Financial Crisis and Transformation of Korean Business Groups.pdf
by SEA-JIN CHANG

Cambridge University Press
2003
isbn-13 978-0-521-81435-5
378 pages

Preface page ix
1 Introduction 1
From Asian Miracle to Asian Crisis 3
Chaebols: The Korean Business Groups 9
The Theoretical Framework of this Book 24
2 The Evolution of Chaebols 43
The Development of Chaebols in Korea 45
Brief Histories of the Top Five Chaebols 62
The Growth Strategy of Chaebols 70
The Environmental Shift 75
3 Chaebols’ Diversified Business Structure 79
The Extent of Chaebols’ Diversification 81
Intragroup Resource Sharing 87
Organizational Structure of Chaebols 98
Diversification and Economic Performance 105
4 Vertical Integration of Chaebols 111
The Scope of Chaebols’ Vertical Integration 113
Motives for Vertical Integration: Pros and Cons 118
Performance Implications of Chaebols’
Vertical Integration 123
5 The Capital Structure of Chaebols 131
Financial Market Environments in Korea 133
Capital Structure of Chaebols 141
Chaebols’ Internal Capital Markets and
Cross-subsidization 149
Collapse of Chaebols and Financial Institutions
During the Crisis 157
6 Chaebols’ Ownership and Governance Structure 161
Characteristics of the Ownership Structure
of Chaebols 163
The Corporate Governance System in Korea 170
Agency Problems in Chaebols 176
7 The Restructuring of Chaebols 187
The Restructuring Policy of the Korean
Government 189
Restructuring of the Financial Sector 191
Restructuring of the Corporate Sector 195
Enhancement of the Corporate Governance
System 208
Perspectives on the Restructuring of Chaebols 212
8 Conclusion 217
The Crisis and the Fall of Chaebols: A Summary 219
Business Groups in Other Countries 224
The Taming of Chaebols 231
The Future of Chaebols and the Developmental State 238
Appendixes
1. Data Used in this Book 245
2. Comparing the Profitability of Group-affiliated
Companies and Independent Companies 249
3. Profitability of Group-affiliated Firms 264
4. The Impact of Vertical Integration in Chaebols 275
5. Determinants of the Capital Structure of Chaebols 284
6. Profitability and Stock Ownership of Affiliates 291
7. Intragroup Business Transactions and
Ownership Structures of the Top Five Chaebols 299
8.Key Economic Statistics 309
Notes 311
References 327
Index 345