S. Korean president cautions against reining in conglomerates

South Korean President Lee Myung-bak on Tuesday cautioned against recent moves by politicians to put pressure on conglomerates by calling for greater corporate social responsibility. "Companies, when pressured, can reduce investment and hiring," Lee said during a Cabinet meeting, according to his spokesman Park Jeong-ha. "Political circumstances these days dampen corporate sentiment, and this will never help the public." The remarks by Lee, an ex-CEO himself, came as the country's major political parties, both left and right, signal reform measures targeting family-owned conglomerates often called " chaebol" here. Conglomerates have come under increasing criticism for dominating the market and hurting small businesses as low-income South Koreans struggle with snowballing household debts and unemployment. The ruling Grand National Party, known hitherto for its advocacy of business-friendly policies, announced a new platform which places a greater emphasis on corporate social responsibility and consumer protection. The liberal main opposition Democratic United Party plans to re- introduce restrictions on equity investments by big companies as part of its chaebol reform measures.