The 60 year-old gained infamy in 2008 after enlisting company security guards and gangsters to kidnap bar workers who had been in a fight with one of his sons. Kim then beat one of the workers with a metal pipe. Although others involved were jailed over the incident, the chairman’s sentence was 200 hours of community service. He had previously been found guilty of illegal foreign exchange transactions.
Kim’s jailing has ramifications far beyond Hanwha. While their slick products and stylish marketing have made the likes of Samsung and Hyundai household names worldwide, the companies have a mixed reputation at home.
Many of Korea’s “chaebol” have close government ties to transform their once poverty-stricken nation’s economy. Today, their hi-tech exports are the key engine of corporate Korea. But domestically, chaebol stand accused of bribery, bullying small businesses and abusing shareholder rights. The families of company founders, now in their second and third generations, are frequently tried for crimes such as embezzlement, slush funds and illegal wealth transfers.
The heads of Korea’s top companies, Lee Keun-hee of Samsung, and Chung Mong-koo, of Hyundia Motor Group, have also been indicted for white-collar crimes.
Other chaebol chairmen are almost certainly watching with interest. Chey Tae-won, head of SK Corp, Korea’s number three chaebol, is awaiting judgment on embezzlement charges, which he has denied. In 2003, he had been found guilty on a separate embezzlement rap, but after serving seven months in jail was released and reinstated at the head of SK.
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reporter
Park Sae-jin
swatchsjp@ajunews.com