The Visible Arm of Government - Corporate Governance of South Korean Chaebols

Private sector ownership in South Korea is dominated by chaebols. Chaebols are business groups and are “collections of firms bound together in some formal and/or informal ways, characterized by an 'intermediate' level of binding.” (Granovetter 2001: 69-70) This paper discusses the corporate governance environment of South Korea and its chaebols. While chaebols are key actors in South Korea’s development, this paper extensively discusses the very visible arm of government and how chaebols have had to navigate their relationship with the state in order to continue their operations. The might of the state will continue to dominate chaebol decision making and structure.