'Please, think of the national economy.'

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'Please, think of the national economy.'

Cho Min-geun
 
The author is the business and industry news director of the JoongAng Ilbo. 
 
In an era when bureaucratic power reigned supreme, officials used various tactics to assert control over business leaders. Among the most classic was the "summons." Corporate executives were abruptly called to government offices under the guise of meetings or consultations, often left to wait for hours without so much as a seat. One financial CEO recalled an incident: “The ministry suddenly convened a meeting, so I canceled all my appointments and rushed to Gwacheon, Gyeonggi. Just as I was about to cross Namtaeryeong, an officer called to say, ‘The meeting is canceled; the director has other engagements.’ The humiliation on the way back to the office was unbearable.”
 
This might seem like a relic of the past, but the practice persists. Executives argue that such summoning has intensified under the Yoon Suk Yeol administration. The Presidential Office itself has often mobilized corporate leaders for appearances, such as high-profile overseas trips. Major conglomerate chiefs were frequently included, even when they had no direct stakes in the ventures. Reluctantly, they would join the entourage at the last minute, wary of the political ramifications of declining. Similarly, top executives were expected to attend events like small business conventions in Yongsan, even when unrelated to their operations — an unusual sight under previous administrations.
 
The most striking instance occurred in late 2023, when President Yoon visited a traditional market in Busan. Against the backdrop of dwindling local support following the failed Expo bid, the president staged a "tteokbokki eating show," flanked by corporate heads in sharp suits. While foreign trips may be justified under the banner of national interest, this blatant use of business leaders for domestic political optics drew widespread criticism.
 
This grotesque scene resurged in memory with the news that Lee Jae-myung, leader of the Democratic Party (DP), summoned major bank CEOs on Monday. The parallels were striking — politicians leveraging business leaders for political theater under the pretext of public welfare, with little tangible benefit and significant risks.
 
High interest rates are undeniably a burden for borrowers, but for a politician, not a policymaker, to appear to intervene in a core market mechanism like interest rates only exacerbates uncertainty. Already, Korea faces external pressures: falling investor confidence, foreign capital outflows and a weakening won. Amid such turbulence, market disruptions can have severe consequences, potentially imposing higher costs on borrowers than minor rate reductions could alleviate.
 
Concerns began when Lee convened a meeting with Bank of Korea (BOK) officials to "monitor" the forex market. Without an official summons, a briefing from the Finance Ministry would have sufficed. The BOK, an institution requiring political independence, faced undue pressure. The central bank official attending the meeting was directly involved in forex interventions — actions under global scrutiny. The bank’s cautious response, noting that the meeting involved “no special requests, just a situational update,” reflected their unease.
 
In a previous column, I likened Korea’s political turmoil to an "economic crisis akin to the IMF era." While some blame the "imperial presidency," others argue that parliamentary power, which can stymie even such a presidency, is the larger issue. Both critiques are valid, but one certainty emerges: for businesses, both institutions wield “imperial” powers. The president commands regulatory and punitive authority, while the opposition dominates legislative power. Recent DP legislation, such as the "National Testimony Act," essentially institutionalizes the summoning of business leaders, a practice reminiscent of past bureaucratic overreach.
 
Korean business leaders are already under immense pressure. Navigating a de facto governance vacuum while bracing for the external headwinds of a Trump administration return, they face a tough road ahead. Banks may manage to find an appropriate middle ground, given their experience in handling regulatory pressures. However, a DP emboldened to call corporate leaders under the banner of "livelihood policies" is a troubling prospect. Meanwhile, the ruling party seems too preoccupied with its survival to offer meaningful resistance. In this landscape, BOK Gov. Rhee Chang-yong’s plea to the political establishment bears repeating: “Please, think of the national economy.”
 
Translated using generative AI and edited by Korea JoongAng Daily staff.    
 
 
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