South Korean family-run business conglomerate
A chaebol ( CHAY-bəl, CHAY-bol,[1][2] CHAY-bohl, JEB-əl;[3] Korean: 재벌 [tɕɛbʌɭ] ⓘ, lit. 'rich family' or 'financial clique') is a large industrial South Korean conglomerate run and controlled by an individual or family.[3] A chaebol often consists of multiple diversified affiliates, controlled by a person or group.[4] Several dozen large South Korean family-controlled corporate groups fall under this definition. The term first appeared in English text in 1972.[3]
Chaebol have also played a significant role in South Korean politics. In 1988, a member of a chaebol family, Chung Mong-joon, president of Hyundai Heavy Industries, successfully ran for the National Assembly of South Korea. Other business leaders were also chosen to be members of the National Assembly through proportional representation.[5] Hyundai has made efforts in the thawing of North Korean relations, despite some controversy.[6] Many South Korean family-run chaebol have been criticised for low dividend payouts and other governance practices that favor controlling shareholders at the expense of ordinary investors.[7]