How BIG is Samsung? In-depth overview of this massive conglomerate

[Achtung!]

I found this video made recently and going viral on Youtube, and it's very interesting considering most people associate Samsung only with smartphones, TVs and refrigerators, etc.

This video is the best summary of Samsung, the world's largest technology company.
https://www.youtube.com/watch?v=6Afpey7Eldo

Some interesting points (many of these points were learnt after watching this video):

Samsung:

• Manufactures advanced aircraft and jet engines for Lockheed Martin and Boeing.
• Is the largest technology company in the world, larger than Volkswagen AG, Toyota and Apple.
• Samsung Heavy Industries is the world's 3rd largest shipbuilder after Hyundai Heavy Industries and Daewoo Shipbuilding and Marine Engineering.
• Manufactures military tanks, which they have exported to various countries, such as Poland and Turkey.
• Makes cars under the Renault-Samsung-Nissan alliance.
• Built the world's tallest skyscraper, the Burj Khalifa in Dubai, UAE. Also built the tallest twin-skyscrapers in the world, the Petronas Towers in Malaysia.
• Is the largest manufacturer of smartphones, memory chips, TVs, LCD displays, AMOLED displays and home appliances in the world.
• They just built a new research facility investing heavily into drones, robotics, 3D printing and virtual reality

 

[mmntech]

Large conglomerates like Samsung are the norm in North-East Asia. They're called Zaibatsu in Japanese, literally meaning financial clique. Samsung, Hyundai, and Mitsubishi are the best known to foreigners, but there are several others.

Hyundai - makes cars, ships, heavy machinery, steel. Also involved in retail, finance, defence contracting, construction, and aerospace.

Mitsubishi - Cars, major appliances, electronics, ship building, mining, oil & gas, telecom, finance, food & beverage, aerospace, chemicals.

Nissan - Cars, financial services, construction, telecom, electronics, industrial machinery.

Kawasaki - railroad cars, aerospace, ship building, cars & motorcycles

 

[ThisIsChrisKim]

They're called chaebeol (재&#48268 in Korean. Basically, the government-conglomorate partnerships is what allowed South Korea to become a developed country in record time. Prior to the 1960's (right after the Korean war that divided the North and South), Korea was poorer than many African countries.

Samsung is somewhere around 25% of South Korea's economy and employs probably just as much of its people. If Samsung were to fail, it would spell economic disaster for the whole country.

 

[Achtung!]

Samsung is somewhere around 25% of South Korea's economy and employs probably just as much of its people. If Samsung were to fail, it would spell economic disaster for the whole country.

This is incorrect. That's like saying Apple is worth 5% of the US economy since Apple is nearly $1 trillion USD in market value and revenues are about $180 billion USD. Apple is probably worth, at most, ~0.5% of the US economy. Most likely less.

Samsung's revenues are huge indeed at $305 billion USD, larger than Apple, Volkswagen AG, etc.

Revenues =! contribution to an economy.

Large conglomerates like Samsung are the norm in North-East Asia. They're called Zaibatsu in Japanese, literally meaning financial clique. Samsung, Hyundai, and Mitsubishi are the best known to foreigners, but there are several others.

Hyundai - makes cars, ships, heavy machinery, steel. Also involved in retail, finance, defence contracting, construction, and aerospace.

Mitsubishi - Cars, major appliances, electronics, ship building, mining, oil & gas, telecom, finance, food & beverage, aerospace, chemicals.

Nissan - Cars, financial services, construction, telecom, electronics, industrial machinery.

Kawasaki - railroad cars, aerospace, ship building, cars & motorcycles

Hyundai also manufactures the 2nd most technologically advanced military tank in the world, the K2 Black Panther.
The most technologically advanced tank is the German Leopard 2A6 manufactured by Krauss-Maffei Wegmann GmbH.

LG - car batteries, home appliances, smartphones, TVs, vacuum cleaners, robotics, solar power, chemicals, health products, food & beverages.

Also Hitachi is a huge investor into military gear.
Other Japanese companies include Fuji Heavy, Fanuc corp., etc. Although some of these companies are smaller than conglomerates.

 

[ThisIsChrisKim]

This is incorrect. That's like saying Apple is worth 5% of the US economy since Apple is nearly $1 trillion USD in market value and revenues are about $180 billion USD. Apple is probably worth, at most, ~0.5% of the US economy. Most likely less.

Samsung's revenues are huge indeed at $305 billion USD, larger than Apple, Volkswagen AG, etc.

