By Sea-Jin Chang
This ebook explores the ideas that chaebols--Korean company groups--have pursued via studying their constructions and assessing their functionality. It highlights the strengths of chaebols that permit their quick development, in addition to the weaknesses that waylaid them while the 1999 Asian quandary happened. Sea-Jin Chang asserts that the Korean government's restructuring efforts haven't been winning and demonstrates why measures that overhaul chaebols' monetary buildings and improve their structures are worthwhile. He predicts that they are going to emerge back as greater, extra concentrated worldwide avid gamers.
Read or Download Financial Crisis and Transformation of Korean Business Groups: The Rise and Fall of Chaebols PDF
Best corporate finance books
Bringing a distinct joint practitioner and educational viewpoint to the subject, this is often the single on hand textual content on inner most fairness really overseas in concentration. Examples are drawn from Europe the center East, Africa and the US with significant case reports from a variety of company sectors, from the distinguished choice of the London enterprise School’s Coller Institute of non-public fairness.
"Engineering financial system, seventh Edition", presents undergraduate scholars and practising execs with an excellent guidance within the monetary realizing of engineering difficulties and initiatives, in addition to the innovations wanted for comparing and making sound monetary judgements. details on fee estimation, depreciation, and taxes has been up-to-date to comply to new tax legislation.
Extra resources for Financial Crisis and Transformation of Korean Business Groups: The Rise and Fall of Chaebols
It discussed their role in the Korean economy and reviewed their decline in performance since the late 1980s. It explained this decline as the result of capital inefﬁciency and the overvaluation of the won relative to the currencies of Japan and emerging competitors in developing countries. It also pointed out, however, that the most fundamental problem of chaebols lies in the void of effective governance mechanisms as Korea changes from a statecontrolled economy to a market-based economy. It also highlighted similarities between chaebols and organizational forms found in other countries.
It also effectively nationalized all banks by denying them the right to examine the validity of investment projects. Instead, the banks were to raise and allocate funds according to plans established by the Economic Planning Board. Most large-scale investments were allocated to only a few companies selected by the government. Through such means, the government virtually controlled Korean businesses and determined whether they succeeded or failed. It also inﬂuenced chaebols’ diversiﬁcation strategy during this period, as it provided incentives to ﬁrms that it believed were able to carry out a project and punished poor performance by stripping ﬁrms of speciﬁc assets, and letting other companies acquire these properties.
3 They were initially taken by the government and then sold to individuals. Sales were based not on auctions but on the personal preference of high-ranking government ofﬁcials. Friends and relatives of these ofﬁcials thus had the best chance to buy such items (Kang, 1996) and reaped huge windfall proﬁts by doing so since sales prices were based on the assets’ book values. Because inﬂation at this time was very high, buyers bought assets for only a fraction of their fair market value. Further, buyers had to pay only 10% upon purchase and then pay off the outstanding balance over 15 years without any interest.