After Far Eastern Group took over the management of Pacific Sogo early in 2003, Hsu invited current Presidential Office Secretary-General Mark Chen (陳唐山), former presidential office deputy secretary-general Chen Che-nan (陳哲男) and the first family's former doctor Huang Fang-yen (黃芳彥), who all maintain close ties with President Chen Shui-bian (陳水扁), for a banquet.
He then announced in front of them the appointment of Chung Chin (鍾琴), former Cabinet spokeswoman, as the department store's first chairwoman. Giving the impression that the government was on his side, at Christmas the same year, Hsu invited Wu to switch on the Christmas tree lights at the Far Eastern Plaza Hotel.
However, the freeway electronic toll collection (ETC) dispute that erupted early this year became Hsu's first major setback since he took over the Far Eastern Group nearly three decades ago.
The nation's first ETC system is based on a build-operate-transfer (BOT) contract, which means that contract winner Far Eastern Group has the government as its partner.
But the flawed selection procedure, pricey on-board units motorists required to enjoy speedy toll collection services, and what consumer groups criticized as unfair contracts for drivers have triggered a backlash from all directions and even allegations of corruption by lawmakers.
Under pressure, the government demanded that Far Eastern Electronic Toll Collection Co (遠通電收), a joint venture where Hsu's group controls 55 percent, slash retail prices for on-board units although the firm complained about losses.
The impasse remains especially after the Administrative Supreme Court voided a partnership between the government and Far Eastern Electronic in August, citing an unfair bidding process.
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