Chaebol
Encyclopedia
Chaebol refers to a South Korea
n form of business conglomerate
. They are global multinational
s owning numerous international enterprises. The term is often used in a context similar to that of the English word "conglomerate". The term was first used in 1984.
There are several dozen large Korean
family-controlled corporate groups which fall under this definition. Through aggressive governmental support and finance, some have become well-known international brand names, such as Samsung
, Hyundai
and LG
.
The chaebol has also played a significant role in South Korean politics. In 1988 a member of a chaebol family, Chung Mong-jun, president of Hyundai Heavy Industries
, successfully ran for the National Assembly. Other business leaders also were chosen to be members of the National Assembly through proportional representation
. Since 2000, Hyundai
has played a role in the thawing of North Korean and South Korean relations.
well into the mid-20th century. However, the policies of President
Park Chung Hee spurred rapid industrialization by promoting large businesses, following his seizure of power in 1961. Government industrial policy set the direction of new investment, and the chaebol were to be guaranteed loans from the banking sector. In this way, the chaebol played a key role in developing new industries, markets, and export
production, helping place South Korea
as one of the East Asian Tigers
.
Although South Korea's major industrial programs did not begin until the early 1960s, the origins of the country's entrepreneurial elite were found in the political economy of the 1950s. Very few Koreans had owned or managed larger corporations during the Japanese colonial period. After the departure of the Japanese in 1945, some Korean businessmen obtained the assets of some of the Japanese firms, a number of which grew into the chaebol of the 1990s. These companies, as well as certain other firms that were formed in the late 1940s and early 1950s, had close links with Syngman Rhee
's First Republic, which lasted from 1948 to 1960. It was alleged that many of these companies received special favors from the government in return for kickbacks and other payments.
When the military took over the government in 1961, military leaders announced that they would eradicate the corruption that had plagued the Rhee administration and eliminate injustice from society. Some leading industrialists were arrested and charged with corruption, but the new government realized that it would need the help of the entrepreneurs if the government's ambitious plans to modernize the economy were to be fulfilled. A compromise was reached, under which many of the accused corporate leaders paid fines to the government. Subsequently, there was increased cooperation between corporate and government leaders in modernizing the economy.
Government-chaebol cooperation was essential to the subsequent economic growth and astounding successes that began in the early 1960s. Driven by the urgent need to turn the economy away from consumer goods and light industries toward heavy, chemical, and import-substitution industries, political leaders and government planners relied on the ideas and cooperation of the chaebol leaders. The government provided the blueprints for industrial expansion; the chaebol realized the plans. However, the chaebol-led industrialization accelerated the monopolistic and oligopolistic concentration of capital and economically profitable activities in the hands of a limited number of conglomerates.
Park used the chaebol as a means towards economic growth. Exports were encouraged, reversing Rhee's policy of reliance on imports. Performance quotas were established.
The chaebol were able to grow because of two factors—foreign loans and special favors. Access to foreign technology also was critical to the growth of the chaebol through the 1980s. Under the guise of "guided capitalism," the government selected companies to undertake projects and channeled funds from foreign loans. The government guaranteed repayment should a company be unable to repay its foreign creditors. Additional loans were made available from domestic banks. In the late 1980s, the chaebol dominated the industrial sector and were especially prevalent in manufacturing, trading, and heavy industries.
The tremendous growth that the chaebol experienced, beginning in the early 1960s, was closely tied to the expansion of South Korean exports. Growth resulted from the production of a diversity of goods rather than just one or two products. Innovation and the willingness to develop new product lines were critical. In the 1950s and early 1960s, chaebol concentrated on wigs and textiles; by the mid-1970s and 1980s, heavy, defense, and chemical industries had become predominant. While these activities were important in the early 1990s, real growth was occurring in the electronics and high-technology industries. The chaebol also were responsible for turning the trade deficit in 1985 to a trade surplus in 1986. The current account balance, however, fell from more than US$14 billion in 1988 to US$5 billion in 1989.
The chaebol continued their explosive growth in export markets in the 1980s. By the late 1980s, the chaebol had become financially independent and secure—thereby eliminating the need for further government-sponsored credit and assistance.
By the 1990s, South Korea was one of the largest NICs, and boasted a standard of living comparable to industrialized countries.
President Kim Young-sam
began to challenge the chaebol, but it was not until the Asian financial crisis in 1997 that the weaknesses of the system were widely understood. Of the 30 largest chaebol, 11 collapsed between July 1997 and June 1999. The chaebol were heavily invested in export-oriented manufacturing
, neglecting the domestic market, and exposing the economy to any downturns in overseas markets. In competing with each other, they had built up unsustainable overcapacity—on the eve of the crisis South Korea, with a population only ranked at #26 in the world, had seven major automobile
manufacturers.
Many of the chaebol had become severely indebted to finance their expansion, not only to state industrial banks, but to independent banks and their own financial services subsidiaries. In the aftermath of the crisis when they could not service their debt, banks could neither foreclose nor write off bad loans without themselves collapsing. The most spectacular example came in mid-1999 with the collapse of the Daewoo
Group, which had some US$
80 billion in unpaid debt. At the time, it was the largest corporate bankruptcy
in history.
