[Viewpoint] Strange Laws and Media That Fuel Anti-Business Sentiment

Choi Joon-sun, Honorary Professor at Sungkyunkwan University School of Law

Strange laws drive businesses away and make people poor. The California State Legislature passed a law in 2014 classifying theft of items valued under $950 as a misdemeanor. Now, even if someone steals about 10,000 won worth of goods from a convenience store, they only receive a light punishment. San Francisco was found to spend 35 times more on security personnel than other places, and over the past five years, Walgreens has closed 17 stores in San Francisco due to unbearable conditions. Businesses will gradually leave California, and jobs will continue to decrease.

Korea's most bizarre law is the Serious Accident Punishment Act. Enacted as a response to the fire at the Icheon logistics center construction site in April last year, which claimed 38 lives, this law excessively punishes business owners. It will drive companies, especially those in labor-intensive industries like construction and manufacturing, overseas. Perhaps the only industries left to thrive in Korea will be IT and service sectors.

This law is once again drawing public attention because it does not apply to the Gwangju building collapse incident on June 9 and the Icheon Coupang logistics center fire on June 17. First, we express our condolences to the victims. In Coupang's case, right after the accident, it was reported that Kim Beom-seok, chairman of the Korean corporation's board and registered director, resigned, leading to speculation that he stepped down to avoid the law's application. However, since his resignation was officially recorded on May 31, this is mere conjecture. Although the law is scheduled to take effect on January 27 next year, even if it were already in force, the likelihood of the board chairman being punished for the fire is low. The law's intent is not to punish owners but to designate responsible persons to prevent serious accidents and ensure they fulfill related responsibilities.

Chairman Kim Beom-seok reportedly resigned to focus on global management. Indeed, Coupang was shifting its focus to global operations, with its entry into the Japanese market becoming tangible in early June. Whether a company or an individual, staying only in Korea offers no future. According to a report by the Korea Economic Research Institute in June last year, Samsung Electronics' overseas sales ratio was 85.2%, Kia Motors' was 69.2%, and the average overseas sales ratio of Korea's top five companies was 70.6%. Even when expanded to the top ten companies, it was 61.3%. Being confined to the narrow Korean market means being hampered by numerous regulations and anti-business sentiments, resulting in sluggish business and difficult shareholder value realization. Especially, Coupang's expansion into the densely populated Southeast Asian region appears to be a suitable strategy for the logistics industry. The role of a group chairman or holding company CEO is to draw such big pictures.

The media criticizes major shareholders for managing the company themselves, claiming they lack ability despite being owners. When they step back from management, they are criticized as irresponsible owners. Logistics is a labor-intensive industry. Because it requires many workers, the risk of fatal accidents is very high. Companies must make every effort to improve working conditions, but the media should not fuel anti-business sentiment based on inaccurate information. On May 31, new IT and safety directors were appointed simultaneously, yet the media disparages this as a belated show. Anti-business sentiment sickens society and ruins the nation.

Choi Jun-seon, Honorary Professor, School of Law, Sungkyunkwan University

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