Can South Korea’s untouchable chaebols change?

There are 82 chaebols in South Korea as of 2023. These are conglomerates that are usually run by one single family, with total assets that exceed 5 trillion Korean won ($3.69 billion).
And the revenue of the 10 biggest, including Samsung, Hyundai and LG, accounted for almost 60% of South Korea’s GDP in 2021, or more than a trillion dollars.
These sprawling business dynasties have helped transform South Korea’s economy from one of the poorest in the 1960s to one of the largest exporters in the world.
Tae-Ho Bark, president of the Lee & Ko Global Commerce Institute, who also served as South Korea’s trade minister from 2011 to 2013, told CNBC in an interview that the policymaking of Park Chung-Hee, South Korea’s first president, is credited as the origin of the Korean conglomerate.
″[Chaebols] did a good job for the country,” he said. “They also created many jobs for the people.”
Despite this remarkable growth, there are calls for change and innovation to propel South Korea forward, due to anti-chaebol sentiment fueled by corruption and financial scandals that involved the heads of conglomerates like Samsung and LG.
CNBC reached out to multiple chaebols for comment, but none replied.
Sang-in Park, an economics professor at Seoul National University, said that South Korea’s rapid economic growth contributed to the unchecked power of the Korean chaebols.
“Due to the financial liberalization, Korean big chaebols can finance by themselves, using insurance companies and security companies,” he said. “They became very independent from the influence of the policy itself or the bureaucrats’ control.”
Watch the video to find out more about the history and future of the big business groups in South Korea.
#CNBC #SouthKorea #Samsung #Hyundai #LG
Correction: This video has been updated to accurately reflect that the leaders of some South Korean companies were pardoned for their crimes.
-----
Subscribe: cnb.cx/2wuoARM
CNBC International TV: cnb.cx/2NGytpz
LinkedIn: / cnbc-international
TikTok: / cnbci
Facebook: / cnbcinternational
Instagram: / cnbcinternational
Threads: www.threads.net/@cnbcinternat...
X: / cnbci
Telegram: t.me/cnbci
WhatsApp: bit.ly/CNBCiWhatsApp

[@CNBCi]

Do you think South Korea's chaebols need to change? Why or why not?

[@Nanix1991]

they should not change, then they can destroy south korean economy

[@arithio1075]

why dont u ask US first

[@dabda8510]

Wall Street bankers quietly left the chat room.

[@SS-up5sc]

First of all thank you for the great video I’ve been looking for an English language video on the chaebols for a while, and thankfully I finally found it. I have done a bit of research on the chaebols, how they started and how they evolved into becoming what they are today, and the single thing that propelled them to becoming so big, is exports. So I think the question shouldn’t really be should they be reformed. You should allow them to evolve and expand as they see fit, because if they succeed they can grow the Korean economy even more exponentially, if they can’t they’ll depreciate and something else will come to take their place. Samsung particularly is like 20% of the entire Korean GDP, and they make 70% of their money from OUTSIDE Korea, so you should allow them to do what they see fits, if it works you expand the economy, if it doesn’t they’ll slowly decline and someone else takes their place, like in the history of business since the beginning of capitalism

[@havencat9337]

if the US wants...then it will happen:)) lol, look at Japan

[@rasdan1192]

"Can South Korea Chaebols change" has the same energy as "Can American Big Companies stopped messing with the government and the people?"

[@user-13rg99ff]

Accurate

[@andiuptown1711]

*How many times has Zuckerberg had to apologize televised in court? That’s not happening in Korea ever 😂*

[@Ter9393]

Because you’re ignorant as to what a Chaebol really is and the extent to which they own and control everything. Yes, there are parallels in every country. But it’s only remotely similar.

[@PMC_Schicksal]

​@@andiuptown1711Zuckerberg is far from the position of those elites.

[@pandaland1]

I can see where you make the connection, but the Chaebols are what American companies would actually feel like in terms of political power.

[@alexshi9320]

Korea is a small country. It doesn’t have the market size such as the US or China to have diversification and the level of competition. So what you get is specialized corporations that monopolize a whole market segment. It’s similar to when the US was smaller and chaebols are comparable to the Carnegie’s, Vanderbilts and Rockefellers of the day

[@exelrode]

US was already pretty big whether in size or population when rockefellers and others built their fortune, they cornered the market because there were no anti-competition laws, it was a totally different era. Whereas in South korea its the government who helped built these chaebols in order to boost exports and build up the country after the destruction of Korean war and it did work, its just that chaebols have grown too influential now and unlike in the US where its Medium enterprises that make up the bulk of the economy, large korean companies play dominating role in the economy and as a result have unhealthy influence over the government

[@Praisethesunson]

Corporate fiefdoms.

[@Wandrative]

Sounds like Chinese logic thats based on nothing. Korea is a moderately sized country with a large wealthy population.

[@yeetboi268]

@@Wandrative Korea is small. I literally can travel all around the country using car within a day.

[@user-dp4vh6yh3z]

내수시장 운운하기엔 국내 4대 기업은 수출 대기업인 걸..?

[@multatuli1]

Every countries got their own version of chaebol, it would never change unless there's an extreme change they couldn't adapt.

[@kyunw96]

Communism xD

[@tbraghavendran]

What about US?

[@ghibrandrizqy6908]

​@@tbraghavendran finance family in wall street like morgan etc (because usa is a capitalism country)

[@multatuli1]

@@tbraghavendran Rothschild, gates, warren, bezos, etc

[@Ter9393]

@@ghibrandrizqy6908 Have you been to S. Korea?

