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Interference in steel maker`s personnel

Posted May. 11, 2012 07:09,   

한국어

Evidence has appeared implicating former Vice Knowledge Economy Minister Park Young-june`s involvement in the appointment of the chairman of Korea`s leading steel maker POSCO. Park “interviewed” then POSCO President Yoon Seok-man and POSCO E&C President Chung Joon-yang, two candidates for the chairmanship, at a Seoul hotel in November and December 2008. Two months later, Park notified then POSCO Chairman Lee Gu-taek of Chung`s appointment, calling it "Cheong Wa Dae’s heart.” Lee recommended Chung as his successor in the board of directors and resigned from his post 14 months before his term ended.

Whether Park took the lead in interfering with POSCO’s personnel affairs is unclear, however. Back then, he held no public office after resigning as presidential secretary for planning. Park worked for Lee Sang-deuk, the elder brother of President Lee Myung-bak. Cheon Shin-il, chairman of Sejoong Namo Tour and a long-time friend of President Lee, is known to have also called Yoon to urge the latter to accept his elimination from the chairmanship race, saying this is “the will of the president.”

What is surprising is that Lee Dong-jo, chairman of POSCO partner company Jane & Tec, attended the interview with Yoon. Lee Dong-jo, who is a member of the “Yeongpo (Yeongil-Pohang)" faction along with Park, headed an association of Lee Sang-deuk’s supporters. As a close confidant of Park, the JN Tech CEO is suspected of managing Park’s slush funds. When prosecutors raided Park’s residence and office April 25, Lee Dong-jo left for China.

This is not the first time for POSCO to be dragged into politics. Former chairmen Kim Man-je, Yu Sang-bu and Lee Gu-taek failed to serve out their terms due to power transfer. The government has no share in POSCO after its privatization in 1988, but whenever power is transferred, those in power exercise influence over the steel maker as if the company is a spoil of war.

JN Tech was registered as a POSCO partner in January 2008, when President-elect Lee’s transition team was operating. Thanks to the partnership, JN Tech`s sales have increased 10-fold. Rumors also spread that POSCO executives lined up to meet Lee Dong-jo ahead of personnel shake-ups. Thus one can easily guess the situations at state-run companies. Those who worked for Advanced People’s Solidarity, an organization supporting Lee Myung-bak in the 2007 presidential election, entered state-run companies en masse after he was elected president. In a presidential banquet for members of the organization in 2009, the emcee said, “There are too many inspectors at state-run companies, so I will only introduce top executives.” If the power elite sway personnel affairs at companies, this will undermine corporate competitiveness and generate corruption. Prosecutors must get to the bottom of the incident to root out evil practices.