Open Korea
Korea's Chaebol's (or conglomerates) became famous during the economic crisis of 1997, as many of them developed in a free-wheeling and uncontrolled way driven by a strong need for expansion, which was very much government supported.
Korea nearly collapsed during the crisis, and a huge IMF loan brought it back onto its feet. The economy became consumer driven, banks, which provided money to chaebol's before the crisis, targeted their policy to consumers. Here, another challenge might open for the economy, because many of them are now close to default, but this is another story.
Korea restructured the economy, which was accompanied often by pain - rising unemployment, labour unrest and company collapses - Daewo might be just one example.
But they opened up the economy and cleaned up - still clean up, the remainders of a past gone. during this time, foreigners were allowed to take over companies or acquire stakes.
An article by the Korea Herald showed the strength that foreign companies have gained in this
Asian powerhouse:
Samsung: 57.1%
LG 32.9%
Hyndai Motor: 47.4%
SK: 42.8%
Hanjin: 28.9%
Hanhwa: 18.1%
Hyundai Heavy Industries: 19.3%
Kumho Asiana: 8.8%
Doosan: 1.6%
Dongbu: 19.3%
There is a correlation between economic booms, opening of an economy, and general per-capita growth. And probably confidence. Korea contrasts with Indonesia, for example, which, over the past couple of years, meddled with the sale of stakes in some of their companies and never really managed to take off after the crisis. Change is painful, and of course, some countries don't like to see when their companies "end up in the hands of foreigners". But it happens all the time, in the West and in the US. Companies rise and fall and so do countries.
(By Asia Business Consulting)
Korea nearly collapsed during the crisis, and a huge IMF loan brought it back onto its feet. The economy became consumer driven, banks, which provided money to chaebol's before the crisis, targeted their policy to consumers. Here, another challenge might open for the economy, because many of them are now close to default, but this is another story.
Korea restructured the economy, which was accompanied often by pain - rising unemployment, labour unrest and company collapses - Daewo might be just one example.
But they opened up the economy and cleaned up - still clean up, the remainders of a past gone. during this time, foreigners were allowed to take over companies or acquire stakes.
An article by the Korea Herald showed the strength that foreign companies have gained in this
Asian powerhouse:
Samsung: 57.1%
LG 32.9%
Hyndai Motor: 47.4%
SK: 42.8%
Hanjin: 28.9%
Hanhwa: 18.1%
Hyundai Heavy Industries: 19.3%
Kumho Asiana: 8.8%
Doosan: 1.6%
Dongbu: 19.3%
There is a correlation between economic booms, opening of an economy, and general per-capita growth. And probably confidence. Korea contrasts with Indonesia, for example, which, over the past couple of years, meddled with the sale of stakes in some of their companies and never really managed to take off after the crisis. Change is painful, and of course, some countries don't like to see when their companies "end up in the hands of foreigners". But it happens all the time, in the West and in the US. Companies rise and fall and so do countries.
(By Asia Business Consulting)
posted by Andreas @ 1:21 pm
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