Park urges chaebol-SME coprosperity

President Park Geun-hye called for a change in the nation’s economic paradigm to foster coprosperity between conglomerates and small and medium-sized firms. She made the instruction during policy briefings from the Ministry of Trade, Industry and Energy and the Small and Medium Business Administration at Cheong Wa Dae on Monday.

“Our economy reliant on big companies should be transformed into an economic structure where exports and domestic consumption are boosted simultaneously, and conglomerates and SMEs prosper together,” Park said. The nation’s economy should also create an environment which encourages creativity and ideas in a knowledge-based society, Park added.

The Commerce Ministry reported that it would come up with measures to crack down on malpractices at chaebol, or South Korean family-controlled big business groups, particularly in cash payments to their small and mid-sized suppliers.

For full article, see Korea Herald.

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Chaebol’s economic dominance increases

Korea has seen an unprecedented concentration of wealth in the nation’s top 10 family-owned conglomerates since the global financial crisis in 2008, industry reports showed Monday.

Their combined market capitalization and sales reached their highest-ever last year, according to separate reports by Chaebul.com, FnGuide and the Economic Reform Research Institute.

The top 10 owner groups saw the market cap of their 90 listed affiliates increase to 648 trillion won ($577 billion) as of January, about 52.83 percent of the total 1,227 trillion won of the nation’s main bourse. The figure has continued to grow from 44.87 percent in late 2008 to 46.59 percent in 2009 and 51.9 percent in 2010.

For full article see Korea Herald.