[Inside Chodong] One-Team Leadership Is Desperately Needed

A photo taken a week ago when Samsung Electronics Vice Chairman Lee Jae-yong visited the Suwon plant (Home Appliance Division) in Gyeonggi Province suddenly became a hot topic. In the photo distributed to the media by Samsung Electronics' Communications Team, Vice Chairman Lee is seen crouching down intently, inspecting the inside of a washing machine while conversing with executives. Along with Lee's on-site remarks, "The business environment is testing our limits. Let's not waver and boldly take on challenges. Let's be the first to arrive at the future," the photo was prominently featured in the media. A senior executive who has been in charge of protocol for the owner family in one of the top 10 conglomerates for over a decade commented, "It is rare for the head of a group to bend their knees and crouch during on-site management, and using such a photo is also unusual. Usually, they are shown walking naturally with the presidents or directing while wearing safety helmets, so I thought it must have been urgent." These days, in this circle, whenever three people gather, they talk about Vice Chairman Lee, reflecting a time when everyday life is anything but ordinary, which might have made the situation appear sensitive.

It is not only Samsung under Vice Chairman Lee. The entire South Korean business community is in turmoil. They seem so drained that one might think they are suffering from collective lethargy. Due to judicial risks surrounding owners, normal business activities are difficult, or they are walking on thin ice amid sibling disputes over succession and management rights, or fierce lawsuits among competitors over future revenue sources are rampant. Externally, they are walking a tightrope between the U.S. and China, while also having to worry about Japan’s second round of economic retaliation.

Here is an old story. Eleven years ago, on the day of the Federation of Korean Industries (FKI) chairman’s meeting held at Lotte Hotel in Jung-gu, Seoul, a reporter who was closely following Hanwha Group Chairman Kim Seung-yeon, who barely managed to get into the elevator avoiding about 100 reporters, spoke up. "Chairman, I am from Cheonan Bukil High School and work for the [redacted] Economy. Are you considering mergers and acquisitions (M&A) such as Daewoo International?" Chairman Kim, who had a stern expression and did not even glance, brightened upon hearing the mention of 'Bukil' and shared a few words, which were later reported.

On another occasion, when attending the groundbreaking ceremony of the 'Bodeumi Nanumi Daycare Center,' an economic community childcare facility project, as the FKI chairman, reporter quietly approached Hyosung Group Chairman Cho Seok-rae and asked directly. At that time, Hynix Semiconductor was on the M&A market. Hyosung was a strong candidate for acquisition. When asked if he would enter the bidding, Chairman Cho smiled and replied, "What’s Hynix? If they give it for free, we’ll take it." Although Hynix eventually ended up with SK Group, it was revealed a month after meeting Chairman Cho that Hyosung had submitted a letter of intent to acquire Hynix alone.

Relatively less visible in official settings, Samsung Group Chairman Lee Kun-hee did not hesitate to speak frankly whenever he appeared. When reporters asked him to rate the government’s economic policies, he said, "It’s not satisfactory, but it’s not a failing grade." When asked about the profit-sharing system, he frowned and said, "I don’t understand what kind of nonsense this is that they didn’t teach in economics books," openly representing the uncomfortable stance of the business community.

This is not about nitpicking the personalities of the heads of conglomerates. Nor is it about emphasizing the role of the FKI or trying to rescue the FKI, which has been embroiled in exclusion controversies since the Moon Jae-in administration. It is about the frustrating reality of the business community, where channels for owners or businesspeople to communicate with the public are gradually disappearing. There is no clear elder to take on the role of a unifying figure. Is it too much to hope for a one-team leadership where the South Korean business community moves organically as one body amid the fierce competition of the era of infinite rivalry? It might not be a bad idea for the economic community to hold regular meetings at places like Seungjiwon, rather than the Blue House or Pyongyang’s Okryugwan.

Kim Hye-won, Deputy Head of the Industry Department kimhye@