CHAEBOL SYSTEM

Year 2021, Volume: 6 Issue: 12, 1 - 13, 30.06.2021

Mahmut Zekı Akarsu

Abstract

Chaebol is a well-known Korean conglomerate system. Chaebol companies contributed a lot during the Korean rapid economic development. Since the 1960s, Chaebol companies have been taking active and severe roles in the Korean economy and the international market. Although Chaebols are domestically and internationally robust, they have many systematical problems. For instance, chaebol firms are still bossed by the founder families instead of the professionals, e.g., CEOs and CFOs. Therefore, the Japanese Keiretsu system and the Korean Chaebol system are compared in order to define the weakness of chaebols. In addition, the close relationship between the Korean government and Chaebols weakened the strength of many Korean companies and triggered the 1998 Korean recession.

Keywords

Chaebol, South Korea, Keiretsu

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