DUP vs Chaebol

by Bobby McGill on February 27, 2012

The Democratic United Party’s, Lee Yong-sup, told Reuters his party is going to pick a fight with Chaebol.

“Chaebol must be reformed,” Lee said. “We aim to achieve economic democratisation by which large and small companies, the rich and the poor can pursue co-prosperity.”

Reuters added:

The top 30 “chaebol” or business conglomerates such as Samsung Group or Hyundai, had net profits that are equivalent to 40 percent of government spending in 2010, and their critics charge that they stifle competition in Asia’s fourth largest economy.

Lee Myung-bak, knowing where his bread was buttered, last December scrapped rules limiting the amount chaebol subsidiaries could invest in each other, something the DUP says they will reimpose.

And in a page taken from the Obama playbook and Occupy movement rhetoric, DUP’s, Lee, also told Reuters that the opposition party will push for a “tax hike on the 1 percent super-rich (which) will give us money to raise welfare spending without raising tax on the 99 percent.”

All good and well, but taking on Chaebol is not going to be pretty. Good luck on that.

{ 8 comments… read them below or add one }

1 setnaffa February 27, 2012 at 8:34 pm: Sounds like #OWS… See where he gets his money from…
2 Seth Gecko February 27, 2012 at 10:08 pm: Ok I’m totally unhip and I need someone to explain what # means on a message board/blog/whatever.
3 redwhitedude February 27, 2012 at 11:31 pm: Well the best way to reform the chaebols are to open up the economy more that will increase the competition in Korea and thus hopefully expose some of their ineffiencies. Not by resorting to heavy handed legislation. The FTA is a step in the right direction but we’ll have to see how it is implemented on the Korean side.
4 Arghaeri February 28, 2012 at 2:17 pm: I don’t think its international competitors within korea that they’re concerned with, but rather internal competition within korea which is smothered by chaebol domination.
5 nayaCasey February 28, 2012 at 4:06 pm: redwhitedude #3 wrote: “Well the best way to reform the chaebols are to open up the economy more that will increase the competition in Korea and thus hopefully expose some of their ineffiencies.”

Agreed. To undercut a monopoly or cartel:

1) Free entry or limited barriers to entry for new competitors
2) Foreign competition allowed through trade
3) Government as referee rather than player
6 untold February 28, 2012 at 7:55 pm: If they sort out the brewing regulations http://www.homebrewkorea.com/?p=1466
that leave us with a choice of (c)ass and (s)hite beer, they’ve got my vote. If I had one.
7 redwhitedude February 28, 2012 at 8:25 pm: #4,
The chaebols have already “won” the domestic competition. The domestic market is pretty much their playground however internationally nobody is big enough to dominate internationally so by linking the domestic with international markets through liberalization it will totally level out the playing field domestically as well. It will also help the medium and small sized businesses who traditionally have been squeezed domestically.
8 redwhitedude February 29, 2012 at 12:27 am: #6
one of the many silly and antiquate legislations that hopefully will be demolished by the FTA. It’s like this legislation was done by control freaks.