Advocacy Coalitions in Regulating Big Business in South Korea: Change of Chaebol's Holding Company Policy

Abstract

Although big businesses in South Korea, called chaebol, contributed to the country's rapid economic development, their management governance has been criticized for its large and diversified structure. Thus, the Korean government has attempted to disperse their corporate possessions and to promote independent management of individual firms. Of various chaebol-related regulations, government approval of holding companies was one of the most controversial issues. Changes to the holding company policy caused conflicts among policy actors, including not only chaebol and relevant governmental ministries but also numerous non-governmental organizations (NGOs) and economists. This article analyzes the chaebol holding company policy in Korea by applying the Advocacy Coalition Framework (ACF). In this case, policy participants did not simply act from political and economic interests in the policy process. Rather, related ministers, researchers, NGO leaders and journalists had different interpretations of technical analysis and empirical data about holding companies and approached the policy issue based on their own belief systems. Especially, external policy brokers, such as the International Monetary Fund, the Organisation for Economic Co-operation and Development, and the International Bank for Reconstruction and Development, caused critical policy changes when the roles of domestic policy actors were constrained.