'Should conglomerate chiefs just say yes when the president pressures them?'

'Boards must firmly resist political pressure, not cave to it'

Independent lawmaker Han Dong-hoon, who won the Busan Buk-gap by-election, takes his oath and delivers remarks at a plenary session of the National Assembly held June 5 to elect the leadership of the second half of the 22nd Assembly. [Yonhap]
Independent lawmaker Han Dong-hoon, who won the Busan Buk-gap by-election, takes his oath and delivers remarks at a plenary session of the National Assembly held June 5 to elect the leadership of the second half of the 22nd Assembly. [Yonhap]

Independent lawmaker Han Dong-hoon criticized the Lee Jae Myung administration Friday for pressuring Samsung Electronics and SK Hynix to build a second semiconductor cluster in the Honam region, saying the move is no different from the Mir and K-Sports Foundation scandal that triggered the impeachment of former President Park Geun-hye.

Writing on Facebook on Friday, Han said, "The president is pressuring conglomerate chiefs to make decisions — are they just supposed to say yes and go along?" He warned that directors who fail to oppose such pressure could face legal liability under the revised Commercial Act for breaching their duty of loyalty to shareholders.

"The chiefs of Samsung and SK are being summoned one after another and pressured to build the second semiconductor cluster in Honam," Han said. "If they cave to coercion and agree to invest, the government will say the companies voluntarily invested in line with government policy — but how is that any different from what happened with the Mir and K-Sports foundations under the Park Geun-hye administration, when companies were said to have 'voluntarily' made donations?"

Han said Samsung Electronics and SK Hynix are "flagship listed companies held by millions of retail investors," and asked whether shareholders should simply have to go along with decisions made by pressuring conglomerate chiefs who fear those in power and have much to lose.

Han particularly invoked the director's duty of loyalty to shareholders under the revised Commercial Act, warning that "making decisions that damage shareholder value by yielding to political pressure could constitute a violation of the law."

He urged the boards of Samsung Electronics and SK Hynix to "firmly oppose the Lee Jae Myung administration's coercion," saying directors have both the duty and the responsibility to make decisions in the interest of the majority of shareholders and the future of their companies.

Han also said the assets of five million shareholders must not be used as "ammunition in a factional fight" for a political agenda with no vision, and pledged that "if directors face government retaliation or suppression for standing up to political pressure, we will be at the forefront of protecting them."


thanks@heraldcorp.com