Korean chaebols: Outdated model requires reform
The Korean chaebol – giant conglomerates still run by founding families – has transformed the Korean economy but they are now the source of problems which need to be corrected. Chaebols need to be updated for the modern world, not only for their future prospects but for the Korean economy as a whole. Reform of the system is required and the relationship with government must become more distant if smaller companies are to be given a better chance and corporate governance be improved.
The culture surrounding chaebols is deleterious to the wider economy. Consuming every industry they enter, chaebols, whilst heavily responsible for an economic miracle, are preventing small and medium companies from growing. A low degree of transparency cements the chaebol dominance and entrenches a culture adverse to business creation and growth.
Chaebols are in need of reform in order to provide shareholders with the degree of value and influence in the running of companies they are accustomed to across many areas of the world.
The present scandal surrounding Samsung and the now departed president must be used as impetus to create transparency in ownership and business practices.
Examines the impact chaebols have on small and medium business
Asserts that the present system does not provide shareholder value
Calls for the current scandal surrounding Samsung to be used as a means to improve transparency
Reasons to buy
What is the impact of chaebols on the wider economy?
Why are chaebols discounted on the global market?
How can chaebol corporate governance be improved?
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