Asian business conglomerates have clearly been successful agents of
growth, mobilizing capital, borrowing technology from abroad and
spearheading Asia's exports. However, these firms have long had a
number of organisational and financial weaknesses, including heavy
reliance on debt, that make them vulnerable to shocks. Nowhere was
this more true than in Korea, where the large corporate groups
known as chaebol have dominated the economic landscape. This
collection of essays by leading political scientists and economists
provides a comprehensive look at the chaebol problem in the wake of
the Asian financial crisis. The authors consider the historical
evolution of the chaebol and their contribution to the onset of
economic turmoil in 1997. The book analyses the government's
short-run response to corporate and financial distress, and
outlines an agenda for longer-term reform of the financial system,
corporate governance and the politics of business-government
relations.
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