Ed Tycoon-bashing

It’s necessary to gauge anti-corporate sentiment

Business leaders have become political footballs at the National Assembly on the back of rising anti-corporate sentiment. The National Assembly sometimes abuses its hearings to humiliate CEOs. Tycoons have yet to gauge the anti-corporate sentiment.

Hur Chang-soo, chairman of the Federation of Korean Industries, a mouthpiece for conglomerates, recently hit out at the National Assembly for seeking to scrap President Lee Myung-bak's tax-cut plan. He also expressed the view that populist programs, including free school lunches and the halving of college tuition, might lead to an increased tax burden.

Sohn Kyung-shik, chairman of the Korea Chamber of Commerce and Industry, expressed similar concerns over the populist programs.

The National Assembly's attempt to call in Cho Nam-ho, the chairman of the Hanjin Heavy Industries and Construction, the nation’s fifth largest shipyard, did not materialize as he slipped out of the country on an alleged business trip. Pro-labor lawmakers are angry over Hanjin’s firing of 170 workers while increasing the wages of executives. Whether the decision was right or wrong, it was a management decision. Labor disputes should be solved within individual companies, not at the National Assembly.

A National Assembly subcommittee also asked the FKI chairman to appear at its hearing.

Although lawmakers enjoy freedom of speech, they have low tolerance for other public figures speaking out. Prominent figures should have the same privilege as lawmakers in expressing their views. Business organizations exist to promote the interest of member companies.

But tycoons, including the FKI’s Hur, should ponder why their logical statements sometimes draw jeers from legislators, and sometimes the public. Owners of conglomerates seldom command respect here. Anti-corporate sentiment has reached a dangerous level.

Two terms seem to describe best the public sentiment of business leaders ― robber barons and practitioners of greedonomics (greedy economics).

Tycoons are sometimes engrossed in creating new companies mostly for avoiding inheritance and gift taxes for their offspring. They stress ethical management and co-prosperity with small- and medium-sized companies. But they get notoriety for squeezing lower prices from subcontractors. Large enterprises are enjoying an unprecedented business boom at a time when SMEs are struggling. They encroach upon business segments normally reserved for SMEs and owners of back alley mom-and-pop stores.

It is true that large enterprises have nearly monopolized the fruit of the recent economic growth. Family members of the top 10 conglomerates have seen the market value of their combined stocks rise by 148 percent in four years.

The OECD points out the seriousness of the income inequality here. A widening polarization emboldens extremists to raise their voices ― a threat to liberal democracy and free-market capitalism.

The National Assembly should be careful in summoning private citizens, including business leaders. Lawmakers should not exploit parliamentary hearings to debase their guests, including the FKI chairman. At the hearing, the chairman should be able to express his views on an equal footing with lawmakers. Tycoons should know they may continue to be a target of public cynicism unless they end mercantilism.