How South Korea Rose From War To Prosper Economic Power

Kore The Impossible Country
Since the World War II, when Korea got its independence from Japan, and the Korean War in 1953,
Korea has worked hard to earn its reputation as the "impossible country." According to Daniel
Tudor, author of Korea the Impossible Country, Korea got its nickname as the "impossible country"
because only 50 years ago, the country was impoverished from the recent wars and went through
couple of unstable regimes changes and yet, Korea's economic growth since the 1960s has led the
country out of poverty and has a stable democratic leadership . Korea has been able to grow its GDP
and its GNP since the 1950s, but not without a negative consequence. Thanks to General Park,
Korea adopted an export–led economic system ran by the Chaebols, business conglomerates, but it
also shaped a hard working style culture that still reflects today's work life in the 21st century.
South Korea has been able to grow as a strong state thanks to its strong leadership like General Park
Chung Hee, but also due to its "industrial soldiers." The term industrial soldiers was coined during
the 1960s when General Park took office in 1961. General Park and his administration knew that in
order to dig Korea out of poverty, "South Koreans needed to focus on developing human skills and
then put them to unceasing use. " Since Korea was not well developed in the '60s, General Park
knew the best strategy to improve their new export oriented economy was by having low wages and
intensive labor. Therefore,
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Cobalt Systems and SiverLight Electronics
1. Present the discrepancies of business practices, policy and strategy between the 2 countries Cobalt
Systems is a multinational corporation present in more than 50 countries divided into regions.
Cobalt Systems is a highly centralized organization as all the operations throughout the world are
overseen by 13 US based 'Management Board' members. The company large number of layers
between the Management Board and the local employees (hierarchical organization) doesn't allow
much room for empowerment. It is an ethnocentric company with a people oriented culture that
provides all its local employees around the world with extensive training in order to socialize them
to the Cobalt culture. Moreover, Cobalt Systems insists on fully ... Show more content on
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SilverLight wants its employees to do things the 'Silverlight way' and join the 'SilverLight family'
for the rest of their careers whereas Cobalt wants all its employees around the world to adopt the
Cobalt culture. Cobalt sees its subsidiaries as national assets that have to be closely protected from
competitors and therefore fully owned by Cobalt whereas SilverLight is seen as a Korean pride by
the Koreans and the government and is cross–owned by a multitude of firms forming the SilverLight
Chaebol. Cobalt's world operations are overseen by 13 US based Management Board members
creating a hierarchical organization whereas SilverLight is part of a horizontal multi–industry
organization (the SlverLight Chaebol) and he still closely tied to the government due to historical
reasons. 2. Using the cross–cultural criteria defined in class, list the expected discrepancies in the
behavior of the Korean and US negotiators. For western companies and American ones in particular,
time is money. However, in Asian cultures time is no relevant at all. It is probably why it was the
Korean company rather than the American one who decided to take a break in the negotiation
process. Therefore, the American negotiator will have to learn to take his time and not rush the
conversation directly to business matters. It is important to know that Koreans want to get to know
the people they are going

South Korea: Country Attractiveness Report
FACULTY OF BUSINESS AND ECONOMICS KATHOLIEKE UNIVERSITEIT LEUVEN
D0M19B – International Business Strategy SOUTH KOREA Shortened Country Attractiveness
Report Antoine Hirschland Prof. Dr. Sleuwaegen Leo – 2010 – I. Introduction Thanks to the
globalization, Asian economy is drawing more and more the attention of the rest of the world.
Nevertheless, when we talk about economic growth in Asia, we think mostly about China, India or
Japan whereas South Korean economy is staying quite unknown in Belgium. However, since the
war in the Korean peninsula and the formation of the Democratic People's Republic of Korea (North
Korea) and the Republic of Korea (South Korea) in 1948, South Korea has becoming a major
economic ... Show more content on Helpwriting.net ...
Regarding technologies, South Korean industry has always been a pioneer in the technological
know–how which has allowed the country to become one of the most advanced countries in this
field. Lastly, the education system has always been based on rigour and excellence (South Korean
higher education and training ranked 15th in the GCR) that allowed the country to build up a high–
skilled workforce. B. Demand conditions The Korean home demand is characterized by high buyer
sophistication. Indeed, according to the GCR, South Korean buyer sophistication ranks 11. This can
be explained (in part) by the high level of education. Moreover, this sophisticated home demand
means that consumers require products of high quality and influences positively the development of
capabilities and pressures South Korean firms to be competitive and to innovate in order to respond
to this demand. C. Firm strategy, structure, and rivalry The Korean industry organisation is
characterized by the predominance of large groups (as LG, Hyundai, Samsung etc.) called chaebols
doing business in a large diversity of activities. The structure is therefore principally oligopolistic.
Currently, chaebols are responsible of the majority of Korean exportations. The Korean economic
growth has therefore been mostly concentrated on the development of those –3– chaebols
supported by financial institutions and the government at the expense of small and

Case Study Of Democratization Of Hyundai
Introduction
Marketing Strategy Marketing strategy is a process that can allow an organization to concentrate its
limited resources on the greatest opportunities to increase sales and achieve a sustainable
competitive advantage.
Developing a marketing strategy
Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill
market needs and reach marketing objectives. Plans and objectives are generally tested for
measurable results. Commonly, marketing strategies are developed as multi–year plans, with a
tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered
by the marketing plan vary by company, by industry, and by nation, however, time horizons are ...
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These changes allowed HMC to downsize. The "democratization of Hyundai" was also affected by
the political democratization movements in Korean society during the late 1980s. Despite the
positive effect of this societal change, most
Korean Chaebols faced a sequence of labor–management disputes. HMC was not an exception.
The HMCs first labor union was born at the Ulsan plant in 1987 and took the main role of
conveying employees' voices to the management group. Although Se–Young Chung emphasized
that "the stable, constructive, labor–management relationship is the starting point for sustaining
growth," HMC was drawn into the unprecedented vortex of labor strikes in 1987 and 1988, which
resulted in huge sales losses
The 1997 East Asian crisis dealt a heavy blow to Korean Chaebols. Half of the top 30 Korean
Chaebols, including Daewoo, went into bankruptcy in 1997 and 1998. The Hyundai group also
suffered a liquidity crisis. In response to requests from the IMF and foreign companies, the
Korean government began to pursue a major reform of the Chaebol system and pushed Chaebols to
improve their managerial transparency and professionalism, and spin off unrelated

The Political Economy of South Korea
The Political Economy of South Korea:
A Necessary Transformation
I. Introduction:
In this paper, I will discuss the measures that the Republic of Korea's (addressed as South Korea
from here on out) government took in trying accomplishing economic development despite its
several economic and political upheavals. I will, specifically, review the economic growth and
institutions established in South Korea beginning in the 1950s, the process of democratization in
South Korea, and the effects that the Asian Financial Crisis of 1997 had on South Korea. With the
background information of these factors, I will then delve into the importance of South Korea
becoming an economic power and the impact it has had on the United States of ... Show more
content on Helpwriting.net ...
During the transition of forming a democratic nation, South Korea was not immediately successful
in creating economic growth. In order to achieve positive changes in the economy, democratization
must be institutionalized. It was difficult for the economy to stabilize since mature institutions that
could guarantee growth were not created. Rather, the government tried to characterize the economy
through fast changes and rapid economic growth, when the government should have taken the time
to institutionalize political and economic systems. It is the building of mature institutions that have
proven to be crucial in policy making and implementing a strong government that can maintain a
consistent economic growth rate. IV. The effects of the Asian Financial Crisis of 1997 on South
Korea:
The era of economic growth in South Korea came to a halt in 1997 due to the Asian Financial Crisis
that started in Thailand. By 1997, South Korean banks reached 24 percent of the gross national
product (GNP) in foreign debt; 58.1 percent of the total debt was short–term debt. A number of the
chaebol conglomerates were not only bankrupt, but also collected an average debt–equity ratio of
almost 400 percent.
There were several reasons to why the financial crisis hit South Korea so hard causing its worst
economic fall since the Korean War.

