Govenrment and Business Environment Case Study

Chaebol Reforms

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Abstract:
This case can be used in conjunction with 'South Korea's Chaebol' (203-032-1). The cases concern Chaebol, or the family-owned conglomerates of South Korea. While 'South Korea's Chaebol' talks about the origin of Chaebol and the role of government in their development, this case discusses the restructuring initiatives of Chaebol. There is also detailed discussion on what steps the government took to push Chaebol reforms and how LG group restructured into a holding company, marking the beginning of a new era in South Korea's big businesses .

Pedagogical Objectives:

• To discuss the government initiatives to reform Chaebol
• To understand the restructuring initiatives at LG, one of the five big Cheabol.

Keywords : Chaebol, Reforms, Asian financial crisis, Kim Dae Jung, Samsung, Cross-holding,Economic development, IMF bailout, Big Deal, Chaebol restructuring, LG's restructuring, Holding company, LG Corporation, Business Environment Case Study, Hyundai and LG electronics swap, Chaebol bankruptcy