Chaebol.com has reported that the Top 10 largest companies in Korea account for over 76% of the Gross Domestic Product of Korea, while the top 30 companies on the Korean Stock Exchange account for over 59% of the value of the market. The statistic is alarming to outsiders, but not surprising to those on the ground in Korea.
Samsung: 21.9 % of GDP
Hyundai/Kia: 12.6% of GDP
The fear has always been that Korean conglomerates’ abuses in the local Korean market leaves few companies capable of competing, thus, weeding out potentially successful companies. The largest conglomerates are doing the same abroad through dumping and other market manipulative tactics.
The Korean government has, facially, tried to protect consumers, subcontractors and competitors, however, the government and even the courts have been reluctant to do anything, but give these companies a light slap on the wrist. A reality that may lead to a Korea that will hit a wall and, then, languish in irrelevancy like Japan.
Sean Hayes, IPG’s Co-Chair of the Korea Practice Team, may be contacted at: SeanHayes@ipglegal.com
- Regulating the Korean Government Way: Consumer vs. Small Retailers
- Business Opportunities in Korea for Entertainment Companies
- Korea to Rule if Pokémon GO Can Be Released Nationally in Korea
- English-Speaking Korean Labor & Employment Lawyers in Korea
- Dow Chemical & Monsanto Prevail at Seoul High Court Against Korean Vietnam War Veterans
- Termination of a Franchise Agreement in Korea: Korean Franchise Law Basics
- Protecting Products from Parallel Imports into Korea: Trademark/IP in Korea?
- Korea’s Fairness in Subcontracting Transactions Act Amendments of July 2021
- Can you Revise Employment Rules in Korea without the Agreement of Employees?
- Starting a Business in South Korea: Top Posts from the Korean Law Blog
You must log in to post a comment.