By Clifford Hwang
Over the past year, the heirs of Lotte, South Korea’s
fifth-largest conglomerate, have been embroiled in a winner-takes-all battle
for control of the company. When the elder heir was first kicked out of
management, he enlisted the help of the chairman and other family members to
regain power. Over the summer, the younger heir dethroned their father and, for
now, has consolidated control of the conglomerate. Such stories are all too
commonplace for South Korea’s family-run conglomerates, known as chaebol, and such problems may pose
serious problems for the South Korean economy. The volatility created by family
feuds and complex business structures can be alarming to investors, who are
calling for better corporate governance. To learn more about the feud, read the
full
article online at the New York Times.
