Chaebol

Chaebol (Eng. rich clan of jae wealth or possessions and beol clan or tribe ) is the Korean term for a large family, which usually consists of various divisions, ie a conglomerate ( conglomerate ) is.

The system of Jaebol - core structure of the South Korean economy

From a social science perspective, it is at the Jaebol to groups of family, whose financial holdings are concentrated within the Jaebols and are rarely or only partially traded on stock markets. As the South Korean law prohibits the formation of holding companies, the individual companies are held together by close family ties.

Although the network relationships within the founding family allowed the formation largely bureaucratic, but instead autocratic guided decision-making systems, which established a " constructive consolidated financial education" as a core structure of the South Korean economy. With this system, very good economic results have been achieved over decades.

Historical Significance

The largest chaebols emerged already between World War II and the Korean War, but only with the " early days " of the 60s and 70s they got the determining force of the economy of South Korea up. During this time, the typical South Korea Model family controlled enterprise groups prevailed, which are characterized by high decision-making speed and ability to change over other bureaucratic corporations. Your traditionally good relations with government, banking, and the high functionality of their corporate structures opened the Jaebol competitive advantages, on the way into the center of the world economy - a path that was mapped out by the low capacity of its internal market.

Although the South Korean government has been trying since the 1997 Asian financial crisis to push back their influence, they remain determining factors of the South Korean economy. Thus, they also correspond to the importance of the former zaibatsu ( Keiretsu ) in the Japanese economy.

Important chaebols

• Samsung
• Hyundai ( Hyundai Group has now been split )
• LG Group (formerly "Lucky" and " Gold Star" ), GS Group, LS Group
• SK Group
• Ssangyong
• Daewoo ( bankrupt in 1999 )
• Hanjin
• Hanwha
• Kia (now part of the Hyundai Kia Automotive Group )
• Lotte Group
• CJ (formerly " Cheil Jedang " )
• Doosan