Investigations also exposed widespread corruption in the chaebol, particularly fraud
ulent accounting and bribery.
, while others have broken up into loosely connected groups of separate companies sharing a common name. Even in the latter case, each is almost always owned, controlled, and/or managed by the same family group.
South Korea's chaebol are often compared with Japan
's keiretsu
business groupings, the successors to the pre-war zaibatsu
. While the "chaebol" are similar to the "zaibatsu" (the words are cognates, from the same hanja
, or kanji
), there are major differences between chaebol and keiretsu:
The model of chaebol rely a lot on a complex system of interlocking ownership. The owner of the Chaebol, with the help of family members, family-owned charity and senior managers from subsidiaries, only has to control three of four public companies, who themselves control other companies that control subsidiaries. The good example of this practice would be the owner of Doosan, who controlled more than 20 subsidiaries with only a minor participation in about 5 companies.
Both Kim and his successor, Roh Moo-hyun
, have had mixed success. The chaebol continue to dominate South Korea's economy. Hyundai and SK Group have been implicated in separate scandals involving both presidents. Samsung President Lee Kun-hee
resigned amid charges of tax evasion
and breach of trust
in April 2008.
The Federation of Korean Industries, a consortium of chaebol, has taken a leading role in resisting changes.
Formally, Korea's governmental FTC (Fair Trade Commission : 공정거래위원회;公正去来委員会) announces a limited Chaebol list every year as size of industrial assets (not including financial companies).
Chaebol that limited assurance (상호출자제한기업집단;相互出資制限企業集団)
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
n form of business conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
. They are global multinational
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
s owning numerous international enterprises. The term is often used in a context similar to that of the English word "conglomerate". The term was first used in 1984.
There are several dozen large Korean
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
family-controlled corporate groups which fall under this definition. Through aggressive governmental support and finance, some have become well-known international brand names, such as Samsung
Samsung
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...
, Hyundai
Hyundai
Hyundai ) is a global conglomerate company, part of the Korean chaebol, that was founded in South Korea by one of the most famous businessmen in Korean history: Chung Ju-yung...
and LG
LG Group
LG Corp. is the second-largest South Korean conglomerate company following Samsung, and it is headquartered in the LG Twin Towers in Yeouido-dong, Yeongdeungpo-gu, Seoul. LG produces electronics, chemicals, and telecommunications products and operates subsidiaries like LG Electronics, LG Display,...
.
The chaebol has also played a significant role in South Korean politics. In 1988 a member of a chaebol family, Chung Mong-jun, president of Hyundai Heavy Industries
Hyundai Heavy Industries
Hyundai Heavy Industries Co., Ltd. is the world's largest shipbuilding company, headquartered in Ulsan, South Korea. The company is a subsidiary of Hyundai Heavy Industries Group...
, successfully ran for the National Assembly. Other business leaders also were chosen to be members of the National Assembly through proportional representation
Proportional representation
Proportional representation is a concept in voting systems used to elect an assembly or council. PR means that the number of seats won by a party or group of candidates is proportionate to the number of votes received. For example, under a PR voting system if 30% of voters support a particular...
. Since 2000, Hyundai
Hyundai
Hyundai ) is a global conglomerate company, part of the Korean chaebol, that was founded in South Korea by one of the most famous businessmen in Korean history: Chung Ju-yung...
has played a role in the thawing of North Korean and South Korean relations.
History
South Korea's economy was small and predominantly agriculturalAgriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
well into the mid-20th century. However, the policies of President
President of South Korea
The President of the Republic of Korea is, according to the Constitution of the Republic of Korea, chief executive of the government, commander-in-chief of the armed forces, and the head of state of the Republic of Korea...
Park Chung Hee spurred rapid industrialization by promoting large businesses, following his seizure of power in 1961. Government industrial policy set the direction of new investment, and the chaebol were to be guaranteed loans from the banking sector. In this way, the chaebol played a key role in developing new industries, markets, and export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
production, helping place South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
as one of the East Asian Tigers
East Asian Tigers
The Four Asian Tigers or Asian Dragons is a term used in reference to the highly developed economies of Hong Kong, Singapore, South Korea and Taiwan. These nations and areas were notable for maintaining exceptionally high growth rates and rapid industrialization between the early 1960s and 1990s...
.
Although South Korea's major industrial programs did not begin until the early 1960s, the origins of the country's entrepreneurial elite were found in the political economy of the 1950s. Very few Koreans had owned or managed larger corporations during the Japanese colonial period. After the departure of the Japanese in 1945, some Korean businessmen obtained the assets of some of the Japanese firms, a number of which grew into the chaebol of the 1990s. These companies, as well as certain other firms that were formed in the late 1940s and early 1950s, had close links with Syngman Rhee
Syngman Rhee
Syngman Rhee or Yi Seungman was the first president of South Korea. His presidency, from August 1948 to April 1960, remains controversial, affected by Cold War tensions on the Korean peninsula and elsewhere. Rhee was regarded as an anti-Communist and a strongman, and he led South Korea through the...
