglomerate have been experiencing the worst time. Business tycoons are making headlines for personal wrongdoings and the current administration has put pressure on them for conglomerate reform.
“In such situation, Moon's meeting with the Samsung scion can give a positive signal as it can be presumed the Moon administration may implement measures for both economic growth and income-led growth,” the executive said.
However, another expert said Moon and Lee's face-to-face meeting doesn't mean the current administration would ease up on reforming the conglomerate.
“There has been speculation that the meeting indicates Moon would ease his pledge for conglomerate reform, but that is stretching it,” said Lee Suk-geun, an endowment professor at Sogang University and former presidential economic adviser.
“However, we have seen the same kinds of scenes during past administrations. The Park Geun-hye administration also formed the mood against the conglomerates of the country during its early stage, but after one or two years, the administration eased its pressure on them due to worsened business circumstances.
“It remains to be seen whether the Moon administration would keep underlined President Moon's economic slogan for a fair economic order.”
Samsung Electronics remained cautious over Moon's visit to the Samsung factory and meeting with Lee, declining to give further comment. The Samsung heir was released from prison in February, 353 days after he was indicted for bribing former President Park Geun-hye.
The Noida plant set up by Samsung Electronics is the world's largest mobile factory. The factory is expected to produce 10 million mobile phones per month by 2020. Samsung has two manufacturing plants, five R&D centers and one design center in India. Samsung has been a leader in the mobile phone market there.