Zaibatsu Case Study

1330 Words3 Pages

Introduction
Financial magnate still exists in Hong Kong, Japan, Korea. In the past, the financial magnate changed from plutocrat which has strong relationships with the government. In Korea, they call it chaebol and the Japanese call it zaibatsu. The meaning of it refers to a family or a parent company whose kinship relationship is established by the parent company and owns and owns a business group of subsidiaries of various undertakings. The essay will describe and explain the differences of financial magnates of Hong Kong, Japan, and Korea as well as impact.

The difference of government relationship
Start with Japan, before the Cold War, Zaibatsu had a strong relationship with the government. This is mainly based on mutual benefit and …show more content…

The main Chaebol including Samsung, Hyundai, LG, SK. In 2011, Samsung occupied for 21.9%, modern occupied for 12.6%, SK occupied for 11.7%, LG occupied for 9%, which is more than half of Korea GDP. It shows that Chaebol has a important position in Korean which is unshakeable. Besides, the dominance of the chaebol family is getting stronger and stronger. Their internal shareholding ratio (the proportion of insider holdings), Samsung 47.5%, Hyundai was 49.2%, SK was 64.6%; LG was 44.3. It found that they have a strong family dominance.

Hong Kong Plutocrat can find the significant economic influence as well. They dominate the real estate, port and utility markets, from these industries have achieved trillion yuan of wealth, accounting for 60% of Hong Kong's annual GDP of 60 million dollars. The Plutocrat monopoly controls the lifeline of Hong Kong's economy. Also, the dominance of the Plutocrat family is strong as well. For example, Lee's family occupied for CK Hutchison 30.07% and Cheung Kong Property 30.1%

It shows that they are very similar in economic capacity and structure, and have very important economic status and family dominance is also very obvious. The only difference is that the Japanese Zaibatsu economic impact is relatively similar, different from Korea's Samsung and Hong Kong's Lee …show more content…

More of the Plutocrat cover many different industries such as property, financial and retail industry. They can easily control the supply and price themselves to maximize the interest, but it is a great impact on society. For example, Lee family controls the property supply to prevent the price drop, down which can protect their company interest but it affects the quality life of people. They cannot have enough money to purchase property, it leads people to become utilitarian, all things are based on the interests of the premise. Even it leads to some social issue such child suicide because of parents’ pressure. They think income related to academic qualifications. It shows that Plutocrat has many influences in society, not just only economic

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