The Impact of Chaebol on the South Korean Economy and Prospects for Future Development

South Korea has one of the fastest growing economies in the world. Although in the 1950s it was one of the poorest countries in the world, in less than a hundred years it became the 12th most developed economy in the world. The main reason for this is the investment in higher education of the population that is at the forefront of technological innovation. The starting point of this thesis is to define chaebols and their importance, not only for the economy of South Korea, but also for other countries around the world. The basis of the economy in South Korea after the Korean War is the so-called chaebol, which is considered a large business conglomerate, that is, a corporation owned mostly by one family. Some of the chaebols are a single corporation, while some consist of groups of companies with the same name. The research was conducted based on the analysis of two world-famous Chaebols – Samsung and Hyundai, and the final results revealed that corporations significantly strengthen the economy of South Korea