ABSTRACT

This chapter delineates and evaluates this on-going transformation in Korea. It outlines overall trends and characteristics of how the holding company system as a new corporate governance structure has become spread among chaebols for 20 years from 2000 to 2019. In Korea, the holding company system, as a group of companies headed by a holding company, began to be allowed and encouraged by the government in February 1999. Samsung Group had a loosened interlocking ownership structure that could be possibly called a ‘mimic or quasi’ holding company system led by a key company, which was allegedly regarded as the de facto holding company. An abundance of managerial officers with the directorship can be identified with regard to public companies in the top four chaebols, which, among member companies in June 2019, were generally larger and more influential and accounted for some one-fifth each.