South Korea Economy and Industry

The chaebol also were responsible for turning the trade deficit in 1985 to a trade surplus in 1986.
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Above is a record of the top ten South Korean chaebol over the years

[Extract] The chaebol have played a prominent role in South Korea's post-war economic development; most importantly as the government's chief agency for implementing its imperatives for industrialization. In this role, the chaebol present a unique phenomenon in any comparison of the business structures of South Korea with the other Newly Industrialized Countries (NICs) of Asia-Singapore, Hong Kong and Taiwan-although some similarities may be discerned with the Japanese business conglomerates, sometimes referred to as zaibatsu. As with all the East and Southeast Asian industrialized countries, industrialization has been accompanied, albeit in different ways, by the subordination of labour movements, institutional and/or legal provisions to minimise disruptive industrial action, and, although not so in Hong Kong, the propagation of national sentiments intended to obtain workforce compliance with the demands made on it to raise productivity that its employers might compete more effectively in world markets. In South Korea, the chaebol fulfil a symbolic function in this national scheme of things as well as playing societal and industrial roles. This paper will consider the functions and roles of the chaebol before proceeding to examine the implications of their importance for the character of South Korean industrial relations.

There have been several laws that have limited the powers andexpansion of chaebols throughout Korean history.
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26/02/2018 · South Korea Table of Contents

Many of the chaebol had become severely indebted to financetheir expansion, not only to state industrial banks, but toindependent banks and their own financial services subsidiaries. Inthe aftermath of the crisis when they could not service their debt,banks could neither foreclose nor write off bad loans withoutthemselves collapsing. The most spectacular example came inmid-1999 with the collapse of the Group, which had some 80billion in unpaid debt. At the time, it was the largest corporate inhistory.

Similarities and differences between japan's keiretsu and south korea's chaebol - Essay Example
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The tremendous growth that the chaebol experienced, beginning inthe early 1960s, was closely tied to the expansion of South Koreanexports. Growth resulted from the production of a diversity ofgoods rather than just one or two products. Innovation and thewillingness to develop new product lines were critical. In the1950s and early 1960s, chaebol concentrated on wigs and textiles;by the mid-1970s and 1980s, heavy, defense, and chemical industrieshad become predominant. While these activities were important inthe early 1990s, real growth was occurring in the electronics andhigh-technology industries. The chaebol also were responsible forturning the trade deficit in 1985 to a trade surplus in 1986. Thecurrent account balance, however, fell from more than US$14 billionin 1988 to US$5 billion in 1989.

The chaebol are the large, conglomerate family-controlled firms of South Korea characterized by strong ties with government agencies. The …
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Mega-corporations in Japan & Korea ..

South Korea's chaebol are often compared with 's business groupings, the successors tothe pre-war .While the "chaebol" are similar to the "zaibatsu" (the words arecognates, from the same ,or ), there are majordifferences between chaebol and keiretsu:

Zaibatsu, Keiretsu, and Chaebol to the uninitiated ..

[Extract] The chaebol have played a prominent role in South Korea's post-war economic development; most importantly as the government's chief agency for implementing its imperatives for industrialization. In this role, the chaebol present a unique phenomenon in any comparison of the business structures of South Korea with the other Newly Industrialized Countries (NICs) of Asia-Singapore, Hong Kong and Taiwan-although some similarities may be discerned with the Japanese business conglomerates, sometimes referred to as zaibatsu. As with all the East and Southeast Asian industrialized countries, industrialization has been accompanied, albeit in different ways, by the subordination of labour movements, institutional and/or legal provisions to minimise disruptive industrial action, and, although not so in Hong Kong, the propagation of national sentiments intended to obtain workforce compliance with the demands made on it to raise productivity that its employers might compete more effectively in world markets. In South Korea, the chaebol fulfil a symbolic function in this national scheme of things as well as playing societal and industrial roles. This paper will consider the functions and roles of the chaebol before proceeding to examine the implications of their importance for the character of South Korean industrial relations.