's First Republic, which lasted from 1948 to 1960. It was alleged that many of these companies received special favors from the government in return for kickbacks and other payments.
When the military took over the government in 1961, military leaders announced that they would eradicate the corruption that had plagued the Rhee administration and eliminate injustice from society. Some leading industrialists were arrested and charged with corruption, but the new government realized that it would need the help of the entrepreneurs if the government's ambitious plans to modernize the economy were to be fulfilled. A compromise was reached, under which many of the accused corporate leaders paid fines to the government. Subsequently, there was increased cooperation between corporate and government leaders in modernizing the economy.
Government-chaebol cooperation was essential to the subsequent economic growth and astounding successes that began in the early 1960s. Driven by the urgent need to turn the economy away from consumer goods and light industries toward heavy, chemical, and import-substitution industries, political leaders and government planners relied on the ideas and cooperation of the chaebol leaders. The government provided the blueprints for industrial expansion; the chaebol realized the plans. However, the chaebol-led industrialization accelerated the monopolistic and oligopolistic concentration of capital and economically profitable activities in the hands of a limited number of conglomerates.
Park used the chaebol as a means towards economic growth. Exports were encouraged, reversing Rhee's policy of reliance on imports. Performance quotas were established.
The chaebol were able to grow because of two factors—foreign loans and special favors. Access to foreign technology also was critical to the growth of the chaebol through the 1980s. Under the guise of "guided capitalism," the government selected companies to undertake projects and channeled funds from foreign loans. The government guaranteed repayment should a company be unable to repay its foreign creditors. Additional loans were made available from domestic banks. In the late 1980s, the chaebol dominated the industrial sector and were especially prevalent in manufacturing, trading, and heavy industries.
The tremendous growth that the chaebol experienced, beginning in the early 1960s, was closely tied to the expansion of South Korean exports. Growth resulted from the production of a diversity of goods rather than just one or two products. Innovation and the willingness to develop new product lines were critical. In the 1950s and early 1960s, chaebol concentrated on wigs and textiles; by the mid-1970s and 1980s, heavy, defense, and chemical industries had become predominant. While these activities were important in the early 1990s, real growth was occurring in the electronics and high-technology industries. The chaebol also were responsible for turning the trade deficit in 1985 to a trade surplus in 1986. The current account balance, however, fell from more than US$14 billion in 1988 to US$5 billion in 1989.
The chaebol continued their explosive growth in export markets in the 1980s. By the late 1980s, the chaebol had become financially independent and secure—thereby eliminating the need for further government-sponsored credit and assistance.
By the 1990s, South Korea was one of the largest NICs, and boasted a standard of living comparable to industrialized countries.
President Kim Young-sam
Kim Young-sam
Kim Young-sam was a South Korean politician and democratic activist. From 1961, he spent 30 years as South Korea's leader of the opposition, and one of Park Chung-hee's most powerful rivals....
began to challenge the chaebol, but it was not until the Asian financial crisis in 1997 that the weaknesses of the system were widely understood. Of the 30 largest chaebol, 11 collapsed between July 1997 and June 1999. The chaebol were heavily invested in export-oriented manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
, neglecting the domestic market, and exposing the economy to any downturns in overseas markets. In competing with each other, they had built up unsustainable overcapacity—on the eve of the crisis South Korea, with a population only ranked at #26 in the world, had seven major automobile
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...
manufacturers.
Many of the chaebol had become severely indebted to finance their expansion, not only to state industrial banks, but to independent banks and their own financial services subsidiaries. In the aftermath of the crisis when they could not service their debt, banks could neither foreclose nor write off bad loans without themselves collapsing. The most spectacular example came in mid-1999 with the collapse of the Daewoo
Daewoo
Daewoo or the Daewoo Group was a major South Korean chaebol . It was founded on 22 March 1967 as Daewoo Industrial and was dismantled by the Korean government in 1999...
Group, which had some US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
80 billion in unpaid debt. At the time, it was the largest corporate bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
in history.
Investigations also exposed widespread corruption in the chaebol, particularly fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
ulent accounting and bribery.
Management structure
Some chaebol are one large corporationCorporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
, while others have broken up into loosely connected groups of separate companies sharing a common name. Even in the latter case, each is almost always owned, controlled, and/or managed by the same family group.
South Korea's chaebol are often compared with Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
's keiretsu
Keiretsu
A is a set of companies with interlocking business relationships and shareholdings. It is a type of business group. The keiretsu has maintained dominance over the Japanese economy for the greater half of the twentieth century....
business groupings, the successors to the pre-war zaibatsu
Zaibatsu
is a Japanese term referring to industrial and financial business conglomerates in the Empire of Japan, whose influence and size allowed for control over significant parts of the Japanese economy from the Meiji period until the end of World War II.-Terminology:...
