Korean government has considered Chaebols' diversification as a important factor of economic concentration. So various regulation and incentive policies has come into force to restrict on diversification and to promote specialization since 1987. But t...
Korean government has considered Chaebols' diversification as a important factor of economic concentration. So various regulation and incentive policies has come into force to restrict on diversification and to promote specialization since 1987. But the effects of regulation used to be offset by incentive policies, and Chaebols avoided regulations by other alternative methods. The head of the Chaebols could drive forward diversification strategy by controlling power made by ownership of affiliated corporations. To constraint Chaebol's propensity to diversify, "Ceiling on Total Amount of Equity Investment" must be strictly applied to Chaebols, and deregulation of equity investment must not be used for other purpose. And Regulation toward ownership concentration must place the focus on restriction on equity investment to affiliated corporations.