Reforming the large business groups to promote productivity and inclusion in Korea

Randall S. Jones

Organisation for Economic Co-operation and Development

关键词: cross shareholding;    class action suits;    chaebols;    inside ownership;    corporate governance;    subcontractors;    ownership structure;    large business groups;    diversification;    outside directors;    minority shareholders;    Korea Fair Trade Commission (KFTC);   

DOI  :  https://doi.org/10.1787/9e9052b5-en

学科分类：社会科学、人文和艺术（综合）

来源: OECD iLibrary

【 摘 要 】

Large business groups, which played a key role in Korea's economic development, are still dominant today, especially in exporting. The concentration of economic power creates a number of problems and risks. Ensuring a level-playing field between the business groups, also called chaebols, and SMEs and start-ups is essential to promote innovation and inclusive growth. While the business groups have long been subject to a number of special regulations, a comprehensive strategy is needed. The top priority is to improve corporate governance by strengthening the role of outside directors and protecting minority shareholders. A greater say for institutional investors and more active use of private remedies, such as class action suits, would also be beneficial. In addition, strengthening competition by reducing barriers to trade and FDI and activating a market for corporate control would lead to better performance by the groups. The ownership structure of the groups needs to be improved, notably by phasing out circular shareholding among their affiliates. This Working Paper relates to the 2018 OECD Economic Survey of Korea (www.oecd.org/eco/surveys/economic-survey-korea.htm)