Question

In your opinion what impact will this pending restructuring have on Samsung and on the entire system of "Chaebol" so typical of Korean society

Answer 1

Chaebol is a term used in Korean Society which means business family or monopoly. Chaebol structure is used by conglomorates in South Korea by creating global multinationals with huge international operations. The pending restructuring can bring standard capital strcuture in Samsung and the losses it has suffered in different international operation will be synchronised in diferent books. Through this restructuring Samsung can simplify its ownership structure and the investors can be more clear about the structure of the company. Through this restructuring capital can also be allocated efficiently so that cost of capital can be lower. It won't impact Chaebol adversely and through this Samsung can maintain its Chaebol with more tighten grip.