The role of chaebol in the development of the economy of South Korea

Abstract

The article describes the specifics of the relationship between the state and big corporations (chaebol). There are analyzed the economic changes of the Republic of Korea, related to the world economy globalization and scientific and technical revolution. Many aspects of this global restructuring of the economy have their own history. The relationship between the state and large chaebol corporations played a significant role in these changes.Special attention in the article is focused on the analysis of the relations system between the state and large enterprises in the Republic of Korea during the period 1960-1980 and the transformation of the relations at the beginning of the 21st century. The influence of geopolitical and economic factors on its functioning is established. The important historical stages of development of the South Korean economy are analyzed. Important factors and preconditions that have contributed to the transformation of South Korea into one of the most developed countries in the world have been investigated. The dynamics of the development of the Korean economy and ways to overcome the crisis situations that arose during the history of the state development were analyzed.There were quite a lot of difficulties in the relations between the state and the chaebols, but the timely response to the changes of the world economy has borne fruit. It should be noted that the state and the chaebol have repeatedly reformed their relations and found consensus. As a result, such corporations as Hyundai, Samsung, LG, Hesong and others moved to the category of multinational companies (TNCs). Large corporations and business groups in different parts of the world differ among themselves in a number of economic, political and socio-cultural features, but the relationship between the state and the chaebols in the Republic of Korea deserves special attention from developing countries.