The Chaebols of South Korea
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : ECON013
Case Length : 15 Pages
Period : 1961-2004
Pub Date : 2004
Teaching Note : Available
Organization : -
Industry : -
Countries : South Korea
To download The Chaebols of South Korea case study (Case Code:
ECON013) click on the button below, and select the case from the list of available cases:
Price:
For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping &
Handling Charges
» Economics
Case Studies
» Case Studies Collection
» ICMR HOME
» Short Cases Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies 
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us
Please leave your feedback
|
|
<< Previous
Introduction Contd...
|
South Korea approached the International Monetary
Fund (IMF) in 1998 for a relief package. The IMF package was provided
under certain conditions; restructuring and modification of the working
of the Chaebols and the introduction of professional management in the
Chaebol organizations.
By the early 2000s, South Korea tackled the economic downslide, and not
only recuperated from the financial crisis, but in the process also
managed to restructure its Chaebols to make them more profitable and
more competitive than ever before. |
|
A Note on the Chaebol System
Chaebol is a Korean word that means "a group with a lot of money."3 Chaebols were
large South Korean private business groups that consisted of several smaller
members or units; they also maintained close connections with the government.
They were generally under the control of a single powerful family and most of
the management positions in the Chaebols rested with members of that family. The
Chaebols were involved in a variety of commercial activities ranging from
farming to ship building. In the early 1990s, the five largest Chaebols were
Samsung, Hyundai, Lucky-Goldstar (LG), Daewoo, and Ssangyong.4 (Refer Table I for
characteristics of Chaebols).
|
|
Background Note
Chaebols were first introduced in South Korea during the 1920s when the
country was under Japanese rule8. In fact they were designed on the
lines of a Japanese Keiretsu. Japan had designed Chaebols as private
companies that were owned and run by a family but were strictly
controlled by the central government (at that time, Japan formed the
central government in Korea.) Initially Chaebols were designed to meet
the requirements of the Japanese government and were encouraged to
provide raw materials and supplies to Japanese industry... |
Excerpts >>
|
|