[@HKim0072]

The irony is the chaebols offer the best pay packages because they aren't just domestic brands and get revenue from outside of Korea.

[@melkor2024]

why is that ironic? it's just logical. if ur going to smth, say it instead of just uttering gibberish.

[@HKim0072]

@@melkor2024 Irony: a state of affairs or an event that seems deliberately contrary to what one expects. Are there any positive PR pieces on chaebols? Most of the pieces are about their dominance and outsized and dangerous influence on the Korean economy.

[@melkor2024]

​@@HKim0072 what planet are u from lol. no positives? just look at a middle school textbook from the park chung-hee era and I still don't see any "irony"

[@codelessunlimited7701]

You're joking right?

[@luckybrave2035]

I can't believe there are Koreans who are whitewashing the chaebols, because of monopoly of the chaebol, there could've been 100 people employed with 10K salary, and now only 10 people are employed with 20K. Does that help the whole society? Can average Koreans afford to eat watermelon and beef everyday?

[@passionista01able]

Actually, most of founders of start-ups(like KAKAO, NAVER) have worked for Chaebol groups, then established their own company with the experiences, networking in Chaebol groups. As a Korean, I am sure that Korea would not have become this wealthy without the Chaebols.

[@HKim0072]

The US did a true breakup at some point. The US did fine. There should be some rules on horizontal business interests within the same company.

[@SS-up5sc]

@@HKim0072the US did fine because there was no one to compete with back then, realistically who else did they have to worry about on the scale of the US back then? Britain? Germany? The US was the biggest economy in the world by the 1900s, everyone wanted to be in the US and they still do. Korea has a very different set of circumstances, like every country in the world, they decided to become rich this way, not every country takes that path. Korea is a very small population and market, compared to the other big countries, it’s like a drop in the bucket for countries like the US and China, even they can’t create other companies that can compete globally like the chaebols do they won’t do well economically, that’s the true problem of reforming the chaebols

[@HKim0072]

@@SS-up5sc Is there any reason why Samsung should be selling life insurance? And, be in the asset management business? That's where it gets really wonky. Ma Bell did pure spin-offs. Would be really easy to force something like that.

[@peter.p.]

If you are really a Korean, you would damn well know why our stock market is so shitty. Main reason of that is our stock market is a playground for Chaebols, not a free market at all

[@zollen123]

Breaking up these chaebols into smaller companies and these small firms may not have enough resources to compete with international competitors. South Korean government may have a tough time finding the delicate balance between anti-monopoly and competitiveness globally.

[@user-yy9hk9od9u]

It's unlikely to change. The model has worked for S Korea.

[@havencat9337]

if the US wants...then it will happen:)) lol

[@millevenon5853]

​@@havencat9337America is the only reason South Korea exists otherwise it would just be another province under Kim Jung un

[@monipenny408]

Very few people will know that these chaebols, are owned by families or descendants of Japanese collaborators in Korea during ww2. SK and Japan will never have true sovereignty for as long as they are being occupied by U$A. Japan itself is still under the control of its ww2 war criminals again these powers were installed by U$ in order to maintain hegemonic powers in SEA masquerading as some "self appointed sheriff ", if Epstein is alive, U$ would be like Epstein being the sheriff and SEA are the teenagers, U$ is trying to look after.@@havencat9337

[@andiuptown1711]

@@havencat9337Ah yes, blame America

[@overlordbrandon]

It works until it's not

[@beatmoney4533]

Chaebols, despite their vast scale, have managed to thrive primarily because their ownership is concentrated within a small number of family members. This concentration of ownership fosters bold decision-making, especially when it comes to exploring new business ventures, thanks to the strong ties and mutual trust among family members. In contrast, corporations led by salaried CEOs, who lack ownership stakes, often exhibit caution and are less inclined to pursue aggressive business strategies due to the fear of failure.

[@tbraghavendran]

Because if those CEOs failed to deliver their promises, they will be asked to resign. How would anyone worked so hard in their entire life to reach to the top risk his/her position? They would try new ideas only when there is acceptance from major shareholders.

[@rohnitnair]

CEOs do have equity compensation

[@roninbushito]

These oligopolies collude with each other to control supply and price

[@Fanaro]

If you "help the economy" then suddenly you now have the right to infinity forever apparently.

[@ant2715]

Not only helps the economy but helps the military industrial complex that protects South Korea from not so nice neighbors. Samsung, Hyundai, Daewoo all had played a part in developing the tanks, warships, amd rifles to defend Korea

[@fur10us1]

"I reached out to multiple chaebols but none have replied to me"😂

[@sphong0610]

I know, what the f was that. I asked multiple billionaires that are probably not busy running their businesses just so I could make video on youtube. Brilliant.

[@sitm88]

She is a CNBC reporter not some random influencer 😠

[@NKy-vs3mx]

That's how reporters doing their job. Not making up their own assumptions delulu

[@Grandesecole]

Korean chaebols bring in money to Korea from exports. They just don't suck up all the value in their domestic markets but actually adds more to the economy through RnD investments. Huge difference from conglomerates in SE Asia where they just do telecommunications, hotels, and retail that is actually "easy" compared to manufacturing sector in a global scale.

[@govb123]

True for my country, Thailand.

