Perhaps one of the most interesting lawsuits coming out of South Korea seems to have been resolved. It involved Samsung and journalist Michael Breen. I no huge fan of Mr. Breen. He tends to be somewhat cynical in his coverage of Korean big business. His attack on Samsung is no surprise. What surprised many was that Samsung took him to court.
Some of the details pulled together nicely by the LA Times
Headlined “What People Got for Christmas,” the English-language column [in Korea Times] also poked fun at global technology giant Samsung Electronics, referring to past bribery scandals as well as perceptions that its leaders are arrogant.
The piece was meant as a satirical spoof, the columnist says, but Samsung wasn’t laughing.
Breen’s column ran as local media reported that President Lee would soon pardon Samsung Chairman Lee Kun-hee on a 2008 conviction for tax evasion. Chairman Lee, 68, had already received a federal pardon in the 1990s on a conviction for bribing two former presidents while he was with the firm.
On Dec. 29, the day of Lee’s pardon, Samsung sued the freelance columnist, the newspaper and its top editor for $1 million, claiming damage to its reputation and potential earnings. After the Korea Times ran clarifications, the newspaper and its editor were dropped from the suit.
But Samsung continues to pursue Breen personally for libel, both civilly and on criminal charges that he intentionally libeled the company. If convicted, he faces a hefty fine and even jail time.
“The reason I’m being sued is that the beast roared,” said Breen, 57, a British native and longtime social commentator and South Korean resident who wrote a 1998 book on South Korea’s modern history.
In its suit, Samsung said the column used a “mocking tone” to add “baseless, malicious and offensive false information to criticize” the firm.
After Samsung complained, the paper ran two clarifications, one of which Breen says he was told by editors was written by Samsung.
[note to readers of the KoreaLegal.org]
Legal experts here say the case underscores the considerable power wielded in South Korean society by such mammoth corporate conglomerates, known as chaebols, which are dominated by top officials, often related, who are treated here as near-royalty.
An Upside for Korean Global Business? Another Side of the North South Tensions
Sunday, May 30th, 2010By Don Southerton, KoreaLegal.org Editor
Over the past week, I’ve been sharing my thoughts on the recent heightened tensions between North and South Korea over the sinking of the Cheonan naval vessel.
After a lengthy investigation following the March incident, a multinational forensics team concluded unanimously it was a North Korean torpedo that sank the South Korean ship.
Why did North Korea launch such an attack knowing it would anger even those sympathetic to their plight? In correspondence, Marcus Noland, noted NK scholar, shared his thoughts on North Korean motivations. They include:
1) Revenge (for an earlier encounter where the North took a bruising from the South’s better equipped navy).
2) Brinkmanship
3) Wave the bloody shirt—divert attention inside the North from disastrous confiscatory currency reform.
4) Influence South Korean National Assembly elections–the current president Lee Myung-bak administration’s takes a hard line approach to the North and opposition leaders have long supporting a more conciliatory path.
5) Succession—Kim Jong Il’s son and his peers might get credit for the attack and it would be a show of strength to defy the South and their allies.
That said, tension and emotions are running high. In fact, more so than in years. June elections, pro-North supporters, anti-North war veteran groups, and the media continue to fan the situation.
Without ignoring or downplaying the human suffering and loss resulting from the Cheonan sinking… So, why might this benefit Korean global business? Samsung, Hyundai-Kia Motors and LG derive much of their profits from international sales. Even with the global recession last year, they all performed well—lots due to a weak Won. This year the Won was strengthening against the Dollar as the South Korea economy recovered. This could mean that overseas profits this year would in turn suffer.
Interestingly, the Korea Economic Institute notes that when a threat arises from the North the Won drops in value to the Dollar. (Please review the full article posted by the Korea Economic Institute.) Click Here
So what may foster fear and concern among many working for Korea-based global organizations, the current tensions might actually have some benefit– at least in short term profits.
So what can we expect…. Over the next few weeks, we’ll see defensive positioning of the South Korean and US military forces, more sanctions against the North, China and Russia trying to avoid taking sides, and the North grabbing as much media attention as it can.
Questions? Comments?
Tags: Cheonan incident, Cheonan sinking, Hyundai Kia Automotive Group, Kim Jong Il, Lee Myung-bak, LG, North Korea, North Korea human rights, North Korea Japan tensions, North Korea missile launch, North South Korea, Samsung Electronics, South Korea Navy
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