How did chaebol such as Samsung and Hyundai contribute to South Korea’s economic growth?

Following the Korean War, South Korea underwent a rapid transformation known as the "miracle on the Han River," evolving from an agrarian society into a global industrial and technology leader. Central to this growth were chaebol—large, family-controlled conglomerates such as Samsung and Hyundai—which functioned as the primary engines of the nation's manufacturing sector.12

Starting in the 1960s, the South Korean government implemented export-oriented industrialization strategies, providing significant support to these conglomerates to develop targeted industries, ranging from textiles and light manufacturing to heavy industries like steel, chemicals, and eventually high-technology sectors like automobiles and electronics. By the early 21st century, these chaebol were responsible for approximately two-thirds of South Korea’s exports and attracted the majority of the country's foreign capital.132

While this cooperative relationship between the government and the chaebol successfully fueled rapid economic growth, it also fostered monopolies and concentrated significant economic and political power within a few families, leading to concerns regarding corruption and the stifling of smaller enterprises.23