. While the "chaebol" are similar to the "zaibatsu" (the words are cognates, from the same hanja
Hanja
Hanja is the Korean name for the Chinese characters hanzi. More specifically, it refers to those Chinese characters borrowed from Chinese and incorporated into the Korean language with Korean pronunciation...
, or kanji
Kanji
Kanji are the adopted logographic Chinese characters hanzi that are used in the modern Japanese writing system along with hiragana , katakana , Indo Arabic numerals, and the occasional use of the Latin alphabet...
), there are major differences between chaebol and keiretsu:
- Chaebol are still largely controlled by their founding families, while keiretsu are controlled by groups of professional managers.
- Chaebol are centralized in ownership, while keiretsu are more decentralized.
- Chaebol often formed subsidiaries to produce components for exports, while large Japanese corporations often employed outside contractors.
- Chaebol are prohibited from owning private banks, partly in order to increase the government's leverage over the banks in areas such as credit allocation. In 1990, government regulations made it difficult for a chaebol to develop an exclusive banking relationship. Keiretsu have historically worked with an affiliated bank, giving the affiliated companies almost unlimited access to credit, although this is no longer a universal feature of keiretsu.
The model of chaebol rely a lot on a complex system of interlocking ownership. The owner of the Chaebol, with the help of family members, family-owned charity and senior managers from subsidiaries, only has to control three of four public companies, who themselves control other companies that control subsidiaries. The good example of this practice would be the owner of Doosan, who controlled more than 20 subsidiaries with only a minor participation in about 5 companies.
Reforms
Under President Kim Dae-jung, elected in the wake of the crisis, the government made several efforts to reform the economy:- Instead of competing in every industry, the chaebol were pressured to focus on core businesses and spin off unrelated enterprises.
- The chaebol were to decentralize their management and encourage the hiring of professional managers.
- Accounting regulations were strengthened to limit the ability of chaebol to hide losses and debt at underperforming subsidiaries.
- A crackdown on antitrust laws and inheritance taxInheritance taxAn inheritance tax or estate tax is a levy paid by a person who inherits money or property or a tax on the estate of a person who has died...
es would impede the ability of families to retain control over their chaebol.
Both Kim and his successor, Roh Moo-hyun
Roh Moo-hyun
Roh Moo-hyun GOM GCB was the 16th President of South Korea .Roh's pre-presidential political career was focused on human rights advocacy for student activists in South Korea. His electoral career later expanded to a focus on overcoming regionalism in South Korean politics, culminating in his...
, have had mixed success. The chaebol continue to dominate South Korea's economy. Hyundai and SK Group have been implicated in separate scandals involving both presidents. Samsung President Lee Kun-hee
Lee Kun-hee
Lee Kun-hee is Chairman of Samsung Electronics. He resigned on April 21, 2008 owing to Samsung Slush funds scandal, but returned on March 24, 2010. Lee has a degree in economics from Waseda University in Tokyo and attended an MBA course at George Washington University in the United States in 1966...
resigned amid charges of tax evasion
Tax evasion
Tax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability,...
and breach of trust
Breach of Trust
Breach of Trust is a Canadian alternative rock band originally from La Ronge, Saskatchewan. The band currently consists of vocalist Marty Ballentyne, guitarist Donovan Bruyere, bass guitarist Colin Cheechoo and drummer William Aubut...
in April 2008.
The Federation of Korean Industries, a consortium of chaebol, has taken a leading role in resisting changes.
Laws regulating Chaebol
Laws passed to limit the expansion of chaebol include:- 1. Law for separate finance from industry (:ko:금산분리법;金産分離法 : Chaebol can't have banks) enacted in 1982
- 2. Law for limit of investment (출자총액제한;出資總額制限 : Law to limit a chaebol's growth by M&A) abrogated in 2009
- 3. Law for limit of assurance (상호출자채무보증제한;相互出資債務保證制限 : Law for defending the insolvency of a chaebol's affiliates)
Formally, Korea's governmental FTC (Fair Trade Commission : 공정거래위원회;公正去来委員会) announces a limited Chaebol list every year as size of industrial assets (not including financial companies).
- Appointment: Fair Trade Commission of Korea (공정거래위원회;公正去来委員会 www.FTC.go.kr)
- Inclusion : industrial groups (Assets : 5 Trillion Won, more)
- Exclusion : Bank and Financial Group
Chaebol that limited assurance (상호출자제한기업집단;相互出資制限企業集団)
- Year Chaebol Affiliates: Assets
- 2007 : 62 : 1,196 Ent : 979.7 Tri Won (Not include Bank and Financial Group by Korean Law)
- 2008 : 79 : 1,680 Ent : 1,161.5 Tri Won (more than 2 Trillion Won)
- 2009 : 48 : 1,137 Ent : 1,310.6 Tri Won (more than 5 Trillion Won)
- Samsung GroupSamsung GroupThe Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...
's total assets are 317 trillion Won (Billion $), but FTC recognize only 174 Trillion WonWonWon or WON may refer to:*The Korean won from 1902–1910:**South Korean won, the currency of the Republic of Korea**North Korean won, the currency of the Democratic People's Republic of Korea* Won , the Korean form of Yuan...
that excepted Financial subsidiary. - NonghyupNonghyupThe National Agricultural Cooperative Federation is a federation of agricultural cooperatives in South Korea.It delivers supply, processing, marketing, and banking services through more than 4000 branches...
