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Korea Set to Crack Down on Chaebols With Corporate Reform

  • Ruling party bills to require auditors from outside boards
  • Revisions aim to lessen economy’s reliance on a few megafirms
Moon, who was elected three years ago on a progressive platform that included overhaul of chaebol business practices, asked lawmakers to approve the bills during an Oct. 28 speech.

Moon, who was elected three years ago on a progressive platform that included overhaul of chaebol business practices, asked lawmakers to approve the bills during an Oct. 28 speech.

Photographer: Jeon Heon-Kyun/Pool/Getty Images
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South Korea is pushing for its most significant reform of corporate governance since President Moon Jae-in took office, a move that could add transparency to top decision-making at large conglomerates that dominate the economy.

The conglomerates, known as chaebols, propelled South Korea’s rise as an export powerhouse. The semiconductors and cars made by the likes of Samsung Electronics Co. and Hyundai Motor Co. have also helped the country emerge from the pandemic slump quicker than many major economies.