Industry Panel Barks Back At Watchdog

Five industry-backed associations declared Wednesday that a civic group fighting for minority shareholder rights is damaging overall shareholder interests.

"The movement is exaggerating or distorting problems of domestic corporations and damaging the credibility of the companies," said the joint statement. "The movement should return to its original agenda of maximizing shareholder interests by investigating unlawful corporate activities that violate shareholder relations."

The statement was directed at the activities of the People's Solidarity for Participatory Democracy. It was signed by the Federation of Korean Industries, Korea Chamber of Commerce & Industry, Korea Employers Federation, Korea Federation of Small and Medium-Sized Business and Korea International Trade Association.

The economic associations were particularly upset at the civic group's efforts to have Jeon Seong-chul appointed as a director of Samsung Electronics against the management's opposition, and to recruit institutional shareholders to support Mr. Jeon at Samsung's annual meeting on Friday.

"The civic group targeted Samsung Electronics, one of the established companies, to spread sensation throughout industry," the statement said.

The Center for Free Enterprise, in which most major companies are members, called for suspending the movement last Friday, charging that its ultimate goal is to shift control of corporations to the masses.

by Kim Si-re