Why Korea Can't Grow Big Corporations

Editor's NoteDoes South Korea have a favorable environment for small and medium-sized enterprises (SMEs) to grow into large corporations? Among the 48 business groups subject to the Fair Trade Commission's regulations on mutual shareholding restrictions (with total assets exceeding 10 trillion won and 2,169 affiliated companies), many were founded by the founding families of major domestic groups currently leading the Korean economy, such as Samsung, Hyundai Motor, and LG. CJ and Shinsegae are related to the Samsung family, while LS and LX are connected to the LG family. Since the 21st century, it has been difficult to find "newborn" large corporations created by self-made entrepreneurs in Korea. Newly emerging large corporations like Coupang, Kakao, Celltrion, and Netmarble, which have grown under new founders, are few and far between. SMEs fear growing into mid-sized companies, and mid-sized companies split their businesses to avoid being designated as large corporations. SMEs should

Editor's NoteDoes South Korea provide a favorable environment for small and medium-sized enterprises (SMEs) to grow into large corporations? Among the 48 business groups subject to the Fair Trade Commission's regulations on mutual shareholding restrictions (with total assets exceeding 10 trillion won and 2,169 affiliated companies), many were founded by the founding families of major domestic groups currently leading the Korean economy, such as Samsung, Hyundai Motor, and LG. CJ and Shinsegae are related to the Samsung family, while LS and LX are connected to the LG family. Since the 21st century, it has been difficult to find 'newborn' large corporations created by self-made entrepreneurs in Korea. Newly emerged large corporations like Coupang, Kakao, Celltrion, and Netmarble, which have grown under new founders, are few and far between. SMEs fear growing into mid-sized companies. Mid-sized companies split their businesses to avoid being designated as large corporations. SMEs should g

Editor's NoteDoes South Korea have a favorable environment for small and medium-sized enterprises (SMEs) to grow into large corporations? Among the 48 business groups subject to the Fair Trade Commission's regulations on mutual shareholding restrictions (with total assets exceeding 10 trillion won and 2,169 affiliated companies), many were founded by the founding families of major domestic groups currently leading the Korean economy, such as Samsung, Hyundai Motor, and LG. CJ and Shinsegae are related to the Samsung family, while LS and LX are connected to the LG family. Since the 21st century, it has been difficult to find 'newborn' large corporations founded by self-made entrepreneurs in Korea. Newly emerging large corporations like Coupang, Kakao, Celltrion, and Netmarble, which have grown under new founders, are few and far between. SMEs fear growing into mid-sized companies, and mid-sized companies split their businesses to avoid being designated as large corporations. SMEs should

Editor's NoteDoes South Korea have an environment conducive for small and medium-sized enterprises (SMEs) to grow into large corporations? Among the 48 business groups subject to the Fair Trade Commission's regulations on mutual shareholding restrictions (with total assets exceeding 10 trillion won and 2,169 affiliated companies), many were founded by the founding families of major domestic groups currently leading the Korean economy, such as Samsung, Hyundai Motor, and LG. CJ and Shinsegae are related to the Samsung family, while LS and LX are connected to the LG family. Since the 21st century, it has been difficult to find 'newborn' large corporations founded by self-made entrepreneurs in Korea. New large corporations like Coupang, Kakao, Celltrion, and Netmarble, which have emerged with new founders and grown their corporate size, are few and far between. SMEs fear growing into mid-sized companies. Mid-sized companies split their businesses to avoid being designated as large corpora

Editor's NoteDoes South Korea provide a favorable environment for small and medium-sized enterprises (SMEs) to grow into large corporations? Among the 48 business groups subject to the Fair Trade Commission’s regulations on mutual shareholding restrictions (with total assets exceeding 10 trillion KRW and 2,169 affiliated companies), many were founded by the founding families of major domestic groups currently driving the Korean economy, such as Samsung, Hyundai Motor, and LG. For example, CJ and Shinsegae are related to the Samsung family, while LS and LX are connected to the LG family. Since the 21st century, it has been difficult to find ‘newborn’ large corporations created by self-made entrepreneurs in Korea. Newly emerged large corporations like Coupang, Kakao, Celltrion, and Netmarble, which have grown under new founders, are few and far between. SMEs fear growing into mid-sized companies. Mid-sized companies split their businesses to avoid being designated as large corporations.