The word chaebol is a unique combination of the Korean words 'dm, (wealth)' and Ica (clan or clique)'. South Korea's chaebol are family-owned businesses that typically have subsidiaries across diverse industries. The top five chaebol, taken together, represent approximately half of the South Korean stock market's value. Chaebol drive the majority of South Korea's investment in research and development and employ people around the world. On average, the 3rd and 4132 generations of the families of major shareholder in the top 30 Chae,bolds become executive at the age of 31.5, only 33 years after they join the company (some start their career even as an executive). While some people argue that family leadership is the most suitable and efficient owner-ships strategy to manage those huge business group.

1. Discuss how is this ownership strategy outdated and inefficient?

2. What problems could this strategy generate?

Transcribed Image Text:

SK LG SAMSUNG HYUNDAI HYUNDAI KUMHO ASIANA HANJIN (ΚΙΛ SK LG SAMSUNG HYUNDAI HYUNDAI KUMHO ASIANA HANJIN (ΚΙΛ

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1 The ownership strategy is outdated and inefficient as the Korean companies are facing competition ... View the full answer