• Title/Summary/Keyword: conglomerates

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Formation of Corporate Governance in Korea: The Rise of Chaebols (1910-1980)

  • Gwon, Jae-Hyun
    • Asian Journal of Business Environment
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    • v.5 no.4
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    • pp.67-72
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    • 2015
  • Purpose - This aim of this study is to examine how conglomerates in Korea have evolved from the perspective of institutional economics. The growth of the economy, dominated by large conglomerates, is projected in light of the dynamic equilibrium between government and capitalists. Research design, data, and methodology - The historical formation of big business groups is examined in chronological order. For the analysis, we divide the assessment into three different eras: Japanese colonial rule, liberation up to the civil war, and the fast growing period since the military coup. Each period is viewed as a dynamic equilibrium that is shaped by economic agents. Results and Conclusion - Despite the rise of modern commerce during the colonial era, contemporary conglomerates came into being with the "enemy property" allotted by the government. Around the civil war, the government coexisted with prototype conglomerates through foreign aid. As the external aid decreased, the system could not be sustained anymore, thus the military coup took place. The reinstated strong bond between government and the conglomerates has shaped the forms of the modern conglomerates thereafter.

Origin of limestone conglomerates in the Choson Supergroup(Cambro-Ordovician), mid-east Korea

  • Kwon Y.K.;Chough S.K.;Choi D.K.;Lee D.J.
    • 한국석유지질학회:학술대회논문집
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    • autumn
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    • pp.63-65
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    • 2001
  • The Chosen Supergroup (Cambro-Ordovician), mid-east Korea consists mainly of shallow marine carbonates and contains a variety of limestone conglomerates. These conglomerates largely comprise oligomictic, rounded lime-mudstone clasts of various size and shape (equant, oval, discoidal, tabular, and irregular) and dolomitic shale matrices. Most clasts are characterized by jigsaw-fit (mosaic), disorganized, or edgewise fabric and autoclastic lithology. Each conglomerate layer is commonly interbedded with limestone-dolomitic shale couplets and occasionally underlain by fractured limestone layer, capped by calcareous shale. According to composition, characteristic sedimentary structures, and fabric, limestone conglomerates in the Hwajol, Tumugol, Makkol, and Mungok formations of Chosen Supergroup can be classified into 4 types: (1) disorganized polymictic conglomerate (Cd), (2) horizontally stratified polymictic conglomerate (Cs), (3) mosaic conglomerate (Cm), and (4) disorganized/edgewise oligomictic conglomerate (Cd/e). These conglomerates are either depositional (Cd and Cs) or diagenetic (Cm and Cd/e) in origin. Depositional conglomerates are interpreted as storm deposits, tidal channel fills, or transgressive lag deposits. On the other hand, diagenetic conglomerates are not deposited by normal sedimentary processes, but formed by post-depositional diagenetic processes. Diagenetic conglomerates in the Chosen Supergroup are characterized by autoclastic and oligomictic lithology of lime-mudstone clasts, jigsaw-fit (mosaic) fabric, edgewise fabric, and a gradual transition from the underlying bed (Table 1). Autoclastic and oligomictic lithologies may be indicative of subsurface brecciation (fragmentation). Consolidation of lime-mudstone clasts pre-requisite for brecciation may result from dissolution and reprecipitation of CaCO3 by degradation of organic matter during burial. Jigsaw-fit fabric has been considered as evidence for in situ fragmentation. The edgewise fabric is most likely formed by expulsion of pore fluid during compaction. The lower boundary of intraformational conglomerates of depositional origin is commonly sharp and erosional. In contrast, diagenetic conglomerate layers mostly show a gradual transition from the underlying unit, which is indicative of progressive fragmentation upward (Fig. 1). The underlying fractured limestone layer also shows evidence for in situ fragmentation such as jigsaw-fit fabric and the same lithology as the overlying conglomerate layer (Fig, 1). Evidence from the conglomerate beds in the Chosen Supergroup suggests that diagenetic conglomerates are formed by in situ subsurface fragmentation of limestone layers and rounding of the fragments. In situ subsurface fragmentation may be primarily due to compaction, dewatering (upward-moving pore fluids), and dissolution, accompanying volume reduction. This process commonly occurs under the conditions of (1) alternating layers of carbonate-rich and carbonate-poor sediments and (B) early differential cementation of carbonate-rich layers. Differential cementation commonly takes place between alternating beds of carbonate-rich and clay-rich layers, because high carbonate content promotes cementation, whereas clay inhibits cementation. After deposition of alternating beds and differential cementation, with progressive burial, upward-moving pore fluid may raise pore-pressure in the upper part of limestone layers, due to commonly overlying impermeable shale layers (or beds). The high pore-pressure may reinforce propagation of fragmentation and cause upward-expulsion of pore fluid which probably produces edgewise fabric of tabular clasts. The fluidized flow then extends laterally, causing reorientation and further rounding of clasts. This process is analogous to that of autobrecciation, which can be analogously termed autoconglomeration. This is a fragmentation and rounding process whereby earlier semiconsolidated portions of limestone are incorporated into still fluid portions. The rounding may be due mainly to immiscibility and surface tension of lime-mud. The progressive rounding of the fragmented clasts probably results from grain attrition by fluidized flow. A synthetic study of limestone conglomerate beds in the Chosen Supergroup suggests that very small percent of the conglomerate layers are of depositional origin, whereas the rest, more than $80\%$, are of diagenetic origin. The common occurrence of diagenetic conglomerates warrants further study on limestone conglomerates elsewhere in the world.

