[Editorial] Shaking Down Corporate Korea

Large companies are feeling pressure over the Roh Moo-hyun administration’s overzealous efforts to dissolve the country’s “economic polarization” problem. Ever since President Roh said, “Let me talk to businesses about this” at the outset of this year, the ruling party has created a climate in which all of Korea’s social evils are being blamed on “economic polarization.” And businesses are worrying about how to show their “good faith” as a result.

A decision by the family of Lee Kun-hee of Samsung to donate 800 billion won to tackle the polarization problem has also weighed heavily on the minds of other businesses. Major companies such as Hyundai-Kia Motors, SK, LG, and Hanjin are busy coming up with creative ways to make social contributions while at the same time trying to figure out how the wind is blowing. Some of them are expected to put their contribution plans into practice starting as early as next month. An owner and president of a major company even became head of a volunteer corps, recently.

Since the 1980’s, Korean companies have expanded their social contributions. In modern capitalist society, businesses are expected not only to pursue profits, but also to take social responsibility for the welfare of the people. But forcing businesses to make involuntary social contributions by prodding them to do so is problematic. By falsely accusing businesses of contributing to the increase in the polarization in order to get them to contribute more money, the government is shirking its own duties.

Businesses are already contributing to the nation and society through investments, employment and tax payments. Now another responsibility, ensuring social stability, is being thrust upon them.

In addition, an election will be held soon. If the administration peddles its “polarization theory” during the election, businesses may pay for it afterwards. Over the past three years, regulations and business bashing have cut domestic investment and resulted in an increase in the number of poor families. If businesses are asked to pay for this, it will further dampen their willingness to invest.

The best way to maximize corporate Korea’s social contributions is to create conditions in which they can concentrate their energy on creating jobs and expanding investment. The president and the government should stop bashing business and mind their own.