Han Dong-hoon: Government's pressure on semiconductor investment echoes Park Geun-hye era 'Mir-K Sports' scandal

Independent lawmaker Han Dong-hoon has strongly criticized the current administration's reported efforts to influence investment decisions by major South Korean companies, specifically Samsung Electronics and SK Hynix, regarding semiconductor facilities in the Honam region. Han argued that presidential pressure on corporate leaders to commit to investments could potentially violate the duty of loyalty owed to shareholders under the revised Commercial Act, exposing executives to legal repercussions.

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If the president pressures the CEO to make a decision, is it acceptable to just say 'yes' and follow? If executives do not oppose it, they will be legally responsible for breaching their duty of loyalty to shareholders under the revised Commercial Act.

Speaking on his Facebook page, Han questioned the appropriateness of such executive compliance, asking, "Is it acceptable to just say 'yes' when the president pressures the CEO to make a decision?" He further asserted that if executives do not oppose such directives, they could be held legally responsible for breaching their fiduciary duty to shareholders. This stance highlights concerns over corporate autonomy and governance under the current government.

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The push by Samsung Electronics and SK Hynix for a second semiconductor cluster raises questions about the true intentions behind the Lee Jae-myung administration's push for amendments to the Commercial Act, which was done in the name of prioritizing small shareholders.

Han's remarks also cast doubt on the sincerity of the Lee Jae-myung administration's push for semiconductor cluster investments in the Honam region. He suggested that the government might be using these investment plans as leverage, particularly in the context of internal party politics, by summoning heads of major conglomerates like Samsung and SK. The lawmaker implied that the government's push for these investments, especially after advocating for changes to the Commercial Act that emphasize shareholder duties, raises questions about the administration's true motives and its approach to corporate engagement.

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The Lee Jae-myung administration is summoning the heads of Samsung and SK one after another to pressure them into building a semiconductor cluster in Honam, using it as ammunition for the 'Myungcheong Daejeon' party convention.