After authorities conducted a search tied to signs of insider trading by Korea Economic Daily staff and the paper’s president resigned, the incoming president appointed former editor Jeong Gyu-jae as senior advisor and chair of the ethics committee. The Korea Economic Daily labor union and the paper’s chapter of the Journalists Association issued a joint statement opposing Jeong’s return. Staff say they will consider issuing additional statements after observing how Jeong carries out his duties.
Jo Il-hoon, who assumed the presidency of the Korea Economic Daily on Feb. 26, announced personnel changes on March 5 and named former editor Jeong Gyu-jae senior advisor and chair of the ethics-management committee. Those posts were created in the aftermath of the insider-trading raid, and Jeong’s appointment indicates his role will primarily focus on preventing future occurrences of insider trading. Jeong returned to the office on March 10.
In a March 9 phone interview with MediaToday, Jeong said, “I intend to review the issues related to insider trading carefully. We must ensure that no other or additional incidents occur. The Korea Economic Daily has already announced basic rules, such as banning short-term trades by reporters, but I will also investigate potential problems at affiliated companies.” He added, “Conduct like insider trading contradicts journalism’s mission, so I will examine the matter in detail. I will review our editorial rules and the reporters’ code of conduct to ensure they are appropriate.”
Management moves ahead despite union, journalists’ chapter opposition; “We’ll monitor his next steps”
On Feb. 26, the Korea Economic Daily labor union and the paper’s chapter of the Journalists Association issued a statement titled “We oppose parachute appointments that would drag the Korea Economic Daily into the ‘trap of politics,’” expressing strong opposition to Jeong’s return. Asked about that opposition, Jeong said, “There are misunderstandings and incorrect impressions. If I come to work and people see me doing the job, those misunderstandings may be resolved.”
In their statement, staff said, “We categorize any attempt by a specific individual to return as a parachute appointment, and we will not remain passive.” They added that an overwhelming majority of newsroom union members — cohorts 24 through 46 — oppose the individual’s comeback. The statement criticized Jeong’s recent political engagement, noting that he ran for a regional office under a party he founded a few years ago and publicly supported President Lee Jae-myung during the last presidential campaign. “It would be unprecedented for someone who pursued such overt political activity to take a role in our newspaper’s management,” they wrote.
The statement continued, “We react strongly even to rumors because we worry about the harm outside political forces could inflict on the company. We have watched other outlets fall into the ‘trap of politics’ and seen the difficulties they faced. Many outlets experienced strikes and turmoil when administrations changed and management was replaced. Factionalism, patronage, and cronyism tied to political loyalties are widespread.”
[Related article: Jeong Gyu-jae returning to the Korea Economic Daily? Reporters: “We’ll fall into the ‘trap of politics,’ oppose”]
The labor union and the Journalists Association chapter that issued the statement said they may decide on further action after assessing Jeong’s role. A union official told MediaToday on March 9, “We currently do not plan additional statements or actions. We will decide based on Jeong’s future conduct and shifts in public opinion.” A representative of the Journalists Association’s Korea Economic Daily chapter expressed the same view.
A Korea Economic Daily spokesperson said, “We have no special position on the personnel decision.”
