Chapter 233
Chapter 233
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Translator: crow
Chapter Title: Chaebol Reform
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John Dalberg-Acton, the British politician, left behind the famous saying: "Absolute power corrupts absolutely."
This maxim applied not just to political power, but to economic power as well.
When economic power grew massive enough to manipulate political power at will, its harms distorted laws and eroded the trust of society at large.
Knowing this, I wasn't foolish enough to leave the chaebols unchecked.
I had chosen chaebols as the tool to surpass America, but even this tool needed safety measures.
'The first measure has to be the national pension fund.'
I envisioned the national pension as the primary instrument for controlling the chaebols.
By using retirement savings to buy up shares in companies, wielding massive stakes to keep the chaebols in line.
Of course, that alone wouldn't suffice to control them.
Depending on the power dynamics, the national pension could end up as a tool for the chaebols instead, so additional safeguards were essential.
Second, reform corporate governance by introducing Western-style board systems.
Through Western boards of directors, I planned to correct the reality where Korean companies' boards were mere yes-men to the chaebol heads.
Once the framework was set and sustained for about a decade, it would serve as a leash on the chaebols.
Third, insert punitive penalty provisions against the social elite into the constitution.
No more slaps on the wrist like three years in prison suspended for five—no more half-hearted punishments. From the start, only harsh penalties for chaebols, forcing even the heads to watch their step.
Collusion between business and government?
If things went wrong, they'd end up in prison. They wouldn't take it lightly.
What if the chaebols changed the laws?
Changing the constitution required amendments—did they think that would be easy after I'm gone?
Constitutional amendments weren't child's play.
Fourth, constitutionally block the privatization of national infrastructure (water and sewage, electricity, gas, telecom, transportation).
Block monopolies on infrastructure alone, and the damage from national-scale monopolies on everyday life could be managed to tolerable levels.
I discussed these plans in closed-door meetings with my economic advisors.
"If the chaebols find out, they might withdraw their support for you, sir."
Who would welcome having a leash put on them?
But I couldn't skip the market out of fear of maggots.
"No company will show its teeth right away. I guarantee it."
Chaebols were greedy wolves, more sensitive to danger than any beast.
As long as I, Lee Seong-jun, held overwhelming power over them, they wouldn't rebel.
"Then how about enforcing the separation of banking and industry more strictly than now?"
Chaebols were subject to the separation law barring bank ownership, but they easily raised funds through insurance, securities, and more.
"No need for that."
Block that too, and it would be tough for Korean chaebols to stockpile ammo to fight American companies.
The shackles on chaebols underwent over a week of in-depth closed-door discussions.
The resulting proposal was sent to the Grand Council.
"What? A chaebol regulation bill?"
The Grand Council members were startled by the sudden decree.
"What's wrong? Got something to hide?"
We regulated lawmakers taking bribes from chaebols, but couldn't catch every backroom deal.
This era was still one of rice-wine elections, after all.
"Th-that's not it."
"Whether you've taken pocket money or not is none of my business. It's for the good of the nation—handle it swiftly."
Even after my directive, the Grand Council dragged its feet.
Their influence in politics ran deeper than I'd thought.
'Bunch of fools who can't tell who's boss.'
I immediately summoned the Board of Audit and Inspection chief.
"You called for me, sir?"
"Among the Grand Council members, dig up three of the dirtiest as examples."
"Yes? Ah, understood."
Even my own limbs in the Grand Council couldn't defy me with impunity.
They owed their seats to my power—how dare they disobey?
"Th-the Leader is investigating our own party?"
"He seems quite displeased with the delays on the bill."
Once the audit began, the Grand Council sprang into action like their asses were on fire.
The bills I sent passed like clockwork.
Those needing constitutional amendments entered the amendment process.
Then, the Federation of Korean Industries chairman visited my residence to voice concerns.
"Sir, on one hand you're empowering businesses, on the other you're kneecapping us—which tune should we dance to?"