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IT Governance of the Korean Conglomerates: A Comparative Case Study (국내 대기업들의 IT 거버넌스: 비교 사례 연구)

  • Zo, Hang-Jung;Song, Chan-Hoo;Kang, Hyun-Goo;Lim, Dong-Won
    • Journal of Korea Technology Innovation Society
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    • v.12 no.2
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    • pp.335-359
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    • 2009
  • This study explores the IT governance structures of the Korean conglomerates. It investigates IT organization structures, decision making frameworks and processes, communication channels, implementation mechanisms, and performance evaluation methods around IT activities of the Korean conglomerates by analyzing four different cases. The results show that all of the conglomerates have an IT service firms as one of their subsidiaries, and all the subsidiaries in the conglomerates outsource their IT divisions to the IT service firms, The client firms in the conglomerates operate IT strategy and planning teams to coordinate their IT activities with their outsourcing partners. The IT governance archetype of the Korean conglomerates is found to be "business monarchy" because the client firms mostly make IT decisions. However, the IT service firms provide the information of IT trends and solutions to their clients, so the IT governance archetype of input framework for IT decisions can be "IT monarchy". In addition, the conglomerate which has the more centralized IT governance architecture appears to prefer the more integrated implementation mechanisms for IT decisions. The results of this study are expected to be used as a benchmarking model for the organizations which try to develop an effective IT governance structure.

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Risks and Supervisory Challenges of Financial Conglomerates in Korea (금융그룹화와 금융위험: 실증분석 및 정책과제)

  • Hahm, Joon-Ho;Kim, Joon-Kyung
    • KDI Journal of Economic Policy
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    • v.28 no.1
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    • pp.145-191
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    • 2006
  • This paper studies implications of financial conglomeration for both financial risk of individual conglomerates and systemic risk potential in post-crisis Korea. Our analyses suggest that we cannot conclude that financial conglomerates are taking on higher risks relative to non-conglomerate independent institutions. We also find that larger financial institutions show a significantly higher profitability and lower variability in profitability operating on a superior efficient frontier. However, it turns out that the consolidation has raised systemic risk potential as direct and indirect interdependencies among large banking institutions have substantially increased. Furthermore, financial conglomerates have become more vulnerable to contagion risks from non-bank sectors and capital markets. In the face of the shifting risk structure, financial supervisory and regulatory systems must be upgraded toward a more risk-based, consolidated supervision. Prompt corrective action provision for financial conglomerates must be based upon fully consolidated group risks, and effective supervisory devices need to be introduced to avoid inadvertent extension of public safety net to cross-sectoral activities of financial conglomerates. It is also critical to strengthen internal control and risk management capacities at financial conglomerates, and to establish strong market discipline by improving information transparency and monitoring incentives in the financial market.

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A Study on the Analysis of Publicly Announced Combined Financial Statements and their Improvement Points (공시된 결합재무제표의 분석과 게선 방향에 관한 연구)

  • Park Sang-Bong
    • Management & Information Systems Review
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    • v.6
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    • pp.137-162
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    • 2001
  • Our business conglomerates are sharing their fates economically because of mutual debt warranty among their own affiliates and excessive financial loans. For this reason, it is inevitably restrictive to obtain the whole information on such conglomerates by individual and consolidated financial statements. To solve this problem, the system of combined financial statement was introduced through modifications of the Act of the outside audit of corporations in 1988. As a result, 15 out of this nation's 30 major business conglomerates prepared and submitted their own combined financial statements. In this paper, all financial statements are grouped into financial and non-financial parts, based on characteristics of business control and combined financial statement. Then the business size, financial rate and internal transactions for each of the conglomerates are analyzed, based on which problems of the combined financial statement as announced publicly are clarified. For the system, this study suggests improvement points such as a sufficient publication of any possible situations and interest coordination caused between the date of business settlement and that of preparing combined financial statements by applying principles of sharing to the evaluation of valuable instrument papers for investment and by determining the amount, 5% accounting for the total amount of debt warranty, foreign exchange assets and debts.

