Huh’s defiance
By Oh Young-jin
Few had expected Huh Chang-soo, GS Group chairman, to speak out when he took office as chairman of the Federation of Korean Industries (FKI) four months ago.
Above all, the big business lobby has been compliant since its birth in the middle of the nation’s era of development through dictatorship, to whatever calls the government in power at any given time made.
Nowadays, the FKI no longer enjoys its “intimate” relationship with the government, with none of the big five conglomerates bothering to serve the post that once was seen as coveted for an opportunity to hobnob with those with power.
When Huh came in as FKI leader the consensus was that the leader of the conglomerate, which split from LG and centers around the nation’s second largest refiner, GS Caltex, would be more of the same as his lesser-known predecessors. Besides, the 63-year-old GS leader is known to be a “gentleman in the business community.”
But Huh has defied conventional thought about him twice in three days. First, he blasted the political circle for the promotion of populist policies during a news conference Tuesday. That angered some politicians and led them to try and call Huh as a witness in its hearing, a move widely seen to get even with him.
Huh showed little signs of complying with this, even if called. It is well known that chaebol leaders often take leaves of absence when they are called by the National Assembly and get away without being punished for their lack of attendance.
On Friday, Huh did it again, more specifically targeting the government’s economic team leader, Strategy and Finance Minister Bahk Jae-wan, during the latter’s meeting with the leaders of five key business lobbies, including Huh.
Huh took a similar tone to what he said three days earlier.
“In our competitors’ nations, laws against preventing competition and laws of commerce are applied in compliance with economic principles rather than whims at a given time,” Huh said during his speech. “In contrast, voices of concern are already coming out (for the failure of such rules of law).
“I strongly question whether, in the process of important policy decisions, clear and pure principles on the basis of concerns about the future of the nation are adhered to.”
He added that the “spirit of corporate management” aimed at rewarding creative and diligent workers for the common purpose of shared growth should be duly recognized, pointing out the corporate sector’s $120 trillion won plan to invest in and create jobs.
Huh was quoted by Yonhap as saying, “All politicians are like that,” when asked about a brouhaha created by his remarks among politicians. “I have not even received an invitation,” he said, when asked whether he would attend a hearing as requested.
On Tuesday, Huh refused to consider an extended discount on gasoline prices, whose designated period of 100 days is expiring, although the government has made no secret of its wish for the refiners to do so. Huh also spoke against the ruling conservative Grand National Party’s (GNP) decision to go back on its corporate tax-cut plan. The Korea Chamber of Commerce and Industry, another business lobby, followed Huh’s lead and issued a tough-worded statement opposing the cancelation of the tax cuts.
In the Friday meeting, Minister Bahk exercised restraint when he stuck to his notes and thanked the business community for discounting gas prices and mobile phone bills, among other things, to cooperate with the government on its effort to tame inflation.
So far, Huh’s words of defiance have been more or less welcomed, especially because of the public antipathy toward political incompetence. But it remains to be seen how long he will be able to maintain his brave stance, when even Lee Kun-hee, leader of the Samsung business empire, finds himself in a position of making adjustments to his strong words about the government.