There are rising calls that there be better checks Samsung group's actions in the wake of the Korea University incident. People view Samsung in contradictory ways. On the one hand they feel pride and hope in the way it has grown into a global company. On the other hand they worry about its feudal management structure and its power over financial matters. Samsung accounts for 20 percent of the Korean economy, in terms of production, exports, and total stock value. The belief that Samsung is best has, with the backing of financial strength, make the conglomerate the most influential in all categories.
Samsung's growth is clearly something to be pleased about. But there is still reason you hear cynical comments about how Korea is the Republic of Samsung. More than anything it is because it is moving at the hands of a tycoon whose position massive power is being handed down through inheritance. Its tycoons have done relatively well. But there is no guarantee they will do well in the future. The fact that Samsung depends on the skills of the tycoon family means that much about the future of the Korean economy depends on the family that owns Samsung. Another issue is its mighty influence. It is no longer a company that adjusts to its environment. It now has the ability to change its environment by manipulating legislation and government administration. Samsung could pervert institutions and the business climate.
That does not mean keeping Samsung from growing would be a solution. The way to go about it perhaps can be found in external and internal approaches. On the outside, the governments to increase corporate transparency and make sure Samsung's unchecked performance does not prevent growth at other companies, while civic groups need to foster their ability to engage in healthy watchfulness. Samsung, for its part, needs to work harder to establish public trust that it is a Korean company that knows how to co-exist. It has to change its image as a conglomerate that has to be first in everything and where all that is done is done for the owning tycoon. Reports are that it is working on such plans. Those plans must not stop at simple public relations or be an attempt to use the strength of money to quiet public opinion.
The Hankyoreh, 31 May 2005.
[Translations by Seoul Selection (PMS)]
[Editorial] The Work Ahead for Samsung |
