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390 points AndrewDucker | 1 comments | | HN request time: 0.213s | source
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wonjohnchoi ◴[] No.21830642[source]
Samsung is responsible for a large portion of GDP in Korea. Arguably, Samsung has contributed a lot to Korea's "Miracle on the Han River".

With Korea's current progressive "Moon's" government, Korea is going through a lot of changes (higher minimum wage, a lot of focus on gender equality, stronger labor union, shorter work hours, stronger punishment for corruptions within companies, etc), and traditional "chaebol" companies are having trouble adapting to some of these changes. There are also a lot of eyeballs on past and current shady behaviors by "chaebol" companies. As one of the biggest "chaebol" companies, Samsung is also being affected by the changes, and this article shows one of them.

One question I have is how beneficial these changes would be for GDP of Korea. On paper, these changes sound nice as they would benefit employees and make things "fair". But changing things dramatically can have side effects (ex. higher minimum wage led to many small shops closing). More regulations might limit Samsung's ability to compete internationally, which is bad as Samsung (and Korea in general) rely heavily on export-based economy.

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1. Animats ◴[] No.21831740[source]
Traditional "chaebol" companies are having trouble adapting to some of these changes.

It shocked a lot of people, inside and outside South Korea, when Hanjin Shipping was allowed to go bust. Not resold, reorganized, but immediate bankruptcy and liquidation. Management was expecting a bailout right up to the end. Ships were stuck all over the planet, and empty blue Hanjin containers piled up in ports.

That's when the chaebol realized the rules have changed.