Chaebols In South Korea
The particular challenge faced by Korea that I would like to address is the Chaebols and the corruption status of South Korea.
The Chaebols and the Government
The term Chaebol refers to big business group in South Korea. Chaebols are usually characterized by family control of ownership and management, diversified business areas, and their close relationship with government (1).
The development of the Chaebols can be traced back to the period around 1950 to 1960 when South Korea gone through a very rapid industrialisation process led by the Chaebols within few decades. Chaebols developed from the Japanese firms and capitals seized by the Korean Rhee government after the colonial period, and the government distributed these capitals to people …show more content…
In particular, transparency international stated that the corruption scandals among the government and major Korean corporations contributed to the 3 points drop in the 2016 summery (9). Also, from the Government at a Glance 2015 published by OECD (Appendix C), Korea’s citizen has a far lower confidence in their country’s jurisdiction system, having only about 30 percent of citizen showed confidence, which is far below the OECD average of 54 percent …show more content…
More recently, the Improper Solicitation and Graft Act was passed in 2015. This act enables the conviction of bribery when any public officials, including school teachers and journalist, when they are treated with meal of 30,000 won or gifts of 50,000 won, 100,000 won in case of wedding or funeral, even without proof of direct relationship between the reception of gift and the favour given by the public officials (12, 13). However, the new law is perceived as too strict, and critics concerned that the enforcement of the law would be harmful to Korea’s economy, especially when the domestic market is already weak. Also, such law also goes against Korean’s culture of exchanging gifts with friends and business partners during national holidays, and small and medium sized enterprises and farmer would face a more difficult business environment under such law
The Chaebols and the Government
The term Chaebol refers to big business group in South Korea. Chaebols are usually characterized by family control of ownership and management, diversified business areas, and their close relationship with government (1).
The development of the Chaebols can be traced back to the period around 1950 to 1960 when South Korea gone through a very rapid industrialisation process led by the Chaebols within few decades. Chaebols developed from the Japanese firms and capitals seized by the Korean Rhee government after the colonial period, and the government distributed these capitals to people …show more content…
In particular, transparency international stated that the corruption scandals among the government and major Korean corporations contributed to the 3 points drop in the 2016 summery (9). Also, from the Government at a Glance 2015 published by OECD (Appendix C), Korea’s citizen has a far lower confidence in their country’s jurisdiction system, having only about 30 percent of citizen showed confidence, which is far below the OECD average of 54 percent …show more content…
More recently, the Improper Solicitation and Graft Act was passed in 2015. This act enables the conviction of bribery when any public officials, including school teachers and journalist, when they are treated with meal of 30,000 won or gifts of 50,000 won, 100,000 won in case of wedding or funeral, even without proof of direct relationship between the reception of gift and the favour given by the public officials (12, 13). However, the new law is perceived as too strict, and critics concerned that the enforcement of the law would be harmful to Korea’s economy, especially when the domestic market is already weak. Also, such law also goes against Korean’s culture of exchanging gifts with friends and business partners during national holidays, and small and medium sized enterprises and farmer would face a more difficult business environment under such law