Samsung Targeted in Korean Government Report
Concerns over the continued clout Korean large business groups continues to surface. In a recent Chosun Ilbo editorial article Samsung was the subject of concern.
The editorial notes cites that a senior researcher at the Korea Institute of Finance, Lee Dong-gull, has contended the principles and constitutionality of the country's financial industry are being shaken by the excessive influence of a particular mammoth chaebol. Specifically the new report targets the Samsung Group. Senior researcher Lee, who served as vice chairman of the Financial Supervisory Commission (FSC) accused the commission of failing to tackle Samsung's ongoing breaches of regulations.
In one example of concern the Samsung Card, one of the group's subsidiaries. Lee notes that Samsung breached the law by not seeking FSC approval for holding a 25.6 percent stake in Everland, the Samsung Group flagship and defacto holding company.
Why?
Essentially, Samsung clout in Korea is massive. For example, the group accounts for 22 percent of the country's exports, 8 percent of tax revenues, 23 percent of stock market capitalization, and 15 percent of sales and 25 percent of profits by listed corporations.
On another level, I see the report as indicative of Korea's love-hate relationship with Korean big business. Firms like Samsung, Hyundai, LG, and SK have launched South Korean in the global arena and generate massive export revenue for the Korean economy. Nevertheless, many feel they large conglomerates act without transparencyy, thwart competition among smaller fledgling firms, and openly circumvent government regulations.
The editorial notes cites that a senior researcher at the Korea Institute of Finance, Lee Dong-gull, has contended the principles and constitutionality of the country's financial industry are being shaken by the excessive influence of a particular mammoth chaebol. Specifically the new report targets the Samsung Group. Senior researcher Lee, who served as vice chairman of the Financial Supervisory Commission (FSC) accused the commission of failing to tackle Samsung's ongoing breaches of regulations.
In one example of concern the Samsung Card, one of the group's subsidiaries. Lee notes that Samsung breached the law by not seeking FSC approval for holding a 25.6 percent stake in Everland, the Samsung Group flagship and defacto holding company.
Why?
Essentially, Samsung clout in Korea is massive. For example, the group accounts for 22 percent of the country's exports, 8 percent of tax revenues, 23 percent of stock market capitalization, and 15 percent of sales and 25 percent of profits by listed corporations.
On another level, I see the report as indicative of Korea's love-hate relationship with Korean big business. Firms like Samsung, Hyundai, LG, and SK have launched South Korean in the global arena and generate massive export revenue for the Korean economy. Nevertheless, many feel they large conglomerates act without transparencyy, thwart competition among smaller fledgling firms, and openly circumvent government regulations.
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