Chaebols are large, family controlled South Korean business conglomerates, such as Samsung, Hyundai and LG. The word stems from chae meaning wealth or property and pol meaning faction or clan. Chaebols are global multinationals, typically owning numerous international enterprises. From a procurement perspective, both the chaebol and the Japanese keiretsu represent a form of vertical integration. Mutual share ownership between participants in the same supply chain changes the relationship between ‘buyer’ and ‘seller’, reducing the likelihood of opportunism and creating a framework for potential cooperation. See also Integration, Vertical and Keiretsu.

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Discover the world’s largest Glossary of Procurement terms

With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.