LARGE FAMILY BUSINESS IN REPUBLIC OF KOREA: CORPORATE GOVERNANCE HIGHLIGHTS AND ECONOMIC ROLE

Taking up the family-run large business of Korea, the author makes an attempt to survey its corporate governance peculiarities and economic role through the chaebols. In doing so, these powerful business conglomerates are compared with their foreign counterparts in the corporate governance aspect. The “chaebols” are seen having gradually turned from the key factor of economic surge in the 60-70s into that of creating obstacles for the country’s advanced development nowadays. The chaebol pitfalls are summarized as lacking outer control and transparency shortage to have led to corruption growth, overinvestment and dangerous investment, investment diversifications that were not in line with financial rationality and affiliates’ contracts in violation of fair trade principles.

large family business in Republic of Korea, chaebols, korean financial industrial groups, corporate management in South Korea, strengths and weaknesses of chaebols