Corporate crusader Jang Ha-sung, who works to shake up South Korea's powerful family-controlled business groups, admits that he is hated by both bosses and unions.
"I am a target of hatred from both management and workers. Labor unions have branded me as a traitor who works for foreign investors," said Jang, the dean of Korea University.
"But I firmly believe that what I'm doing now is helpful for the country's economy as a whole," said the economist, who has been leading small shareholders pushing for corporate reform.
Jang has led a campaign to improve corporate governance at Samsung Electronics Co and other conglomerates known as chaebol and to promote the rights of minority shareholders.
South Korea launched a drive to reform the conglomerates on which its economic miracle was originally built after it was hit by the East Asian financial crisis in 1997.
Their reckless expansion was partly to blame for the crisis that forced the government to spend some US$32.2 billion to rescue troubled banks and companies.
Jang conceded there has been considerable progress in efforts to improve accounting transparency in the past decade.
But he is still not satisfied, saying a lack of transparency leads to a "Korea discount" in the eyes of foreign investors.
"We still have a lot of work to do," he said, urging top conglomerates to establish a system of discipline by enhancing transparency and accountability.
Despite their relatively small direct holdings, the founding families still maintain a grip over their business empires through complicated chains of investment.
Jang singled out Hyundai Motor Co as a conglomerate that needs more transparency.
Hyundai chairman Chung Mong-koo was sentenced to three years in jail in February for breach of trust and fraudulent accounting practices.
Chung, 68, who is free on bail, has appealed the ruling.
"Hyundai Motor should drastically improve corporate governance if it wants to become a global company," Jang said.
He said the domestic stock market would have a far higher valuation if better corporate governance were to take root.
In April last year Jang tied up with US fund Lazard Asset Management LLC to launch the Korea Corporate Governance Fund, targeting mid-sized companies that are managed poorly by founding families.
Jang said the fund was successful, with investors supporting its investment portfolio and its capital base rising sharply from the initial US$130 million.
He made headlines last December when Taekwang, a minor family-owned conglomerate, accepted his demand to improve corporate governance after a four-month feud over how the group should be managed.
"Since then Taekwang's share price has soared. Now its owners know that the group benefited from my campaign," Jang said.
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