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AM Lecture 5Management > Asian Management > Chaebol
ChaebolThe primary business entity in Korea is the chaebol. These can be defined as conglomerates clustered around one holding company. The parent company is usually controlled by one family. In 1988, the 40 top chaebol grouped a total of 671 separate companies. The companies hold shares in one another. The top four superchaebol's sales account for 40-45% of South Korea's GNP. What is interesting is that they do not own their own financial institutions and are very depended on the government for approval. Chaebol tend to spread across industries, unlike the Japanese keiretsu, which integrates vertically in the same industry. Chaebols have formal structures and centralised control, more so than keiretsu. Chaebol are also very family-orientated and even though they have hugely expanded, most chaebol continue remain family based. Chaebol leaders have a worrying tendency to write autobiographies and philosophies. Kim Woo Chong of Daewoo wrote "Every Street is Paved with Gold" and Chung Ju Yung of Hyundai write "There are Difficulties, but no Failures".
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