[@eralddavid6892]

This is so true especially in Indonesia

[@overcome496]

Exactly right! CNBC never tells about this. USA is falling only because of this kind of "Moral Rightness".💀

[@hlcapa]

@@govb123as a korean national i don’t understand why Asean governments let those Chinese descendants riches suck up the whole money in their homelands and manipulates locals.

[@ictl87]

And true for my country, Malaysia. You almost hv the whole SEA agree with you :) My spouse is Korean and I travel often and I cannot help but admire how far KR has come within the last 50 years. Mind you MY and KR had the same starting point around 1970s/80s. My beloved Malaysia cannot be further apart now unfortunately 😢

[@bradolfpittler2875]

No. They are untouch-chaebol.

[@user-13rg99ff]

Gosh

[@SummerCurl]

😂

[@spider6660]

The power of chaebols in SK economy is massive. So a competition from China is disastrous for them as all private companies accounts only 40% of Chinese economy.

[@user-iz6fw5zb5f]

wht are you talking about? China went into shixhole and SK chabols which escaped in advance flourish like crazy now like Hyundai

[@jiminswriter4209]

Chinese competition is not something chaebols need to worry about. The image of Chinese-made products in Korea is not great and there have been problems with certain companies like Temu, etc. in terms of fraudulent listings, etc.

[@olganikonova7103]

@@jiminswriter4209 but chaebols do not make most of their profits in Korea. The competition they will face from China - and the tide is rising already- is in the rest of the world…

[@jiminswriter4209]

@@olganikonova7103 China has cheaper labor, but a much poorer reputation. It will take a long time for it to catch up.

[@JoseReyes-yn3xj]

The only way for the economy to develop further in the best way possible is with diversification, fierce and fair competition, and a robust social net to give everyone a fair shot at opportunity.

[@andrewofaiur]

Koreans cars, phones, and appliances dominate global markets. This is all coming from a country without substantial natural resources. Korean economic system has clearly produced superior outcomes. People love to focus on the wealth gap but don't account for the average increase of wealth distribution because being equal with neighbors doesn't bring the same satisfaction as bringing down a neighbor who has much more than oneself.

[@SS-up5sc]

Like the late Charlie Munger said, the world isn’t run by greed but by envy, that’s why even though the living standard is up by 100 times since the 1950s, it was still safer for me to walk in Los Angeles back then than now. Or something along those lines haha, true legend Charlie Munger RIP

[@user-xe2ql2ft2c]

Honestly korea has one of the lowest wealth gap.

[@havencat9337]

if the US wants...

[@grasz]

​@@havencat9337they take?

[@krac3x438]

Ah yes not being able to afford anything is greed, not desperation, where exactly did you get your degree?

[@mansour9790]

In saudi Arabia there is only one Chaebol, the saudi family

[@youtubeuser1946]

Lmfao 😂

[@SebAnders]

And the bin Laden family, they dominate the construction industry there

[@junielesparas8018]

😂😂😂😂

[@netayconnection6236]

😂😂😂

[@Velkm90]

The s. Koreans need to do some reform of the chaebol system but overall Koreans and the chaebols transformed South Korea . South Korea also successfully democratized and has functioning democracy even though they have these powerful families . South Korea should be an inspiration for countries undergoing brutal occupation and dictatorships.

[@Bash70]

Yes, change from one form of dictatorship for corporate dictatorship. Delusional

[@user-yy4kc6qg4o]

Paradoxically, the reason Korea was able to become a developed country was because of the innovation of the founders of large corporations. What if Samsung's founder had not entered the DRAM business, which was dominated by the United States and Japan? What if Hyundai founder and Chairman Chung Ju-young had not received an order to build a ship from the UK? What if POSCO's founder had not built a steel mill in Pohang, where he made his living through fishing? Perhaps Korea had an economic structure similar to Thailand, even though it received huge subsidies from the United States. But I'm not sure if this is still important in 2024.

[@antonios111]

These are just yet another example, of corporations being given whatever they want, because they serve the best interests for a capitalist society and market. We all know, what horrible methods and inhumane practices are used, to make most of our devices/electronics etc, some of us may know, that these Chaebol families are using their families power, to do as they like, because they know, essentially they’re untouchable. At what point, do our morals and values in life, became a factor?

[@ant2715]

South Korea has no choice but to be competitive in the global economy because it is sandwiched between dangerous countries like North Korea, China, and Russia who would not hesitate to use military force to impose their will on the country. So as a lesser evil, South Korea must grow a big capitalistic economy and use the money to fund a large military to protect its freedom

[@ant2715]

Korea has no other choice because it must protect itself from powerful neighbors like China Russia, NK. Otherwise it will end up like Ukraine, or repeat history from 1910. Ironically, to protect its values and morals, South Korea must adopt questionable lesser evil, so it doesnt get conquered by North Korea.

[@gabbar51ngh]

These businesses offer better pay than the ones restricted to just domestic market. It's very easy to criticize, hard to replicate the same benefits corporations provide.

[@HKim0072]

Just imagine if the government would have implemented a true "English" curriculum for all students. Seoul / Busan could have stolen business away from HK instead of companies moving just to Singapore.

[@melkor2024]

Singapore didn't become the destination for finance companies because they "speak better english" but because they are geographically better located and because korean legislation did not accommodate for such moves. the korean government is more interested in developing domestic manufacturing and not becoming a financial hub.

