South Korea’s leading conglomerates over the weekend prepared to go into contingency mode after the country’s parliament passed a bill to impeach its president Friday.

Major businesses are planning to postpone or execute in a conservative manner important investment and restructuring plans for next year until the nation’s Constitutional Court announces its ruling on the impeachment bill, which is expected to take six months at the longest.

December is usually a crucial month for most companies to set their business goals for the following year and carry out personnel reshuffles, but many of them have remained silent due to the grown uncertainties in the political circles.


Instead of proposing new goals, major businesses say they are taking contingency plans in preparation against possible fallouts from future political development.

Samsung Group, the country’s No.1 family-run business, seems to be on alert especially after its heir apparent Lee Jae-yong proclaimed the disbandment of the group’s future strategy office control tower at the parliamentary hearing last Tuesday.

“Things are murky after the hearing,” said an employee at Samsung Electronics. “Regular reshuffles are being held, and we don’t know what will happen in the next few weeks.”

The group was going to have a presidential-level reshuffle early this month, but it has been put off for an unknown period of time due to the parliament grilling.

Samsung Electronics is forecast to hold executive-level meetings on global strategies for each business unit between Dec. 19 and 21 as planned, but nothing as of yet has been confirmed on personnel shake-ups or the breakup of the strategic planning office.

Hyundai Motor Group hopes to carry out its year-end reshuffle by the end of December as usual, but the plan may also be held back for a while, according to the group.

“Heads of overseas sales departments are scheduled to hold meetings on next year’s goals at the end of this month,” said a spokesman at Hyundai Motor. “Because uncertainties are high both at home abroad, we would set conservative goals, while carefully monitoring market conditions.”

SK Group is expected to execute the transfer of members of its workforce this week at the earliest and embark on the establishment of next year’s plan.

“Due to the high political uncertainties, we have got more factors to take into account when setting our plans for next year,” a group public relations officer said.

Lotte Group that has been under prosecution probe since June has already announced it will postpone reshuffles until early next year.

“At a time of huge political and economic uncertainties, businesses can do no more than watching the situation in a conservative and careful manner,” said a Lotte associate. 

By Song Su-hyun (song@heraldcorp.com)