{"id":2204410,"date":"2024-03-25T18:10:23","date_gmt":"2024-03-25T09:10:23","guid":{"rendered":"https:\/\/koreapro.org\/?p=2204410"},"modified":"2024-03-26T19:09:33","modified_gmt":"2024-03-26T10:09:33","slug":"corporate-influence-in-south-korean-sports-sparks-outrage-and-calls-for-reform","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/03\/corporate-influence-in-south-korean-sports-sparks-outrage-and-calls-for-reform\/","title":{"rendered":"Corporate influence in South Korean sports sparks outrage, and calls for reform"},"content":{"rendered":"

The dismissal of South Korea\u2019s men\u2019s soccer coach following poor performance under his brief tenure has drawn new scrutiny to the Korea Football Association (KFA), as public anger over his hiring and firing focuses new scrutiny on corporate influence in the administration of the nation\u2019s favorite sport.<\/span><\/p>\n

South Korean soccer fans are increasingly calling for the resignation of KFA chief Chung Mong-gyu, citing dissatisfaction with his alleged misconduct and coercion during his tenure as chairman. Chung, a member of the family that owns Hyundai, concurrently serves as chairman of both the Hyundai Development Company Group and the KFA.\u00a0<\/span><\/p>\n

During the World Cup qualifying match between South Korea and Thailand on <\/span>March 21<\/span><\/a>, fans angry about Chung\u2019s original decision to hire Jurgen Klinsmann and the team\u2019s perceived failures at the Asian Cup chanted that \u201cChung Mong-gyu must leave,\u201d while holding up homemade banners echoing similar sentiments.<\/span><\/p>\n

After the game, videos <\/span>surfaced<\/span><\/a> on social media showing security staff forcibly confiscating banners from the stands, exacerbating public <\/span>discontent<\/span><\/a> toward Chung\u2019s leadership within the KFA.\u00a0<\/span><\/p>\n

This resentment toward the KFA administration, amplified by multiple controversies surrounding Chung, has also prompted a broader discussion regarding the role of conglomerates in the country\u2019s sports administration offices.\u00a0<\/span><\/p>\n

Experts told <\/span>Korea Pro<\/span><\/i> that conglomerate-chaired associations have some advantages while underscoring the risks associated with consolidating excessive authority under a single leader within such organizations.<\/span><\/p>\n

However, they emphasized the importance of approaching the KFA\u2019s emerging controversies with discernment, highlighting the need to promote constructive measures aimed at enhancing transparency and accountability within sports associations.<\/span><\/p>\n

Rather than directing unproductive criticism toward chaebol leadership within these associations, they underscored the importance of advocating for positive reforms and governance practices.<\/span><\/p>\n

\"\"

KFA Chairman Chung Mong-gyu presides over a committee session, March 31, 2023 | Image: Korea Football Association<\/a><\/em><\/p><\/div>\n

CHAEBOL INFLUENCE<\/b><\/p>\n

South Korea\u2019s affluent conglomerates have had a direct influence on the country\u2019s sports since the 1980s. Lee Jong-sung, an associate professor at Hanyang University\u2019s Sports Management Department, emphasized the crucial role chaebol support played in the 1980s and 1990s.<\/span><\/p>\n

However, Lee noted that the situation has changed since then, with sports investment now largely depending on the \u201cpersonal interests or genuine concerns of senior chairpersons of large corporations rather than corporate strategies.\u201d<\/span><\/p>\n

Korean soccer expert Steve Price noted that various reasons attract companies to invest in popular sports, with boosting their image being a significant motivation. \u201cIt\u2019s always good to be connected to success,\u201d he told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

Price stated that sponsoring local and national teams offers a valuable opportunity for companies to forge a connection with the public, showing the government and the people that they are trying to look after society, not just making profits.<\/span><\/p>\n

He also mentioned potential benefits for conglomerates in sports administration and ownership, such as tax write-offs in the event of a loss or supplementary benefits like hospitality for corporate clients, depending on the individual company\u2019s priorities.<\/span><\/p>\n

BEARING THE COSTS<\/b><\/p>\n

The face-off between soccer fans and the KFA has put the role of chaebol in South Korean sports in the spotlight, but experts say the impact of corporate involvement is often more nuanced.<\/span><\/p>\n

