Chaebols

Samsung Gorvenance

Corporate Governance of Samsung

1. Samsung Group’s Corporate Governance Structure “Samsung Electronics Vice Chairman Lee Jae-yong currently controls Samsung Group as a whole based on his grip on Samsung C&T and cross-shareholdings and pyramid ownership structure.” < Samsung Group’s Corporate Governance as of May 15, 2019 (Source: KFTC)> The above diagram shows the Samsung Group’s ownership structure. The chief of the group is Lee Jae-yong, Samsung Electronics Vice Chairman. Mr. Lee controls Samsung Group

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Intra-group Transactions in Korea

1. Transactions between Affiliates Unlike foreign countries, where transactions between affiliates are relatively free, in Korea, when transactions between affiliates are conducted under unfair conditions, fines are imposed, and directors are liable for damages or even criminally punished. This is because, in the past, persons who controlled conglomerates or the heads of chaebols often sought private interests by allowing affiliates to trade on conditions favorable to their own private companies,

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재벌의 기준 총수 승계

Criteria for Determining Chaebols in Korea

1. Criteria for Determining Chaebols “Korea Fair Trade Commission classifies companies with assets of 5 trillion won or more as large business group or Chaebol.” <Succession Status of Chaebol Leaders> Large businesses such as Samsung and Hyundai are called chaebols in Korea. Is there any exact criterion for determining the chaebol? The term chaebol is not based on the law. In the Korea’s Monopoly Regulation and Fair Trade Act (the “Fair Trade Act”) a similar concept

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