South Korea is pushing for its most significant reform of corporate governance since President Moon Jae-in took office, a move that could add transparency to top decision-making at large conglomerates that dominate the economy.
The conglomerates, known as chaebols, propelled South Korea’s rise as an export powerhouse. The semiconductors and cars made by the likes of Samsung Electronics Co. and Hyundai Motor Co. have also helped the country emerge from the pandemic slump quicker than many major economies.
Critics say the dominance of chaebols, where key decisions often rest on a handful of large shareholders, hampers fair business practices, stifles the competition crucial to economic growth and can facilitate the transfer of company power and wealth within families despite opposition from some shareholders.