They have no technological advantage. It's not healthy. The government also is worried the chaebols will wipe out the smaller, smarter companies once they have absorbed the technology they need. The Ministry of Information and Communication is expected to set up a committee within weeks to promote partnerships between chaebols and start-ups. But he concedes there is little the government can do to stop the chaebols from jumping into the digital age.
Corporate governance is another concern.
The Fair Trading Commission has launched an investigation into allegations that the families that own the chaebols use ventures and spin-offs to illegally transfer wealth and management control to family members. The FTC currently is paying close attention to eSamsung, an affiliate launched earlier this year that is being groomed as a holding company for Samsung's Internet and venture businesses. It's majority-owned by Jae Yong, the son of Samsung Chairman Lee Kun Hee. At issue is whether the company is simply a feint around the government attempts to dilute the family's influence. Samsung's Lim dismisses the argument that chaebols should be restrained from e-commerce.