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A Analysis on the Extent of Realization of Economic Democratization in the ICT Industry: with Focus on Subsidiary Companies of Conglomerates and KOSDAQ Listed Companies (ICT 분야 경제민주화 실현정도 분석: 재벌 계열사와 코스닥 상장사를 중심으로)

  • Noh, Kyoo-Sung;Kim, Shin-Pyo
    • Journal of Digital Convergence
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    • v.11 no.5
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    • pp.95-104
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    • 2013
  • The goal of this study is to confirm the extent of realization of economic democracy between the subsidiary ICT companies of conglomerates and the KOSDAQ listed ICT companies with focus on growth and profitability. As the results of analysis, the following were verified. First, there were differences in all aspects of the subsidiary ICT companies of conglomerates and the KOSDAQ listed small and medium ICT companies, including growth and profitability. Second, the pattern of economic democracy between two groups displayed relatively unrealized economic democracy structure. Third, It was found that KOSDAQ listed small and medium ICT companies were relatively much more difficult situations than the subsidiary ICT companies of conglomerates.

Emerging Media Conglomerates and Producers' Exodus: The Dynamics of Creativity Relocations in the South Korean Broadcasting Production Sector after the Introduction of New General Programming Channels (신규 복합 미디어 기업의 부상과 제작자 엑서더스: 종합편성채널 승인 이후 방송제작 부문의 창의성 재배치 동학)

  • Jung, June-Hee
    • Korean journal of communication and information
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    • v.66
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    • pp.28-58
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    • 2014
  • South Korean broadcasting industry has been under a significant level of structural change since the permission of new general programming channels in the end of 2010. One of the most characteristic features of the change may be the exodus of core manpower from the in-house productions of major terrestrial broadcasters which have been maintaining their dominant power over broadcasting content market based on their systems of tight vertical integration. This paper sheds light on the presence of a purposeful 'mechanism design' that aims to the expansion of market logics in South Korean broadcasting sector by promoting commercial media conglomerates, and analyses how this external design has been actualized while being interlocked with various internal factors of the broadcasting industry. This paper shows that on the backdrop of the mechanism design, some of new media conglomerates has successfully provided various incentives in contrast with those disincentive of terrestrial broadcasters, which in turn, has facilitated the exodus of elite producers. This paper, however, raises a set of questions about whether this relocation process of creativity led by commercial media conglomerates would, in the long term, guarantee more opportunities and potentials for the producers, as promised. As part of conclusion, inherent problems of present mechanism design are highlighted.

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Operational Spillover Effects within Business Groups : Evidence of Korean Chaebols (대규모 기업집단 내에서 운영관리 성과의 전이효과 : 한국 재벌 구조를 중심으로)

  • Na, Jae-seog
    • Journal of Venture Innovation
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    • v.7 no.1
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    • pp.167-182
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    • 2024
  • The aim of this study is to empirically explore the operational spillover effect among companies within chaebol groups, prominent corporate conglomerates in South Korea. Chaebols are known for their horizontal and vertical integration, fostering close collaboration among their constituent companies from a supply chain standpoint. Existing literature highlights the sharing of tangible and intangible resources within chaebol structures, leading to increased efficiency by minimizing transaction costs through resource sharing. This research investigates whether operational management performance within chaebol structures can be transmitted through cooperative resource utilization. To achieve this objective, we categorize leading companies and affiliate companies within chaebols and examine whether the operational management performance of leading companies significantly influences that of affiliate companies. Data on conglomerates, as defined by the Korea Fair Trade Commission, were collected, along with information on companies within these groups. Subsequently, the company with the highest revenue within each group was identified as the leading company, while the remaining companies were designated as affiliate companies. Our analysis reveals a significant positive relationship between the performance of inventory and facility resource management of leading companies and that of affiliate companies. This study sheds light on the transfer of operational management performance within conglomerates from a managerial perspective, underscoring the importance of reinforcing cooperation systems within the chaebol group. Furthermore, this research contributes to the academic discourse by delineating conglomerates from an operational management perspective and empirically demonstrating the transfer effect of operational management performance.