's total assets are 400 trillion Won (Billion $), but FTC recognize only 2 Trillion WonWonWon or WON may refer to:*The Korean won from 1902–1910:**South Korean won, the currency of the Republic of Korea**North Korean won, the currency of the Democratic People's Republic of Korea* Won , the Korean form of Yuan...
that excepted Financial assets because NonghyupNonghyupThe National Agricultural Cooperative Federation is a federation of agricultural cooperatives in South Korea.It delivers supply, processing, marketing, and banking services through more than 4000 branches...
is Financial Group by Korean Law.
Chaebol by Revenue
The following charts list chaebol in order by different categories.- Management : chaebol controlled by the owner's family or the largest shareholders
Chaebol by family groups Won WonWon or WON may refer to:*The Korean won from 1902–1910:**South Korean won, the currency of the Republic of Korea**North Korean won, the currency of the Democratic People's Republic of Korea* Won , the Korean form of Yuan...Total Assets Family Groups Samsung SamsungThe Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...
family group252 Trillion 348.7 Shinsagae + Homeplus + CJ + Hansol HansolHansol is a South Korean conglomerate, or chaebol. Its main operations are construction, electronics, tourism, chemicals, household interiors, paper products, telecom, and logistics. Hansol used to be a part of Samsung Group, and is still owned by one of the relatives of the Samsung and Shinsegae...
GroupsHyundai HyundaiHyundai ) is a global conglomerate company, part of the Korean chaebol, that was founded in South Korea by one of the most famous businessmen in Korean history: Chung Ju-yung...
family group203 Trillion 204.4 Motors + Heavy + Steel + insurance + trade + construction LG LGLG may refer to:*LG Corp., a South Korean electronics and petrochemicals conglomerate*LG Electronics, an affiliate of the South Korean LG Group which produces electronic products* Lawrence Graham, a London headquartered firm of business lawyers...
family group191 Trillion 148.4 LG LGLG may refer to:*LG Corp., a South Korean electronics and petrochemicals conglomerate*LG Electronics, an affiliate of the South Korean LG Group which produces electronic products* Lawrence Graham, a London headquartered firm of business lawyers...
115 + GS 49.8 + LS 20.5 + LIG 6.5 Groups (Revenue)
- Business Area: a chaebol that has several monopolies.
Chaebol by each Groups Won Total Assets Business Areas Samsung Group Samsung GroupThe Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...
221 Trillion 317.5 Electronics, insurance, Card, Construction & Shipbuilding LG Group LG GroupLG Corp. is the second-largest South Korean conglomerate company following Samsung, and it is headquartered in the LG Twin Towers in Yeouido-dong, Yeongdeungpo-gu, Seoul. LG produces electronics, chemicals, and telecommunications products and operates subsidiaries like LG Electronics, LG Display,...
115 Trillion 69.5 Electronics, insurance, Chemicals, Telecom & Trade Hyundai Kia Automotive Group Hyundai Kia Automotive GroupThe Hyundai Kia Automotive Group is South Korea's largest automobile manufacturer, the second largest automaker in Asia after Toyota and the world's fourth largest automaker after Toyota, GM, and Volkswagen as of the end of 2010...
107 Trillion 128.7 Motors, Steel & Stock SK Group SK GroupSK Group is the third largest conglomerate in South Korea. The SK Group is composed of 92 subsidiary and affiliate companies that share the SK brand and culture....
105 Trillion 85.9 Energy, Telecom, Trade & Construction NH Nonghyup NonghyupThe National Agricultural Cooperative Federation is a federation of agricultural cooperatives in South Korea.It delivers supply, processing, marketing, and banking services through more than 4000 branches...
Unions80 Trillion 400.0 Head Union 260+ Gyunggi Union 100+ Local 50~100 (Assets Korea Electric Power Korea Electric PowerKorea Electric Power Corporation, better known as KEPCO, is the largest electric utility in South Korea,...
57.9300 117.1 Energy (value by FTC) GS Group GS GroupGS Group is a Korean conglomerate. GS comprises GS Holdings and subsidiaries & affiliates including GS Caltex, GS Retail, GS Shop, GS EPS, GS Global, GS Sports and GS E&C among others. The asset size is at 31.1 trillion KRW as the end of 2007 placing GS at the 6th largest in Korea excluding the...
49.8000 39.0 Energy, Shopping & Construction POSCO POSCOPOSCO is a multinational steel-making company headquartered in Pohang, South Korea. It is the world's third-largest steelmaker by market value and the most profitable Asia-based steelmaker....
41.7426 46.9 Steel Lotte Lotte (conglomerate)Lotte Co., Ltd. is a South Korean-Japanese Jaebeol and one of the largest food and shopping groups in South Korea and Japan. Lotte was established in June 1948, in Tokyo, by Japanese-educated, Korean businessman Shin Kyuk-Ho – also known as...
