Interlocking Ownership in the Korean  Chaebol | Zendy

Kim DongWoon | Zendy

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Interlocking Ownership in the Korean Chaebol

Author(s) -

Kim DongWoon

Publication year - 2003

Publication title -

corporate governance: an international review

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.866

H-Index - 85

eISSN - 1467-8683

pISSN - 0964-8410

DOI - 10.1111/1467-8683.00014

Subject(s) - chaebol , subsidiary , business , shareholder , interlocking , control (management) , business administration , market economy , industrial organization , corporate governance , management , multinational corporation , finance , economics , engineering , mechanical engineering

This paper analyses how a dominant entrepreneur of the Korean chaebol is able to exercise control, despite having a tiny shareholding, through strategic interlocking ownership. The entrepreneur organises his intimate group, consisting of three clusters of in‐house shareholders, and they together have controlling interests in only a few subsidiaries, mainly public companies. These central subsidiaries, as quasi‐holding companies, control most other member companies. The resultant ownership structure resembles a grid, in which individual subsidiaries’ ownership structures are intermingled.

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