The Korea Herald

피터빈트

[Newsmaker] PR legend questioned on lobbying

By Korea Herald

Published : Aug. 24, 2016 - 16:30

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Working in public relations in South Korea has often been favored by college graduates, particularly among women concerned about the male-centered hierarchy of the corporate world.

In such positions, English fluency and well-rounded communication skills are required, as the primary job function is dealing with clients and the press. 


Over a short period, a few figures have built up the reputation of PR professionals, portraying a general image of them being vibrant, career-seeking women.

News Communications President Park Soo-hwan is one such individual.

But her alleged illegal lobbying in a number of high-profile criminal cases raises the question: Is she a lobbyist or a publicist?

The 60-year-old PR expert is suspected of lobbying corporate executives and government officials for Nam Sang-tae, the then president of Daewoo Shipbuilding and Marine Engineering who pursued a second term as the CEO.

Between 2009 and 2011, the shipbuilder paid 2 billion won ($1.78 million) to News Communications for publicity. The prosecution is investigating whether the consulting fee was used for bribing executives including Min Yoo-sung, the former president of Korea Development Bank, on behalf of Nam’s interests.

Park is also accused of using her close ties to a journalist at a leading daily here, when persuading clients that she is capable of swaying certain newspapers to cover their corporate events.

Park started as an assistant at an office in 1980s and launched News Communications in 1997 at a time when PR jobs were unfamiliar to many.

In the early stages of her career, there were rumors that she was a high school graduate and did not have a college diploma.

But she is now known as a legend in the industry for securing abroad number of clients based on her close ties with a number of high-ranking officials and chaebol descendants.

Former President Lee Myung-bak was her client when he was serving the Seoul mayor post, and Shin Dong-joo, the eldest son of Lotte founder Shin Kyuk-ho.

Park also represented Cho Hyun-moon, the second son of Hyosung Chairman S. R. Cho when the Harvard-graduate chaebol scion attempted to oust her father and elder brother from the group. Park is also reportedly close to Woo Byung-woo, senior presidential secretary for civil affairs, who is mired in a corruption case.

The arrivals of foreign corporations in South Korea were a boon to Park, as they trusted her as someone who knows about the press and the nature of the related industry better than anyone, according to industry sources.

Multinational corporations including Google, Huawei, P&G and IKEA all named News Communication as their PR representative in South Korea. Park’s firm also represented Elliot Associates, an American hedge fund that opposed Samsung C&T’s merger plan with Cheil Industries. It is not known whether they were aware of Park’s relationship to government officials and a group of high-profile journalists.

Amid the prosecution’s deepening investigation into Park, industry insiders fear that the scandal will create a bias against the entire industry. They are concerned that people will question whether those who work in PR are specialists tasked with promoting corporations or secret lobbyists who serve as a bridge between high-profile officials and clients who want special treatment.

“I feel distressed,” an executive at a PR agency in Seoul. “Her case brought the spotlight on PR agencies in Korea, but it also brought negative views, questioning our roles.”

By Cho Chung-un (christory@heraldcorp.com)