41.4000 54.9 Construction, Food, Energy, Hospitality & Shopping Hyundai Heavy Industries Hyundai Heavy IndustriesHyundai Heavy Industries Co., Ltd. is the world's largest shipbuilding company, headquartered in Ulsan, South Korea. The company is a subsidiary of Hyundai Heavy Industries Group...
Gp31.2882 42.8 Heavy industry (including Hyundai Mipo Shipbuilding) STX Group 28.2688 28.1 Shipbuilding, Shipping, Energy & Construction Hanwha HanwhaHanwha Group is one of the largest business conglomerate in South Korea. Founded in 1952 as Korea Explosives Inc. , the group has grown into a large multi-profile business conglomerate, with diversified holdings stretching from explosives, their original business, to retail to financial...
27.2399 75.7 Explosives, Chem, insurance Hanjin HanjinThe Hanjin Group is a South Korean conglomerate, or Jaebeol. The group is a holding company that includes a shipping company, Hanjin Shipping , and Korean Air , which was acquired in 1969...
26.1231 29.1 Air, Shipping, Heavy industry Kumho Asiana Group Kumho Asiana GroupKumho Asiana Group is a large South Korean Jaebeol , with subsidiaries in the automotive, industry, leisure, logistic, chemical and airline fields. The group is headquartered at the Kumho Asiana Main Tower in Sinmunno 1-ga, Jongno-gu, Seoul, South Korea. The group was established in 1946...
23.4000 43.9 Air, Construction, Petrochemical, Tire KT KT-Science:* kT in Physics* Knot , a unit of velocity * Kardashev scale, method of measuring an advanced civilization's level of technological advancement...
/ KTFKTFKTF was a South Korean telecommunications firm, now merged into Korea Telecom, specializing in cellular, or mobile, phones. Since 1999, it has also developed extensive overseas operations. The company is credited with developing customised ring back tones...
22.3710 29.5 Telecom service & Mobile Phone Doosan 21.4279 32.7 Heavy industry, Atomic Energy
- Organization : a chaebol that has other chaebol as affiliates
Chaebol by each unit Won Total Assets Business Areas Samsung Electronics Samsung ElectronicsSamsung Electronics is a South Korean multinational electronics and information technology company headquartered in Samsung Town, Seoul...
121.2943 105.3 Electronics, LCD, TV, Mobile Phone, Semiconductor LG LG GroupLG Corp. is the second-largest South Korean conglomerate company following Samsung, and it is headquartered in the LG Twin Towers in Yeouido-dong, Yeongdeungpo-gu, Seoul. LG produces electronics, chemicals, and telecommunications products and operates subsidiaries like LG Electronics, LG Display,...
Holdings90.2224 64.7 Holding (consolidated result by share rate) SK SK GroupSK Group is the third largest conglomerate in South Korea. The SK Group is composed of 92 subsidiary and affiliate companies that share the SK brand and culture....
Holdings88.8249 68.9 Holding (consolidated result by share rate) Woori Financial Group Woori Financial GroupWoori Financial Group is a Seoul-based banking and financial services holdings company and is the largest bank in South Korea.Woori has had a short history as a financial institution. It was formed in 2001 from the forced merger of 4 predecessor commercial banks and an investment bank...
86.9012 290.9 Bank, insurance Hyundai Motors 79.7363 103.2 Motors LG Electronics LG ElectronicsLG Electronics is a global electronics and telecommunications company headquartered in Yeouido, Seoul, South Korea. The company operates its business through five divisions: mobile communications, home entertainment, home appliance, air conditioning and business solution...
63.2803 42.3 Electronics, LCD, TV, Mobile Phone, Air conditioner Shinhan Financial Group Shinhan Financial GroupShinhan Financial Group Co., Ltd. is a South Korean financial holding company. As of 2007, Shinhan is the largest financial company in Korea; Shinhan Bank, its main subsidiary, is the first among banks....
59.7756 264.0 Bank, insurance Korea Development Bank Korea Development BankKorea Development Bank is a wholly state-owned policy bank in South Korea It was founded in 1954 in accordance with The Korea Development Bank Act to finance and manage major industrial projects to expedite industrial development and enhance the national economy. As Korea’s representative...
56.7842 189.8 Bank SK Energy 52.6063 24.9 Energy SC First Bank SC First BankSC First Bank is a bank headquartered in Seoul, South Korea. It was created by the acquisition of the former Korea First Bank by Standard Chartered Bank in 2005.-External links:*...
47.2433 75.7 (Cheil Bank) Kookmin Bank Kookmin BankKB Kookmin Bank or KB is the largest bank by both asset value and market capitalization in South Korea.The bank is led by Kang Chung-Won who previously worked for Seoulbank and oversaw its sale to competitor Hana Bank before moving to Kookmin.Kookmin intended to take over Korea Exchange Bank, a...
45.2461 266.4 Bank, insurance Citi Bank 41.7881 63.0 (HanMi Bank) NH Nonghyup NonghyupThe National Agricultural Cooperative Federation is a federation of agricultural cooperatives in South Korea.It delivers supply, processing, marketing, and banking services through more than 4000 branches...
