Rich guys’ governance

Korean conglomerate Samsung is right to restructure following its chairman Lee Kun-hee’s ignominious resignation. The chaebol structure, characterised by tight control and interlocking shareholdings, was suited to an impoverished South Korea without free capital markets. In a capital-rich Korea, with access to domestic and international markets, Samsung and its ilk should voluntarily decentralise to maximise shareholder and economic value. Breaking up the chaebol has long been favoured by some ...