Sedimentary Facies and Evolution of the Cretaceous Deep-Sea Channel System in Magallanes Basin, Southern Chile (마젤란 분지의 백악기 심해저 하도 퇴적계의 퇴적상 및 진화)

  • Choe, Moon-Young;Sohn, Young-Kwan;Jo, Hyung-Rae;Kim, Yea-Dong
    • Ocean and Polar Research
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    • v.26 no.3
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    • pp.385-400
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    • 2004
  • The Lago Sofia Conglomerate encased in the 2km thick hemipelagic mudstones and thinbedded turbidites of the Cretaceous Cerro Toro Formation, southern Chile, is a deposit of a gigantic submarine channel developed along a foredeep trough. It is hundreds of meters thick kilometers wide, and extends for more than 120km from north to south, representing one of the largest ancient submarine channels in the world. The channel deposits consist of four major facies, including stratified conglomerates (Facies A), massive or graded conglomerates (Facies B), normally graded conglomerates with intraformational megaclasts (Facies C), and thick-bedded massive sandstones (Facies D). Conglomerates of Facies A and B show laterally inclined stratification, foreset stratification, and hollow-fill structures, reminiscent of terrestrial fluvial deposits and are suggestive of highly competent gravelly turbidity currents. Facies C conglomerates are interpreted as deposits of composite or multiphase debris flows associated with preceding hyperconcentrated flows. Facies D sandstones indicate rapidly dissipating, sand-rich turbidity currents. The Lago Sofia Conglomerate occurs as isolated channel-fill bodies in the northern part of the study area, generally less than 100m thick, composed mainly of Facies C conglomerates and intercalated between much thicker fine-grained deposits. Paleocurrent data indicate sediment transport to the east and southeast. They are interpreted to represent tributaries of a larger submarine channel system, which joined to form a trunk channel to the south. The conglomerate in the southern part is more than 300 m thick, composed of subequal proportions of Facies A, B, and C conglomerates, and overlain by hundreds of m-thick turbidite sandstones (Facies D) with scarce intervening fine-grained deposits. It is interpreted as vertically stacked and interconnected channel bodies formed by a trunk channel confined along the axis of the foredeep trough. The channel bodies in the southern part are classified into 5 architectural elements on the basis of large-scale bed geometry and sedimentary facies: (1) stacked sheets, indicative of bedload deposition by turbidity currents and typical of broad gravel bars in terrestrial gravelly braided rivers, (2) laterally-inclined strata, suggestive of lateral accretion with respect to paleocurrent direction and related to spiral flows in curved channel segments around bars, (3) foreset strata, interpreted as the deposits of targe gravel dunes that have migrated downstream under quasi-steady turbidity currents, (4) hollow fills, which are filling thalwegs, minor channels, and local scours, and (5) mass-flow deposits of Facies C. The stacked sheets, laterally inclined strata, and hollow fills are laterally transitional to one another, reflecting juxtaposed geomorphic units of deep-sea channel systems. It is noticeable that the channel bodies in the southern part are of feet stacked toward the east, indicating eastward migration of the channel thalwegs. The laterally inclined strata also dip dominantly to the east. These features suggest that the trunk channel of the Lago Sofia submarine channel system gradually migrated eastward. The eastward channel migration is Interpreted to be due to tectonic forcing imposed by the subduction of an oceanic plate beneath the Andean Cordillera just to the west of the Lago Sofia submarine channel.

The value relevance of R&D expenditures according to the age of the replaced CEO (연구개발지출과 기업가치의 관계에 교체된 경영자의 나이가 미치는 영향)

  • Ha, Seok-tae;Kim, Eun-sil;Cho, Seong-pyo
    • Journal of Technology Innovation
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    • v.30 no.3
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    • pp.1-34
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    • 2022
  • This study examines the effect of CEO age on the value relevance of R&D which is the relationship between R&D expenditures and firm value. The value relevance of R&D expenditures is higher in companies with current older CEOs, while the relationship in companies with younger CEOs is lower than that of other companies. These results suggest that older CEOs tend to be conservative and make prudent R&D investment decisions. Because they make systematic investment decisions with rich experience, they are expected to have higher investment performance in the market. On the other hand, young CEOs choose risky investments in order to have their abilities highly evaluated in the labor market. The market places a high degree of risk on the R&D decision-making of young CEOs. Next, we analyze whether the age of the replaced CEOs affects the relationship between R&D expenditures and firm value. The result shows that the change of management increases the effect of R&D expenditure on firm value. However, in the case of being replaced by a younger CEO, this positive relationship becomes lower than that of other companies, showing results consistent with the case of the current younger CEO. The samples are analyzed by dividing them into conglomerates and non-conglomerates. In conglomerates, the age of the replaced CEOs does not affect the value relevance of R&D expenditures. Only non-conglomerates showed a negative (-) effect on the replaced younger CEOs. These results suggest that conglomerates maintain the stability of R&D management and performance so that the performance of R&D expenditures is not significantly affected by the age of the replaced CEOs. The reason is that mutual checks and support are coordinated within the group through decentralization of work and systematization of decision-making. This study shows evidence that the relationship between R&D expenditure and firm value according to the age of the replaced CEO is a phenomenon that only occurs in non-conglomerates. This phenomenon suggests that conglomerates are stably managing their R&D performance regardless of the change of CEOs or the characteristics of the CEOs.