Comparing Japan (Keirestu) and Korea (Chaebol) Economic Efficiency on Their Financial Structures

Publication Date

12-2014

Document Type

Article

Disciplines

Business

Comments

This article was published in European Journal of Contemporary Economics and Management:

Gerald, R.V. (2014) Comparing Japan (Keirestu) and Korea (Chaebol) Economic Efficiency on their Financial Structures, European Journal of Contemporary Economics and Management, December 2014 Edition Vol.1 No.2 Retrieved from http://ejcem.eu/index.php/ct-menu-item-3.

Abstract

In this constantly changing global environment, Japan and Korea have shown impressive economic growth by creating formidable industrial powerhouse in the past two decades that carved out market shares in Asia, Europe, Latin and North America regions. They are known as Asia’s second and third biggest economies with a real gross domestic product (GDP) in the trillions. Their economic development strategies strongly mirror each other because of an industrial group system which was fostered from zaibatsu (prewar), a family owned organization that dominated both the economic activities by controlling industrial and financial policies through single-parent intervention concept. After the postwar (WWII) this organization was broken up by the United States (occupier) and transformed into zeirestu and chaebol conglomerates system which were supposed to promote a more free independent enterprise system. This research paper will address how these two inter-corporate group alliances systems influence their economies’ strategic decision-making processes.

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