Home

The Korea Herald

Latest news

Most Popular

  1. 1

    Contentious grain bill put directly to plenary meeting for vote

    Contentious grain bill put directly to plenary meeting for vote
  2. 2

    Yoon's approval rating plunges to all-time low

    Yoon's approval rating plunges to all-time low
  3. 3

    Will tug-of-war between doctors, government end soon?

    Will tug-of-war between doctors, government end soon?
  4. 4

    Climate impacts set to cut 2050 global GDP by nearly a fifth

    Climate impacts set to cut 2050 global GDP by nearly a fifth
  5. 5

    Trilateral talks acknowledge ‘serious’ slumps of won, yen

    Trilateral talks acknowledge ‘serious’ slumps of won, yen
  1. 6

    [Graphic News] More Koreans say they plan long-distance trips this year

    [Graphic News] More Koreans say they plan long-distance trips this year
  2. 7

    [KH Explains] Hyundai's full hybrid edge to pay off amid slow transition to pure EVs

    [KH Explains] Hyundai's full hybrid edge to pay off amid slow transition to pure EVs
  3. 8

    North Korea removes streetlights along cross-border roads with South

    North Korea removes streetlights along cross-border roads with South
  4. 9

    Russia's denial of entry of S. Korean national unrelated to bilateral ties: Seoul official

    Russia's denial of entry of S. Korean national unrelated to bilateral ties: Seoul official
  5. 10

    Farming households dip below 1m for first time in 2023

    Farming households dip below 1m for first time in 2023
지나쌤

Some owners of conglomerates shy away from responsibility: watchdog

By Yonhap

Published : Dec. 6, 2018 - 15:42

    • Link copied

Members of families that control South Korea's eight conglomerates opted not to register themselves as board members in their affiliates, the antitrust watchdog said Thursday, a loophole seen as shying away from managerial responsibilities.

The Fair Trade Commission said that as of May, none of the owners and their grown children were board members of affiliated companies of retail giant Shinsegae Group, food and entertainment giant CJ Group and six other conglomerates.


(Yonhap) (Yonhap)

The watchdog said owners of family-run conglomerates are registered as board members at only 155 out of their 1,774 affiliates belonging to 49 family-controlled conglomerates, accounting for 8.7 percent of the total.

Critics say that some family members exert influence within the conglomerates without formally assuming responsibility. 

The FTC called on owners and their family members to be held accountable as board members if they are involved in management of affiliates.

"Authority and responsibility should go hand in hand," Shin Bong-sam, a director general handling the issue at the commission, said in a briefing.

The practice of shying away from becoming board members while getting involved in management could "result in opaque decision-making in board rooms and dodging responsibility," Shin said.

There is currently no law that mandates owners and their family members must be registered as board members. (Yonhap)

More from Headlines