The Cause of the Asian Financial Crisis
This is a review of the political reasons that caused the Asian Financial Crisis in 1997. The review is
made on 5 papers by 5 authors on the subject.
Introduction
The Asian Crisis of 1997 and 1998 affected many of the East Asian and South East Asian countries
surprised many. This was due to the fact that in the early and mid–1990s these same countries were
lauded as model economies with high Gross Domestic Product (GDP). Yet within a space of a few
months in mid–1997, the currency crisis become a financial/economic crisis as many of these
countries currencies were greatly devalued resulting in the contraction of their economies. However,
the severity of the Asian Crisis was not uniformly felt.
Many books, research papers and ... Show more content on Helpwriting.net ...
Due to this, "their states were 'strong' for their struggle to industrialize but 'weak' because of the web
of enmeshment; they are semi–sovereign states" (Cummings, 1999).
The end of the cold war meant that America no longer had to rely so much on Japan and Korea to
safe guard against the advancement of communist in South East Asia. Therefore from early 1990s,
America has pushed for these countries to adopt multilateral economies (i.e. be more open to accept
American goods and investment). However, Japan and Korea were resistant to this new form of
economic policy.
Though no actual action by American was provided in the paper that resulted in the Asian Crisis, the
author does state that the crisis allowed America, through the International Monetary Fund (IMF) to
implement their economic model to Korea. This was done to maintain American's hegemony in
Asia, which before the crisis may have shifted to Japan. That is one of the reasons provided by the
author on why America was firm in its refusal to allow the 'Asian Fund' proposed by Japan to
materialise.
C. Jeffrey A Winters. 1999. The Determinant of Financial Crisis in Asia. In The Politics of the Asian
Economic Crisis. Cornel University Press.
Winter's paper seeks to explain the source of the crisis and the reason why certain countries were
more affected by the crisis than others. The author "posit that the source of

Negative Effects Of Overwork
2.2 Negative effects brought by overwork
Concerning about work–life balance is the weakness in Samsung. As research showed, overwork
may not lead to high productivity. Although the working hours in South Korea is quite high
compared with other OECD countries, the average productivity seems to be less in relation to the
working hours. As the OECD data shows, labor productivity was $31.90 per hour in South Korea in
2014, while the OECD average was $49 (The Korea herald, 2015). Define what OECD is
Firstly, the long working hours could make employees bored of work, which might lead to the
reduction in cooperative, harmonious working environment and psychological problem among
employees. There seems to be a large decline in collectivism and negative effects in personality and
work climate (Yung–Ho C et al, 2014). All people desire to pursue a meaningful life, besides work,
they have their own interests, their family and their personal dream. If people cannot balance
between work and personal life, they would not only be exposed to the risk of becoming a
workaholic, but also damaged in their psychological aspects and even long–term mental problems
(Armitage K, 2001).
In addition, many physical risks could also be generated by stress, such as obesity, diabetes, heart
disease and depression (workology, 2015). Samsung experienced this problem a lot, many scandals
in Korea have illustrated this, including some cases of suicide in Samsung. For example, in 2014,
Choi Jong–beom, who

The Development Of South Korea
South Korea was a developmental state that created an environment for the chaebols to thrive in.
Ever since the reign of Park Chung Hee, the government has created macroeconomic policies in
order to allocate resources that favour some industries. The government's strategic use of subsidies
and the manipulation of prices and wages create conditions advantageous to the development of
domestic industries especially in the manufacturing sector. (Hundt, 2014). This created the suitable
environment for chaebols to monopolize the domestic economy. The government was also
instrumental in helping the chaebols to bounce back after their collapse and near bankruptcy during
the 1997 AFC. The government pushed for structural reforms for the chaebols and then President
Kin Dae Jung introduced eight policy goals under the guidance of the International Monetary Fund.
The policies goals were: (1) increase managerial transparency; (2) pressure corporations to focus on
core businesses and divest themselves of unrelated enterprises; (3) improve financial health; (4) end
loan guarantees among affiliates; and (5) increase accountability of chaebol leaders for their
performances. Three more policy goals were added in 1999: (1) prevent industrial capital from
dominating finance, (2) discourage circular investment between chaebol affiliates, and (3) prohibit
nepotistic transfer of management or ownership to family heirs. The changes prescribed were to help
South Korea move towards a more liberal and

The Road to the Self-Reliance New Product Development of...
THE ROAD TO THE SELF–RELIANCE NEW PRODUCT DEVELOPMENT OF HYUNDAI
MOTOR COMPANY
June 1995 Young–suk Hyun Ph.D Professor, Business Administration Han Nam University Taejon
KOREA
133 Ojung–dong Taejon 300–791, KOREA Tel : 82–42–629–7588 Fax : 82–42–672–7183
1
THE ROAD TO THE SELF–RELIANCE NEW PRODUCT DEVELOPMENT OF HYUNDAI
MOTOR COMPANY
1.
Introduction
2.
Hyundai 's Philosophy in New Product Development (NPD): The Road to the Technological Self–
reliance
3
Key Role Persons in NPD
4.
NPD Strategy
5.
NPD Operations
and Outputs

6.
Brief Project History
Case Case Case Case
I II III IV
: : : :
Sonata New Grandeur Accent Alpha Engine
(1988) (1992) (1994) (1991)
7.
Conclusion ... Show more content on Helpwriting.net ...
1,134 393 340 100 620 210 51 18 46 8
G. M Ford (10%), Kia 's Benz 5 % from 1972 Mazda(8%) subsidiary (50%) Itozu (2%) firm but
ended from 1986 in 1992
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––Remark:
C.V : Commercial Vehicle ; truck and bus Data: KAMA (Korea Automobile Manufacturers
Association)
Mitsubishi from 1982 (15 %)
Hyundai Motor became the thirteenth ranked auto maker––1.1 million in production and 400,000
cars exported to over 170 countries. new products in 1995 and currently offers including seven
indigenous models––ranging a full from line Hyundai added two of automobiles–to large
sub–compact
automobiles; Accent 1,300–1,500 cc Avante 1,500–1,800 cc Sonata II 2,000 cc Elantra 1,500–1800
cc Stellar 1,800–2000 cc (for taxi only), Marcia 2,500 cc
New Grandeur 2,000–3,500 cc
Production share of Hyundai rose to nearly 65% in 1985 but it maintains about 50% levels in the
90s. Total sales in 1994 were nearly 10 billion Hyundai plans

