[2020 National Audit] Number of Major Corporate Witnesses Adopted: Samsung, Hyundai Motor, LG, Lotte in Order

Legislative Big Data Analysis Company Polmetrics Conducts Comprehensive Survey of Witnesses and Referents in the 20th National Assembly's Audit
33% of Witnesses and Referents in the 20th National Assembly Are Executive-Level Businesspeople; 12.4% Withdraw Attendance Requests
Some Avoid Witness Attendance Due to Overseas Business Trips...170 Witnesses Absent Over 4 Years

[Asia Economy Reporter Kim Jong-hwa] The 2020 National Assembly audit, which sparked heated controversy even before it began due to unusual witness applications and the lining up of business executives, has officially commenced. Legislative big data analysis company 'PolMetriX' conducted a comprehensive survey and analysis of general witnesses and reference persons adopted in the four National Assembly audits held during the 20th National Assembly.

Analysis of the 20th National Assembly audit revealed that among major companies, employees of Samsung affiliates and Hyundai Motor Group were the most frequently adopted as witnesses and reference persons. Additionally, nearly 44% of witnesses whose attendance requests were withdrawn were business executives, indicating that standing committee members applied for more business executives as witnesses than necessary and later withdrew them.

About 33% of Witnesses and Reference Persons Are Executive-Level Businesspeople; Samsung and Hyundai Motor Group Members Most Frequently Adopted Among Major Companies

The total number of witnesses and reference persons summoned to the 20th National Assembly audit was 1,673, with 1,428 attending and 245 absent. Including the 177 whose attendance was withdrawn, the total number of adopted witnesses and reference persons was 1,850.

Statistics of witnesses and reference persons in the 20th National Assembly audit. [Table=Pollmetrics]

Among the summoned witnesses and reference persons, 546 were executive-level businesspeople such as CEOs, presidents, and executive directors, accounting for 32.6% of the total. Among witnesses and reference persons from major companies, employees of Samsung affiliates and Hyundai Motor Group were the most numerous, with 22 each, followed by LG·Lotte, SK, KT, and Naver·Kakao·Hyundai Heavy Industries in that order.

Number of major corporate witnesses and reference persons adopted in the 20th National Assembly audit.
[Graphic by Polmetrics]

Every year, National Assembly audits have been criticized as 'corporate taming' by adopting witnesses mainly from management responsible for frontline operations. In fact, among 135 witnesses and reference persons from major companies, 122 were executive-level businesspeople. More than half, totaling 72, held positions such as CEO, president, chairman, or equivalent, while 22 were vice presidents, 13 executive directors, 6 managing directors, and 9 division heads.

In particular, there were 177 cases where attendance requests for witnesses and reference persons were withdrawn, of which 77 were business executives. The withdrawal rate for business executives compared to initial adoption was 12.4%, more than 50% higher than the 8.1% for non-business executives.

In 2017, Park Moon-duk, chairman of HiteJinro who had already stepped down from frontline management, was requested to attend the Environment and Labor Committee audit but was later withdrawn. In the 2018 Industry, Trade, Small and Medium Enterprises Committee audit, Lee Seok-gu, CEO of Starbucks, was applied as a witness but the application was withdrawn later due to the establishment of a coexistence plan for small businesses.

Among the reasons for witness applications were urgent and serious issues such as various industrial accidents and subcontracting problems, but there were also cases where companies were summoned to demand donations.

In the 2017 Land, Infrastructure and Transport Committee audit, representatives of major construction companies such as SK Construction, Samsung C&T, GS Construction, and Daelim Industrial were adopted as witnesses and then asked to make donations to social contribution foundations. In the 2018 Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee audit, lawmakers pressured executives from five major companies including Samsung Electronics, Hyundai Motor Group, SK Supex Council, LG Electronics, and Lotte Holdings to donate to the Rural Coexistence Cooperation Fund.

There were also cases where witnesses were summoned but sent back without questioning. In the 2016 Future Creation, Science, Broadcasting and Communications Committee audit, executives from Samsung Electronics, Taekwang TV Broad, SKT, KT, and LG Uplus attended, but the audit could not proceed due to the absence of Saenuri Party lawmakers, who were the ruling party at the time. The witnesses waited inside the audit hall without being questioned and were then dismissed.

Mandatory Attendance Witnesses Show Attendance Rate Around 82% Due to Overseas Business Trips and Health Issues

A total of 245 witnesses and reference persons were absent from the audit, including 170 witnesses and 75 reference persons. Despite mandatory attendance, the attendance rate for witnesses was only 82.1% (778 out of 948 witnesses). The main reasons for absence were overseas business trips and health issues. Among the reasons for witness absences, overseas business trips or residence abroad (44 cases) were the most common, followed by health problems such as hospitalization (30 cases), and ongoing trials or investigations (18 cases).

The attendance rate was even lower for business executive witnesses (excluding reference persons). Of the 460 business executive witnesses, 362 (78%) attended. The most common reasons for absence were overseas business trips (24 cases), health issues (18 cases), and trials or investigations (8 cases).

Key corporate witnesses absent from the 20th National Assembly audit. [Table=Pollmetrics]

Among 135 witnesses and reference persons from major companies, eight were absent: Kim Beom-su, chairman of Kakao; Kim Jung-gyeom, former president of Hyundai Construction; Moon Jong-bak, CEO of Hyundai Oilbank; Song Seung-bong, CEO of Hyundai Elevator; Shin Hak-cheol, CEO of LG Chem; Yoon Boo-keun, vice chairman of Samsung Electronics; Lee Hae-jin, former chairman of Naver; and Ha Seok-ju, CEO of Lotte Construction.

A PolMetriX official stated, "In the 2020 National Assembly audit, restrictions on overseas business trips due to the COVID-19 pandemic, the introduction of non-face-to-face audits using video conferencing, and remote attendance of reference persons are expected to impact the attendance of witnesses and reference persons. PolMetriX plans to publish a report analyzing the overall 20th and 21st National Assembly audits, including these factors."

This content was produced with the assistance of AI translation services.