Head Union40.9747 260.3 Bank, insurance & Food (Non-consolidated) Hana Bank 35.5378 149.1 Bank, insurance GS Caltex GS GroupGS Group is a Korean conglomerate. GS comprises GS Holdings and subsidiaries & affiliates including GS Caltex, GS Retail, GS Shop, GS EPS, GS Global, GS Sports and GS E&C among others. The asset size is at 31.1 trillion KRW as the end of 2007 placing GS at the 6th largest in Korea excluding the...
34.4242 18.0 Energy Hyundai Heavy Industries Hyundai Heavy IndustriesHyundai Heavy Industries Co., Ltd. is the world's largest shipbuilding company, headquartered in Ulsan, South Korea. The company is a subsidiary of Hyundai Heavy Industries Group...
27.4835 38.3 Heavy industry (Excluding Hyundai Mipo Shipbuilding) Samsung Life 25.2948 121.6 insurance Korea Gas Corporation Korea Gas CorporationKorea Gas Corporation is the public natural gas company and it was established by the Korean government in 1983. KOGAS has now grown to become the largest LNG import company in the world and operates three LNG regasification terminals and 2,721 km of natural gas pipelines in South Korea.-External...
23.4143 22.0 Energy Korea Exchange Bank Korea Exchange BankKorea Exchange Bank is a specialized foreign exchange bank in South Korea. It is headquartered in Seoul, and was established in 1967.Korea Exchange Bank is the fifth largest bank in South Korea measured in assets and the largest foreign exchange bank in South Korea, providing the largest range of...
23.1517 107.3 Bank Industrial Bank of Korea 23.1262 147.5 Bank S-Oil S-OilS-Oil Corporation is a petroleum and refinery company, headquartered in Seoul, Korea. It was established in 1976 by old name SsangYong Refinery . It produces petroleum and lubricant products...
23.1045 7.7 Energy SK Networks 22.6516 9.0 Trade Kia Motors Kia MotorsKia Motors , headquartered in Seoul, is South Korea's second-largest automobile manufacturer, following the Hyundai Motor Company, with sales of over 1.4 million vehicles in 2010...
22.2176 25.5 Motors LS Group LS GroupLS Group is a Korean Jaebeol . It is composed of LS Corp. , Gaon Cable, E1 , YESCO and LS Asset Management . "LS Corp." is a holding company, which comprises LS Cable LS Group is a Korean Jaebeol (conglomerate). It is composed of LS Corp. (see below), Gaon Cable, E1 (LPG), YESCO (LNG) and LS...
20.5330 14.5 Steel, Cable & Energy Samsung C&T Corporation Samsung C&T CorporationSamsung C&T Corporation , established in 1938, is the origin of Samsung Group and currently consists of Engineering & Construction Group and Trading & Investment Group...
20.4834 15.4 Trade & Construction Doosan Heavy Industries 19.2317 30.1 Heavy industry (including Doosan Infracore) STX Corporation STX CorporationSTX Corporation is a South Korean holding company engaged in the provision of trading services. Headquartered in Gyeongsangnamdo, South Korea, the company operates its business through two divisions: trade and ship maintenance. Its trade business division provides shipping and energy materials,...
16.2652 23.2 Holding & investment LG Display 16.2636 17.3 LCD Hyundai Oil Bank Hyundai Oil BankHyundai Oilbank is a petroleum and refinery company with its headquarters in Seoul, South Korea. It was established in 1991 by two entities: the Keukdong Refinery and the family group Hyundai Kia Automotive Group . Its primary manufacture are oil products, similar to the SK Corporation, GS...
14.8347 4.8 Energy STX Offshore & Shipbuilding STX ShipbuildingSTX Offshore & Shipbuilding is a South Korean shipbuilding company. It is the world's fourth largest shipbuilder, owning STX Europe, Europe's largest shipbuilding group. It has built about 700 ships over the last 40 years in Busan and Jinhae....
14.8305 19.5 Offshore & Shipbuilding GM Daewoo Motors 14.7623 9.5 Motors LG Chem LG ChemLG Chem Ltd. , often referred to as LG Chemical and also known as Lucky GoldStar Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea...
14.5548 9.3 Chemistry Daelim DaelimDaelim Industrial was established in 1939, and its E&C and Petrochemical Groups are the main lead of the Daelim Business Conglomerate.Since 1970, Daelim has completed numerous projects in the Middle East and Southeast Asia...
Group14.5000 11.0 MotorCycle, Construction & Petrochemical Dongbu Group Dongbu GroupDongbu Group is a large South Korean chaebol , producing industry, chemical, shipping, insurance and financial products. It was established in 1969.-Subsidiaries:*Dongbu Steel*Dongbu Electronics*Dongbu Hannong Chemical...
