She first took an interest in the Lees’ SDS transaction as a news anchor, and then as the first female head of financial news at top-three broadcaster MBC. She’s maintained that focus as the New Politics Alliance for Democracy’s representative for Guro-gu, the site of South Korea’s first industrial complex and still home to thousands of workers.

Local media dubbed her the ‘chaebol sniper’ after parliament passed her bill to strengthen a 1997 law that prevents affiliates in industrial groups from taking stakes larger than 5 percent in financial companies. Designed to stop chaebol owners from using banks as private ATMs, Park’s 2006 amendment made the rule apply retroactively and forced chaebol to unwind existing holdings as well as preventing new ones.

Good Politics

Park’s latest bill comes at a time when challenging the chaebol is also good politics, as public pride over world- beating smartphones and cars shifts toward concern that smaller companies are being stifled. The combined assets of the five biggest have a value equivalent to 56 percent of South Korea’s economy, according to the Fair Trade Commission.

A survey done by the Korea Press Foundation in January found that 64 percent of South Koreans consider oppressive behavior by the chaebol to be a serious problem. The poll was during the ‘nut-rage’ furore surrounding Heather Cho, daughter of Korean Air Lines Co. Chairman Cho Yang Ho, who ordered a crew member to deplane following a row over in-flight service. Cho was sentenced to jail for usurping the pilot’s authority.

Shareholders including Park’s school friend Lee, the head of local activist fund Zebra Investment Management, openly criticize the chaebol for weak corporate governance they say is depressing the country’s stock prices. It’s a phenomenon called the ‘Korea Discount,’ where domestic companies trade at lower multiples than global peers due to risks associated with a perceived lack of transparency.

Cheaper Shares

The Kospi index, South Korea’s benchmark, is trading at 11 times 12-month projected earnings, compared with 16 times for the MSCI all country index.

The current government has kept President Park’s election campaign promise to introduce curbs on the chaebol, including banning new cross-shareholdings between group affiliates and offering incentives to restructure using holding companies that provide a clearer ownership picture.

Those measures still leave room for bills targeting specific behavior, including Samsung’s SDS deal, Park said.