0 one of the several large, powerful groups of companies in South Korea that are involved in various different types of business:
Again, the financial weakness of the banks and chaebol was used to force an unprecedented restructuring of lending practices, ownership, and industrial structure.
In exchange for these quasi-taxes, the incumbent promised favourable treatments to chaebol companies regarding industrial policies and financial favours.
The chaebol were pressured to sell off their far-flung non-core businesses, and to use the proceeds to reduce their debt-equity ratios.
Inside the operations of chaebol groups, there are many branches that family members control and operate.
By the late 1980s, the chaebol had become financially independent and securethereby eliminating the need for further government-sponsored credit and assistance.
Therefore, the system of chaebol was not very transparent.
The chaebol continued their explosive growth in export markets in the 1980s.
The chaebol were heavily invested in export-oriented manufacturing, neglecting the domestic market, and exposing the economy to any downturns in overseas markets.
