[비즈한국] “This is the first parliamentary audit of the 22nd National Assembly. The lawmakers are full of ambition. Besides, there are no elections next year, right? Since the local elections are not until June 2026, there isn't a major distraction that the lawmakers need to worry about. Everyone is likely dreaming of becoming a star.” (Aide at a lawmaker's office)
The first parliamentary audit of the 22nd National Assembly is just one week away. With the audit starting on October 7, companies are on high alert as usual. This is because the National Assembly is demanding the mass attendance of corporate executives. In particular, there is talk that the retail and delivery industries are on "high alert."
Trade Committee Demands Attendance of Major Corporate Heads
The committee demanding the "attendance" of major companies is the Trade, Industry, Energy, SMEs and Startups Committee. As it covers the entire industrial sector, it plans to call on leaders from major companies such as Samsung, Hyundai Motor Company005380, and SK. Jang Jae-hoon, President of Hyundai Motor, and Ryu Gung-seon, CEO of Kakao Mobility, were summoned regarding allegations of disrupting large-small business relations and Kakao Taxi commission/user inconvenience, respectively. Additionally, Kwak Noh-jung, CEO of SK Hynix00660, and Jeon Young-hyun, Head of Samsung Electronics005930's DS Division (Vice Chairman), were called as references to answer questions regarding preventative measures and inspections against the leakage of industrial technology.
The committee also plans to examine the recently erupted management dispute at Korea Zinc010130. For the first day of the audit on the 7th, Kim Byung-ju, CEO of MBK Partners, Jang Hyung-jin, Chairman of Young Poong Group, and Choi Yun-beom, Chairman of Korea Zinc, were adopted as witnesses. Other witnesses summoned include Kim Young-seop, CEO of KT030200, Bang Kyung-man, CEO of KT&G, and Kang Han-seung, CEO of Coupang.
In the Strategy and Finance Committee, Democratic Party lawmakers have submitted requests to adopt SK Group Chairman Chey Tae-won and Noh So-young, director of Art Center Nabi, as witnesses regarding allegations surrounding a 30 billion won slush fund from former President Roh Tae-woo, drawing attention to whether the two will attend.
Delivery Industry on High Alert
While many companies are nervous about the "attendance demands for executives," the delivery industry is said to be on especially high alert. This is because the heads of all three major delivery apps are set to stand on the witness stand at the Trade Committee audit on the 8th. Pieter-Jan Vandepitte, CEO of Woowa Brothers, along with Vice President Ham Yoon-sik, Coupang CEO Kang Han-seung, and Yogiyo CEO Jeon Jun-hee have been adopted as witnesses. This marks the fifth consecutive year that Baedal Minjok (Baemin) has been summoned as a witness since its first audit appearance in 2020, and the first time for Yogiyo in four years since 2020.
The heads of Baedal Minjok, Coupang, and Yogiyo are expected to face questions regarding delivery app commissions. On the 9th of last month, Woowa Brothers increased the per-order commission for stores on "Baemin 1 Plus" from 6.8% to 9.8%, a 3 percentage point (p) hike, which sparked a controversy over dual pricing that has since spread throughout the delivery industry.
There is also a possibility of summons to the National Policy Committee. The committee is reviewing calling executives from Woowa Brothers, Coupang Eats, and Yogiyo to the audit regarding the delivery commission issue. Furthermore, as the Korea Fair Trade Commission has launched an on-site investigation into The Born Korea over allegations of providing false estimated sales figures to Yeon-don Ball Katsu franchisees, there is a possibility that Baek Jong-won, CEO of The Born Korea, may also be required to attend the audit.
Observers predict that the offensive from audit committee members will be significant, given that the issues involve general consumers and self-employed individuals. A National Assembly official noted, "Retail and delivery are areas where it is easy to look like you are on the side of the working class," adding, "There will be many lawmakers looking to show themselves criticizing the profit-seeking behaviors of these companies."
Atmosphere of Seeking to Show 'Presence'
The committee that has adopted the largest number of witnesses and references is the Science, ICT, Broadcasting, and Communications Committee. For the first audit of the 22nd Assembly, it adopted a total of 162 people—108 witnesses and 54 references. This is the largest scale in the history of parliamentary audits. Regarding in-app payment policies, Google Korea CEO Kim Kyung-hoon and Apple Korea Vice President Ahn Chul-hyun were adopted as witnesses, while Jung Kyo-hwa, Head of Policy and Legal Affairs at Netflix Korea, was adopted as a witness regarding questions on "free riding" network usage and reinvestment in the K-content market.
In addition, a large number of professional managers were listed, including Jung Ho-jin, Executive Vice President of Samsung Electronics Korea; Roh Tae-moon, Head of Samsung Electronics MX Business (reference); Lim Bong-ho, Head of SK Telecom's Customer Business; and Jung Soo-heon, Head of LG Uplus's Consumer Division.
Critics say that the aggressive attitude of lawmakers who want to be "stars" in the first audit of the 22nd Assembly is already evident from the selection of references and witnesses. An aide in a lawmaker's office commented, "Each committee has associated companies, and there is an atmosphere where showing one's presence is important since it is the first audit of the 22nd National Assembly," adding, "Didn't Choo Kyung-ho, floor leader of the People Power Party, say that 'the parliamentary audit is a stage for the birth of stars'? Lawmakers hoping to become stars and aides looking to prove their skills will likely be sharpening their blades against these companies."