Revenues =! contribution to an economy.

Well, I don't know a ton about economics, but is this article wrong? (Honest question, because I don't know): http://www.theatlantic.com/business...nsible-for-20-of-south-koreas-economy/260552/

In South Korea, it's apparently a different story. Samsung alone is responsible for 20 percent of the country's $1.1 trillion economy. For reference, government spending there also makes up about 20 percent of GDP. Here in the U.S., the federal budget makes up about a quarter.*

Or are comments like this story wrong that suggesting Samsung struggling is bad for the whole country? (http://www.asiaecon.org/special_articles/read_sp/12082)

Furthermore, according to the mentioned plan, a wave of lay offs is about to hit the company, as well as a 20% decrease in salaries for VPs and seniors.
As Samsumg – one of the country’s biggest companies- suffers from operating cost losses and layoffs, it becomes obvious that South Korea is headed for rough economic times.

Or how Samsung is too big to fail (http://www.independent.co.uk/news/w...-became-the-giant-that-ate-korea-8510588.html)

So important is Samsung to South Korea’s economy that it has literally become too big to fail. Its subsidiaries build a large share of the country’s infrastructure, from bridges to apartment blocks. The company accounts for 13 per cent of the country’s entire exports and a fifth of its GDP, according to analysts.

 

[Achtung!]

Well, I don't know a ton about economics, but is this article wrong? (Honest question, because I don't know): http://www.theatlantic.com/business...nsible-for-20-of-south-koreas-economy/260552/



Or are comments like this story wrong that suggesting Samsung struggling is bad for the whole country? (http://www.asiaecon.org/special_articles/read_sp/12082)



Or how Samsung is too big to fail (http://www.independent.co.uk/news/w...-became-the-giant-that-ate-korea-8510588.html)

Yes those articles are wrong and I've read them before. I've taken business and economics courses at university.

The contribution of Samsung to South Korea's economy is, at most, 5%. The articles are just taking into account revenues, which is a totally inaccurate and nonsensical way to calculate a company's contribution to a country's economy. Samsung's total revenues are $305 billion USD, or $0.35 trillion USD. South Korea's GDP is ~$1.5 trillion USD. 0.35/1.5 = ~23% of Korea's economy is "Samsung" which is just bs from an economics standpoint.

The revenues generated by Samsung don't all come from Samsung's R&D and manufacturing facilities in Korea. Samsung also hires many staff from overseas and has overseas R&D and manufacturing facilities. Thus, a huge proportion of Samsung's revenue also contributes to the economies of the US, China and some other Asian countries like Japan and Vietnam.

Economics is a very complex field, and a micro-level understanding will leave you confused. A macro-level understanding is required, and even then, it may still be confusing.

A company's contribution to a nation's economy isn't just about revenues either. It's also about job creation, and trickle down effects such as higher wages (which increases purchasing power and consumer sentiment) and increasing purchases from suppliers.

And yes, Samsung is probably too big to fail and a Nokia-style fall is indeed very unlikely. However, it could happen, just like it happened to IBM. Actually Apple is following IBM's pattern of growth before it crashed after its peak in 1985.

Because of how industrially diversified Samsung is, its dominance in many important sectors such as semiconductors/memory chips, and its higher technological capacity and competitiveness in most industries it competes in, it is much less likely to fail than Apple.

 

[ThisIsChrisKim]

Yes the articles are wrong and I've read them before. I've taken business and economics courses in university.

The contribution of Samsung South Korea's economy is, at most, 5%. The articles are just taking into account revenues, which is a totally inaccurate and nonsensical way to calculate a company's contribution to a country's economy. Samsung's total revenues are $305 billion USD, or 0.35 trillion. South Korea's GDP is ~$1.5 trillion USD. 0.35/1.5 = ~23% of Korea's economy is "Samsung" which is just bs from an economics standpoint.

The revenues generated by Samsung don't all come from Samsung's R&D and manufacturing facilities in Korea. Samsung also hires many staff from overseas and has overseas R&D and manufacturing facilities. Thus, a huge proportion of Samsung's revenue also contributes to the economies of the US, China and some other Asian countries like Japan and Vietnam.

What counts for a country's GDP? It's not just all products that originate from a company within that country? I guess... does GDP relate strongly to the health of a country's economy?

My relatives and friends have all basically told me either Samusng or Hyundai are the be all end all of Korea's economy. People are worried because both companies are struggling right now. The pessimism is a bit strong right now. I think everyone is worried with only China doing well economically in Asia right now.

