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How do the chaebols like Samsung, Hundai, or LG in Republic of Korea handle financial matters like this? Also Apple regularly fronts loans to its suppliers to
by newjersey 10y ago
How do the chaebols like Samsung, Hundai, or LG in Republic of Korea handle financial matters like this?
Also Apple regularly fronts loans to its suppliers to purchase the equipment needed to produce the devices that Apple then purchases from them, right?
- adventured 10y agoFronting loans to suppliers isn't even remotely in the same legal or regulatory ballpark, unless Apple owns a meaningful stake in those companies. Fronting loans is extremely common; what Musk is doing in commingling, and at the scale he's doing it, is extremely rare today (it used to be a lot more common pre ~1970s or so, the vast expansion of financial regulations and increase in the SEC's powers, have limited it in recent times).
- fit2rule 10y agoEven if Musk ends up in prison for some ludicrous financial crimes, he still built a frickin' rocket company and got us properly on our way to frickin' Mars. So, I think he has a seriously larger scope of riskiness to him. I mean, frickin' rockets ..
- rtpg 10y agoWell shareholder protections in Korea are much weaker. Cronyism is how it happens. Say what you will about shareholder activism, my impression is that Japan/Korean corporate governance has a lot of issues from a lack of it.