ABSTRACT
This chapter reviews the institutional and economic environment that has shaped corporate growth in Korea and offer some related insights for future policy direction concerning the deconcentration of corporate ownership. The relationship between corporate ownership and management has become a major issue in economics and management science as modern capitalism, especially in the United States, has increasingly become dominated by "modern corporations" characterized by a wide dispersion of ownership and "the divorce of ownership from control." Western governments have exercised their public authority adequately to deal with many problems, including the concentration of economic power, and this has contributed to the preservation of the fundamental vitality and value system of capitalism. A fundamental source of the economic power of the large business groups is their positions in individual commodity markets. The liberalization of access to capital since 1967 further accelerated industrial restructuring and business groupings.