Why Are East Asian Business Groups so Common?
Why Are Business Groups More Common In East Asia? It is thought that since the early 1960's
business groups have been a vital asset to the industrialization and economic growth of East Asian
Countries. A 'business group' is a group of legally independent firms bound together in a formal or
informal way. They have shown extreme rapid growth throughout East Asia, and have become a
very controversial topic when relating to East Asia's financial development, often being referred to
as "paragons or parasites". There are many proposed features of business groups, both positive and
negative, that have resulted in their rapid formation and substantial growth in Asia. During East
Asia's early economic development, the main capital markets ... Show more content on
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This allows for the act of tunnelling, which is a way of directing company assets and future business
towards core owners so they can retain control over the country's corporate sectors with low cash
flows. Tunnelling methods such as providing low interest rates, selling assets, lowering market
prices, technology licensing and joint ventures, means dominant share holders can have the direct
benefit of using retained earnings for personal gain at a minority shareholders expense, hindering
their development in capital markets. Not only this, but growth has been linked to diversification, a
consequence of expropriation, and its impact on organisational performance. However, this theory is
conflicting because structural characteristics, resulting from family ownership, can decrease the
popularity of business groups in terms of outside investors, and complex company linkages can
relate to inefficient investment, unreliable accounting and possible inadequate managers through
inheritance. The Korean "Chaebol" is an example of a vertically organized pyramidal business group
still controlled by a number of founding families. The Chaebol , contains many well known
successful companies such as Samsung, LG and Hyundai and consists of centralized ownership,

Samsung : South Korean Multinational Aggregate Company
Samsung is a South Korean multinational aggregate company headquartered in Samsung Town,
Seoul. It contains various subsidiaries and partnered organizations, the majority of them united
under the Samsung mark, and is the biggest South Korean chaebol (business combination).
Samsung was established by Lee Byung–chul in 1938 as an exchanging organization. Throughout
the following three decades, the gathering differentiated into zones including sustenance preparing,
materials, protection, securities and retail. Samsung entered the gadgets business in the late 1960s
and the development and shipbuilding commercial enterprises in the mid–1970s; these zones would
drive its ensuing development. Taking after Lee 's passing in 1987, Samsung was isolated into four
business bunches – Samsung Group, Shinsegae Group, CJ Group and Hansol Group. Since 1990s,
Samsung has progressively globalized its exercises and hardware, especially cell telephones and
semiconductors, have turned into its most vital wellspring of wage.
In the late 1960s, Samsung Group went into the electronic business. It shaped a few electronic
related divisions, for example, Samsung Electronics Devices, Samsung Electro–Mechanics,
Samsung Corning and Samsung Semiconductor and Telecommunications, and made the office in
Suwon. Its first product was a highly contrasting black and white TV set.
In 1980s, Samsung Electronics started to put vigorously in innovative work, speculations that were
significant in pushing the

Financial Crisis in South Korea
International strategic management | South Korea, financial crisis | Melissa MactavieJodie
MackayTeboho LentoSifiso MashishiKarushka naidoo |
South Korea's current account balance started to deteriorate in 1990, due to the rising inflation,
appreciation of the Korean won and the recession of the world economy. In 1991 the current account
recorded a deficit of $8.7 billion, which was more than four times the level of the preceding year.
The Korean government encouraged capital inflows in order to finance the growing current account
deficit. To achieve this objective, capital account liberalisation was accelerated in 1991by altering
the Foreign Exchange Management Act.
The limited capital account liberalisation implemented resulted ... Show more content on
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The asset value declined further.
Many businesses failed to guarantee returns and profitability. Due to the high rates of economic
growth and the booming economy, private firms and corporations looked to finance speculative
investment projects. However, firms overstretched themselves and a combination of factors caused
depreciation in the exchange rate as they struggled to meet the payments.
The South Korean corporate governance structure was known for its technical and ethical
inefficiency well before the crisis. The existence of a small number of large business conglomerates,
chaebols, is widely considered to be one of the biggest problems in South Korean society. This
governance system was fertile ground for inefficiency and corruption. A study shows that only
27percent of the 570 non–financial firms created shareholder value during the five years before the
crises.
The South Korean conglomerates were more or less completely controlled by the government and
simply absorbed growing capital investment. Eventually, excess debt led to key failures and
takeovers. In the midst of the Asian market downturn, South Korea's credit rating was lowered on 28
November 1997 and downgraded again on 11 December. That contributed to an additional decline in
South Korean shares since stock markets were already bearish in November.
The inability of the Korean government to respond early to potential

Operational Management Issues Of Samsung Company
Samsung is electronic device company that have been found by Lee Byung Chul in the year of 1938
as a trading company. Before it became the electronic based company this company fall into the
areas of food processing, textiles, insurance, securities and retail. In the late of 1960s Samsung enter
electronic industry and middle of 1970s this company enter construction and shipbuilding industries.
However after the death of the founder Samsung have been classified into four major business group
which was Samsung Group, Shinsegae Group, CJ Group and Hansol Group. In the year of 1990s
Samsung has expanding and globalizing their business especially in electronic, particularly mobile
phones and semiconductors, have become its most important source of income. Samsung have been
operating over 50 ... Show more content on Helpwriting.net ...
Samsung has caught up in operational management issue in maintenance, technical support and
warranty which is very crucial for customer satisfaction the loyalty towards the company. Not on
this below show some issues in Samsung Company.
Hard to control the maintenance, technical support and warranty
Samsung have been outsourcing their business operations to specialist including warranty
administration together with repair on display products. Period of range for customer warranty is
between two to three years. When customer return their completed warranty card supply with each
product and details for future verification then only it is entitled to registered. However the real
problem comes when the current outsource provider failed to maintain the level of service. Samsung
need to think a better way of solving this problem so that they can have faster equipment repair
turnaround, better warranty entitlement management to get high level customer satisfaction.
Samsung Reached its 'tipping point' for Brand

The Power And Wealth Of The Chaebol
As I have stated earlier, the Chaebols have gained significant advantage to become the top class due
to government control of the financial system in the 1960s. The power and wealth of the chaebol
could be best explained by the music video "Gangnam Style", produced by Park Jaesang, who is
known as Psy in the video. As of June 2014, on the CNN Entertainment website stated that
"Gangnam Style" has "charted a new record: 2 billion YouTube views" (Conlon, 2014) and has
become the most watched video in YouTube history. The video is enjoyed enormously by the
American public, which is kind of puzzling, because many do not know the Korean language,
therefore, are unable to understand what the video is really talking about.
The video went viral and became a sensation because the main character Psy intentionally ridicules
himself by performing exaggerated and bizarre choreographies with beautiful women and expensive
garments in the video. Psy wanted to especially focus on the change of modern Korean culture
toward a culture catered to the narcissist and pretentious people in Korea, even the singer expressed
in a interview that "Human society is so hollow, and even while filming I felt pathetic. Each frame
by frame was hollow" (Fisher, 2012). The underline message of the video was about class and
wealth problem in present–day Korean society. Gangnam is a district in Korea that is known for its
heavily concentrated wealth and high standard of living. Offspring of the Chaebol

The Threats Of South Korean Interests Essay
What are the greatest threats to South Korea in the early 21st century, and how can they be
addressed? This paper aims to address such questions through identifying the three main threats to
South Korean interests, proposing solutions to protect those interests, and evaluating the effect of
those solutions on the other identified interests and threats. The state 's main interests lie within
bolstering its education system, reforming the economy, and establishing greater military
capabilities. Each interest has its own corresponding threat: widespread decline in personal health
from performing under the current educational system paired with associated social stress,
competing with economic powerhouses in the region, and increased regional aggression. For
contextual purposes, this paper will be organized into five main sections. The first section will
present relevant historical context for South Korea. The following section will cover the
interest/threat pairs, with subsections for each pair. The third section will more closely examine
national security as the interest of greatest importance and propose a solution to address the regional
threat to South Korea 's stability. The fourth section will evaluate the effects of the proposed solution
on the other interests to suggest protocol to prevent negative effects, followed by a section for final
conclusions.
Historical Background
South Korea, formally known as the Republic of Korea or ROK, has become a competitive global