 

[Achtung!]

What counts for a country's GDP? It's not just all products that originate from a company within that country? I guess... does GDP relate strongly to the health of a country's economy?

My relatives and friends have all basically told me either Samusng or Hyundai are the be all end all of Korea's economy. People are worried because both companies are struggling right now. The pessimism is a bit strong right now. I think everyone is worried with only China doing well economically in Asia right now.

Well your relatives and friends are naive and don't understand economics all too well. Sure, the Korean stock market will crash if Samsung and Hyundai crash tomorrow. And sure, it may shave off a few decimals from Korea's GDP growth rate. However it wont destroy Korea's economy. And Samsung, as you said, is too big to fail in most scenarios.

A fall in mobile phone sales will not mean Samsung will fall. Samsung's mobile division only contributes 30% to Samsung Electronics' profits/revenues. Then there are other subsidiaries of Samsung, etc.

The South Korean economy is one of the most export-oriented economies (50% of GDP is what I have in my head from various lectures and my own research). However Samsung/Hyundai/LG/etc catching a cold will not spell doom for the Korea economy. 50% of Korea's economy also comes from domestic spending. And what is domestic spending? When Korean people buy stuff in Korea. And that is more alarming, as Korea has one of the lowest birth rates in the world, which would spell disaster for Korea's domestic demand and hence would be the main cause of Korea's economic collapse. Korea is becoming a less export-oriented economy and more of a domestic spending & social services-oriented economy. Hence, exports will become less relevant to Korea's economy in the future.

It's happening to Japan right now. Without going off-topic too much, Japan is a less export-oriented economy than Korea, roughly depending 35% on exports for its GDP. Due to low birth rates starting from the 1970s, Japan has suffered economic recession/stagnation for 2 decades and counting. Although low birth rates was not the only factor to Japan's economic decline, it was still a significant factor.

Therefore, if Korea's economy was to face a similar fate to Japan's economic contractions/stagnation, then low birth rates are to blame. Trust me, I've taken advanced economics courses at university so I know this is correct. I've actually done case studies on several countries including Japan.

One way to solve Korea's demographic and economic decline is to increase return migration of Korean Americans, Koreans living in Russia and Central Asia, to go back and live in Korea. Similar to the return of Japanese Brazilians to Japan (although some faced severe hardship and discrimination and had to return back to Brazil). I take it that you're Korean, so these are some ideas that may be beneficial to your country.

 

[ThisIsChrisKim]

Well your relatives and friends are naive and don't understand economics all too well. Sure, the Korean stock market will crash if Samsung and Hyundai crash tomorrow. And sure, it may shave off a few decimals from Korea's GDP growth rate. However it wont destroy Korea's economy. And Samsung, as you said, is too big to fail in most scenarios.

A fall in mobile phone sales will not mean Samsung will fall. Samsung's mobile division only contributes 30% to Samsung Electronics' profits/revenues. Then there are other subsidiaries of Samsung, etc.

The South Korean economy is one of the most export-oriented economies (50% is what I have in my head from various lectures). However Samsung/Hyundai/LG/etc catching a cold will not spell doom for the Korea economy. 50% of Korea's economy also comes from domestic spending. And what is domestic spending? When Korean people buy stuff in Korea. And that is more alarming, as Korea has one of the lowest birth rates in the world, which would spell disaster for Korea's domestic demand and hence would be the main cause of Korea's economic collapse.

It's happening to Japan right now. Without going off-topic too much, Japan is a less export-oriented economy than Korea, roughly depending 35% on exports for its GDP. Due to low birth rates starting from the 1970s, Japan has suffered economic recession/stagnation for 2 decades and counting.

Therefore, if Korea's economy was to face a similar fate to Japan's economic contractions/stagnation, then low birth rates are to blame. Trust me, I've taken advanced economics courses at university so I know this is correct. I've actually done case studies on several countries including Japan.

So having a lot of the GDP based on exports is a good thing, right? Koreas population is far too small to have most of its economy based on domestic purchasing practices, particularly for companies like Hyundai where there aren't many cars sold in the big cities (Seoul, Busan) since driving doesn't make much sense in many of these areas. On top of that, cars are very expensive relative to salaries.

