South Korean President pardons major corporate criminals
Updated
South Koreans are reeling from the President's announcement that some of the biggest corporate criminals in the country are to be pardoned because he needs them to help revitalise the economy.
Presenter: Karon Snowdon
Speakers: Kang Sung-goo, Secretary General of Korea's Transparency International; Economics Professor Kim Sang-jo from Hansung University.
SNOWDON: South Korea's President Lee Myung-bak has just boosted his popularity with the big end of town.
But the average Korean is perhaps not so happy.
KANG: There is a word in Korean society that says when you have money then you are not guilty and if you have no money then you are guilty.
SNOWDON: Kang Sung-Goo is Secretary-General of Korea's chapter of Transparency International.
KANG: Many Korean civil society organisations are very much angry about President Lee Myung-bak's pardon for economic leaders. Its is not tradition in Korea to pardon criminals but it is the right for the President to pardon any criminals.
SNOWDON: The special amnesty coincides with Liberation Day on August 15th , marking of the end of Japanese colonial rule.
Among the 74 leading business people granted pardons is Hyundai Motor Chairman Chung Mong-Koo.
One of Korea's most powerful businessmen, he was convicted last year of raising a slush fund to bribe government officials. His punishment now overturned a three year suspended gaol sentence.
Another, SK Energy Chairman Chey Tae-won, received a suspended sentence for illegal stock trading and book-keeping irregularities involving more than one billion US dollars. Share manipulation is an all too common practice in Korea which earns the already wealthy perpetrators multi-million dollar gains and whose victims are often small shareholders.
Hanwha group chairman Kim Seung-Youn was jailed for kidnapping and assault. Again his light sentence was suspended last year and now his crimes have been cleared altogether. Many of these executives continue to play active roles in the companies they have defrauded or otherwise shamed with their behavior.
Others given pardons include corrupt politicians and government officials.
President Lee isn't the first to abuse his power in this way, says Economics Professor Kim Sang-jo from Hansung University.
But he thinks the practice has to end.
KIM: It has a double standard, very soft to the businessman especially the Chairman of the Korea Chaebols, but on the other hand very strict to the labour unions or ordinary citizens.
SNOWDON: In his run for the Presidency last year, Lee Myung-bak linked the rule of law with the perfomance of the economy, pledging to improve both.
The first conservative elected in a decade his business credentials helped his campaign.
KIM: Yesterday's pardon does destroy the of rule of law and by doing so President Lee Myung-bak cannot achieve the seven per cent growth rate promised. So yesterday's pardon by the President will destroy the potential growth rate of the Korea economy.
SNOWDON: President Lee Myung -bak has publicly justifeid his decision with the claim he needs the corporate leaders to help revitalise the economy and create jobs. Its been condemned by the Opposition but welcomed by a prominent industry lobby group.
Perhaps to win some public approval for the latest favour to the business elite, Lee has previously forgiven large numbers for mostly traffic or other minor offences.
Transparency International says the President's latest decision not only undermines the rule of law, it threatens Korea's international standing, sets back the President's drive against corruption and further erodes people's faith in the government.
An embarrassed Transparency Secretary-General, Kang Sung-goo says there is a growing movement demanding the President's amnesty powers be limited.
