Business studies - asian pacific studies Essay Example | Topics and Well Written Essays - 1000 words

Business studies - asian pacific studies - Essay ExampleThe chaebol were guaranteed loans to divert the enthronization form agricultural setups to industrialisation (Song, 1990). With the availability of resources and support of the government, the chaebol played a tactical role in exposing the export commercialize for the Korean economy and set the country among the East Asian Tigers.Most of the success of the chaebol has come from the realisation of the Korean government after in the 1960s and later that they needed the ideas and cooperation of the chaebol to practice much of the governments plans to turn the economy away from consumer driven goods and small industries (Stiglitz, 2001). Furthermore, in return to the chaebols cooperation, the government would extend special favours and allow noncompetitive and oligopolistic presence of these business groups to grow. In addition, these business groups were also facilitated with foreign and domestic investments as loans as the Ko rean government guaranteeing their return if the business group failed to. In the shade of this government support, the chaebol non only helped themselves with huge foreign investments but also benefited from access to foreign technology.Since the chaebol were the only leaders to develop the industrial arena their success came with the expansion of the South Korean exports. The chaebol were solely dominating all industrial sectors with the support of the government and in the 1980s the chaebol were financially independent and did not need any further government assistance. The chaebol were heavily invested in meeting the demand of the export market and had tailored their products in accordingly. They had completely overseen the local market and the opportunities available within the borders of Korea (Stiglitz, 2001).Moreover, by the 1990s, the chaebol had developed oligopolistic competition among themselves and had reached overcapacity which the local market could not have support ed in case of a decline in the