Artificial Venture Capital ( Vc ) Market And...
Artificial Venture Capital (VC) Market and Overregulation as Limitation of the Policy
7. (U) In addition to the limitations of the government–led "top–down" approaches to building
startup ecosystem, unwise policy measures to cultivate a good venture capital (VC) investment
environment is another limitation of the Creative Economy policy that must be addressed. In a 2014
research paper published in the Korean Journal of Financial Studies, Professor Song Chi–seung of
Wonkwang University points out, while the government–led venture capital investments did play a
considerable role in cultivating the VC investment environment in the ROK despite the global
downturn of VC funds after the 2008 Financial Crisis, they now act as an impediment ... Show more
The strict regulations for foreign VCs such as a minimum required investment of USD 1 million and
the minimum number of employees to hire are the fixed costs to the foreign VCs' investment in
Korean startups and SMEs, he said. Mr. Lim contended that venture capital investment regulations
must be eased not only to attract foreign venture capitalists but also to provide startups and VCs a
more convenient platform for exits through initial public offerings (IPOs) or merge and acquisitions
(M&As). Furthermore, Mr. Lim observed that excessive regulations in other areas also prevent a
robust growth of startup ecosystems. Specifically, the government's positive–list approach to
regulations preventing new services such as peer–to–peer (P2P) lending and Uber must be changed
into a negative–list approach.
Controversial Roles of Chaebols in Building the ROK's Startup Ecosystem
9. (U) Above all, the strongest criticism against the Park administration's Creative Economy policy
is the CCEIs' dependence on chaebols for incubating startups and SMEs. The structure of CCEIs
under which startups and SMEs must rely on the conglomerates for purchase of technologies, equity
investment and marketing has drawn criticisms from both academia and political circles. The critics
argue that the CCEIs have made startups and SMEs vulnerable to the conglomerates' stealing of
their intellectual property (IP) and forced them

Market Liberalisation Success, Failures And Challenges
Evidence of Market Liberalisation Success, Failures and Challenges The BRIC emerging economies
are some of the most successful market liberalisers with India having particular prosperity in
liberalising its inward capital flows and currency convertibility from 1991 to foreign investors. Post
liberalisation India is regarded as one of the fastest growing economies with an annual growth rate
of 6.86% compared to 4.07% pre liberalisation (World Bank, 2014). Economists such as Saikia
(2012) regards this success down to India's rise in investment. In the decade after reforms FDI
inflows to India has grown by a staggering sixty fold increase to $6 billion (Kletzer, 2004) showing
how the India economy has become a major destination for FDI and is reaping the economic
benefits. One of the policies causing this attraction is the ongoing gradual privatisation of varied
sectors. This gradualism approach has promoted efficiency through competition away from
monopolized state owned enterprises but also into global competition. The increased profitability of
this process has created an environment for investors to thrive upon. Aside from India's great
success the issue of the continued dominant role of state–owned banks is an ongoing issue. India
follows our theoretical argument of being inefficient due to government guarantees and
consequently must fund recapitalisation in the light of declining market share and profitability.
However recent private bank involvement in crises around the

How Is Samsung Successful
Samsung Group Success
Bus 478
Wing Hung
#200138620
October 11, 2007
Samsung is one of the biggest conglomerates in the world with businesses established in
shipbuilding, contracting, and electronics. Global revenues in 2005 alone reach over 56.7 billion
(Secrets of Samsung 's innovation success, 2006) and brand tracking firm Interband ranked
Samsung as the 20th most valuable brand in the world (As Sony gets a tune–up, Samsung Zooms
Ahead, 2005). Samsung was not really recognized as an international powerhouse until the 1990s
where before it was largely considered only a household name in Korea. So what lead to the success
of Samsung in the 1990s? While there is no one deciding factor or event that lead to Samsung 's
success, ... Show more content on Helpwriting.net ...
The following few years, Samsung saw record profits for their 1MB DRAM and 4MB DRAM.
Samsung was then recognized as a major player in the semiconductor industry, but they realized
they had to continually get better and more efficient at what they do to try to get a competitive
advantage over their competitors who still had a big lead in market share. They realize that the
semiconductor environment is very dynamic and their competitors could come up with something
innovative and new that could instead give them a great advantage. In December of 1995, they
invited a group called the Competitive Semiconductor Manufacturing program to their plant to do a
survey on them. The Competitive Semiconductor Manufacturing program was based out of the
University of California and they specialized in benchmarking semiconductor plants around the
world and analyzing their management practices (Leachman, Kang, and Lin, 2002). Their findings
were astonishing to the Samsung Group, they had many strong points like have excellent yields and
productivity of equipment and labour, but the weak point was their high manufacturing time
(Leachman et al, 2002). The average number of days for production of the DRAM chip was 80 days,
well above the industry average. The market was quickly changing from a seller 's market to a
buyers market in 1996 due to a price

Analysis of the Korean Economy
Introduction
South Korea's history, strategic location, and political relations in the past and today, have created an
economy which is one of the strongest in Southeast Asia. "According to the World Bank, in the last
30 years, South Korea's economy is one of the most outstanding success stories in international
development." (Globaled, p.1). Dating from the Japanese occupation of South Korea , from 1910
thru 1946, then the division of the peninsula enforced by the United States of America and the
Union of Soviet Socialist Republics after Japan's unconditional surrender during WWII; the
Republic of Korea (ROK) had gone throughout drastic changes in its social, economic, and political
structure, but in the 1960s, under the regime ... Show more content on Helpwriting.net ...
The WWII allies had convene that Korea would become free and independent after the war. The
United States and The Soviet Union had agreed to divide Korea at the thirty–eight parallel. There
was a plan to drive Korea to a democratic nation as a wholesome, but disagreements on what type of
government should run the new country between USA and USSR blocked the negotiations and to
the day the Korean Peninsula still divided. The though of leaving Korea divided did not seat well in
the population minds. "The prospect of perpetuating the division of Korea catapulted some of the
southern political leaders to action, significantly altering the political configuration there. The
choice they faced was between immediate independence at the price of indefinite division, or
postponement of independence until the deadlock between the United States and the Soviet Union
was resolved."
A divided economy With the division of the Korean Peninsula at the thirty–eight parallel came
complete chaos to the region. Back when the Japanese occupied and dominated Korean society and
economy, most Koreans were forced to leave their land because the Japanese had expropriated it.
Employment was not where in the horizon for these farmers. Hundreds of thousand farmers and
worker left Korea looking for new opportunities in China, Japan and Manchuria. With the

