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.
Nvidia Corp yesterday unveiled its new high-speed interconnect technology, NVLink Fusion, with Taiwanese application-specific IC (ASIC) designers Alchip Technologies Ltd (世芯) and MediaTek Inc (聯發科) among the first to adopt the technology to help build semi-custom artificial intelligence (AI) infrastructure for hyperscalers. Nvidia has opened its technology to outside users, as hyperscalers and cloud service providers are building their own cost-effective AI chips, or accelerators, used in AI servers by leveraging ASIC firms’ designing capabilities to reduce their dependence on Nvidia. Previously, NVLink technology was only available for Nvidia’s own AI platform. “NVLink Fusion opens Nvidia’s AI platform and rich ecosystem for
WARNING: From Jan. 1 last year to the end of last month, 89 Taiwanese have gone missing or been detained in China, the MAC said, urging people to carefully consider travel to China Lax enforcement had made virtually moot regulations banning civil servants from making unauthorized visits to China, the Control Yuan said yesterday. Several agencies allowed personnel to travel to China after they submitted explanations for the trip written using artificial intelligence or provided no reason at all, the Control Yuan said in a statement, following an investigation headed by Control Yuan member Lin Wen-cheng (林文程). The probe identified 318 civil servants who traveled to China without permission in the past 10 years, but the true number could be close to 1,000, the Control Yuan said. The public employees investigated were not engaged in national
ALL TOGETHER: Only by including Taiwan can the WHA fully exemplify its commitment to ‘One World for Health,’ the representative offices of eight nations in Taiwan said The representative offices in Taiwan of eight nations yesterday issued a joint statement reiterating their support for Taiwan’s meaningful engagement with the WHO and for Taipei’s participation as an observer at the World Health Assembly (WHA). The joint statement came as Taiwan has not received an invitation to this year’s WHA, which started yesterday and runs until Tuesday next week. This year’s meeting of the decisionmaking body of the WHO in Geneva, Switzerland, would be the ninth consecutive year Taiwan has been excluded. The eight offices, which reaffirmed their support for Taiwan, are the British Office Taipei, the Australian Office Taipei, the
CAUSE AND EFFECT: China’s policies prompted the US to increase its presence in the Indo-Pacific, and Beijing should consider if this outcome is in its best interests, Lai said China has been escalating its military and political pressure on Taiwan for many years, but should reflect on this strategy and think about what is really in its best interest, President William Lai (賴清德) said. Lai made the remark in a YouTube interview with Mindi World News that was broadcast on Saturday, ahead of the first anniversary of his presidential inauguration tomorrow. The US has clearly stated that China is its biggest challenge and threat, with US President Donald Trump and US Secretary of Defense Pete Hegseth repeatedly saying that the US should increase its forces in the Indo-Pacific region