November 26, 2024

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President-elect Yoon Suk-yeol speaks during a press conference held at the National Assembly in Yeouido, Seoul, Thursday. (Yonhap)

Chaebol reform had been a key agenda in previous presidential campaigns, but it was no longer present in this year’s election.

Except for Justice Party candidate Sim Sang-jung, none of the major presidential contenders mentioned chaebol reform in their campaign pledges.

With more pressing economic issues such as runaway home prices, small business owners struggling from the pandemic and inflation, chaebol reform was pushed aside in campaigns.

"There seems to be a consensus that issues like concentration of economic power (on chaebol) or chaebol ownership are no longer relevant,” Kim Jin-bang, a professor at Inha University, was quoted as saying in a local news report.

President-elect Yoon Suk-yeol’s pledges are mostly business-friendly. Yoon said in a stump speech on Sunday that he will strongly support business leaders who create jobs, ease regulations and cut taxes for companies that bring their factories back home from overseas.

But some critics say that Korean conglomerates may find it difficult to completely let their guard down, as they have had some unpleasant past encounters with the former prosecutor.

As a prosecutor, Yoon was once called the “grim reaper” of the chaebol as he investigated and indicted leaders of the country’s major conglomerates.

In 2017, Yoon filed a warrant to detain Samsung Electronics Vice Chairman Lee Jae-yong on bribery charges during a special prosecutor’s investigation into a corruption scandal involving former President Park Geun-hye. When the court dismissed his request, Yoon filed for the warrant again, and eventually put Lee behind bars.

In 2012, Yoon, as head of special investigation unit, was responsible for trials against SK Group Chairman Chey Tae-won, then accused of embezzlement. Chey was sentenced to a prison term in the first trial, and was jailed.

In 2006, Yoon indicted Hyundai Motor Chairman Chung Mong-koo with detention on embezzlement charges in an investigation into the carmaker’s slush funds.

Because of his work as a prosecutor, Yoon is known to have kept a distance from members of the business community. But since he entered politics last year as a presidential hopeful, Yoon has vowed to deregulate and uphold a market economy. Some optimists say he would closely communicate with business leaders.

By Kim So-hyun (sophie@heraldcorp.com)