[@HKim0072]

@@melkor2024 lol, British American Tabacco, VF and FedEx are all well known financial companies. HAHAHAHAHAHAH. Do you even read the business news or just flame bad information on the internet? _BAT significantly downsized its Hong Kong office where most of its Asia regional operations used to be located, and moved 44 Hong Kong-based staff to Singapore, including its regional director Michael Dijanosic._ _VF Corporation went first. In January 2021, the parent of fashion brands The North Face, Timberland, and Vans said it was moving its regional operations out of Hong Kong._ _FedEx plans to move Asia HQ, executives to Singapore from Hong Kong_

[@HKim0072]

And, there are added benefits. My cousin's husband (native Korean) has worked in Malaysia / Vietnam for a Korean company. You think he's learning the local language? No, they speak English. It's easier to find qualified local people in SE Asia that speak English than Korean.

[@melkor2024]

@@HKim0072 so how do those articles point to Singapore's superior language fluency being the cause of those companies' decision to Singapore over Korea? it's more about regulation and legislation than language proficiency. all of ur "evidence" on the language disparity between Singapore and Korea being the cause is presumptuous, and your example about ur cousin is irrelevant: who cares about the proliferation of English over Korean in a certain country, we are talking about English proficiency in two different countries.

[@sosososososo4148]

Singapore is located at Malaka strait which is a gateway to China and Asia. There is a reason Brits developed them most among their many colonies. Singapore is like Suez Canal of Asia which is essential during Europe Asia trades

[@bigj324]

They should have never allowed Hyundai merged to with Kia. It became a monopoly in non-luxury and commercial vehicles.

[@melkor2024]

that would be ANTI-capitalist - for the government to subdue an M&A deal.. what are u talking about lol...

[@huckleberryfinn6578]

@@melkor2024 Then the US, UK and many European countries are also anti-capitalistic. Their regulators stopped a lot of acquisitions of big companies. The last big one was Adobe and Figma.

[@melkor2024]

@@huckleberryfinn6578 The Adobe-Figma and Hyundai-Kia deals are very different in terms of what concerns the government. They intervene to stop monopolies which is attributable to the Adobe-Figma deal whereas with the Hyundai-Kia deal, it was to help the financial situation Kia was in. This merger did not suppress diversity of car manufacturing, nor was it expected because of their respective brandings. Hyundai-Kia is more in line with Ford-Lincoln or Swatch-Omega rather than a big company like adobe aqcuiring a smaller lesser known company. Compare apples to apples and not oranges.

[@monipenny408]

it's all an illusion dear. SK is a monopoly.

[@bigj324]

@@melkor2024 I don't think you ever been to Korea. Almost every vehicle on the street is either Hyundai or Kia including commercial vehicles. There's no diversity of car manufacturers.

[@hamidmalik2572]

When did you have time to research in Indonesia about our chaebol too.

[@paranoidhumanoid]

Unlikely. The term chaebol is synonymous with its counterpart "zaibatsu" (derived from the same Chinese characters). The leadership's mentality and their influence in the economic and political spheres in both countries are nearly identical.

[@dirtiestharry6551]

China also had 財閥 families sprawling up until communists disbanded them.

[@user-hc5cg3jc3i]

​@@dirtiestharry6551啥鬼东西中国财阀是那些？你不会说共产党是财阀吧，共产党有接近1亿人口😂

[@user-hc5cg3jc3i]

​@@dirtiestharry6551还有美国但是有资本寡头财阀财团，比如军工复合体，华尔街，石油，医药医疗金融法律等各个方面以及政治家族等。😂

[@ytn00b3]

Same in US, Amazon,Microsoft,Apple,Aphabet(Google) etc.. they dominate

[@duerf5826]

Note remotely comparable. US companies may dominate in their respective field and that’s it. Korean megacorps, on the other hand, dominate in ALL fields. Biggest company in the US by revenue is Walmart and its revenue accounts for 2.7% of the US gdp. Meanwhile, Samsung alone accounts for 20% of S. Korea gdp. Samsung not only sells electronics but they also build ships, sell life insurance, operates theme parks and resorts, runs banks, etc. That’s fucking insane.

[@user-d2fiv91no1]

​​@@duerf5826Samsung accounts for only 3 percent of Korea's total gdp.

[@kwtr1609]

Comparing American companies to South Korean chaebols is just stupid. Chaebols are significantly more powerful than those American companies.

[@user-d2fiv91no1]

@@kwtr1609 You are wrong

[@ytn00b3]

@@kwtr1609Microsoft, Apple, Google, Nestle, Proto & Gamble, J&J etc.. they're monopolizing. S.Korean chaebol is nothing compared to them unless Samsung and Hyundai as they're now global companies

[@chinobandito7625]

Honestly, without chaebols, SK would still be an impoverished country with no natural resources and very little farmable land

[@bubuneowoo6161]

But if Samsung, LG, Hyundai children marry among themselves, they will create a permanent upper-class!

[@EugeneCHo-pi7tl]

You talks as if chaebols were donated to SK by the almighty Murica

[@chinobandito7625]

@@EugeneCHo-pi7tl Lmao I never said that. Chaebols were created by Park Chung Hee according to my parents

[@yzl5450]

Getting rid of Chaebols is more difficult than getting rid of gay Korean pop.

[@karlysh8953]

재벌이라는 말은 사실 일본 제국 시절 비슷한 기업집단을 가리키는 말에서 왔습니다 그 말은 자이 바츠라고 합니다

[@TV-rf8hq]

Why should it change? And why only on Korea?