15.4950 24.7 Semiconductor, Steel & insurance SK Telecom SK TelecomSK Telecom Co., Ltd. or Sunkyoung Telecom is a South Korean wireless telecommunications operator, controlled by the SK Group, one of the country's largest chaebol. As a part of SK Group, SK stands for Sun Kyung.SK Telecom is a provider of mobile service in Korea, with 50.5% of the market share as...
14.0209 22.4 Telecom Hyundai Mobis Hyundai MobisHyundai Mobis was established in 1977 as Hyundai Precision & Industries Corporation. It is an auto parts company with headquarters based in Seoul, South Korea. In 2000, the company changed its name to Hyundai Mobis...
13.8472 10.4 Motor parts Kyobo Life Kyobo LifeKyobo Life Insurance Co, Ltd. is a South Korean life insurance company headquartered in Seoul, Korea, formerly known as Daehan Education Insurance...
13.5155 47.8 insurance (07) Daehan Life 12.7776 50.9 insurance (08) Hanwha HanwhaHanwha Group is one of the largest business conglomerate in South Korea. Founded in 1952 as Korea Explosives Inc. , the group has grown into a large multi-profile business conglomerate, with diversified holdings stretching from explosives, their original business, to retail to financial...
Group's companyLotte Shopping 12.8393 16.9 Shopping CJ Group CJ GroupCJ Group is a large South Korean conglomerate company. CJ centralized business fields into 4 core business groups, such as food and food service, bio pharma, entertainment and media and home shopping and logistics.-Entertainment & Media:...
12.4100 12.3 Food & Shopping Daewoo Shipbuilding 12.2207 17.4 Shipbuilding Samsung Fire Samsung FireSamsung Fire & Marine Insurance is a multinational insurance company based in central Seoul, South Korea. Its principal products include automobile, long-term and commercial insurance, enterprise risk management, and annuities....
11.8633 23.0 insurance Daewoo international 11.4263 3.4 Trade LG International 11.2626 3.7 Trade Hyundai Steel 11.2519 12.2 Steel Shinsegae ShinsegaeShinsegae is a South Korean department store franchise, along with several other businesses, headquartering in Seoul, South Korea. The name of Shinsegae literally means "New World" in Korean...
11.0520 10.7 Shopping Samsung Heavy Industries Samsung Heavy IndustriesSamsung Heavy Industries or SHI is one of the largest shipbuilders in the world and one of the "Big Three" shipbuilders of South Korea...
10.6895 26.5 Shipbuilding Korean Air Korean AirKorean Air Lines Co., Ltd. , operating as Korean Air, is both the flag carrier and the largest airline of South Korea, with global headquarters located in Seoul, South Korea. Korean Air's international passenger division and related subsidiary cargo division together serve 130 cities in 45...
10.4844 17.7 Hanjin HanjinThe Hanjin Group is a South Korean conglomerate, or Jaebeol. The group is a holding company that includes a shipping company, Hanjin Shipping , and Korean Air , which was acquired in 1969...
Group's companyLS Cable LS CableLS Cable Company, Ltd. is a South Korean cable, chemical and engineering company and a manufacturer of electric wire and cable for power distribution which separated from the LG Group in November 2003 to lead an independent brand power...
10.4560 7.6 Cable NH Nonghyup NonghyupThe National Agricultural Cooperative Federation is a federation of agricultural cooperatives in South Korea.It delivers supply, processing, marketing, and banking services through more than 4000 branches...
insurance10.1827 27.8 insurance Kumho E&C 10.1335 18.6 Construction
- Consolidated IR Reports : DART (Data Analysis, Retrieval and Transfer System : 電子公示시스템) of Financial Supervisory Service (金融監督院)
- Korea has about 100 Chaebol (more than 5 trillion Won) by Revenue.
- Korea's Total Financial Assets is 8.665 quadrillion WonWonWon or WON may refer to:*The Korean won from 1902–1910:**South Korean won, the currency of the Republic of Korea**North Korean won, the currency of the Democratic People's Republic of Korea* Won , the Korean form of Yuan...
by The Bank of Korea's Report
See also
- Economy of South KoreaEconomy of South KoreaSouth Korea has a market economy which ranks 15th in the world by nominal GDP and 12th by purchasing power parity , identifying it as one of the G-20 major economies. It is a high-income developed country, with a developed market, and is a member of OECD...
- Family businessFamily businessA family business is a business in which one or more members of one or more families have a significant ownership interest and significant commitments toward the business’ overall well-being....
- Holding companyHolding companyA holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
- List of Korea-related topics
- List of South Korean companies
- Vertical integrationVertical integrationIn microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or service, and the products combine to...
- CabalCabalA cabal is a group of people united in some close design together, usually to promote their private views and/or interests in a church, state, or other community, often by intrigue...
- The HongsThe HongsThe Hongs were major business houses in Canton and later Hong Kong with significant influence on patterns of consumerism, trade, manufacturing and other key areas of the economy...
- Mega Corporation
- ZaibatsuZaibatsuis a Japanese term referring to industrial and financial business conglomerates in the Empire of Japan, whose influence and size allowed for control over significant parts of the Japanese economy from the Meiji period until the end of World War II.-Terminology:...