콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Government and Law Laws and Legislation

Print

Changes in Korean corporate governance : A response to crisis

Related Document
Frame of Image
  • Changes in Korean corporate governance
  • Kim, E. Han; Kim, Woochan
  • Seoul National University(BK 21 Law)


link
Title Changes in Korean corporate governance
Similar Titles
Sub Title

A response to crisis

Material Type Articles
Author(English)

Kim, E. Han; Kim, Woochan

Publisher

[Seoul]:Seoul National University(BK 21 Law)

Date 2008
Journal Title; Vol./Issue Journal of Korean Law:vol. 8(no. 1)
Pages 24
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Government and Law < Laws and Legislation
Holding Seoul National University

Abstract

A decade has passed since the outbreak of the Korean financial crisis in November 1997. One of the fundamental causes of the crisis was widespread corporate value destruction, especially among the family-controlled business groups known as chaebol. Before the crisis, these business groups routinely pursued growth and market share at the expense of profitability and shareholder value. For some of the chaebol, size added to their political influence, which could be used to tilt the playing field in their favor. Being bigger also meant better access to external financing and lower borrowing costs, thanks in part to the “too big to fail” legacy. But another important factor driving this value-destroying growth was the so-called “private benefits” of controlling a larger corporate empire to the controlling shareholders, typically referred to in Korea as the “owners.” (The rest omitted)