Kim Jeong-kwan, the Minister of Trade, Industry and Energy, stated on August 6 that he opposes an incentive structure that bases bonuses on operating profit. He explained that he is working on amending the Commercial Act and the Capital Markets Act to require shareholder approval for large bonuses.
During a discussion at the Press Center in Seoul, Minister Kim pointed out that shareholders and investors are excluded from the process of distributing a portion of operating profit to employees. He remarked, "The owners of the company are the shareholders, and the investors who bear the risks are equally important. However, in the debate over bonuses, shareholders and investors are often left out."
He added, "If a company ignores the opinions of shareholders and investors, who would want to invest or become a shareholder? Ultimately, the consequences will fall on the management and employees."
Minister Kim reiterated his opposition to profit-based bonuses, stating that at a minimum, approval from the board of directors or shareholders should be obtained. He characterized the distribution of bonuses that goes against the interests of shareholders and investors as an overreach of authority.
He also mentioned that discussions are ongoing with relevant departments to amend the Capital Markets Act and the Commercial Act to require shareholder approval for large bonuses. The intent is to prioritize reinvestment for future competitiveness over bonus distribution.
Regarding the ongoing "Coupang issue" in U.S.-Korea relations, Minister Kim noted that perspectives vary depending on whom he speaks with in the U.S. He observed, "For instance, when meeting with U.S. politicians, I get the impression that there is a very sensitive reaction to Coupang. In contrast, officials from the Department of Commerce or the Office of the United States Trade Representative (USTR) seem to have a much better understanding of the essence of the Coupang incident."
He highlighted that some U.S. lawmakers mistakenly view Coupang as a means to alleviate the trade deficit between the U.S. and Korea. Minister Kim stated, "Many American politicians believe that thanks to Coupang, American agricultural, fishery, and livestock products are being imported into Korea. When I explain that most Koreans understand Coupang as importing cheaper products from nearby China rather than American goods, they are often surprised."
He concluded by emphasizing that the core issue of the Coupang situation is that nearly 80% of information about Korean adults was leaked, and that this went unnoticed for several months. He posed a rhetorical question to U.S. politicians: "If 80% of information about American adults were leaked to a foreign entity without proper reporting or legal procedures, how do you think the U.S. would respond?" Most agree with this perspective, he noted.
* This article has been translated by AI.
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