Korean conglomerates on Tuesday said they would become more socially responsible by seeking voluntary reform, as they prepared for their first meeting with President Moon Jae-in this summer organized by the Korea Chamber of Commerce and Industry.
The top 15 businesses here agreed to seek ways to expand fair and transparent partnerships with small and medium-sized companies in a meeting hosted by the KCCI amid growing calls for chaebol reform and fair trade.
To restore their reputations, which were hit by last year’s bribery scandal involving a former president, the top businesses said they would voluntarily remove unfair practices by devising their own methods before the government intervenes.
Business representatives attend at a meeting held by Korea Chamber of Commerce and Industry on Tuesday in Seoul. (Yonhap)
When it comes to transactions and management structure, “conglomerates and their affiliates are required to set up their own plans to resolve their own problems,” said KCCI Vice Chairman Lee Dong-geun.
Lee added that the KCCI is not going to make an announcement as it used to do in the past on how much investment or how many new workers businesses plan to hire, often regarded as a barometer of conglomerates’ contributions to the nation’s economy.
The list of representatives included those from Samsung Electronics, Hyundai Motor, SK Group, LG Group, Lotte Group, Posco and Hyundai Heavy Industries.
The meeting was held after Kim Sang-jo, the new chairman of the Fair Trade Commission, urged the nation’s top four conglomerates to voluntarily change their decision-making process to become more transparent and democratic.
Assuring businesses, Kim said the Moon government would not unilaterally push chaebol reform. However, conglomerates should reflect on their management practices, which are often blamed for their nondemocratic processes.
Meanwhile, the vice chairman of the business lobbying group said that the anticipated meeting between President Moon and chaebol tycoons is being planned, but an exact date has not been set yet, citing the planned announcement on Moon’s economic policy and his first summer break.
The KCCI has been serving as a communication channel between the government and businesses after the Federation of Korean Industries, once a prominent business lobbying group, collapsed over its involvement in the scandal that led to the impeachment of former President Park Geun-hye.
By Cho Chung-un (christory@heraldcorp.com)