South Korea
Country report
South Korea – Electronic
Yu Ming Lin
Country Profile
In February 1945 the end of World War II, Korean Peninsula divided into North and South Korea.
South Korea also name Republic of Korea, 99,392 sq. km, has a population of almost 50 million,
and has its capital at Seoul, the largest city in Korea. The second largest city is Busan, which is the
country's main port, has wonderful nature harbor beside the delta of Nakdong River.
The major industrial prior 1948 was agriculture in Korea peninsula, South Korea was in a sever
environment of economic. The war damage and the refugee from North Korea keep South Korea
inflation and unemployment.
Korea is full of mineral source, however, most minerals concentrated in the North ... Show more
(Data from http://ec.europa.eu/) Top Exports And Imports
With the success of Samsung and LG, South Korea has become the world's leader in electronic
industries. Therefore, the major export from South Korea is electrical machinery and equipment and
parts. And its export industries require foreign machinery and equipment for production, so
electronic elements become a main import for South Korea when South Korea has surpassed Japan
and the United States in selling memory chips, that's why importing chip machinery is so important
for South Korea's economy. They also are doing well in shipbuilding (Samsung Heavy Industries)
and automobile industries (Hyundai KIA) showing that South Korea became car. When they become
the number five car company in the world, Hyundai KIA is trying to expand more into China and
India's emerging markets. As a result, ships, boats, and vehicle are part of major export, so the iron
and steel play an important role in import. South Korea also have heavy depends on fossil fuels,
South Korea is the second largest importer of liquefied nature gas, and most from Malaysia,
Indonesia, Qatar, and Oman. (Data from WTA) Data from (http://www.eoearth.org)
(http://www.indexmundi.com) Foreign Direct Investments Inflows
During the 1997–1998 the Asia financial crisis, but it provided a great period for foreign company to
invest in Korea market. In the passed 10 years, the China's economic growth and keep investing in
other

Financial Liberalization : South Korea And Taiwan Essay
Two Paths to financial liberalization: South Korea and Taiwan, Elizabeth Thurbon Is it insufficient
financial liberalization and the legacies of economic model in which the state plays an active role in
the allocation of economic resources to strategically designated ends that caused the rise of financial
crises or is it excessive financial liberalization and increased exposure to volatile capital flows for
the primary cause of financial crises? What kind of liberalization could deliver of the benefits of
access to the opportunities of the global marketplace whilst maintaining the domestic foundations
for economic growth and stability? (main proposition of the author) Acceleration of liberalization
and deregulation and a fuller exposure to the market mechanism as the only variable solution to East
Asia's economic woes (IMF 1998; Frankel, 1998b; Wolf1998). On the other hand, calls for the re–
imposition of capital controls Mahathir–style to counter to perceived ill–effects of excessive
financial freedom (Rodrik 1998; Krugman 1999; Wade and Veneroso 1998a). There is more than
one path to financial liberalization and the path chosen bearing critically upon outcomes of
liberalization process. Throughout the post–second world war era, Korea and Taiwan shared similar
developmental strategies following the 'developmental state' model of industrial development. In the
1990's both Korea and Taiwan had embarked the process of financial liberalization and maintained
the momentum up

Unified Korea
The allied victory of World War II marked the end of the Empire of Japan's 35–year colonial rule of
the Korean peninsula. The Soviet Union and the United States both agreed to occupy the country
along the 38th parallel. The arrangement granting temporary rights to each nation over the Korean
peninsula occurred under the assumption that giving trusteeship would ultimately lead to the
establishment of an independent Korea. The emergence of the Cold War prevented the formation of
a unified Korea. Failure to accept United Nations resolutions by the Soviet Union caused the
formation of a communist government in the North, while in the South the United States introduced
a democratic government. Two extremely distinctive countries were created ... Show more content
on Helpwriting.net ...
The resulting strengthening of manipulation and corruption that took place has evolved into South
Korea's chief technique of upholding business success and effectiveness in the global community.
The chaebols have become a core stake in the South Korean economy, but they have dissuaded
economic growth. Not many small businesses and companies are able to survive against the
business conglomerates. There are a select few businesses that can outweigh the financial and
political advantages of the chaebol. Consequently, the economic inequalities have developed
substantially. Not much of the economy is left after the chaebol have used their power and authority
to consume more than their share. This disparity is most visible in times of financial catastrophe. In
1998, following the South Korean IMF crisis, the Gross Domestic Product of South Korea dropped
by 7 percent. While the top 5 percent of South Koreans only saw their income decrease by 2 percent,
the bottom 30 percent of Koreans saw their income drop by almost a

South Kore Asian Currency Crisis
Labeled as one of the most devastating economic events in the region, the Asian currency crisis of
1997, that began as a localized currency crisis in Thailand that summer and rolled east, led to Korea
suffering nearly a 7% decline in GDP (real GDP), along with a 6% increase in unemployment levels
in 1998. (Jangryoul Kim, 2012) Despite the fact the crises engulfed the entire Asian region, this
paper analyses its impact on Korea. Despite Korea being one of the world's poorest countries in the
1950s with a per capita income of under $100 (Sharma, 2003), following separation from the North,
South Korea (referred to as Korea throughout this paper) enjoyed lasting economic expansion from
the 60s all the way up to 1997.
As the world's eleventh largest country in 1996, people expected Korea to surpass Japan in the
coming millennium and Korea was invited to join the OECD (Organization for Economic
Cooperation and Development). The facts that by then Korea was the world's top manufacturer of
computer RAM chips, the world's second–largest ship–builder, the third largest maker of semi–
conductors, and the fourth largest electronics producer meant that by the time the currency crisis hit
the surrounding region following a devaluation of Thai baht in July 1997, investors (defined in this
paper as the general public, plus speculators) believed that the crisis wouldn't hit Korea. These
investors were either too blinded by the Korea's phenomenal economic performance (a GDP
equivalent to

A Report On Samsung Engineering And Construction
The Burz Khalifa in Dubai, the Petronas towers in Malaysia, probably two of the most iconic
skyscrapers in the world. These were built by none other than Samsung Engineering and
construction (Wikipedia, 2016). Shocking as it may seem, Samsung engineering and construction is
just one of the 80businesses and affiliates operating under the unified philosophy of Samsung. Some
times when we look beneath the surface, fact is often stranger than fiction.
In the year 1938,the western financial system was recovering from one of the greatestcrashes in
history, on the other hand a second world war was about to break out, a man by the name of Byung
Chul Lee founded a small trading company named Samsung in Daegu, Korea (Samsung.com, 2016).
This company initially dealt with local groceries and had about 40 employees. At first the company
produce noodles, then expanded into sugar and then wool. And by the late 1950's the company had
moved to insurance security and retail. In the late 1960's Samsung moved to electronics, and the
first ever product produced by Samsung electronics was a 12 inch black and white television in 1970
(Referenceforbusiness.com, 2016). By 1983 the first Samsung computer had arrived
(News.samsung.com, 2016). This computer was way ahead than Microsoft computers. In the 90's
Samsung began to rise as an international force in many industries. The company went from
strength to strength, becoming market leaders by learning the trade of many industries. In the end
they

