Study On The Corporate Governance Of Korean Chaebol

Nowadays, all the enterprises have to face with fierce market competition with the trend of increasing economic globalization. Perfect corporate governance can effectively strengthen corporate competitiveness. Therefore, corporate governance has become a hot topic in the world for these years.Although Chaebol had made great contribution to the rapid development of Korean economy, they couldn't withstand the attack of Asian financial crisis. It was found that the low level of corporate governance was one of the main reasons that Chaebol were hit hard in the financial crisis. After the Asian financial crisis, a great adjustment in the corporate governance of Chaebol has been made, and it has contributed to the recovery of the economy in Korea. As neighbors, Korea has a close relationship with China, and the two countries have some similar points in the cultural consciousness and economy development. The corporate governance of the two countries also has some characteristics that are different from the western countries'. By studying the development of Korea Chaebol and the reform process of their corporate governance, we can gain some experience that is worth referring. It is significant for the improvement of Chinese enterprises' corporate governance and the enhancement of their international competitiveness.This paper summarized the development of Korean Chaebol, and then described the status and problems of corporate governance in Chaebol. From the view of internal and external corporate governance, the paper gave a detailed description of the reform in Korea after the Asian financial crisis, such as the protection of the shareholder's rights and the construction of director board and so on. It also chose Samsung Group and Hyundai Motor Group to analyze the improvement of their corporate governance, and then made a comparison of corporate governance between China and Korea. Based on the above information, using the data of some Chaebol, the paper made an empirical research on the effect of the reform to the performance of companies. In the last part of the paper, we analyzed the situation of corporate governance in China, and made suggestions from internal and external governance which inspired by the experience of Korea's corporate governance.