IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Corporate Governance and Growth in the Korean Chaebols: A Microeconomic Foundation for the 1997 Crisis

Listed author(s):
  • Keun Lee


Registered author(s):

From the perspective of Penrose's theory of growth of the firms, this paper, first, interprets the rapid growth with diversification by the chaebols as exploitation of growth opportunities and available resources, given the rents associated with the domestic market protection and subsidized loans from the state-controlled banks. Second, taking chaebols as a variant of the controlling minority structure firm, the agency costs of the chaebols are analyzed in terms fo unfair expropriation of other minority shareholders and debt-holders like the banks. For this analysis, the paper examines ownership and finance structures, dividends payments and stock prices, and bnakruptcy cases in chaebols. The paper argues that the chagnes in the external economic conditions since the mid 1980s contributed to increasing costs, and reduced the benefits, of the chaebol type firms, as evidenced by their declining profitability and eventually the 1997 crisis.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Institute of Economic Research, Seoul National University in its series Working Paper Series with number no18.

in new window

Date of creation: May 1999
Handle: RePEc:snu:ioerwp:no18
Contact details of provider: Postal:
San 56-1, Silim-dong, Kwanak-gu, Seoul 151-742

Phone: 82-2-880-5433
Fax: 82-2-888-4454
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:snu:ioerwp:no18. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Seo seung-Hee)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.