Who are South Korean chaebols?

South Korean chaebols are large, family-ran business conglomerates that largely dominate the Korean economy. In 2021, the top ten chaebols, including Samsung (삼성), Lotte (롯데), and LG (엘지), collectively contributed nearly 60% to the nation’s GDP. Even during the pandemic, while smaller business struggled to survive, the chaebols showed resilience.

What is the chaebol system in South Korea?

The chaebol system is a legacy of South Korea’s history. After an armistice ended the Korean War in 1953, the country’s military dictators anointed a handful of families for special loans and financial support to rebuild the economy. The companies expanded quickly and moved from industry to industry until they morphed into sprawling conglomerates.

How powerful are chaebols in South Korea?

Chaebols have since grown to become a powerful force in the country and continue to be the backbone of the economy. According to the Bank of Korea, the 2019 total revenues of the five largest South Korean Chaebols alone represented 44% of the country’s GDP.