Corporate Empires of Asia: Chaebol, Zaibatsu, Pogo

It's easy to get carried away by the relatively recent wave of modern mega conglomerates that have taken the world by storm, a bulk of which have spun out from the tech and finance sectors. The likes of Alphabet, Meta, and most recently Blackrock have been making headlines over the past few years in the wake of expansion and growth at breakneck speeds.

Now, a constant barrage of controversies for many of these major corporations spark even greater interest. However, among the ruling portion of the business class, less focus from the global stage is placed on the corporate empires of Asia, which are intrinsically different from their Western counterparts.

Asian Corporate Lineages stem from a more traditional foundation, inheriting a richer history that spans beyond the timeline of tech startups from the 80s and early 2000s, both of which were eras where stock valuation, public interest and hype cycles based on perceived innovation propagated freakish growth.

The Asian empires on the other hand, were often born from cold pragmatism and steady business fundamentals, while being pegged heavily to the many winding historical, political and economic developments of particular regions.

Although not as immediately exciting, these corporations were able to achieve remarkable strength in market positioning over the many decades, diversifying into different business lines and capitalising on various opportunities to establish a seemingly stable base line enabling gradual generational conquest. Similar to the tech giants of the West, Asian Corporate Lineages have acquired much power, inevitably leading to cultural and economic influence which of course segues into questionable conduct and controversy.

The following are three of the most prominent Asian corporate lineages:

CHAEBOL

Chaebols simply refer to the largest family run private organisations throughout Korea with Samsung, Hyundai, SK Group, and LG being among the most prominent. More specifically, the chaebol network gained traction in the 60s and comprise large industrial conglomerates often controlled by elite families. The biggest names have grown into global multinational goliaths, controlling multiple diversified affiliates housed under a renowned corporate brand.

In the early 21st century the chaebols were responsible for about two-thirds of South Korea's exports, attracting most of the nation's foreign capital inflows. These organisations also hold a large cultural influence over Korean citizens. Large examinations are often held to determine who gets to enter the workforce of one of the big chaebols. Those who fail are often seen as social invalids or outcasts to a certain degree.

ZAIBATSU

Zaibatsu stems from the combination of two Japanese words which can roughly be translated to "money" "clan". Though self explanatory, the name Zaibatsu is used more to describe a remnant of a time in Japan's tumultous history, referring to several large capitalist enterprises that were developed by rich families after the Meiji Restoration of 1868.

These organisations expanded rapidly during World War I, and continued to control or indirectly influence significant parts of the Japanese economy during World War II. Today, although the control and power of the original money clans such as Mitsubishi, Mitsui, and Sumitomo, have been significantly downplayed, they are still massive drivers of the economy that continue to run various business lines.

POGO

The POGO is an abbreviation for Philippine Offshore Gaming Operators, also recently referred to as Internet Gaming Licensees (IGL). These enterprises represent the network of online gambling firms that operate within the Philippines but cater to a wider base of customers outside of the country and around the world.

Technically, POGOs must be licensed by the Philippine Amusement and Gaming Corporation (PAGCOR), however there have been many allegations against some of the organisations either being totally illegal or having some form of misconduct including slavery, kidnapping, extortion, and exploitation.

In a nutshell, the POGOS are a reflection of the volatile state of the region where various nations are economically incentivised to capitalise on the high demand for gambling infrastructures. However, due to various issues ranging from regulation, sociopolitical tensions and changing cultural ramifications, much of what goes on with POGOs are directly associated to cross border illegitimate business activity.

-Khalid Fadzillah , Head of Research Palindrome PLT