Korea election: What it means for chaebols

As South Korea elects a new leader on Tuesday, the country’s family-run conglomerates are bracing for more challenges.

For stock market investors, South Korea is no doubt the biggest surprise this year.

Much of the attention on the Korean peninsula has been on rising tensions between the South and the North since late last year. At the same time, South Korea’s worsening relationship with China over the deployment of the THAAD anti-missile system has added complications for the Seoul administration.

The Blue House has further been embattled by the corruption scandal surrounding former president Park Geun-hye, and the widespread fallout for some of the country’s leading politicians and entrepreneurs.

It is remarkable that, despite these woes, South Korea has been one...

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