In his latest column in the Korea Times, Andrew Salmon draws comparisons between North Korea’s Kim dynasty and South Korea’s corporate dynasties:
At the head of some of this nation’s leading conglomerates, royal-style dynasties are as firmly entrenched as the Kims are in Pyongyang and they, too, are now bequeathing power to their third generations.
Seoul’s corporate dynasties certainly act in a manner befitting royalty. They inter-marry and live secretive lives in fortress-like homes guarded by bodyguard detachments.
They rarely appear in public and speak to the media even more rarely; a reporter is more likely to land an interview with a member of de facto European royalty than with a top-tier chaebol chairman. Yet unlike European royals, chaebol royalty have no fear of a muckraking media ― their advertising budgets (allegedly) buy editorial quiescence.
I’m not sure if they’re totally free of muckraking—progressive papers target them all the time. But then again, the progressive press has relatively little influence, so the point still stands.
Read the whole thing on your own.
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My goodness, Salmon’s latest column is as serious as the jokester politician TK posted earlier. On the other hand, if the children of the chaebol were appearing in public and giving interviews, they’d be accused of flaunting their wealth and proof that free lunch, free child care, free tuition, free housing, etc., were needed to equalize society.
And like the Kim family of butchers in NK?
The chaebol might not have a finger on the button that causes the death of someone. But I think Salmon missed a chance to examine if the chaebol are so efficient and productive that their position in the business sector would not be better filled by smaller firms. He also doesn’t discuss the charge that the chaebol cause structural unemployment by tying up resources better deployed by smaller firms.
Some of the guy’s parallels are perfect. After all, do the Chaebol “commanders in chief” NOT operate with impunity?
Wasn’t a recent CEO of a large firm convicted, only to go back to his position within two years, with no jail time?
It happens so often, people reading that question can’t be certain of whom I speak. Right?
Hume #2, good point, the smaller companies may do better, but then again, maybe not. I oppose the proposal to keep large companies out of various sectors. In my case, I’d support dropping Korea’s trade barriers so that anyone in the world could easily sell here, without tariff rates being jacked up to protect local companies. The smaller companies here could have more international partners rather than being held “hostage” to the chaebol, as some charge. But then, many of the people who gripe about the chaebol also want to block international competition.
The choice of comparison seems to begin with a negative slant, but I look forward to reading what Mr. Salmon has to say. One thing I would say based on my experience working for one of the largest companies is that the “royal” family was as hard working and dedicated to success as anyone on down the line. It may be that these large enterprises have some negative impact on the democratic features of Korean society, but I personally was surprised and impressed by the work ethic of the people at the top. Me, I’d probably just go off to the South of France and enjoy my billions, but they stay and fight everyday to make their companies more successful. That’s impressive and I think it is honestly patriotic. I wish I could say the same about the companies back home in the US.
Chaebols do not want competition. If they had actual competition, they would be required to develop market strategies that include things other than suing the competition. They would actually have to hire the brightest minds, listen to the stockholders, avoid habitually passing board seats to children and other relatives rather than awarding based on merit. Oh, and if the legal system was improved, these chaebols would be punished severely for some of the corruption they have been found guilty of, but not punished for, in the past. What a dream!!! Just watch for more corporate buy-offs of candidates and officeholders once the next elections are over with.
Heh. This guy thinks people read his questions.
+1 to Hume & Casey. both excellent points.
#5:
Maximum brownie points, but even the most “successful” company could be toxic for the broader economy. Just ask Goldman Sachs.
#4:
Lowering trade barriers would probably have the effect of exposing what is healthy and not in the conglomerates. It’s not just the leftists who oppose them. These managed trade deals are only what the unions and companies in all parties concerned have negotiated to include. Free trade – that’s a dream!
#5
I agree, it is impressive –dunno if it’s much patriotism, but even the third generation of Lee’s at the helm of Galaxy Samsung show no sign of slacking.
Anyone have a progress reports on the fourth generation of Samsung Lee’s? Death Metalheads perhaps? Serial shoplifters?
If top Chaebolers did want to leave it all behind, no need they go to France when one of the worlds “seven natural wonders” is just a skip and a jump to the south in Jeju.
IMHO the chaebols need to be broken up. Will happen later rather than sooner, unfortunately.
Having said that, knowing Korea’s history and culture, building family conglomerate entities like the chaebol is probably a path that couldn’t be avoided. All developed countries have had conglomerates play a significant role in the nation’s industrialization history. Countries do this because scale is more important than efficiency when they are in the developmental phase. After a nation has achieved a sustainable level of scale, then they need to focus on efficiency and smaller and more specialized companies are more efficient than bigger ones. However, if industrial scale IS NOT achieved, then small companies don’t have the infrastructure and technology base to compete against bigger companies in more developed countries.
Sometimes I wonder if anyone at TMH has taken a history-based political economy course.
North Korean defectors find more similarities between NK and Christianity in SK.
탈북자 “북한 체제와 기독교 너무 비슷해 깜짝깜짝 놀라”
http://www.christiantoday.co.kr/view.htm?id=252962
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