청 "Companies Rescued with Public Taxes Should Share Profits with the People Upon Recovery"

by Ryu Jeongmin

Published 26 Apr.2020 16:01(KST)

Updated 26 Apr.2020 16:02(KST)

"Need for safeguards against moral hazard such as dividends or asset acquisition"... Respecting corporate management autonomy

Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Ryu Jeong-min] A senior official at the Blue House stated on the 26th regarding support for companies struggling due to the novel coronavirus infection (COVID-19), "If companies saved through taxpayers' money recover, there needs to be a mechanism to share those profits with the public," adding, "There must be measures to prevent moral hazard in dividends or asset acquisitions."

The senior Blue House official mentioned the method of profit sharing in key industries, saying, "We are considering acquiring securities linked to stocks," and "This will naturally be reflected in the system design process." However, the Blue House expressed its intention to respect management autonomy.