His whining was pathetic; I iced my tone.
"Are you here to throw a tantrum, Chairman?"
"S-Sir."
"Have I not given enough to the business world so far?"
I'd bestowed plenty on Korea's companies.
No reason to hear complaints to my face over a mere leash.
"That's absolutely not it."
"Has the Republic ever caused you loss?"
I never openly demanded political funds from chaebols, nor nagged them to cooperate with government policies.
"That too, no."
Then shut your mouth.
"If so, you should accept the leash I'm offering."
"......"
"You know I don't give trust lightly, Chairman. For me to trust you, I need safeguards—that's what I'm saying. If you openly resist even this minor thing, what do you think I'll conclude?"
"......"
"You don't want this Lee Seong-jun's trust, right? Isn't that the thought?"
"Sir, that's absolutely not true."
Only when I brought up trust did the FKI chairman finally bow his head.
"If you want to buy my trust, wear the leash. That's my condition."
"I'll convey your intent to the members."
The FKI chairman left with a soul-drained face.
Of course, all that trust talk was just lip service.
Did they think this Lee Seong-jun was naive enough to hand over trust for a single leash?
I even eyed my own daughter Se-eun with suspicion.
Why would I trust bloodless corporate heads?
Soon after, the FKI signaled unconditional surrender.
"We will fully cooperate with your policies, sir."
About time.
Their current economic power was nothing against mine.
For economic power to challenge political power, it'd have to wait until after I was dead.
'More people must be waiting for me to die now.'
Gazing at the aged power broker in the window, I lit a cigar.
*
The chaebols didn't dare show resentment toward Lee Seong-jun's reforms.
They prepared to accept his demanded Western board systems.
They hurried to improve governance and convert to holding company structures.
"Do we really have to go this far just because he said so?"
The young chaebol heirs found their fathers' or grandfathers' compliance baffling.
The chaebols they'd known were global heavyweights.
"You don't know him."
The chaebols remembered exactly what Lee Seong-jun was.
A mid-40s army major general from a backwater post, without even combat troops, staged a coup and seized power.
Most such military rulers were clueless on governance, but Lee Seong-jun was different.
He steered the nation with a clear blueprint.
Victorious in wars, dominant in economic battles, propelling Korea's economy skyward.
Just another jarhead?
No. Lee Seong-jun was a true caped crusader on a white horse.
A giant descended to make this nation a superpower.
One step from him shook the world.
And that giant issued a command.
'Wear the leash.'
Refuse, and he'd take it as rejecting his trust—a warning sent.
Reject the giant's leash?
Who knew what fate awaited.
Just look at nations that irked Lee Seong-jun.
Germany, the world's third power.
Butchered in four directions, talent, tech, equipment, marrow sucked dry.
Republic of China?
Butchered in Nanjing and Chongqing, hammered by hyperinflation, smashed to bits.
If nations fell like that, what chance did a single company have?
"Defying him means you don't want to live in this country anymore."
Having watched Lee Seong-jun's moves, the chaebols feared him.
No one dreamed of confronting him.
"But it's a democratic era now, isn't it? Even the prime minister can't do whatever he wants, no matter how powerful."
"Democracy?"
The chaebols scoffed.
In name only.
But Lee Seong-jun's power was little different from dictatorship days.
He could amend the constitution on a whim, his loyalists filled administration and judiciary.
And that was it?
Over 80% concrete support base ready to back whatever he did, plus his success legend.
Democracy era or Yushin era, add Lee Seong-jun and it became "dictatorship" inevitably.
"Has he ever failed to push through what he set his mind to?"
If he wanted, he could upend the national structure overnight.
"Don't forget: this nation is built on his foundations, pillars raised by him. The owner of the Republic of Korea is him."
Until Lee Seong-jun left this world, no challenges could even be dreamed of here.
Such foolish dreams would only meet the fate of the rebels.
The chaebols hammered that nail deep into their heirs' heads to prevent vain fantasies.