The role of financial industrial groups (chaebol) in foreign economic and political relationships of South Korea in 1980s-2000s

The system of financial industrial groups (chaebol) being the main driving force of economy in South Korea also plays a significant role in foreign economic and political activities of the country. First and foremost, Korean enterprises originally were an inseparable part of the foreign markets entry strategy and a basis for the development of export-led economy. Second, increasing its industrial, economic and financial possibilities chaebol started to obtain enough power to have a considerable and sometimes decisive impact on the formation of the foreign policy general line in South Korea. Key events in the sphere of foreign policy of South Korea in 1980-2000 and its most important transformations are analyzed in this article. The influence of specific traits of foreign policy transformation on the system of financial industrial groups chaebol, and how this influence determined the mechanisms of chaebol's involvement in the process of creation and maintaining of foreign economic and political relationships are also analyzed. The overwhelming majority of all trade agreements were made taking into consideration the interests of chaebol on each particular stage of their development. The transformation of Korean domestic companies into transnational and its systematic and smooth entrance into integration processes on a global scale determined its consistent and more intense engagement in the sphere of foreign policy. Special attention is paid to the connection of South Korean government and chaebol and government's impact on the integration policy and external contacts of Korean enterprises on the international level. Moreover, various mechanisms and possibilities chaebol used for establishing its active and independent participation in the sphere of foreign policy and economy are investigated in the article. In the end, with the increasing influence of chaebol, its priorities started to have a decisive impact in the process of forming the main foreign policy line of South Korea. Depending on a particular historical stage of development, the transformation of preferences related to choosing foreign partners and allies in accordance with the changing interests of chaebol is investigated in the article. Taking into consideration those preferences, most preferable groups of countries included countries with cheap labor force, countries with rapidly growing markets for products produced by Korean companies, oil and raw materials producing countries, etc. The absence of other significant and influential competitors defined the fact that only chaebol were able to become independent and active participants of foreign relationships in South Korea and managed to achieve great success in this sphere. However, their success and influence increased the negative consequences of their dominance in economy such as widespread bribes, clan systems, absence of free competition and stagnation of Korean companies.

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