Capitalism in South Korea – Hyundai as an Example for the Chaebol Business Model

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Capitalism in South Korea – Hyundai as an example for the Chaebol business model Julian Tegeler Global Economics Igmar Niemann Hyundai was founded after the end of World War 2 in 1947 by Chung Ju-Yung, a son of a poor farming family in the north of Korea. When he was 17 he left his home to make his dream of becoming an entrepreneur come true. He first started a rice wholesale business that he had to give up during the Japanese occupation of Korea. After the war ended he started a repair service for the cars of the US military that was stationed in Korea. This endeavor later led to the founding of the Hyundai. The company started of as an engineering and civil construction business that helped to build up an infrastructure after the war. Hyundai expanded in the 1950s and started to build infrastructure projects in other countries, especially in the new port building and managing division. Hyundai Industries build most of the infrastructure for the fast growing Korean economy and this led to a strong connection between Hyundai and the Korean government. Chung Ju-Yung always had full control over Hyundai’s operations and he remained strict control over Korea’s first diverse corporate conglomerate, or chaebol. With the aid of American Allies and the partnership of the new Korean democratic government, Hyundai Group grew and helped the country to enter the 20th century world stage as a viable and progressive nation. The government coup in 1961 by General Park Chung Hee (a Nationalist) set the stage for the industrial transformation of South Korea from an agrarian nation into the economic powerhouse that it has become. General Hee was determined to not let Korea remain merely an agricultural and backward country, he intended to set his country on a path to strength and independence, and secure a better standard of living for South Korean citizens. General Hee

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