The Costs and Benefits of Korean Conglomerates to the Korean Economy South Korea's economy is believed to be agricultural in the mid-20th century. However, today South Korea is one of the four Asian tigers. What helped the Korean economy develop so quickly and effectively? Chaebol plays a key role in the development of the Korean market. This term was first used in 1984. “Chaebol” means “monopoly” in Korean and is a corporate conglomerate structure controlled by a family that has power in all operations. The chaebol is usually a large company, made up of a group of small companies. Chaebol are often compared to Japanese keiretsu but have key differences. First, keiretsu are usually run by professional managers while chaebol are controlled by the founding families. Second, ownership of the chaebol is always centralized unlike the keiretsu. Korean chaebols such as Samsung and LG Group are known worldwide and their products are used everywhere. Korean conglomerates are expanding their influence by taking over more and more manufacturing sectors. Furthermore, some countries (e.g. Russia) are reflecting on the legacy of the Korean chaebol experience to modernize their economies. This phenomenon has been called “chaebolization”. Although the chaebol helped South Korea become a developed country, some economists criticize the system for its negative impact on the Korean economy. Some specialists say: “The chaebol have eaten Korea.” My goal is to investigate all the advantages and disadvantages of the Korean chaebol system for the Korean economy and come to a conclusion about the influence of conglomerates on the Korean economy. To achieve this, I have organized my work into three main sections, one of which has two......halves of the paper......omy. It must be very difficult, but some measures are needed to reduce production diversification and corruption within the company and to grow small and medium-sized enterprises. Works Cited “The Origins and Development of Chaebol.” Library of Congress Encyclopedia, June 1990. Web. November 29, 2013 “The Chaebol That Ate Korea.” The economist. The Economist, November 12, 1998. Web. November 29, 2013 “South Korea Conglomerates.” The economist. The Economist, 11 December 1997. Web. 29 November 2013 Luna, Ilhwan. “Are Chaebols Stifling Innovation?” Bloomberg Business Week. Bloomberg Businessweek Mag., December 3, 2009. Web. November 29, 2013Kim, Soo-yeon. “S. Korea raises alert against inflow of foreign capital.” Yonhap News. Yonhap News Agency, September 24, 2013. Web. November 30, 2011 Jackson, Van. “Goodbye Chaebol, hello small business.” The Asian Times online. January 5. 2008

Topic > The Costs and Benefits of Korean Conglomerates to the Korean Economy South Korea's economy is believed to be agricultural in the mid-20th century. However, today South Korea is one of the four Asian tigers. What helped the Korean economy develop so quickly and effectively? Chaebol plays a key role in the development of the Korean market. This term was first used in 1984. “Chaebol” means “monopoly” in Korean and is a corporate conglomerate structure controlled by a family that has power in all operations. The chaebol is usually a large company, made up of a group of small companies. Chaebol are often compared to Japanese keiretsu but have key differences. First, keiretsu are usually run by professional managers while chaebol are controlled by the founding families. Second, ownership of the chaebol is always centralized unlike the keiretsu. Korean chaebols such as Samsung and LG Group are known worldwide and their products are used everywhere. Korean conglomerates are expanding their influence by taking over more and more manufacturing sectors. Furthermore, some countries (e.g. Russia) are reflecting on the legacy of the Korean chaebol experience to modernize their economies. This phenomenon has been called “chaebolization”. Although the chaebol helped South Korea become a developed country, some economists criticize the system for its negative impact on the Korean economy. Some specialists say: “The chaebol have eaten Korea.” My goal is to investigate all the advantages and disadvantages of the Korean chaebol system for the Korean economy and come to a conclusion about the influence of conglomerates on the Korean economy. To achieve this, I have organized my work into three main sections, one of which has two......halves of the paper......omy. It must be very difficult, but some measures are needed to reduce production diversification and corruption within the company and to grow small and medium-sized enterprises. Works Cited “The Origins and Development of Chaebol.” Library of Congress Encyclopedia, June 1990. Web. November 29, 2013 “The Chaebol That Ate Korea.” The economist. The Economist, November 12, 1998. Web. November 29, 2013 “South Korea Conglomerates.” The economist. The Economist, 11 December 1997. Web. 29 November 2013 Luna, Ilhwan. “Are Chaebols Stifling Innovation?” Bloomberg Business Week. Bloomberg Businessweek Mag., December 3, 2009. Web. November 29, 2013Kim, Soo-yeon. “S. Korea raises alert against inflow of foreign capital.” Yonhap News. Yonhap News Agency, September 24, 2013. Web. November 30, 2011 Jackson, Van. “Goodbye Chaebol, hello small business.” The Asian Times online. January 5. 2008