[@shogunz9159]

I love how the reporter delivered the story. Such enthusiastic journalism

[@Joan-qe7gm]

I love her. I love her post-it note graphics!

[@HazakunaJr]

Only people who don't know anything about S. Korea say that chaebols are untouchable. What is truly untouchable is the labor union. The union at the Hyundai factory is stronger than at the Korean Hyundai Motor conglomerate.

[@fa1rumi]

Follow the news about doctors holding the patients hostage due to their ego being hurt with the increase of more medical students. The sense of entitlement in South korea is abundantly clear and shameful for the world to see. Add that to your coverage for a more honest view of south korean society.

[@melkor2024]

Doctors represent 0.26% of the population yet you generalize the entire county to have that "sense of entitlement" - what a gross over-generalization..

[@pranaav2027]

@@melkor2024There is also huge Xenophobia to outsiders.

[@fsea1019]

​@@pranaav2027 every countries are same 😂

[@yosefjo1040]

Ppl... Jaebol not chaebol. Chaebol(체벌) means physical punishment...

[@JohnLee-db9zt]

The pronunciation is in between the two.

[@cnachopchopnewsagency]

Or Cebok

[@declinedtosignonstagnant5402]

In fact, not jaebols but Jaebeols. jaebols은 재볼이잖아. 내 뺨이라구..

[@yosefjo1040]

@@JohnLee-db9zt Yes it is

[@yosefjo1040]

@@declinedtosignonstagnant5402 jaebeol은 재비올로 읽을 겁니다

[@vincentcollins1017]

in America we call them philanthropist

[@adakkristinn]

Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.

[@user-dq2vf1co4e]

To whom it may concern nick please let me in understand where this goes and when

[@evanh9301]

Can US’s untouchable chaebols change? NO

[@HKim0072]

lol, you never heard of Standard Oil? or Ma Bell?

[@dabda8510]

@@HKim0072 That was decades ago. Now even more monopolistic powers. And what about wall street?

[@HKim0072]

@@dabda8510 lol, what about Wall Street? Not sure you are familiar with Korea. You need to browse the Samsung wiki page and look at all their subsidiaries. It's nuts.

[@PoorMuttski]

The US has very strong antitrust laws. We will regulate large companies, and shatter them if they get too big. Just the threat of government regulation caused Microsoft to slow down in the 90’s, giving Google a chance to form and rise.

[@yupark7257]

Korea big companies have so much way more superpower than other in Korea against goverment and people and society

[@classicofVic]

actually, Korean conglomerates are doing fierce competition between them in every sectors in Korean market. Monopoly is very rare.

[@user-yy4kc6qg4o]

That's true. Samsung Semiconductor is still in a high position, but I think it is being pushed out little by little by SK Hynix with the recent emergence of HBM. Even though they are companies of the same nationality, the battle for market share is very fierce.

[@donnagjoka2587]

Not only S Korea have a bigger company insider which rules the economy and politics society.. for the better country.. I am agree... They helping in deep senses understand.. development. Trade and public sector infrastructure..

[@mysticwatersoo]

There are different vetsions of chaebol in every country. Either the big business, local militia or the government play this role. I think atleast in case of Korea, they have transformed the nation into an economic powerhouse...

[@pinkasteriodea3480]

The amount of power these chaebols have, just like the mafia

[@monipenny408]

that is the genius of capitalism, it is an illusion of "free market", nothing is free, all are rigged, just like those in U$A.

[@mauvilegaming5118]

well made video

[@thanGacao]

To put into perspective how strong these Chaebols are. Samsung alone accounts for about 20% of Korea's GDP. Take out Samsung and the country will be done for.

[@thedduck]

"Total combined assets of $3.7 Billion"?? What? That's gotta be a typo! According to Forbes as of Feb 2024, *Mong-Koo Chung* , chairman of Hyundai Motor -- South Korea's largest automaker, him alone has an estimated net worth of $4.8 Billion. And further more, *Jay Y. Lee* who is the executive chairman of Samsung Electronics and leader of the country's biggest conglomerate, is estimated to have a net worth of $11.1 Billion. So where did that $3.7 B figures come from? 😂

[@KC-io2rg]

Given their hold on political and economic power, nothing is going to change unless the people really rise up. But most people are just to docile to do that. Instead they just have fewer and fewer children so in the end only these well off people are left. It is not just Korea. Just like the two party system in the US it will always be politics as ususal.

[@jiminswriter4209]

There’s a difference between objectivity and cynicism. It is unfortunate that too many journalists believe that they are the same thing. People will not open up to you if you come at them with a sense of cynicism. So it is not surprising that this reporter had difficulty in finding chaebols to comment. There have been other stories where chaebols have commented. It is in response to a professional attitude, which this story lacks.

[@515jesbinjenet2]

When you literally built the country's economy and the wealth it enjoys and still to this day remain the backbone of the country's economy , I feel like that's enough for you to feel different than the one's who do nothing but complain

[@monipenny408]

LOL that is what feudal class believe.

[@valorzinski7423]

​@@monipenny408nothing wrong with feudalism or neo feudalism as long as they're done effectively by a group of competent people

[@TrojanVirus]

It wasn't them alone that built the country's economy, they got government handouts from tax payer money to jump-start their businesses. Rich people were happy to get free tax-payer money but don't want to give back.

[@Qoonutz]

When you are in power, you will do all it takes to keep the power. No one will share. This is hard truths.

[@GG-kv9uy]

11:40 seriously, are you kidding?

