The transformation of the role of financial industrial groups (chaebol) in the economic and political life of South Korea from 1998 to 2013

The system of financial industrial groups (chaebol) plays a significant role in the economic and political life of South Korea. This system has demonstrated an outstanding ability to adjust to different tendencies on each particular historical stage of the country's development, effectively responding to new changes and challenges in the world political, economic and social space. This article investigates the historical period starting from 1998 and up to 2013 as well as consistent transformation of chaebol's role and influence on political and economic life in South Korea during the analyzed period. Various mechanisms used by chaebol to influence the political and economic life of South Korea are pointed out. It is important to mention that the end of the 1990s and the beginning of the 2000s became a special stage not only in the process of development of South Korean chaebol but also in the world economic and political life, because, on the one hand, at that time the global process of integration of the world economic system was progressing at a fast pace. On the other hand, some economic events such as Asian financial crisis of 1997-1998 caused re-estimation of the process of integration in the global society itself. The analyzed period became a prominent stage in the process of chaebol's development due to the fact that it was the time of the final transformation of chaebol's mostly passive role into active. Moreover, the significance and influence of chaebol in the political life increased and their connection with the South Korean political elite moved to a new level. Such a change was connected with stabilization and strengthening of the democratic regime in South Korea by the end of the 1990s as well as with sufficient development of democratic institutions which became the reason of transformation of relationships between Korean companies and political leaders. The historical background which prepared the ground for such drastic changes in the role of chaebol in South Korea is also investigated in the article. Special attention is paid to the influence and consequences of the Asian financial crisis of 1997-1998 and, especially, government reforms in the transformation of Korean conglomerates. The after-reform stage in the development of chaebol is specifically emphasized in the article because it was a turning point in the process of companies' awareness of their possibilities and level of influence and the time when they managed to consolidate their efforts successfully. In fact, during the period following after the Asian financial crisis, the interests of South Korean government and conglomerates diverged considerably for the first time and, thus, chaebol started their active resistance to government reforms. Special attention is paid to the mechanisms of involvement of democratic institutions and mass media in the political activities of chaebol. Also the specific traits of relationships between Korean conglomerates and government at the current stage are pointed out.

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