Chaebol and Korean business groups explained
Reviewed October 15, 2026
A chaebol (재벌) is a family-controlled business group: many listed and unlisted companies linked by shareholdings and run as one group. Samsung, SK, Hyundai Motor, LG, Lotte, Hanwha and HD Hyundai are the best known.
General information only, not investment, legal or tax advice. Rules change: check the official sources linked here and your broker before you act.
Official business groups
Every year (around 1 May) the Korea Fair Trade Commission designates large business groups. Groups with total assets of ₩5 trillion or more must disclose more about deals between their companies; the largest groups also face limits on cross-shareholdings and debt guarantees between affiliates. JONBUR's Groups pages list each group's listed companies.
How groups are controlled
Families often control a group with a fairly small direct stake, through a holding company (지주회사) or a chain of shareholdings between affiliates. Holding companies and their listed subsidiaries both trade, which can lead to 'holding company discounts'.
Why it matters to shareholders
Group structure affects dividends, deals between affiliates, mergers and spin-offs, and succession. It's one of the reasons often given for the 'Korea discount' (see the Value-up guide).
Business groups on JONBUR
Stocks mentioned
Questions people ask
What does chaebol mean?
A large family-controlled business group in Korea, made up of many affiliated companies, such as Samsung, SK, Hyundai Motor or LG.
Who decides which groups are official business groups?
The Korea Fair Trade Commission, every year, based on total assets.
What is a holding company in Korea?
A company (지주회사) whose main business is owning shares in the group's other companies. Many groups have reorganised under one.