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Korean conglomerate (chaebol) owners utilize interlocking relationships between companies in order to maintain control despite having only a minority ownership[
by w1ntermute 10y ago
Korean conglomerate (chaebol) owners utilize interlocking relationships between companies in order to maintain control despite having only a minority ownership[0,1]. This can cause lots of corporate governance issues, such as when family disputes end up affecting companies[2].
0: http://www.esadegeo.com/download/PR_PositionPapers/43/ficPDF_ENG/201309%20Chaebols_Murillo_Sung_EN.pdf http://www.esadegeo.com/download/PR_PositionPapers/43/ficPDF...
1: http://onlinelibrary.wiley.com.sci-hub.cc/doi/10.1111/1467-8683.00014/full http://onlinelibrary.wiley.com.sci-hub.cc/doi/10.1111/1467-8...
2: http://www.bloomberg.com/news/articles/2016-09-29/death-probes-family-feud-a-look-back-at-lotte-group-s-crisis http://www.bloomberg.com/news/articles/2016-09-29/death-prob...
- Animats 10y agoLook at the Hanjin mess. The chaebol decided not to bail out the shipping business unit, which is now bankrupt and shutting down. (Today was the last day to claim your container and make arrangements to move it if it's stuck on a Hanjin ship.) But Samsung isn't in serious trouble. It's just not paying out enough to investors.
- jsnathan 10y agoAt least one of the major candidates in next years South Korean presidential election (Lee Jae-myung, recently dubbed the "Korean Trump" [1]) is running on a platform of dividing up the chaebol. He is not the frontrunner, but maybe Samsung is partially trying to mitigate their risk with this move. [1]: http://www.bloomberg.com/news/articles/2016-11-24/harnessing-trump-and-sanders-korean-populist-rises-in-polls http://www.bloomberg.com/news/articles/2016-11-24/harnessing...