Na Kyung-won calls government pressure on Samsung, SK Hynix investment 'extortion'

People Power Party lawmaker Na Kyung-won lashed out Tuesday over the announced large-scale investments by Samsung Electronics and SK Hynix in the Honam region, calling the move a clear abuse of authority and misuse of state power.

Writing on her Facebook page, Na said forcing companies to invest through the exercise of political power, without first dismantling regulatory barriers, was like "strapping sandbags on a runner, tying their hands and feet, and telling them to run a marathon."

She said the Yellow Envelope Act had thrown labor relations into chaos within 100 days of taking effect, with even company cafeteria and security operations now subject to collective bargaining with prime contractors. Companies trying to comply with the Serious Accidents Punishment Act by looking after subcontracted workers find themselves ensnared as "employers" under the Yellow Envelope Act and forced into negotiations — an absurd dilemma, she said. "Is it sane to demand hundreds of trillions of won in investment while strangling businesses layer by layer with the Yellow Envelope Act, the minimum wage law, the Serious Accidents Punishment Act and punitive inheritance taxes?" she said.

Na went on to say that ordering companies to build factories in specific regions by twisting their arms, while ignoring the need for fundamental improvements to the business environment, was not "investment encouragement" but "intimidation and extortion backed by power."

She also said the 1,500 trillion won ($973 billion) in investment must be scrutinized in full to determine whether it reflected companies' voluntary and rational decision-making, or whether state power had been abused and some hidden hand had been at work in the process.