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    By Dean de la Paz

    Special to BusinessMirror

    Of Korean corruption

    scandals and RP’s cozy ties

    People speak of the growing problem in hushed tones, respectful of cultural diversity. For some, the encounters are limited to the supermarket line where some South Koreans brusquely cut in as they do at the airport where police shrug in subservient deference.

    Filipinos are ever tolerant. A few resort to comparing Koreans to the Japanese, noting the latter as more courteous, more refined. The comparisons are unfair. It may be psychic restitution—an anemic attempt at tolerating cultural friction with racial stereotypes.

    But the incidents of fist-fights in school yards have increased as have fears of foreign criminal syndicates invaded social banter. Those are far more serious than coffee-shop talk of strange out-of-towners turning leased homes into illegal dormitories.

    Unfortunately, it is not only to neighborhoods that curiosities are imported. Urban legends have started in shoptalk around water coolers and now, even boardrooms where talks of corporate anomalies focus.

    Asked for comment, one expatriate partnered with a South Korean surmised, “These fellows do not have an FCPA to guide them, so they pretty much do want they want. Some, seeing the Philippines among the list of the most corrupt, think this is a corruption-friendly neighborhood”.

    That is an indictment. And painful as it is, it takes a foreigner to slap us with the truth. The American Foreign Corrupt Practices Act does not guarantee integrity, but at least, it is statutory recognition of what constitutes wrongdoing.

    Not so, it seems, with one of Korea’s most recognized. The increasing animosity cannot be denied. On Panay Island, protesting farmers and fishermen, up against a Korean multinational forcibly erecting a coal-fired facility amid farmlands and fishing waters, rallied for the latter’s ejection. They accused local politicians of selling off to the foreigners. The island’s NGO, Responsible Illongos for Sustainable Energy (RISE), even trooped to the Senate.

    One writer attributed the conflicts to a culture where younglings are indoctrinated into the martial arts not simply as defensive options but as means of solving differences using brute force as the default. Columnist Antonio Abaya might have been overly simplistic. Or, perhaps, amazingly perceptive and profound.

    The recent accusations of insidious corruption, secret sums and bribery against Samsung Corp. are cases in point. These resurrect latent fears that adversity might cross to the corporate world and its detail reawakens the martial-law nightmare. Here, Abaya’s analysis attains ominous significance.

    The growing numbers of corporate anomalies that mirror governance by brute impunity compel us to relate to Korea’s Samsung scandals. It does not help that Gloria Arroyo’s military has degenerated into the methodology of martial law sans requisite declarations. The subterfuge is extensive and the Samsung scandal’s shibboleths are strangely similar with both those under martial law and in our resurgent military-backed version.

    The Samsung corruption scandal involves allegations that its chairman, Lee Kun Hee, masterminded massive schemes of bribery and illegal transactions.

    These are nothing new. Critics claim “Samsung runs a vast network of bribery and influence peddling through the government, the Judicial branch and the media” (International Herald Tribune, November 6, 2007). Its affiliates spent more than $285 million for advertisements in television and radio stations, newspapers and magazines last year. The sum accounted for 5.6 percent of Korea’s 4.6-trillion-won news media advertising market.

    Samsung vehemently denies the charges but in previous scandals, its executives have already been convicted of illegally providing funds to politicians.

    This time, Samsung faces a “potent” whistleblower. Its former legal counsel, Kim Yong Chul, says he “had been personally involved in bribing and in fabricating court evidence on behalf of Lee and Samsung.”

    Kim said, “A basic responsibility for all Samsung executives is to do illegal lobbying, [and] buying people with money. Samsung regularly provided politicians, government officials, tax collectors, prosecutors, judges, journalists and scholars with cash bribes and expensive gifts. The cash bribes were handed over in packages disguised as CDs or monthly magazines, or in briefcases or suitcases, depending on the sums.”

    Sounds familiar, doesn’t it?

    In 1996, Lee was convicted of giving and arranging bribes to ex-South Korean President Roh Tae Woo, a former general. He was handed a two-year prison term he never served.

    The Seoul High Court also found former and current heads of Samsung Everland guilty of selling convertible bonds to Lee’s children at below-market prices. These were aimed at enabling Lee to hand over control of the conglomerate to his son, Jae Yong, an executive at Samsung Electronics, as Everland serves as Samsung’s holding company.

    Analysts note that “corruption and bribery have been hallmarks of South Korea’s business and political worlds for decades. Their roots can be found in cozy ties developed during years of military-backed authoritarian rule when family-run conglomerates, or Chaebol, were given the role of leading South Korea’s drive toward industrialization.”

    The Philippines nurtures its own “cozy ties” between a military-backed authoritarian and business. The old dictatorship cronies perpetuate unpunished and unaccountable. Shameless, many live off behest accommodations, inherited stolen wealth, false respectability and dubious entitlement.

    Viewed against the increasingly obvious military backing of latent authoritarian rule and the rise of another Philippine oligarchy among political cronies, it is not difficult to see the relevance of recent events and the ominous specters that the Samsung corruption scandals mirror in our neighborhood.

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