In the days following the decision by South Korean parliament to pass an impeachment motion for President Park Geun-hye, Seoul’s Gwanghwamun square was as busy as it had been in the lead-up to the decision.
Like thousands of others at the square Protester Cheong Soon-yeh feels the crisis is South Korea’s chance to rid itself of deeply entrenched corruption, and Park’s impeachment would only be the beginning.
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“I was so happy with parliament’s decision because the citizens works so hard to make their voices heard. But I’ve realised that this is just the start and we must continue to fight. The whole system needs cleaning up” she said.
South Korea’s President Park Geun-Hye was undone by accusations she allowed her relationship with the controversial daughter of a cult leader, Choi Soon-Sil, to influence state affairs. But Choi isn’t the only player involved in the scandal.
The leaders of some of South Korea’s biggest companies ('Chaebols’ as their known locally), including Samsung and Hyundai have been accused of being involved in a ‘cash for favours’ arrangement in which they donated just under $100 million to foundations run by Choi.
Last month the heads of the companies in question were grilled by parliament. All vehemently denied any wrong behaviour, suggesting there had been pressure to make donations.
"It's a South Korean reality that if there is a government request, it is difficult for companies to decline," said Huh Chang-soo, head of the GS Group and chairman of the Federation of Korean Industries lobby group.
"The government has given Chaebol special privileges": Professor Song Joo Myung from Hanshin University. Source: SBS
Professor Song Joo Myung from Hanshin University says he’s not surprised.
“The government has given Chaebol special privileges. The biggest problem is that they’re irresponsible and think they’re above the law. They regularly deal with the government under the table,” says Professor Song.
South Koreans continue to take to the streets to demand the ousting of President Park. Source: AAP
Influence and power of chaebols
Literally translated as ‘Wealth Clan’ chaebols are a powerful force in South Korean society; diverse often family-run conglomerates which control the country’s industries.
Park Geun-hye’s father, the controversial leader General Park Chung-hee, wielded the chaebols as instrument for pulling the country out of poverty following the Korean War in the 60s and 70s. Believing that in order for South Korea to become a strong nation, it needed a strong economy, he founded a complicated relationship between the government and the companies. He told them what to do, but in return protected them from competition and offered generous loans and tax cuts.
Decades later South Korea is the 11th biggest economy in the world, and its booming chaebols are a crucial part of that.
Samsung is the biggest chaebol, with its revenue roughly equivalent to almost 30 percent of South Korea's gross domestic product (GDP).
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Other chaebols include Lotte, Hyundai SK and LG.
“The government has always worked with and given favours to chaebol,” says Professor Song.
“They’re afraid to do anything that hurts them. It’s unfair and needs to stop.”
As inequality rises, debt soars and with youth unemployment at an all time high, it’s little wonder citizens are taking to the streets demanding massive change.
With Park’s presidency suspended, the thousands of protesters have been given hope that corruption, especially in relation to chaebols, will come to an end. But they know the road won’t be short, or easy.
“Even if the opposition power keeps the privilege nothing will change even if a new government is organised. We need to change our government at its core and build an economic and systematic democracy,” says Professor Song.
Samsung Electronics is one of the many high-powered companies accused of being involved in ‘cash for favours’. Source: AP
