Capitalism with South Korean characteristics



Analysis Capitalism with South Korean characteristics 'Preferred Stocks' offer attractive yields for short- to medium-term investors — and bigger payoffs in the long term Daniel TudorMay 17, 2022 SHARE COPY LINK FACEBOOK X LINKEDIN MASTODON Stock market data \| Image: Pixabay One of the features of capitalism in South Korea is that a handful of large conglomerates – chaebol – account for a disproportionate share of GDP and financial markets. The families that run Samsung, Hyundai, and other chaebol use of all manner of devices, such as cross-shareholdings between subsidiaries, that allow them to retain control despite only owning, for instance, five or ten percent of outstanding shares. As a result, the South Korean stock market has more than a hundred examples of listed non-voting shares, known as “Preferred Stock” (우선주). The same phenomenon can be seen stateside. Investors in tech © Korea Risk Group. All rights reserved. No part of this content may be reproduced, distributed, or used for commercial purposes without prior written permission from Korea Risk Group. LATEST ANALYSIS 01Samsung, SK Hynix rejection exposes South Korea’s chip-grid financing problem 02Trump’s Cheongung social media post tests Seoul’s refusal to arm to Ukraine 03Lee Jae Myung risks public trust as South Korea rewires its justice system 04South Korea turns to Central Asia as Iran war tests its energy resilience 05Houthi seizure of Mokha sharpens South Korea’s Hormuz deployment dilemma 06Japan’s stronger yen may cut Korea’s import bill while raising funding costs 07South Korea leans on Europe as Hormuz deployment choices grow narrower 08Hanwha’s Austal bid shows where South Korea’s MASGA plan may be heading

Analysis

Capitalism with South Korean characteristics

'Preferred Stocks' offer attractive yields for short- to medium-term investors — and bigger payoffs in the long term

Daniel TudorMay 17, 2022

Capitalism with South Korean characteristics

Stock market data | Image: Pixabay

One of the features of capitalism in South Korea is that a handful of large conglomerates – chaebol – account for a disproportionate share of GDP and financial markets. The families that run Samsung, Hyundai, and other chaebol use of all manner of devices, such as cross-shareholdings between subsidiaries, that allow them to retain control despite only owning, for instance, five or ten percent of outstanding shares.

As a result, the South Korean stock market has more than a hundred examples of listed non-voting shares, known as “Preferred Stock” (우선주).

The same phenomenon can be seen stateside. Investors in tech

LATEST ANALYSIS

01Samsung, SK Hynix rejection exposes South Korea’s chip-grid financing problem
02Trump’s Cheongung social media post tests Seoul’s refusal to arm to Ukraine
03Lee Jae Myung risks public trust as South Korea rewires its justice system
04South Korea turns to Central Asia as Iran war tests its energy resilience
05Houthi seizure of Mokha sharpens South Korea’s Hormuz deployment dilemma
06Japan’s stronger yen may cut Korea’s import bill while raising funding costs
07South Korea leans on Europe as Hormuz deployment choices grow narrower
08Hanwha’s Austal bid shows where South Korea’s MASGA plan may be heading

Capitalism with South Korean characteristics

LATEST ANALYSIS

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Daniel Tudor