Taiwanese economy is based on small and medium-sized enterprise. On the other hand, Korean economy is based on large enterprise which commonly known as “Chaebol”. Recently, more and more people in Taiwan suggest government and business CEOs to follow the step of Korean business model. But, the potential negative influences in this model are ignored.
This research is going to take six indexes which are found in the related literature review to exam the research question “How does Korean Chaebol influence national strategic industry policy?” Six indexes are the competition between chaebols, government bureaucrat, medias, political parties, chamber of commerce and research institutions.
Moreover, six indexes are going to be applied to two cases studies. First case is an industrial policy “10 next-generation industrial policy” which is released by Roh Moo-hyun government (25 Feb, 2003 – 24 Feb, 2008).The second case is “577 initiative” which is released by Lee Myung-bak government (25 Feb, 2008 – 24 Feb, 2013).Therefore, by using the six indexes and two case studies, this research is going to analyze the relation between Korean chaebols and government industrial policies.
Three major findings in this research are listed in following: First, due to the attitude of Roh’s government toward chaebols is not friendly, the direct influence from chaebol to the government is not strong enough. In this regard, chaebols try to influence the government industrial policy by indirect methods, such as media, political party or the pressure of chamber of commerce.
Second, under President Lee’s government, the relation between chaebols and government is much better the predecessor. From 2008 to the end of 2011, Lee’s government and Chaebols reach a common consensus “Chaebol-government community”. The cooperation between both sides is obvious from the government policy and the interaction.
Third, the relation between government and chaebols had changed after president Lee announced his cabinets reshuffle in the end of 2011. After that, chaebols started to look for another political alliance (President candidate Park Geun-hye). Even though the cooperation between government and chaebols was ended, the indirect influences from chaebols to government were still existed.
Chaebol’s influence to government industrial policy would not disappear after political regime change. Moreover, the influence method would redefine itself time by times. This research is trying to figure out the relations between industrial policies and chaebols, and also trying to find out the roles of other indicators (Medias, political parties, chamber of commerce, ect…)