Business Commentary for Rational Individuals

Labor Leaders are Glad to See Hyundai's Chief in Jail

Dr. Bill Belew

Issue I - June 10, 2006

Introduction by Mr. Stolyarov: This article by Dr. Bill Belew presents another example of economic inefficiency caused by domineering and coercive labor unions. The unionshappy over the recent imprisonment of Hyundai's CEO Chung Mong Koowould rather gladly watch their company stagnate and decline than accept the leadership of a man they dislike; their personality politics stand in the way of economic progress.

Labor leaders in Korea are not disappointed to see Hyundai CEO, Chung Mong Koo, take a fall.

What union leaders ( I hate unions ) hope for is that this will give Hyundai Motors a chance
to make another leap forward because they will be out from under the "emperor-like" rule of Chung.

Hyundai is the world's number 7 auto-maker, and Chung now owns 5.2% of it from jail. Though he owned such a small portion, he had near-absolute control and was even said to be a micro-manager to the point of deciding what color the parts under the hood should be.

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Dr. Bill Belew is a former Intelligence Officer for a Destroyer Squadron. He lived 20 years in Japan, where he started a language school for Japanese ECS. Dr. Belew teaches classes for a vocational school and online for a national university.

See Dr. Belew's blog, PanAsianBiz, for news and discussions about business and current events in Russia and Asia. See ZhongHuaRising for Dr. Belew's reports on business in China and RisingSunofNihon on business in Japan.

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