[@avillageofbigheads]

At this point, these companies have become a source of pride ( and Revenue ) for Korea. Unless many more newer E-commerce companies step up , most Koreans would begrudgingly put with up these power hungry, financially corrupt Chaebols, in exchange for the money they bring in and the status symbol on the global stage.

[@HKim0072]

It's both sides. The scale and size of the companies allow them to compete with global brands. That's great for the overall Korean economy. It's value added business that would never happen. But, the scale and size of the companies make them dominate the local market. Really hard for smaller companies to flourish. Korea should be way more entrepreneurial, but the system prevents it.

[@kimckawa]

Last time I checked Google owns 90% search business not only in US but Europe too. Should we breakup Google?

[@avillageofbigheads]

@@kimckawa Who said anything about breaking up these companies ? The brazen corruption is what irks most people. They always get away with any charges because of the power they hold.

[@laputa1149]

외국인들 그냥 kdrama 몇편보고 한국에 대해 다 아는척하고 이상한 악마화 시키는거 귀여움😂😂

[@fmjjjjn7510]

Do you think these people just made a video like this without doing their research?

[@098rwe]

예전에 영국애들이 방송에서 대치동 재개발 금지구역 아파트 보고 서울의 명암 ㅇㅈㄹ 할 때 존나 어이없었음😂😂 그게 씹 얼마짜리 집인데 무슨 판자촌 말하듯 ㅋㅋㅋㅋㅋㅋㅋ 겉이야 당연히 그지 같지

[@fsea1019]

​@@fmjjjjn7510 니가 보는 자료들이 다 청렴하고 근거있는건 아니란다 ^^ 왜이렇게 예민하니ㅋㅋ

[@optimusghkd]

The untouchable Chaebols? Korea's success model is based off the USA.

[@redmustangredmustang]

The chaebols success in reviving the South Korean economy is also a double edge sword. They brought the economy from one of the poorest to South Korea being the top 10 economy in the world. The problem is you literally are worked into the ground. You have no time for family and any time you are shamed into going on vacations. The workers are miserable, but you have to suck it up because if not then someone is going to take your job or find someone else to do it for you.

[@Sjalabais]

Sad to hear the professor is not optimistic for change. We can see change pushing hard on several fronts though; younger generations growing up with a wealth mindset are less dependent on flex culture and pleasing their parents. The current president is pissing off an entire generation of students. Change is coming, it's just a matter of how much force and at what time.

[@williamkwon7955]

Chaebols are not likely to change from within. Rather, they will be forced to undergo transformation for their survival from competitive pressure from new market players. Think about how Emart is facing competition from Coupang

[@kacangajaib1563]

Chaebols who get emailed be like; why is this fly want to ask about us?👁️👄👁️

[@pastelskyblue]

she's so well spoken!

[@_Ahmed_15]

The Chaebols don't need change imo. They're what allow Korean brand to dominate the global market relative to their smaller population size. The US and Chinese domestic markets for example are huge and can compete internally but if South Korea tried that their companies will have lower profits which means lower R&D to compete with other big global companies. Pooling all your resources in a handful of conglomeretes is better than having thousand of barely surviving mid-size businesses with low margins etc.

[@phoenix5054]

You can be profitable being a specialized manufacturer. I believe this is their model in Germany. It doesn't have to be vertically integrated, and certainly doesn't have to be corrupt / criminal.

[@spider6660]

But the problem is that there's an increase in competition from Chinese companies in every sector in South Korean industries. Especially shipbuilding, semiconductors, smartphones and vehicles. Remember, the Chinese economy is not completely dependent on the private companies.

[@MithunOnTheNet]

20 years from now: "How will S. Korea crack down on digital chaebols Kakao, Coupang, and Kakao?"

[@sweeseen9577]

wealth inequalities is a very serious issue there... or everywhere ?

[@seoul_louis9584]

Sweden has cheabol too lol

[@willister]

Ikea?

[@grandstrategy8987]

@@willister Sweden is often being underestimated but she is not just about IKEA or Saab or Volvo. They are more than that. You can say Sweden is a little giant considering their high tech and massive capitals. Although its population is just around 10 million, The country has enormous potential which can support to drive the entire EU economy forward. No wonder they have chabols with them, but I fancy their version is more reasonable when it comes to managing.

[@baobab3199]

Wallenberg family the power of europe

[@yohan7083]

2:44 President Park Chunghee would be the right way to call him CNBC! Do your research. He's not just some random guy on the street! He's a very respected Korean President.

[@user-qu6dg6er9s]

곧 한겨레 단독기사 나오겠네

[@user-sx4zf1sq2z]

82 seems like a lot of chaebols, but in reality, many of them are derived from chaelbols. After the owner's death,the company is separated by the owner's descendants and siblings. Therefore, Samsung is now separated to Samsung, CJ, Sinsegae, Hansol, Joongang, and Bnf, which are ranked 1st, 10th, 9th, 67th, 51th, 72th respectively. This goes similar to Hyundai, LG, and the others, too. Additionally, as third generation owners started to manage, they are reducing the size and profesionalizing business areas. For example, Hanhwa(Korean chemical) aquried four defense and chemical subsidaries from Samsung.

