The Dominance of Chaebols in South Korea

Chaebols are key players in South Korea's economy, controlling major sectors and contributing significantly to the nation's GDP. These family-run conglomerates, like Samsung and Hyundai, dominate economic activity with estimates suggesting that the top five chaebols account for nearly 50% of the country's gross domestic product as of 2022. Despite their economic influence, there are widespread criticisms regarding their governance practices, particularly how decisions often favor founding families over minority shareholders. This scrutiny has intensified recently, especially as individual investors have become more active in the market, challenging the traditional power dynamics of these conglomerates.