Doing Business in South Korea
DOING BUSINESS IN SOUTH KOREA BUSINESS ISSUE IN SOUTH KOREA South Korea
continues a process of economic liberalisation and deregulation, but the government has yet to adopt
a fully laissez–faire policy where the economy and trade are concerned. The UK TI team in South
Korea works actively to lift or loosen the many regulatory barriers that still exist to ease UK–based
company enter to the market(UK Trade and Investment, 2009) Getting Paid – Terms of Payment The
payment terms you can normally expect in South Korea are "100 percent Confirmed Irrevocable
Letter of Credit" . Letter of credit (L/C) is that adds the endorsement of a seller 's bank (the
accepting–bank) to that of the buyer 's bank (the issuing bank). It provides the ... Show more content
on Helpwriting.net ...
There were family–owned enterprises in Korea in the period before 1961 but the particular state–
corporate alliance came into being with the regime of Park Chung Hee (1961–1979). Park modeled
this arrangement on the zaibatsu system which developed in Japan during the Meiji Era. There were
significant differences between the zaibatsu and the chaebol, the most significant of which was the
source of capital. The zaibatsu were organized around a bank for their source of capital. The chaebol
in contrast were prohibited from owning a bank. The Park regime nationalized the banks of South
Korea and could channel scarce capital to industries and firms it saw as necessary for achieving
national objectives. The government–favored chaebol had special privileges and grew large. This
gave the impression of economic success for the chaebol that was not always valid. In some cases
chaebol grew not because they were profitable but merely because they could borrow vast funds.
When the international economy took a downturn these debt–ridden businesses were in trouble. In
1999 one quarter of the manufacturers in South Korea did not earn enough to meet the payments
required for their debt. In recent years there has been the growth of mid–sized corporations which
are outside of the chaebol arrangement. For example, Appeal Telecom was started

Samsung Electronic Corporation: Governance of Chaebols
CASE:
SAMSUNG ELECTRONIC CORPORATION: GOVERNANCE OF CHAEBOLS
Copyright: Prof. Florencio Lopez–de–Silanes
Professor Florencio Lopez–de–Silanes and Rakhi Kumar, Yale MBA02 prepared this case as the
basis for class discussion rather than to illustrate the effective or ineffective governance of an
organization.
Prof. Florencio Lopez–de–Silanes INTRODUCTION
Case: Samsung Electronics
Prior to the Asian currency crises, South Korea was an investment destination for several
institutional investors and emerging market funds. Throughout the early nineties the country
experienced an economic boom. South Korean conglomerates, locally know as chaebols, had
diversified into various industries from cars to microchips. Samsung ... Show more content on
Helpwriting.net ...
However, the globalization strategy was not well planned. Chaebols held onto the management
strategy that they had been practicing over the last thirty years: growth in size ignoring profitability;
financial structure with high debt–to equity ratio and cross debt guarantee among affiliated
companies.4 By 1997 there were over fifty chaebols in South Korea, each with a myriad of affiliated
companies all linked to one another through a complex network of cross–holdings. Ownership and
affiliation details of twenty chaebols are provided in Exhibit 1.
Family–Based Business Groups: Degeneration of Quasi–Internal Organizations and Internal
Markets in Korea by Sang–Woo Nam, December 2001. 3 Ibid. 4 Corporate Governance and
Economic Development: The Korean Experience by Ha Sung Jang.
2
2
Prof. Florencio Lopez–de–Silanes THE SAMSUNG GROUP: It is all in the family.

Case: Samsung Electronics
Founded in 1938 by Mr. Byung Chul Lee, Samsung Group's original line of business was exporting
dried fish, vegetables and fruits produced around Korea to Manchuria and Beijing in China. Within
a few years of incorporation, the company expanded its operations to include manufacturing and
sales when it set up a flourmill and bought confectionary machines. In

Confucianism And Its Impact On South Korea
Confucianism was founded over two thousand years ago in China, and countries around, including
Taiwan, Japan, South Korea, Hong Kong, Singapore, and many more others are influenced by the
ideology. Among all, South Korea is one that still follows Confucianism, and the society is still
strongly influenced by this philosophy. According to the Chair of Sungkyunkwan, one of the top
institute in South Korea, "over eighty percent of Koreans follow Confucianism" (Choi). The number
is even higher than its origin country, China. Even though the country is very modernized with
western philosophy, religion, and advanced technology, the people of South Korea are still living a
lifestyle that consists the idea of Confucianism. Confucian values impact South Korea on many
different aspects, including, family, social relations, education and economics. The philosopher,
Confucius, created Rujia, Confucianism in the fifth century. The philosophy has been used by
Chinese emperors as the standard social values in their countries. Over the years, other scholars
have revised Confucianism and change it into what it is like today, but the basic principles remain
the same. Some of Confucianism's core values are Filial Piety, humaneness, ritual, loyalty, and the
importance of education (Riegel). Filial Piety means respect for one's parent, and younger
generation giving back to the older generation after reaching the certain age. Humaneness is
basically caring for other people. Confucius said, "The

Oligopolistic Rivalry Theory: LG Electronics, Inc.)
Oligopolistic Reaction Theory (Oligopolistic Rivalry Theory)
This theory "gives further reason for MNEs to follow others" (Fitzgerald, 2015, p.3). In order to
maintain market shares and gain potential sales revenue, firms follow their competitors to overseas
market. Korean firms follow "bold internationalization strategies, which were not entirely
sustainable give their competences or ownership advantage. In market–seeking or export–preserving
cases, a combination of protectionist threats and oligopolistic rivalry has pushed Korean firms to
venture onto risky markets." (Sachwald, 2013, p. 368). Oligopolistic reaction theory suggests that
Korean firms expand overseas to maintain balance with rivals, and to enhance image. (Cherry, 2001,
p.21). ... Show more content on Helpwriting.net ...
As a result, it has significantly reduced its production costs. According to figures by Moon cited by
Jung and Dong (2009), about 98% of LG's employees in China are local works, and more than 80%
of resources and components are locally sourced (p.129). Regarding technology learning, LH has
invested abroad to learn about or to access foreign technology. For example, LG Electronic
purchased a 5% share of Zenith in 1991 (p.129). "The main purpose of the investment was to
acquire knowledge of 'flat screen TV' technology and to acquire a brand name. LG Electronic
subsequently increased its stake in the company to 57.7% in 1995 and eventually took over the
company in 1999 (p.130). According to Alvis (2012), Korean electronics manufacturers are
expanding to Central Europe to take advantage of the region's well–educated, inexpensive work
force, and its proximity to European markets (p.2). According to Dunning's OLI paradigm,

Japan And Korea Economic Impact On Global Economy
INTRODUCTION
Japan and Korea are two of the strongest economies of Northeast Asia and have been very important
players in global economy since the start of globalization era. These two economies have major
impact on global economy. Both the economies have experienced various external and internal
challenges. Therefore, it is important that we look at how these economies have been performing
historically, more specifically since 1980s, so that we could get an idea about who might be a more
significant player in the global economy in the future.
History shows that both the economies have experienced high growth rates and crises and both the
economies dealt with implementing various policies. Both the countries responded to the crises in ...
Show more content on Helpwriting.net ...
Japan government was under a huge pressure to recover the economy under a lot of pressure to
improve the economy and was unwilling to force banks to restructure their loans portfolio policy
otherwise can result in the failure of major keiretsus.
Many critics consider that Japan's macroeconomic policies should have been more aggressive and
steady. These policies should have been more flexible in order to recover from great recession.
Conventional measure shows that the fiscal and monetary policies of japan were expansionary.
These policies lowered the interest rates very rapidly. Caballero, Hoshi and Kashyap (2003) stressed
on the zombie firm to explain why lower interest rates and big budgets deficits have not emphasized
the zombie firm explanation and explained why the low interest rates and big budget deficits have
not transformed the economy. The low interest rates had helped to keep the banks alive and boosted
the aggregate demand to some extent due to deficit spending. But none of these policies
concentrated on closing the insolvent banks and getting rid of their zombie borrowers who were
affecting the economy. The government policies also upset the rehabilitation and restructuring. For
example, the government permitted the poorest banks to carry on to attract financing and supported
the insolvent borrowers by constantly delaying the advance of the deposit insurance to limit its
exposure (Hoshi and Kashyap 2004). The regulators also choose not to strictly enforce

