Chaebols are large, family-controlled South Korean conglomerates that dominate the country's economy.

Major Chaebols

ChaebolRevenueKey Companies
Samsung~$240BSamsung Electronics, Samsung SDI, Samsung Life
Hyundai~$110BHyundai Motor, Kia, Hyundai Steel
SK~$100BSK Hynix, SK Telecom, SK Innovation
LG~$60BLG Electronics, LG Chem, LG Energy Solution

Impact on KOSPI

The top 5 chaebols account for ~50% of KOSPI market cap. Samsung Electronics alone is ~20%.

Governance Concerns

Chaebols face criticism for:

  • Complex cross-shareholding structures
  • Family members in key positions despite small ownership
  • Minority shareholder oppression
  • Related-party transactions

These issues contribute to the 'Korea Discount' — Korean stocks trading cheaper than global peers.