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Chaebols - Coggle Diagram
Chaebols
Financial Crisis, 1991
Chaebols were confident in their technology and following the Asian Financial crisis in 1991, they managed to renovate and made tactically, smart investments before their Japanese and US counterparts and as a result benefited massively.
Cause of crash controversial, many banks would loan huge sums under basis that they were 'too big to fail'
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At depressions worst, 3500 companies were declaring bankruptcy every month.
Of the top 30 Chaebols, 16 went bankrupt
Influence
Major players
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Samsung
Samsung known to review every option and decide on the best option, opposite of Hyundai.
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Difficult to draw similarities in Europe as conglomerates are never as big and the ownership and management is usually strictly divided.
To be considered a Chaebol, it must be family owned and have businesses in at least two disparate areas: i.e. Samsung have luxury hotels, life insurance and build crude oil tankers.
Internal Politics
Chaebols are more than companies, they can almost be seen as dynasties.
They are responsible for an extreme proportion of South Koreas economy and so hold great amounts of power.
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Unique in the fact that they are comprised of multiple companies with robust internal transactions, all of which are controlled by a single, near all-powerful chairperson, who acts as both manager and de-facto owner of the entire enterprise.
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