[Nodongil Column] Words are 'Pro-Business', Actions are 'Business Control'

Masga (MASGA) project. Make America's shipbuilding great again. It is praised as the key contributor to the successful conclusion of the Korea-US tariff negotiations. The creativity that mimics Donald Trump's slogan 'Make America Great Again (MAGA)' is remarkable. The quickness to urgently produce and deliver red hats with the Masga slogan instead of Maga from Dongdaemun is also impressive. However, what President Trump was most pleased with was the content of the project. A whopping 1500 billion dollars. We create a fund, invest in the American shipbuilding industry, build new shipyard facilities, dispatch personnel, and train local workers before constructing ships. No matter how you look at it, something seems off. It doesn't seem to be purely business logic. Could there have been a sense of business patriotism considering our national interest, which was at a disadvantage in the Korea-US negotiations? It might just be my own thought, but it's hard not to have such suspicions. The ecosystem of the American shipbuilding industry has long collapsed. It's hard to even estimate how much capital and time will be needed to start investing now and build ships. How long can we endure deficits until we make a profit from the Masga project....

The bigger concern is our political risk. The 3500 billion dollar investment in the US, including the shipbuilding fund, is impossible without the active participation of companies. It is only right to boost corporate morale through massive deregulation. President Lee Jaemyung also stated, "The most practical contribution the government can make to companies is the abolition and rationalization of regulations," and "We will actively support companies to focus on their inherent competitiveness." The problem is reality. Despite the appeals of companies and economic organizations, regulations are tightening even more. The commercial law and the Yellow Envelope Act (Labor Union Act Amendments 2 and 3) are representative. The fundamental risk is the perception of some in the ruling party towards companies. "Korean companies do dirty things, take all the achievements of the company, and don't give them to the shareholders." This is a statement from a ruling party lawmaker who spearheaded the commercial law amendment.

The amended commercial law expands the duty of loyalty of directors from 'company' to 'company and shareholders'. Even if a director's decision benefits the company, if some shareholders suffer losses as a result, shareholders can claim damages against the directors. For example, in the case of Masga, even if the investment is decided for the long-term benefit of the company, shareholders may have to endure losses for a considerable period. In such cases, shareholders who suffered losses can hold the directors accountable. Decisions for national interest cannot be exempted. The demand to specify the 'business judgment rule' in the law and include an exemption clause for directors is natural.

If the commercial law blocks the path of companies, the Yellow Envelope Act cuts off the rear of companies. Currently, the subject of industrial action is limited to 'working conditions', but the amendment includes 'business management decisions affecting working conditions'. Corporate restructuring, overseas relocation of production plants, and investment in overseas production facilities can also become the subject of labor disputes. The Masga project of HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, Samsung Heavy Industries, or the expansion of factories in the US by Hyundai Motor Group, and the increase in semiconductor production in the US by Samsung Electronics can all become targets of strikes. The mention by Deputy Prime Minister for Economic Affairs Koo Yoon-cheol that the union will judge from a national interest perspective is merely wishful thinking.

The sincerity of politicians can be known not by their words but by their actions. If they say they are pro-business but are busy with anti-business legislation, there is no need to explain what their true intentions are. President Lee Jaemyung, ahead of the Korea-US summit, must be reassured. This is because we have world-class companies responsible for investments in the US, such as Masga. This is also why he emphasized 'one team' while holding a strategic meeting for the Korea-US summit with corporate leaders. President Lee must clearly demand from the ruling party. To refrain from legislation that strangles companies. If President Lee's statement that 'companies are the key contributors to tariff negotiations' is sincere, the current situation where the president and the ruling party are acting separately is evident. At a time when the political circles should be leading the way in removing existing risks, creating new risks is not only a disservice to the dedication of companies but also not the minimum courtesy.


dinoh7869@fnnews.com