I think one of the problems facing a lot of the current entering workforce generation is relatively low wages and over educated/competitive landscape. There's so many people who are well educated and competition for jobs is very fierce. Plus, the work culture of Korea is very demanding. I am personally glad I don't have to work in Korea. There are many other cultural hardships (such as familial piety) which make Korean culture and society a very difficult place to live compared to Western culture.

Funny story, there were campaigns in Korea giving young married couples Wednesday off work for "make a younger brother" day. I haven't seen/heard about those in a while, though. I don't think the stagnating birthrate is quite as bad as Japan yet, but the number of friends that are remaining unmarried and not thinking about children is surprisingly high. Most of my friends that I know of that are having children are leaving Korea and having families elsewhere (like the US, for instance).

And while I live in the US, including my family, I worry about Korea's future all the time. My wife's family still lives in Korea and are very dependent on the strength of the Korean economy to survive.

 

[Achtung!]

So having a lot of the GDP based on exports is a good thing, right? Koreas population is far too small to have most of its economy based on domestic purchasing practices, particularly for companies like Hyundai where there aren't many cars sold in the big cities (Seoul, Busan) since driving doesn't make much sense in many of these areas. On top of that, cars are very expensive relative to salaries.

I think one of the problems facing a lot of the current entering workforce generation is relatively low wages and over educated/competitive landscape. There's so many people who are well educated and competition for jobs is very fierce. Plus, the work culture of Korea is very demanding. I am personally glad I don't have to work in Korea. There are many other cultural hardships (such as familial piety) which make Korean culture and society a very difficult place to live compared to Western culture.

Funny story, there were campaigns in Korea giving young married couples Wednesday off work for "make a younger brother" day. I haven't seen/heard about those in a while, though. I don't think the stagnating birthrate is quite as bad as Japan yet, but the number of friends that are remaining unmarried and not thinking about children is surprisingly high. Most of my friends that I know of that are having children are leaving Korea and having families elsewhere (like the US, for instance).

And while I live in the US, including my family, I worry about Korea's future all the time. My wife's family still lives in Korea and are very dependent on the strength of the Korean economy to survive.

No, more exports aren't better. China will eventually overtake Korea in several industries by 2030~2050 just like Korea has overtaken Japan in several industries. Korea will thus have to depend more and more on its population, and that is looking very bleak considering Korea has one of the world's lowest fertility rates in the world.

The fertility rate problem in Korea is worse than Japan's. Research it.

Sure, Japan is by far the most aged nation in the world with 26% of its population over the age of 65, but that's because Japan's low birth rate trend started in the 1970s. Korea's low birth rate trend started in the 1990s.

Korea's fertility rate is lower than Japan's. At current fertility rates, Korea is the world's fastest aging nation.

You should definitely let your family and friends know and spread the word to them. Samsung, LG, Hyundai... they're not as important to Korea's future economy as you may have been tricked to think by the pro-big business media.

Ironically, the only beneficial thing, from a demographic standpoint, about Korea is that Korea is a divided nation. South Korea has one of the lowest fertility rates in the world, whereas North Korea has a relatively high fertility rate, nearly double that of South Korea. The longer it takes them to reunify, the better the demographic picture of a United Korea will be.

 

[Commodus]

However much Samsung is directly responsible for fuelling the South Korean economy, there's no doubt that it's very pervasive in the country. That's actually a big problem, because it has clout in areas where it probably shouldn't.

For example, in the last decade the company had a slush fund to bribe politicians; Chairman Lee Kun-hee accepted responsibility and was convicted, but was conveniently pardoned. There's also concerns that it pressures anyone who criticizes its operations (the movie "Another Promise" was supposedly a target, as are non-fiction books), and Lee's presence on the International Olympics Committee probably played a large part in bringing the 2018 Winter Olympics to South Korea.

This isn't to say that you should chuck Samsung's products... just be aware that it's no saint, as with other companies.

 

[ThisIsChrisKim]

No, more exports aren't better. China will eventually overtake Korea in several industries by 2030~2050 just like Korea has overtaken Japan in several industries. Korea will thus have to depend more and more on its population, and that is looking very bleak considering Korea has one of the world's lowest fertility rates in the world.

The fertility rate problem in Korea is worse than Japan's. Research it.

Sure, Japan is by far the most aged nation in the world with 26% of its population over the age of 65, but that's because Japan's low birth rate trend started in the 1970s. Korea's low birth rate trend started in the 1990s.

Korea's fertility rate is lower than Japan's. At current fertility rates, Korea is the world's fastest aging nation.

