EOpriv: KOPEC Union offered 51% shares for Korean ESOP

[Dan Bell <dbell@kent.edu>]

Here is an update of the situation in Korea from Jay Choi,

As you might have been well aware, Korean corporates, especially Chaebol, tend to be dissolving or collapsing, when they fail in meeting the fundamental capacity to survive in the intensified competition and market theory.
  
Daewoo Motor will also be sold to probably GM, even though a strong resistance from Korean unions and progressive forces against selling to GM arise and militant reaction from the dismissed workers are extending with life-or-death struggle.
  
Hyundai, one of legacy for miracle of Korean economy, will fade away soon, as they dishonor the bills.  What a coincidence that Chairman Chung Joo-Young ,Hyundai Group, died a few days ago!
  
ESOP is emerging here again, as privatization of public corporations are planned by the government.
  
KOPEC(Korea OPower Engineering Co) union, one of my union umbrella, a subsidiary of Korea Electric Power Corp, face retrenchment and job threats, as KOPEC is on the list for privatization soon.   KOPEC union, after three month-long internal discussion amongst union members, formed Korean ESOP, Woorisaju, and decided to participate in bidding for privatization by purchasing 51% shares of KOPEC.
1,750 employees of total 1,800 employees participated in Woorrisaju and they will pay W40million for purchasing shares, if the government will allow .
The current  law under Securities & Finance Act allows 20% preference allocation for employees.
  
However, the Ministry of Commerce and Industry, is annoyed by the union offer of taking 51% of shares and taking management right.  The government responded negatively to the concept that union and workers are taking management right.  
  
KOPEC union will only purchase 51%of shares and they will make a recommendation process of CEO of KOPEC by recruiting a management expert.
  
As the Industry & Commerce Committee of National Assembly will be convened from 16th to 19th of April, KOPEC union will organize a public forum on
the issues of privatization of public corporation and how ESOP can be used.

We formed a special committee on KOPEC union and held a meeting on 3rd of April and agreed on followings:


1. The committee will support KOPEC union's proposal of 51% shares of KOPEC through Woorisaju(Korean ESOP).


2. The committee will form a research projec team on
the issues of privatization and leverged ESOP as a counter strategy.


3. The Committee will organize a public forum
on 14th of April to influence the Industry & Commerce Committee of National Assembly, where lawmakers will discuss about privatization programs including KOPEC.


And then further indepth research report from a project team with some professors and researchers will be followed in May/June.


A wide range of public exposure through public forum, coalition with NGOs and union struggle will be presented with full cooperation with NGOs and unions.


5. As a journalistic debate, one of progressive weekly magazine, Hagyore-21, would like to write this subject as a special feature.


Reporter, Park Soon-Bin is working on the story.


Regards,


Jay Choi
Korea desk
UNI-APRO
email:
jayfree@kornet.net
jjaayy79@hotmail.com
mobile: +82-11-728-5826
tel: +82-2-3789-1120
fax +82-2-774-8409


--
Dan Bell
International Program Coordinator
Ohio Employee Ownership Center
Kent State University
Kent, OH 44242
(330) 672-0333 << New direct number!
(330) 672-4063 fax
dbell@kent.edu
http://www.kent.edu/oeoc/
http://cog.kent.edu