Independent candidate promises to curb unfair conglomerate practices


Independent presidential candidate Ahn Cheol-soo on Sunday laid out his plans for economic reform centering on enhanced control of chaebol, or family-owned conglomerates.

The former software entrepreneur and professor promised to curb illegal inheritance, unfair trade and reckless expansion through affiliates among large businesses.

He also proposed a forceful separation of group affiliates as the last resort if they fail to comply with the reform measures.

“The most urgent issue is one involving chaebol. Economic democratization can start only when the problem is resolved,” Ahn said at a news conference in his campaign office.

Ahn and his rivals Park Geun-hye of the ruling Saenuri Party and Moon Jae-in of the Democratic United Party have trumpeted “economic democratization” aiming to loosen large conglomerates’ dominance, increase welfare and reduce the gap between rich and poor. 

Chaebol reform topped Ahn’s seven priority tasks for achieving a society based on equal opportunities, fairness and protection of the socially weak.

The agenda items he listed during the news conference included financial reforms, an innovation-powered economy, job creation and labor reforms, and promotion of small companies.

“Industrialization and democratization have yet to be completed. Prosperity should be shared widely among the people,” Ahn said.

He described economic democratization as “a constitutional value which the president should uphold.”

He strongly criticized chaebol owners for dominating businesses and the national economy by unfair means.

“Chaebol bosses are controlling the whole groups with small amounts of money and are out of the boundary of judiciary control,” he said.

“The mightiest and richest are doing the most unfair things,” he added.

He pledged to push for stricter law enforcement on conglomerate owners who are involved in illicit activities and impose taxes on firms which monopolize the market.

The former Seoul National University professor said his proposals are not intended to restrict chaebol’s economic activities but only to fix irregularities, punish law violations and promote a healthy eco-system of large and small businesses.

“My purpose is not to place restrictions on business activities,” said the candidate. “I aim at revitalizing the economy by unclogging the general business flow.”

Chaebol reform is only a means and process to boost the entire economy, he added.

He promised to leave room for conglomerates to voluntarily cooperate and reform on their own.

“However, if the initial measures do not have the intended effect, we will consider stronger structural reforms such as an order to separate their affiliates,” Ahn said.

He reiterated a plan to set up a presidential committee to monitor the chaebol’s irregularities and oversee comprehensive reform.

His office plans to unveil details of other economic reform measures later, said professor Jang Ha-sung, a key member of Ahn’s economic policy panel.

After the press conference, the candidate participated in a forum with small-business owners and expressed his resolve to deliver his pledges.

“There is no future unless special privileges and foul play are rooted out,” Ahn said at the forum.

By Bae Hyun-jung (tellme@heraldcorp.com)