You should definitely let your family and friends know and spread the word to them. Samsung, LG, Hyundai... they're not as important to Korea's future economy as you may have been tricked to think by the pro-big business media.

Ironically, the only beneficial thing, from a demographic standpoint, about Korea is that Korea is a divided nation. South Korea has one of the lowest fertility rates in the world, whereas North Korea has a relatively high fertility rate, nearly double that of South Korea. The longer it takes them to reunify, the better the demographic picture of a United Korea will be.

Oh wow. I didn't realize it has become so dire. I'm still stick on 2000 rates. It's a bit shocking, really. I think the only time we really see multiple children is when twins happen.

Unification could lead to fixing the population issue--but adaptation, culturally and education will be a big problem. It's still a big political problem. Sigh.

 

[Achtung!]

However much Samsung is directly responsible for fuelling the South Korean economy, there's no doubt that it's very pervasive in the country. That's actually a big problem, because it has clout in areas where it probably shouldn't.

For example, in the last decade the company had a slush fund to bribe politicians; Chairman Lee Kun-hee accepted responsibility and was convicted, but was conveniently pardoned. There's also concerns that it pressures anyone who criticizes its operations (the movie "Another Promise" was supposedly a target, as are non-fiction books), and Lee's presence on the International Olympics Committee probably played a large part in bringing the 2018 Winter Olympics to South Korea.

This isn't to say that you should chuck Samsung's products... just be aware that it's no saint, as with other companies.

This is true. Actually I heard from some of my Korean friends that there is resentment against Samsung in Korea. Many Koreans choose to buy iPhones these days because they have become increasingly wary of the nepotism and corruption caused by these big conglomerates.

And yes, this doesn't mean that people should stop buying Samsung products. For us Americans and other westerners, it doesn't mean much. Just buy whatever you like should be the main principle in today's capitalist market economy.

Oh wow. I didn't realize it has become so dire. I'm still stick on 2000 rates. It's a bit shocking, really. I think the only time we really see multiple children is when twins happen.

Unification could lead to fixing the population issue--but adaptation, culturally and education will be a big problem. It's still a big political problem. Sigh.

It is definitely a huge problem, and by 2030, Korea will be the most aged nation on Earth. And, going by current trends, South Koreans will be extinct by 2750, although this is just a simulation and sounds ridiculous.

And Korea can't just rely on North Korea for fixing its demographic problems. The main reason for Korea's low birth rates is because of high housing prices and Korea's ridiculous expensive marriage culture. I heard Koreans spend $200,000 USD per marriage on average. Ridiculous. And, out of the OECD, Korea has the lowest welfare support and incentives for families with more children. It's not hard to see why Korea's politicians and lack of welfare support for couples wanting more children are the main reasons for Korea's low birth rates.

These problems can easily be fixed, but I'm not sure if Korean politicians even realize these problems or are just too afraid to speak up. It seems like you have an interest in your country, so maybe you should go to Korea and change the system there.

 

[Shlong]

There's Samsung apartment buildings in Korea. And one of Korea's largest food and media companies (CJ Group) was once a part of Samsung too.

 

[ThisIsChrisKim]

It is definitely a huge problem, and by 2030, Korea will be the most aged nation on Earth. And, going by current trends, South Koreans will be extinct by 2750, although this is just a simulation and sounds ridiculous.

And Korea can't just rely on North Korea for fixing its demographic problems. The main reason for Korea's low birth rates is because of high housing prices and Korea's ridiculous expensive marriage culture. I heard Koreans spend $200,000 USD per marriage on average. Ridiculous. And, out of the OECD, Korea has the lowest welfare support and incentives for families with more children. It's not hard to see why Korea's politicians and lack of welfare support for couples wanting more children are the main reasons for Korea's low birth rates.

These problems can easily be fixed, but I'm not sure if Korean politicians even realize these problems or are just too afraid to speak up. It seems like you have an interest in your country, so maybe you should go to Korea and change the system there.

It'll be hard to convince a lot of us to go back to Korea. Culturally, there are so many pressures that make living difficult. It's not related to just costs, but work culture, for instance. Confucious culture, you respect your elders with different form of speak and posture. At work, you arrive at work before your boss, and you leave after your boss--regardless of how much work you have. You have to go out to company outings, you have to drink with your co-workers, and you don't get to spend much time with family (because the boss does not want to spend time with his family). Many current generation workers do not want this life.