Financial Analysis Of Samsung Group
In this report, we will be talking about the South Korean global company Samsung Group. We are in
charge of researching and analyzing this department and after this report, we will give a
recommendation if it Samsung is financially reliable. Without further ado, let us start with the
analysis.
Company history and facts
Samsung Group is a South Korean company and it is, as of this day, one of the strongest and biggest
companies globally. It was created in 1983 in Daegu, South Korea and it is the biggest chaebol
company in South Korea, which is a large business conglomerate, typically a family–owned one.
Samsung currently has its headquarters in Suwon, South Korea and it is called Samsung Digital
City.
Samsung Group has three main departments: Electronics, Heavy Industries, and Financial Services.
However, they have expanded so much that they have different affiliates companies such as
Samsung Biologics, Samsung Medical Center, and S–1 Corporation. Some of these are totally
unrelated with one another and they have, as of this day, Samsung employs around 319,000
employees and owns around 78 affiliate companies and counting.
Major Products and Services
As mentioned before, Samsung Group has many companies in different divisions such as biological,
electronics, tourism, and even fashion. However, some of the major products and services we will
mention this time will be from Samsung Electronics. Some of the most known and best products are
Galaxy S and Galaxy Notes phones,

Financial Crisis And Its Effects On Economic Growth
The late half of 1997 and the early parts of 1998 presented the world with one of the world's most
famous financial crises. This financial crisis proved to be detrimental mainly to the south–eastern
Asian area, including South Korea, Thailand, Malaysia, Singapore, Hong Kong and Indonesia. The
aforementioned south–eastern states recorded astounding economic growth in the preceding decade.
The downfall of the economy caused a domino effect in the local markets and currency markets of
each country. The nations' leaders, as a result, had to request assistance from the IMF. Politics were
important in creating the financial boom, but they were also guilty of the subsequent consequences.
Similar to a number of financial crises in the past, the Asian financial crisis came to be as a result of
unexpected economic growth. The countries were all under the influence of a number of different
economic criteria, such as cheap yet fairly well educated labour, lowered barriers to trade, and
economies based heavily on exports. Even Malaysia enjoyed bountiful foreign direct investment. All
of these elements came together to make Asia dominant force in exports. This was proven by the
fact that none of the countries affected by the crisis experienced of export growth lower than 12%
between 1990 and 1996. Not only did these countries experience rapid growth in exports, the nature
of the exports where product types are concerned also changed. The products evolved from simple
products like

Case Study Of Samsung Life Insurances
SAMSUNG LIFE INSURANCES
It was founded in the year 1957, the company saw a remarkable growth soon it entered the market
and was in leading position after just 18 months of operations. Samsung Life Insurances believed in
transparency and always made innovation in their product and made itself approachable to customer
always, these factors lead to the growth of this division at a great pace than estimated. It soon started
to expand itself overseas through joint ventures in Thailand in 1997 and China in 2005.The net
income in the year 2015 was US$ (.85) billion with total asset worth US$ 195 billion. It is the
largest insurance company is South Korea and was listed in Fortune Global company.
SAMSUNG ENGINEERING
It was founded in the year 1970, ... Show more content on Helpwriting.net ...
There was Asian financial crises which didn't go well for Samsung cars and with no option to be left
it was put for sale. Renault after negotiation bought 70% stake and the name of the company was
modified to Renault Samsung motors, the company started to invest in research and development. It
came up with an electric car which was a huge hit in the South Korean market dominated by
Hyundai and Kia.
SAMSUNG ELECTRONICS
Samsung is considered as one of the best smart phone and mobile phone manufacturer against other
manufacturers. It is also the world's largest manufacturer of televisions as well as LCD panels. This
is because of its manufacturing and its marketing expertise. Samsung currently operates in 80
countries and sells over more than 100 products.
In 2015, revenue generated by this company was US$177.365 billion (2015) but faced a decrease of
2.7% in the revenue generated against the year 2014 which was US$182.273 billion. Profit gained
by the company was US$16.848 billion in the year 2015 which was 18.5% lesser than the profit
earned by the company in the year 2014 which was US$20.679 billion. Samsung Electronics co.,
Ltd. a part of the Samsung group is the world's second largest company by

Economic Development in South Korea
At the end of World War II, Korea was a poor former agricultural colony of Japan. But the rapid
growth of Korea's industrial economy has been remarkable. The economy of South Korea is now the
third–largest in Asia and the 13th largest in the world by GDP as of 2007. To trace back the
economic development of South Korea, the former president Park Chung–Hee played a pivotal role,
and was credited for shifting its focus to export–oriented favoring a few large conglomerates. Unlike
his predecessors, Park showed a strong commitment to economic development, believing good
economic performance as a primary means for enhancing his political legitimacy. Under the
President Park Chung–Hee's era, the government played a dominating role in a ... Show more
As a result of the fixed real exchange rate, it prevented Korean exported goods becoming more
expensive relative to competing goods in the world market. The devaluations of Korean won
ultimately stimulated exports further.
II. Information Services: Quasi–government organizations As a major financial control strategy, the
President Park established the Economic Planning Board (EPB) in July 1961. The decision–making
in the government became decentralized through granting extensive autonomy to the quasi–
government organizations including the Economic Planning Board. The EPB committee was
consisted of several policymaking functions of different ministries. The EPB took over the entire
budgetary function from the Ministry of Finance, as well as the collection and evaluation of national
statistics from the Ministry of International Affairs. The duties included deciding which industries
and firms to promote, supervising both the development and the implementation of planning of each
ministry's activities. The EPB was in charge of formulating and monitoring implementations and
budget of Five Year economic development plans. Detailed information was reported to the
President at the monthly economic briefings. Consequently the EPB became more influential in
economic planning decisions, and their growth greatly strengthened the power of Ministry of
Commerce and Industry. As one of the export promotion strategy, the government created the

Samsung Electronic Corporation: Governance of Chaebols
CASE: SAMSUNG ELECTRONIC CORPORATION: GOVERNANCE OF CHAEBOLS
Copyright: Prof. Florencio Lopez–de–Silanes Professor Florencio Lopez–de–Silanes and Rakhi
Kumar, Yale MBA02 prepared this case as the basis for class discussion rather than to illustrate the
effective or ineffective governance of an organization. Prof. Florencio Lopez–de–Silanes
INTRODUCTION Case: Samsung Electronics Prior to the Asian currency crises, South Korea was
an investment destination for several institutional investors and emerging market funds. Throughout
the early nineties the country experienced an economic boom. South Korean conglomerates, locally
know as chaebols, had diversified into various industries from cars to microchips. Samsung
Electronics ... Show more content on Helpwriting.net ...
It 3 Prof. Florencio Lopez–de–Silanes Case: Samsung Electronics managed four strategic
businesses in the fields of Home, Mobile, Office Network and Core Components. However, in 1997,
excess production capacity in the microchip industry lead to a downward spiral in chip prices.
Profits at Samsung Electronics plunged to new lows. The Asian Currency crises compounded the
problems facing the company. By late 1997, the company's debt totaled 13 trillion won
(approximately USD 9 billion) and more than 70 percent of it was in foreign currency loans5. The
financial run on the economy by foreign institutional investors saw the country's currency tumble
10.6 percent. Domestic interest rates on threeyear corporate bonds hit 30.1 percent. The US rating
agencies, in addition to downgrading the sovereign debt to "junk bond" status, also lowered the
credit worthiness rating for several of the largest South Korean companies including Samsung
Electronics6. The company's share prices reflected the macro and micro economic turmoil faced by
the company. Exhibit 5 provides daily share prices of the Samsung Electronics stock on the Korean
stock exchange for a 15–month period starting September 1996. However, a liner trend line
indicates that, by and large, the share price was declining marginally but was above the 50,000 won
mark. After a period of negative results, minority shareholders started questioning governance
practices of the company. They