[@user-dq2vf1co4e]

I'm not sure if this goes to Korea or where it's just what I know

[@user-yy4kc6qg4o]

Paradoxically, the reason Korea was able to become a developed country was because of the innovation of the founders of large corporations. What if Samsung's founder had not entered the DRAM business, which was dominated by the United States and Japan? What if Hyundai founder and Chairman Chung Ju-young had not received an order to build a ship from the UK? What if POSCO's founder had not built a steel mill in Pohang, where he made his living through fishing? Perhaps Korea had an economic structure similar to Thailand, even though it received huge subsidies from the United States. But I'm not sure if this is still important in 2024.

[@3mr1n]

As someone from an underdeveloped country, I don't understand why South Koreans have an issue with chaebols. Why be against something that made your country so great? I don't think the SK economy will survive any drastic change to chaebols.

[@user-ii6jh6ty3t]

Well this is just like exactly how USA doing but in smaller scale. Look at how big company in USA do and what lobbying do to their law And it need to be changed of course. If not then what is the point of democracy? The point of democracy is the power back to the people that means everyone is the same under the law. If not then it's the same as before democracy

[@idkw824]

재벌을 영어로 chaebol? 우와 신기하네. 재벌은 우리나라에만 있는 개념인가보네

[@grandstrategy8987]

재벌은 원래 일본에서 만든 개념인데요. 전후 미군정 시절에 맥아더가 일본의 재벌을 해체시켰습니다. 그래서 공식적으로 일본에는 재벌이 없다고 합니다. 그럼에도 불구하고 사실은 우리나라의 재벌에 버금가는 영향력을 갖는 초특급 대기업들이 많죠. 그래서 사실 일본에는 여전히 재벌이 존재한다고 봐야하죠. 다만 문화적 특성상, 일본은 없는 걸 있는 걸로 만들고 있는 걸 없다고 우기기 때문에 공식적으로 일본인들은 재벌의 존재를 인정하지 않죠. 그러나 일본 최고의 기업인 미츠비시, 스미토모, 그리고 미즈호은행[제일권업은행이 그 전신]등은 역사적으로 "원조" 재벌의 후계자들이며 전전 일본사회에서 재벌이 갖고 있던 영향력에 버금가는 영향력을 현재도 여전히 일본 정/관계에 미치고 있죠. 대기업을 운영하는 방식도 놀라울 정도로 비슷합니다. 사실 한국사회와 일본사회는 까보면 정도로 많이 비슷하죠.

[@ghibrandrizqy6908]

I just want to say, now many chaebol in SK have a backer or controlled by big family from USA

[@Nosoytumiel]

It's like Korean Economy Yakuza

[@SalmanovGadzhimurad-pj9qq]

В Шанхае расположены крупная военно-морская база Восточного флота, судоремонтные предприятия Восточного флота, Второй военно-медицинский университет, Институт ядерных исследований, Шанхайский инженерный институт по разработке подводных аппаратов, Шанхайский центр управления космическими полётами, 57-й НИИ НОАК (Институт электронных и телекоммуникационных технологий), штаб Подразделения 61398[15][16][17]. Кого пугать могут

[@71282]

UMM WHATS THE DIFFERENCE BETWEEN THIS AND WHATS GOING ON IN THE US?

[@jasonjun966]

What is the reason or rationale behind this question? Does the presence of several bigger companies in Korea do any harm to you? Or, does the one who raised this question have a connection with China or Japan? I respond to the question this way, because, simply put, the businesses by the several big companies have worked as the very lifeline for the Korean people and the economy of South Korea. After the Korean War(1950-53), South Korea was considered as one of the poorest countries in the world, with $ 50-60/year income. The Japanese ransacked the Korean peninsula during their 36 years ruthless rules (about which they still refuse to admit that they did anything wrong), and right after the Japanese collapse thanks to the atomic bombs dropping, there was the surprise invasion by the North Korea plus China, which devastated South Korea even further. The late president of South Korea Chung-Hee Park begged and finally got help from West Germany (since then USA president Kennedy refused to help, insulting President Park in front of others calling him a dictator). Finally, Park began the famous "5-year economic development plan" and adopted an "export-driven policy" in the process. Those big companies in Korea (Samsung, Hyundai, LG, etc.) were the companies that actively involved in this economic development program. As those companies became stronger and bigger, there were a lot of "chain-effects" in the entire Korean economy. Put make a long story short, this is how those bigger companies came to the international scenes, and this is how the Korean economy became developed to accomplish "the miracle of Han River," to become the only country in the modern world history to change from an aid-receiving country to a country that helps many other countries. The people of South Korea worked together very, very hard to become a more developed country, and even now.

[@rithyheng6634]

If you chaebols is untouchable, you have not heard about my country (CaM***). In here if you are rich enough, you drunk and drive, and then you hit some family. Father, son and daughter were all dead only mother survived. Because they are very rich, they pay the court around 20000$, and then released them in a few days. The court verdict is > "the car was not function properly."

[@MY-ez9ug]

Safe to say the SoKor gov is pay its respect to those chaebols hence they remain untouchables. With the shift of the economy to digitization and more efforts and investments has been made by soko gov, seems like they are they are creating new breed of chaebols whose came from new money. History repeats itself.

[@napperforlife2020]

why not just state "conglomerates"?

[@phoenix5054]

Why? Are you allergic to Korean words, especially in the context of discussing Korea?

[@ragabara1031]

It invokes Eastern exoticism, which catches the attention of the audience, and the MSM then can frame the context to fit their own narratives. Chaebol as a label has pejorative connotations, which don't provide a full picture of what the entities they describe do or even are. Given how little Westerners understand about Korea, conglomerates would be a more informative word.