I think any of us who had spent any time outside of Korea have a hard time adjusting back to the more constrained society expectations. My parents, for instance, don't miss Korea much. The good thing is, we can live with best of both worlds in big cities in the US with big Korean populations (I live in LA where the largest population of Koreans outside of Korea live).

 

[Strk]

It'll be hard to convince a lot of us to go back to Korea. Culturally, there are so many pressures that make living difficult. It's not related to just costs, but work culture, for instance. Confucious culture, you respect your elders with different form of speak and posture. At work, you arrive at work before your boss, and you leave after your boss--regardless of how much work you have. You have to go out to company outings, you have to drink with your co-workers, and you don't get to spend much time with family (because the boss does not want to spend time with his family). Many current generation workers do not want this life.

I think any of us who had spent any time outside of Korea have a hard time adjusting back to the more constrained society expectations. My parents, for instance, don't miss Korea much. The good thing is, we can live with best of both worlds in big cities in the US with big Korean populations (I live in LA where the largest population of Koreans outside of Korea live).

That sounds like a terrible way to live. I'm surprised more people don't leave Korea just because of that.

 

[Kaido]

Also FYI - the Youtube user is ColdfusTion, he makes really good videos. REALLY good. I would highly recommend watching his history of computer series: (2-parter)

https://www.youtube.com/watch?v=A2wG0sXbMhw

https://www.youtube.com/watch?v=-JOXUNX66Cs

 

[Dulanic]

Also FYI - the Youtube user is ColdfusTion, he makes really good videos. REALLY good. I would highly recommend watching his history of computer series: (2-parter)

https://www.youtube.com/watch?v=A2wG0sXbMhw

https://www.youtube.com/watch?v=-JOXUNX66Cs

That actually is a great nostalgia video for sure!

 

[WelshBloke]

However much Samsung is directly responsible for fuelling the South Korean economy, there's no doubt that it's very pervasive in the country. That's actually a big problem, because it has clout in areas where it probably shouldn't.

For example, in the last decade the company had a slush fund to bribe politicians;

Is that a bit like the funds US companies have for lobbyists?

 

[ThisIsChrisKim]

That sounds like a terrible way to live. I'm surprised more people don't leave Korea just because of that.

Well, immigration and family and culture (aside from work) also are important too. Not all companies are like this, but this is a very common reality for many Koreans. Japanese, as well. I'm sure this contributes to the very high drinking rates among Koreans (that along with cheap liquor). Remember, Korean is a bit of an isolated language--it doesn't really have many related languages--(superficial) similarities to Chinese aside. The country with the largest Korean diaspora (the US) now is no longer very friendly to immigration unlike in the 70s and 80s when a large chunk of Koreans immigrated to the US.

An interesting thing amongst Koreans--instead of thinking, "oh wow that's a terrible thing, we must change it". Many will instead think, "oh wow, this is awful. I can't to start treating my own employees like that when I'm a manager". Also why bullying is a bit of an issue in schools. I think it's part of the fact that Korea has long been a runt/whipping boy of Asia for such a long time (mostly at the hands of Japan--which explains the extremely strained diplomatic relations between the countries).

 

[ThisIsChrisKim]

Is that a bit like the funds US companies have for lobbyists?

Big difference, I think, is that most Korean companies became where they are because of hand-in-hand partnerships. After the Korean war, South Korea was one of the poorest countries in the world. During the 60s and 70s, these partnerships with the government gave these companies the opportunity and support needed to become the companies they are today.

I don't know much beyond the cultural impact of these companies, though.

 

[Achtung!]

Big difference, I think, is that most Korean companies became where they are because of hand-in-hand partnerships. After the Korean war, South Korea was one of the poorest countries in the world. During the 60s and 70s, these partnerships with the government gave these companies the opportunity and support needed to become the companies they are today.

I don't know much beyond the cultural impact of these companies, though.

Korea is A LOT like Japan. When I visited there a couple of years back, it reminded me of Japan.

Even Korea's corporate structure is like Japan's. Japanese companies receive a lot of backing from the Japanese government. For example, the yen has been free-falling since 2013 and it has been benefiting Japanese companies as it inflates the profits they earn from overseas. However it has decreased the quality of life of the Japanese people. For example, the GDP per capita of South Korea will overtake Japan by the end of 2015.

Korea needs to make sure it doesn't follow Europe/Japan with low birth rate trends. In fact, right now, Korea's birth rate problem is the worst out of all developed nations. It needs to be fixed ASAP or else there will be deep trouble by 2025-2030.