A Report On Korean Industrial Production
Introduction
VoC approach does not provide sufficient prototypes.
South Korea is SME
Turkey is also SME because it has similar characteristics. State policies are similar.
However, outcomes of these state policies are quite different (give figures) In the mid–1950 's,
Turkey was a much richer country than Korea. With about the same population, Turkish GNP was
about three times that of Korea, Turkish exports were fifteen times those of Korea, and the Turkish
savings rate was much higher than Korean. By 1980, the situation was dramatically reversed, as
Turkish income was 40 percent below Korea 's, Turkish exports were less than one–fourth those of
Korea and the Turkish savings rate was about two–thirds of Korea 's. (Krueger)
There are either economic advantages or economic disadvantages to a military alliance with the
United States, both countries had them. And, insofar as proximity to a rapidly growing region of the
world affects growth, Turkey and Korea had Europe and Japan, respectively (Krueger).
Korean industrial production rose forty–five–fold between 1960 and 1984, whereas Turkish
industrial production was 6.6 times higher in the same period. (Yilmaz)
During the period 1963–1990, total factor productivity (TFP) increased at an average rate of 2.4
percent in Korea. In this period, TFP in Turkey increased at an average rate of almost 0.9 percent.
(Yilmaz)
In the absence of big private businesses in Turkey, the state assigned a leading and dominant role

Should Emerging Market Economies Embrace Market...
Student Number: 12038800
Should emerging market economies embrace market liberalisation reforms?
By Jin Ee Ng
When financial restrictions bring about nothing but deterioration the economy, the country will opt
for a liberalisation to lessen government regulation and restriction in the financial market. Financial
market liberalisation eliminates restrictions on financial institution and market domestically. This
liberalisation strategy intends to free the flow of capital in and out of a country and encourage
economic development. The purpose of removing restrictions on the market is to allow capital
inflows from developed countries that would finance the emerging market to higher investment and
growth, for insurance against shocks and volatile consumption, and spur development of domestic
financial market. By lifting these financial restrictions, domestic financial market opens up to the
international market allowing market forces to drive the market operation more effectively. In
addition, it should achieve an efficient capital allocation and better sharing of individual risk.
Emerging market economies generally refers to economies in an earlier stage of market
development that have recently opened up to world. Emerging market nations liberalise their
financial system with high hope of economic growth and reduced poverty. Their capability to
manage a market liberalisation in order to enjoy its anticipated benefits is questionable. Being far
from a developed country, emerging

Malaysia's Alternative Strategy Essay examples
[MALAYSIA'S ALTERNATIVE STRATEGY]
Introduction The 1997 Asian Financial Crisis drew attention to just how fragile our global economic
system can become either when overexposed to foreign market intervention, or when
underperformance remains unchecked. Prior to June 1997, The Republic of Korea encountered
issues as 10 of its 30 top performing chaebol (Conglomerate) collapsed underneath debt which far
exceeded their respective equities. Korean steel production giant Hanbo faced additional stress after
amassing a $4.39 billion debt for one new steel mill. Kia Motors fell due to accruing almost $2.1
billion in loans that was awarded on the basis of "need," as opposed to independent judgment of
credit and cash flow determined by the ... Show more content on Helpwriting.net ...
On 2 July 1997 Thailand had $2,850 billion remaining in international reserves and could no longer
protect the baht. That day Marakanond decided to float the baht.
Asian Financial Crisis – Neighboring Countries
Neighbor South Korea dealt with economic uncertainty leading up to the 1997 currency crisis which
plagued Thailand. South Korean chaebols or conglomerates were recording record debt levels
between 1996 and 1997. Banking policies enacted by President, or Dictator, Park during the late 80's
constructed an economic environment whereby loans to chaebols were issued on the basis of
company need, as opposed to individual judgment on part of the loan issuing authority. In more
succinct terms, nationalized banks issues loans to chaebols without verifying whether the company
could pay the loan bank, or whether the interest rates were reasonable, or even whether the
company's venture had enough collateral to back it up. In essence, chaebols were tasked with
repaying loans that they might not have the appropriate level of capital for. Therefore, on the eve of
the Asian Financial Crisis, chaebols such as Hanbo Steel, and others, were closing their doors due to
debt burdens incurred without a proper foundation for capital generation.
Neighbors to the South, Indonesia and others, suffered from currency, stock, and equity collapses,
rather than tangible asset collapse. The currencies of Indonesia, Singapore, Hong Kong, and others,
took massive hits from

Case Study : Samsung And South Korea
Lee–Byung–Chull founded Samsung in south Korea, this company began by selling food.
Nevertheless, after the second world war in 1945 the company decided to branch out into different
parts in the business from telecommunication, construction and medical care and more. When
Samsung decided to venture into different areas that's when they established themselves as a multi–
international company Joseph Nordqvist (2014). In this essay there will be an in–depth explanation
on how Samsung has contributed to the economy, and how Samsung and south Korea has been
working together to try and improve technology in south Korea. Also an explanation on Samsung
tax evasion scandal and legal battle between Apple and Samsung and a debate about the
environment impact Samsung has on South Korea.
Political
There was a huge scandal in South Korea that involved Samsung this scandal is world known and
cause a domino effect on different business who was essential doing the same things. Samsung
Electronics being a part of the Samsung group is they do something wrong it will make the hole
Samsung group organisation look bad to the public. In south Korea two journalist and a politician
called Roh Hoe–Chan exposed Samsung. What they did is leaked information of Samsung paying
prosecutors to bribe them, also they leaked information on how Samsung created funds that
potentially aided presidential candidates with illegitimate funds. Why Samsung was doing this is
because politician in South Korea has a lot

South Kore A Case Of Successful Late Development Under...
South Korea was a case of successful late development under state authoritarianism. During the
period of early industrialisation, the state was perceived as a highly corrupt due to the strong
relationship between the state and Chaebol (big business). The era of rapid industrialisation and the
strong relationship between the state and the Chaebol contributed to the uncertainty of the state–
business relationship between social circles (Thirkell–White: 2002). As the Chaebol and the state
were heavily interdependent; the Chaebol were significant providers of welfare, in return for
financing the political functions of the state. Eventually, the Chaebol began to question the returns it
got from supporting state institutions, and the relationship began to disintegrate (Thirkell–White:
2002). Suspicion of corruption led to the adoption of more 'transparent' and 'liberal' growth policies,
known as the segyehwa, or globalisation policy (Thirkell–White: 2002). Given access to higher
productivity and growth, the Chaebol gained more power independent from the state. This led to
extensive market liberalisation, focused on short term gains financed by the state which produced
disastrous consequence, evident in the Asian Financial Crisis of 1997 (Thirkell–White: 2002). The
point is that during the time of Korea's rapid industrialisation, the capitalist class was largely a
product of the state (Thirkell–White: 2002). The state had leverage over the economy, rather than
the economy having

How South Korea Rose From War To Prosper Economic Power

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How South Korea Rose From War To Prosper Economic Power