South Korea's family conglomerates will escape reform

Significance

South Korea's conglomerates are symbols of national pride and jobs with them are highly sought after, but their faults are roundly criticised. Samsung, the largest, is widely viewed as too powerful, anti-union and until recently enjoying near-impunity. Moon is determined to change this.

Impacts

• Lawsuits involving the founder's heir will interfere with Samsung's long-term planning.
• Family feuds and hereditary succession pose ever-present risks in a system where conglomerates are owned by founding families.
• Fears that the reforms make firms vulnerable to predatory foreign investors are overblown: foreign holdings are common and usually passive.