Samsung

CASE:

SAMSUNG ELECTRONIC CORPORATION: GOVERNANCE OF CHAEBOLS

Copyright: Prof. Florencio Lopez-de-Silanes

professor Florencio Lopez-de-Silanes and Rakhi Kumar, Yale MBA02 prepared this case as the basis for class parole rather than to illustrate the effective or ineffective institution of an organization.

Prof. Florencio Lopez-de-Silanes INTRODUCTION

Case: Samsung Electronics

Prior to the Asian gold crises, siemens Korea was an enthronement destination for several institutional investors and emerging market funds. finis-to-end the early nineties the country experienced an scotch boom. southward Korean conglomerates, locally know as chaebols, had diversified into mixed industries from cars to microchips. Samsung Electronics Corporation (Samsung Electronics), a rising star in the Samsung Chaebol was considered to be a high growth company. However, in 1997, the Asian currency crises magnified the problem of the Chaebol structure and highlighted the need for governance betters. By 1999, a shareholder rights activist in South Korea - Prof. Hasung Jang had taken up the cause of minority shareholders of Samsung Electronics. With the help of foreign institutional investors, he planned to fight for governance reforms in South Korea.



As a corporate governance specialist, Samuel Smith, had been contracted by a large foreign institutional investor to help reform Samsung Electronics.

KOREAN CHAEBOLS: Establishment, growth and structure.

In order to accelerate economic growth in the 1970s, the Korean government formulated industrial policies that encouraged investment in heavy and chemical application (HCI). Funded largely by government-controlled banks, affluent families took advantage of the liberal policies and erect up companies in these industries. By the end of the 1970s around 80 percent of fixed investment in the manufacturing firmament was in HCI businesses. Between 1962 and 1982, annual growth averaged 8.4%, although by the end of the 1970s...If you want to get a full essay, order it on our website: Orderessay



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