[Editorial] No Future for an ‘Anti-biz’ Society

In the wake of the independent counsel’s indictment against the Samsung Group, the conglomerate has formulated a management reform plan. Religious and civic groups, however, are still viewing Samsung with suspicion. The Catholic Priests’ Association for Justice in a news conference yesterday said, “If the Samsung Group wants a new start, it should confess to all of its wrongdoings including tax evasion before asking for forgiveness, despite the failure of independent prosecutors to prove them. Otherwise, any Samsung reform plan will be seen suspiciously.”

On the resignation of Samsung Group Chairman Lee Kun-hee, the whistleblower of the group’s scandal and former Samsung attorney Kim Yong-chul said, “What Lee wants to do is hide for a time.”

Some have even made the dubious proposal of making Samsung a public company. We cannot help but think that certain elements in our society have ulterior motives other than to rebuke or correct Samsung.

Samsung has stuck to outdated business practices such as illegal transfer of managerial rights and capital management. Because of this, an independent counsel probed the group for three months. Chairman Lee and high-ranking executives were indicted. Those who broke the law should face justice through fair trials. But certain groups are trying to fuel anti-business sentiment and mobilize out-of-court measures. That makes Korea a country unfriendly to business and one that will have a hard time reviving its economy.

Business contributes to society and the country by creating jobs through investment and production and paying tax. Among Korean corporate entities, Samsung has produced the most jobs and paid the most taxes. The group has also raised Korea’s international standing by becoming a major global player. When we punish Samsung, we should do it according to law.

Though its foreign share has gotten bigger, Samsung is undoubtedly a Korean company. It is unwise to bash Samsung so severely that it has difficulty in the international market. Business observers are warning of anti-business sentiment rearing its ugly head again in the wake of the Samsung scandal. At a time when economic revival is gaining momentum after the inauguration of the Lee Myung-bak government, indiscriminate bashing of business can cost Korea a valuable opportunity of turning around our economy. Japanese competitors see Samsung’s trial as an opportunity to get ahead in the world market.

Korea should prevent the vicious cycle in which weakened entrepreneurship undercuts investment confidence and eventually erodes growth potential.