Steve Price told <\/span>Korea Pro<\/span><\/i> that running sports teams is expensive all over the world, necessitating heavy investment from those with the means to provide support.<\/span><\/p>\n

\u201cEver since the K League started, there have been teams either run by a chaebol company, by a conglomerate, or having some government influence behind the team,\u201d he said. \u201cThe problem is it\u2019s very difficult for football to be sustainable without some sort of external financing.\u201d<\/span><\/p>\n

At the same time, Price warned that sports clubs and associations may become too reliant on external funds and fail to manage their business operations efficiently. In the case of South Korean soccer, he highlighted clubs\u2019 past lack of effort to sell tickets as they relied mostly on chaebol investment.<\/span><\/p>\n

He said that in recent years, sports clubs have focused more on generating revenue sustainably, but this has come with the downside of a <\/span>sharp revenue decline<\/span><\/a> for some formerly successful teams as funds dried up.<\/span><\/p>\n

Hanyang University\u2019s Lee agreed that external financing plays a big role, particularly for less popular sports where broadcasting rights and sponsorship may not suffice to maintain high sporting standards and participate in global competitions.\u00a0<\/span><\/p>\n

However, \u201cprofessional sports\u201d such as soccer present a different situation as they already receive \u201csubstantial investment\u201d from third parties and chaebol owners\u2019 direct intervention may not be necessary, he added.<\/span><\/p>\n

\"\"

Samsung Executive Chairman Lee Jae-yong (center), Hyundai Motor Group CEO Chung Eui-sun (to Lee’s right) and LG Chair Koo Kwang-mo (to Lee’s left) meet with South Korean President Yoon Suk-yeol during the 172nd BIE General Assembly in Paris, June 21, 2023 | Image: ROK Presidential Office<\/a><\/em><\/p><\/div>\n

KICKING THE BALL FORWARD<\/b><\/p>\n

Lee of Hanyang University told <\/span>Korea Pro<\/span><\/i> that high-profile sports need an increase in tailored approaches to sports management and also noted that establishing regulations is key to ensuring good governance and transparency in decision-making.<\/span><\/p>\n

He underscored the importance of a comprehensive approach by the public and experts when examining the issue of mismanagement in sports and the involvement of conglomerates in associations, cautioning against solely criticizing corporate involvement without open debate on viable solutions.<\/span><\/p>\n

\u201cConstructive dialogue and proactive measures are crucial for driving positive change and ensuring the long-term sustainability and success of not just the KFA, but also other sports organizations,\u201d the Hanyang University professor told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

Lee also advocated for the implementation of more stringent administrative regulations, extending beyond just board members to encompass individuals in positions such as chair or president within an association.<\/span><\/p>\n

He further noted the common practice of conglomerate chairmen assuming roles within sports associations and drew attention to the need for careful evaluation of each instance to ensure effective governance and accountability.<\/span><\/p>\n

\u201cWhile each sport requires a unique management approach, strict rules are essential to maintain integrity and transparency across all sports associations and federations,\u201d Lee said.<\/span><\/p>\n

Edited by John Lee<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Culture & Society<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

The dismissal of South Korea\u2019s men\u2019s soccer coach following poor performance under his brief tenure has drawn new scrutiny to the Korea Football Association (KFA), as public anger over his hiring and firing focuses new scrutiny on corporate influence in the administration of the nation\u2019s favorite sport. South Korean soccer fans are increasingly calling for […]<\/p>\n","protected":false},"author":10909,"featured_media":2204415,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24,25],"class_list":["post-2204410","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy","tag-culture-society"],"yoast_head":"\nCorporate influence in South Korean sports sparks outrage, and calls for reform - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2024\/03\/corporate-influence-in-south-korean-sports-sparks-outrage-and-calls-for-reform\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Corporate influence in South Korean sports sparks outrage, and calls for reform - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"The dismissal of South Korea\u2019s men\u2019s soccer coach following poor performance under his brief tenure has drawn new scrutiny to the Korea Football Association (KFA), as public anger over his hiring and firing focuses new scrutiny on corporate influence in the administration of the nation\u2019s favorite sport. 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