[@snflwrchan8019]

Because not all conglomerates are run by one family.

[@fsea1019]

왜냐하면 그들은 이런 문제를 한국만의 고유한것처럼 보이게 하고싶기때문이다

[@KamaAnthem]

the reporter make it boring

[@thelastdefenderofcamelot5623]

Because it's the most boring country on the planet. What is there to do?

[@acoisiglis]

Will legacy media like CNBC ever change to provide content that doesn't defame and exploit outrage?

[@alphaTrader.oo1]

It's like Koch, Walmart or J&J family of Korea different is US old money is much more lower profile

[@millevenon5853]

Much lower. Even giants like Microsoft and Google make up an extremely tiny percentage of the overall economy

[@Ara-yt4jv]

South Korea has a wealth inequality GNI of ~0.6 which is among the best in the world. The U.S. on the other hand is on the other extreme end of at least 0.85 meaning high inequality in company with the likes of Netherlands, Russia, and Sweden. Why are you wasting time talking about places doing well in comparison?

[@ActuallyDibs]

Man can a chaebol adopt me?

[@seasong7655]

These companies have put Korea on the global map, but they've become too monopolistic and the population has to suffer because of it. The USA has the same problem with large companies such as google and apple

[@eungkyungkong5004]

다른 나라 여행가서나 살아보신분들은 잘 아실듯 그나마 한국이 재벌로 살아 남았다는걸.. 앞으로 더 부국과 빈국 부자와 그외 노동자 계급으로 차이가 더 심해질거라.. 경쟁력을 갖추려면 재벌을 더 지원해 줘야 할거에요. AI만 보아도 미국 기업들이 다 먹어치울텐데 한가하게 있을때가 아닌데... 지금 보이지 않는 전쟁속에 한국인이 살아가려면 더 집중해야하는데 말이죠. 귀족노조니 만들다보면 아예 기업이 사라질수도 있지요. 그나마 중국 막대한 인구와 데이타가 있고 다른나라들도 속을 보면 공산주의 보다 더한 독점 기업들이 살고 있지요. 동남아처럼 저렴 인건비와 관광으로 살거아니면 초격차를 따라잡기 위해 지금 변혁기에 힘을 실어줘야한다고 생각합니다. 어차피 인구도 줄거고 기본소득과 더불어 경재력 유지하려면 세금많이 내는 대기업이 필요합니다.

[@erikmorales6912]

Japan helped Korea become developed ❤️🇯🇵

[@Samurai-ke5ie]

At least they are not like families owning entire countries in Arab countries

[@orkeddiary2758]

Thats the definition of monarchy

[@yohan7083]

4:56 He was assassinated by North Korean spy. Before him, his wife was assassinated on a different day in attempt at his life by North Korean spy. Pretty sad

[@RV_to_kingdomcome]

how can you do this in such a poor country? technology transfer, technology imports

[@actuallyme3552]

they build sk , so consider them as a king like British monarch

[@geneparticlesmp4573]

If it's in Russia 🇷🇺 western world will call them oligarch

[@kazuhirala]

South Korea are going through what the US did in the 1920s to 1940

[@jakhongirnosirov3881]

Bruh, how silly people can be sometimes. These chaebols are everywhere around the world, but the terms for them are different. They are a product of capitalism as a monopoly that is a last stage and a main force of capitalism. If you want to have equality in society then choose communism. The USSR at one time represented the most correct form of equality in society. But the most part of the world didn't take their practice in serious, and they thought it as a threatening power against capitalism. I do not support communism, but they had this type of experience through their sacrifices, and let's say I respect that. Without their experience there would be some wondering about what is the utter form of equality in society looks like, and that in some time could lead to bad circumstances as in Russia (1917). What I mean is, there is no utopia in our world. You always have choices, as our world is about choice. Rise or fall

[@RollerBladingSuxs]

If Korea was still under Japanese rule, this would have never happened.

[@STEM671]

HOW MY DREAMS BECOMEING COSMIC REALITY? 5:43

[@rkpragyajitsingh3074]

Lucky kids that were born into these family They must have saved their country in their past lives

[@AirLancer]

5 trillion won? What? Samsung's market cap alone is like $364 billion (485 trillion won)

[@Anonymous589x]

Koreans created two dystopias on one peninsula

[@AllyAlliue]

Why fix what's not broken 🤔

[@Teacher2Polis2XtraRice]

They are jealous.

[@jeffphilistin6431]

Cause its broken

[@ItakenoBS]

더 많은 재벌이 나오길 기대한다. 재벌을 바꿀 필요없다

[@Dtmn3547]

하여간 드라마만 존나게 쳐보고 아는 척 하는 외국인들 보면 존나 답답함 그냥 이래서 드라마 다 없애버려야된다니까 말도 안되는 망상하고있노😂😂

[@overcome496]

내 추정컨대 요즘 뉴욕타임즈, cnbc 이런 외신들이랑 좌파 세력이랑 모종의 커뮤가 있음. 애초에 말만 외신이지, 한국 관련 기사는 다 한국인이 쓰는 판국인데 어차피.

[@eriksonyw]

I just found out that Japan's Softbank is also founded by a Korean. Coincidence or no coincidence....

[@declinedtosignonstagnant5402]

He is just Japanese. And Biden is American not Irish.

[@Milkovichultear97]

a zainichi (the korean imports living in japan from the ww or imperial times), Softbank has nothing to do with s or n koreA