'Chaebol reform should be predictable': new FTC chief
By Yoon Ja-young
The new chief of the Fair Trade Commission (FTC) said the government should not try to reform chaebol in one big push.
“I told President Moon Jae-in and Cheong Wa Dae that the reform of conglomerates should be different from reform of the prosecution since there are many stakeholders. It should be done in a consistent and predictable way, based on detailed examination and a rational plan,” FTC Chairman Kim Sang-jo told reporters Wednesday.
The former economics professor who has dedicated himself to shareholder activism and chaebol reform took office without the confirmation of the National Assembly. The opposition parties opposed him, but Cheong Wa Dae went ahead with the appointment Tuesday citing public opinion that Kim, nicknamed the “chaebol sniper,” was the right person to reform the country’s unfair business practices.
Since his nomination, however, Kim has not spoken out about chaebol reform.
“The President told me and presidential chief of staff for policy Jang Ha-sung to co-ordinate with each other and to execute what we have researched. The President stressed that we should show that the reform creates new growth momentum for businesses instead of hampering them,” he said.
Jang and Kim have been the two main pillars of the country’s activism to reform conglomerates, and their appointments drew much attention as chaebol dominate the economy.
“The National Assembly is not likely to quickly approve reform-related revisions,” Kim said, acknowledging that seeking understanding from lawmakers and coordinating with them was essential.
“I tended to speak conclusively and be too convinced about my beliefs. Now as FTC chief, I should not be like that,” he said, adding he will be more sincere in his attitude and prepare to seek cooperation.
In an inauguration speech, he also vowed to protect small and weak players in the market.
“Of course, the fair trade act aims at protecting competition, not competitors. However, society is also demanding the FTC protect competitors, especially those who are economically and socially weak.”
In other developed countries, the antitrust regulator usually deals only with issues such as monopolies, approval of corporate mergers and restricting cartels, Kim said.
“In developed countries, the antitrust regulator does not need to intervene in areas where the two players are making contracts on equal terms,” he said. In Korea, however, the weaker players have to accept unfair trade practices, pressured by bigger players which have huge bargaining power, he added.
He noted that if the FTC fails to protect the weaker players in the market and meet social demands, there will be mounting criticism of the agency and himself.
He also said fair competition is related to job creation, which is the biggest priority for the Moon administration.
“If the market fails to achieve fair distribution in the first place, it is difficult to solve the problem of economic polarization by distributing outside the market,” he said, stressing the significance of FTC leadership for fair competition.