This thesis will begin by focusing and examining the causes, present situation and consequences of the concentration of economic power on all facets of Korea's economy. It will then move on to present some basic solutions.
This thesis is divided into...
This thesis will begin by focusing and examining the causes, present situation and consequences of the concentration of economic power on all facets of Korea's economy. It will then move on to present some basic solutions.
This thesis is divided into five chapters. The first chapter is the introduction. The second chapter will discuss the determining and changing factors of the concentration of economic power. Chapter three will analyse the meaning and the present situation of the concentration of economic power in Korea. Chapter four will determine the economic effects of the concentration of economic power and at the same time in accordance with the arguments mentioned above, present the basic and concentrated orientation of the measures taken vis a` vis the concentration o( economic power. Finally, chapter five summarizes the main results of this study.
Korea with a limited amount of resources and a small domestic market has, in an effort to fuel its economic growth by depending on a market monopoly determined by a number of companies and the formation of huge corporate companies only managed to aggravate the concentration of economic power if we were to take the example of 1983, the GNP proportion of the value added constituted by the thirty chaeboˇl (huge corporate companies) skyrocketed from 6.7% in 1975 to 19.8%. The sales proportion in mining and manufacturing industries passed from 32.0% in 1977 to 40.4% in 1983. The shipment proportion likewise recorded 32.0% in 1977 to increase to 40.4% in 1983.
However, in a capitalistic economic system, the concentration and accumulation of capital is an accepted general theory. Considering the fact that Korea's economic growth has been outstanding, it could be said that the concentration of economic power in the chaeboˇl companies is a natural denouement. However, the Korean chaeboˇl control an unnatural degree of the markets, that is to say that the level of concentration of economic power in the chaeboˇl companies easily surpasses that in the United States, West Germany and Japan. Furthermore, what is even more disturbing and troubling is the fact that the economic concentration process rather than depending on surplus accumulation derived from growth, leaned more heavily on financial and other various benefits, methods outside the law and unfair practices.
In this way, this thesis will treat the concentration of economic power in accordance with the process involved, the area and degree that economic power is exercised, the general social structure and the general values of society.
Therefore, in establishing a basic orientation for measures for the concentration of economic power, the efficiency and equity of separation and harmony must be considered. In other words, the measures must not unconditionally gravitate towards equity but rather pursue equity that does not deter efficiency Nevertheless, the concentration of economic power is a direct consequence of the struggle to remain out of the red in the given conditions of the market. In principle, this thesis seeks to acknowledge the positive results achieved by the concentration of economic power while at the same time try to find measures that can efface the negative results. In order for the individual and the companies to have equal opportunities in their economic activities, the passive creativity in both the individual and the companies must be developed and the structural and administrative elements must be improved and focused upon.
Furthermore, the problem of the concentration of economic power is a multi-faceted one. As a result, in establishing measures to cope with this problem, not only must the rules of market monopoly and fair transactions be considered but also a consistency must be kept in determining rules in different areas such as finance, tax, export revenues and industrial change.
In conclusion, it is vital that the chaeboˇl be seen in the correct light and that a lively discussion be kept up about this matter so that in harmony with social virtue, these companies themselves might realize a healthy and reasonable economic ethic.