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Chapter 4 examined the Hyundai Groups' internal transactions. The core manufacturing companies maintained backward (or upstream) integration with smaller affiliates that supply intermediate goods and parts to them. On the other hand, there are instances of forward (or downstream) integration through a general trading company and domestic sales-related affiliates. Figures A.7.1–A.7.4 show similar patterns of vertical integration in Samsung, LG, Daewoo, and SK Group, respectively. Chapter 6 examined the ownership structure of the SK Group. Figures A.7.5–A.7.8 show a simplified version of equity stakes held by group chairmen and the stakes held by the major affiliates in Samsung, Hyundai, LG, and Daewoo Group, respectively. They demonstrate how major affiliates in each group effectively control small affiliates by owning them singly and jointly, and the chaebol chairmen control all these firms with very small ownership stakes.
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