SEOUL ¨C South Korea¡¯s family-run conglomerates are facing calls for a shake-up in their governance from a leading candidate in May¡¯s presidential election, following the ouster and arrest of former President Park Geun-hye in a burgeoning influence-peddling scandal.
The conglomerates known as ¡°chaebol¡± have come under the reform buzz saw before, only to emerge bigger and stronger than ever. The country¡¯s four biggest chaebol groups account for around half the stock market¡¯s value, according to the Korea Stock Exchange.
The question after the May 9 election is how deep will the reform drive go this time? And will a new president tackle what critics say is at the heart of chaebol corporate governance conundrum ¡ª the spider¡¯s web of cross-shareholdings among group companies held by their founding families?
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