As the National Assembly prepares for its October audit, tensions are rising over the selection of corporate leaders and executives as witnesses. Concerns are growing among business and academic circles about whether corporate management decisions should be scrutinized in this forum. There are fears that the audit is shifting from a platform for problem analysis and resolution to a venue for pressuring corporate leaders. With major sectors like semiconductors and defense industries being considered for witness testimony, the burden on companies regarding large investments and mergers is expected to increase.
According to political and business sources, the National Assembly's Legislative and Judiciary Committee, along with several other committees, held a meeting on the afternoon of September 28 to select witnesses and reference persons for the audit. The Education Committee, Culture, Sports and Tourism Committee, and Health and Welfare Committee are scheduled to select their witnesses the following day.
Each year, the National Assembly repeats the practice of applying for the testimony of dozens to hundreds of corporate-related witnesses, only to withdraw many of those requests later. Last year, over 200 corporate witnesses were requested and selected, but significant backlash from the business community led to many withdrawals.
Corporate leaders often face witness requests even for minor issues within their affiliates. Last year, witness requests were made for SK Group Chairman Chey Tae-won, Hyundai Motor Group Chairman Chung Eui-sun, and Shinsegae Group Chairman Chung Yong-jin, but these were later withdrawn.
Some lawmakers are calling for a reduction in the practice of summoning corporate leaders for public shaming, yet requests targeting them continue this year. For instance, the National Defense Committee has requested Kim Dong-kwan, Vice Chairman of Hanwha Group, to testify regarding the company's acquisition of a 15.89% stake in Korea Aerospace Industries (KAI). KAI is primarily a publicly traded private company, with the government as its major shareholder. The request for Kim's testimony raises concerns about political pressure on mergers and acquisitions between private companies.
The Agriculture, Food, Rural Affairs, and Fisheries Committee has requested Korean Air Chairman Cho Won-tae to testify about the use of domestic agricultural products in in-flight meals. There are also discussions about a potential witness request related to the headquarters relocation of the integrated Jin Air (Jin Air, Air Busan, Air Seoul). As Cho works to solidify the merger of Korean Air and Asiana Airlines into a mega carrier, the pressure on him is likely to increase.
On September 21, the Industry, Trade, and Energy Committee saw a heated debate between the ruling and opposition parties over witness requests for Samsung Group Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won. Although the requests were ultimately dropped, the opposition party has taken a firm stance, insisting that the government must clarify whether there is any pressure involved in the promotion of three major mega projects, leaving the possibility of additional witness requests during the comprehensive audit open. The Climate and Environment Committee also considered summoning HD Hyundai Chairman Chung Ki-sun but later stepped back.
Professor Wang Soo-bong of Ajou University stated, "Issues where multiple people die in workplace accidents are certainly matters that can be addressed in the audit. However, issues like mergers and acquisitions or management disputes between companies should be left to shareholder meetings and capital market mechanisms."
* This article has been translated by AI.
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