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Business groups in Korea : Overall concentration of market dominance and diversification

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Frame of Image nd the ongoing business group debate. ○ Business groups have continued to account for an overwhelming share of the Korean economy, even after the intense restructuring of the late 1990s foreign exchange crisis.  The 55 business groups subject to cross-investment restrictions in 2010 accounted for 29.1 percent of all sales and 8.0 percent of all workers in the national economy. ○ In terms of broader industry categories, business groups represent an overwhelming portion of manufacturing sector and relatively low percentage of services sector. ○ As a long-term pattern of change, the top 30 business groups in manufacturing sector have accounted for a rapidly growing share since the late 2000s. This phenomenon is the result of continued rapid growth by a small number of very large companies amid a general drop-off in growth for the economy as a whole.
* This is translated version of KDI Policy Forum released on September 29, 2014. ** This issue of Forum is a revised summary of Ch. 9, “Concentration of Economic Power: Business Groups Today” in Jaehyung Lee, South Korean Industry Organization and Market Structure, Research Report 2013-06, Korea Development Institute, 2013. For details, please refer to that report. Statistical values may differ, as this version incorporated revised figures and basic statistics added after the previous report’s publication.
KDI Policy Forum
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○ For manufacturing sector, business groups account for a generally large share of the country’s mainstay ind


Full Text
Title Business groups in Korea
Similar Titles
Sub Title

Overall concentration of market dominance and diversification

Material Type Reports
Author(English)

Lee, Jaehyung

Publisher

[Sejong]:Korea Development Institute

Date 2014-11
Journal Title; Vol./Issue KDI Policy Forum:262
Pages 10
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Economy < Economic Conditions
Holding Korea Development Institute

Abstract

This study attempts a statistical examination and analysis of the characteristics and situation surrounding business groups (Chaebol) in Korea in order to provide basic information for corporation policy and the ongoing business group debate. Business groups have continued to account for an overwhelming share of the Korean economy, even after the intense restructuring of the late 1990s foreign exchange crisis. The 55 business groups subject to cross-investment restrictions in 2010 accounted for 29.1 percent of all sales and 8.0 percent of all workers in the national economy. In terms of broader industry categories, business groups represent an overwhelming portion of manufacturing sector and relatively low percentage of services sector. As a long-term pattern of change, the top 30 business groups in manufacturing sector have accounted for a rapidly growing share since the late 2000s. This phenomenon is the result of continued rapid growth by a small number of very large companies amid a general drop-off in growth for the economy as a whole.