South Korea's chaebols feel the heat as shareholders scrap Samsung merger

FINALLY FED UP: Investor backlash led Samsung Heavy Industries and Samsung Engineering, affiliates of Samsung Group, to abandon a US$2.5bil (RM8.39bil) merger.

SEOUL: Investors are challenging the unilateral decisions made by South Korea's biggest family-run firms, putting pressure on the chaebols that form the backbone of Asia's fourth-largest economy to take their interests into consideration. 

This week, investor backlash led Samsung Heavy Industries and Samsung Engineering, affiliates of Samsung Group, to abandon a US$2.5bil (RM8.39bil) merger. Investor anger at a US$10bil (RM33.56bil) property purchase by a consortium led by Hyundai Motor also triggered a rare share buyback by the automaker and its affiliate Kia Motors this month.