The "Republic of Samsung" and Korea-Samsung-IT news The "Republic of Samsung" and Korea

Tencent technology message to Bloomberg columnist William Bai Saike (William Pesek) visiting the Korea visit came back to Korea the existing economic situation analysis the author. In his view, head of Samsung's rise and fall in turnover is still is the gate of life for the country's future economic development, but troubled years of the country's chaebol group could in the long term for Korea President Park Geun-Hye (Park Geun Hye) brought in for big trouble.

Following is the content of the article summary:

Often laughs Mr LEE (Lee Jae-yong) now is Korea's biggest hope, is also the largest source of the problem.

Mr LEE, who at age 46, Korea Samsung Electronics next heir apparent in its 72-year old father Lee Kun-hee (Lee Kun-hee), after the hospital was pursued all the media coverage of the target person.

Lee Kun-hee is Korea Samsung Electronics boss, as well as Korea's richest man, underwent surgery in May, he suffered a heart attack patients admitted on emergency medical treatment. Naturally, Korea media's focus began to shift to the younger generation successor to the Lee family who, many analysts and investors have been praying for success as the younger Mr LEE and father to carry the banner of Samsung Group.

Even more important is that as many as 50 million Korea with Lee Kun-hee's future fate is closely related to the hospital. Although the company does not become the national economies of all but Samsung in Korea importance reminds people to such as General Motors in the United States. In the United States there is a saying about GM, namely "where GM go, United States where it go" (as GM goes, so goes America.)

Currently, Samsung is Korea traditional core of several family-owned conglomerates, the chaebol, which contributed to the top five chaebol are almost Korea two-thirds of gross domestic product, but they did not have any one company can compete with Samsung, which owns more than 70 companies, large and small. If Samsung closed tomorrow, Korea 25% GDP will also disappear. Therefore, it's no wonder that Korea could people teasing themselves as "we all live in the Republic of Samsung."

? Samsung next heir apparent Lee Jae

Problem

However, while the Samsung economic status for Korea is important, family inheritance, however that seems to work and there is no significant effect on their global brand image. At present, Samsung has adopted its Galaxy phone and Tablet products establish a good brand image, as shareholders and Samsung for Samsung and other chaebol family's nepotistic management mode and have never had any complaints. It should be noted that is, Korea President Park Geun-Hye (Park Geun Hye) is a will on no occasion did not forget to emphasize creative economy in Korea importance of leaders, but even she has to avoid talking about this trio of this tradition.

In fact, the head of Samsung Group's internal replacement system is a good explanation of Korea faces recession risks. Last week, the Organization for economic cooperation and development of the United Nations (The Organization for Economic Cooperation and Development) has released a report on the Korea report of the economic and structural weaknesses, the report touched on in Korea effort to catch up with Japan in the process of economic development of the opinionated chaebol to this sensitive topic.

In last week's Korea visit days, and more than once I heard about "small and medium enterprises are Korea's economic lifeline" argument. Of course, small and medium enterprises as Korea 87% jobs were created, but the productivity and creativity of these enterprises is quite flat. According to the United Nations of the Organization for economic cooperation and development figures show, even if Korea Government to provide SMEs with more than 1300 governmental cooperation projects, but these small and medium enterprises in reorganization, improved corporate governance processes and develop disruptive products are not successful. Therefore, we believe that Korea limited development of SMEs will continue to maintain the current size and wealth creation.

Government dilemma

Korea President Park Geun-Hye has previously promised to provide more support to start-ups, including angel investors reduce taxes, provide loans for innovation incubator, and want to limit the bureaucracy's way to promote Korea finance, education, health care and the development of tourism. But what I worry about is, Park Geun-Hye, the plan probably could not really play a role, because Korea's real economic problem is that many market dominance of chaebol. For example, if an idea, young entrepreneurs want to make a difference in an area, then he will have to face competition from the chaebol, which almost any dream can easily ruin these entrepreneurs.

Meanwhile, also because of the sheer size of the chaebol, like Korea Google and Uber start-ups such as little as possible. To date, Park Geun-Hye, rather than with the traditional conflict head-on chaebol, because this is the age of her father, Park Chung-hee and helped build up their party model of economic development. Of course, Park Geun-Hye also understood that Korea people's complex feelings of chaebol, that despite these consortia allow Korea faces recession risks, but also to Samsung, Daewoo, Hyundai and LG groups made the proud.

It should be said that President Park setting economic policy is also a paradox in itself. Her one hand on Korea traditional cross-shareholding and nepotism continue to put pressure on the Consortium, combat and also is dependent on these firms to boost domestic economic growth. Last August, Park Geun-Hye even met personally with nine other chaebol leaders, including Lee Kun-hee, and hope that they will further increase investment. This description seems to have a problem, that is, government economic regulations will not harm new Korea traditional vested interests of the chaebol.

It should be noted that is, Korea chaebol bosses are not used to failure. In 2008, Lee was 5 billion dollars by Court of tax evasion. But in just over a year later, was also a former chaebol executives President Lee Myung-bak (Lee Myung Bak) pardoned Lee Kun-hee, that counts. When this Amnesty Act in the recent Korea in the sinking of a ferry once again criticised because more than 300 people have been killed Korea times (Sewol) ferry operation Fang Qinghai town of shipping company (Chonghaejin Marine Co.) Is Korea a medium sized chaebol.

Now, who do not know whether Mr LEE, had received a good Western-style education will become a new leader who has sufficient motivation. But you can be sure of is that in order to keep his own Korea's commitment to economic development, Park Geun-Hye needed in dealing with large scale, and is likely to cause recession in the domestic economy while chaebol to become more hawkish.