Understanding specific economic regulations is crucial when discussing business or news related to South Korea. This guide focuses on the Korean term 상호출자제한 (Sangho Chulja Jehan), which refers to restrictions on cross-shareholding among large business groups, a key concept in Korean corporate governance and fair trade law. You’ll learn the core term, related vocabulary, and how it’s used in context.
Table Of Content
Core Expression
- Expression: 상호출자제한 (相互出資制限)
Pronunciation: sang-ho chul-ja je-han
Meaning: Restriction on cross-shareholding (Mutual Investment Limitation). This regulation prevents large conglomerate affiliates from owning excessive shares in each other to limit concentrated economic power.
Related Terminology
This section covers key terms often associated with cross-shareholding restrictions and Korean corporate structures.
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Expression: 대규모기업집단 (大規模企業集團)
Pronunciation: dae-gyu-mo gi-eop jip-dan
Meaning: Large Business Group (often referring to conglomerates subject to specific regulations) -
Expression: 재벌 (財閥)
Pronunciation: jae-beol
Meaning: Chaebol (Korean family-controlled large industrial conglomerate) -
Expression: 공정거래위원회 (公正去來委員會)
Pronunciation: gong-jeong geo-rae wi-won-hoe
Meaning: Fair Trade Commission (Korea’s antitrust watchdog) -
Expression: 계열사 (系列社)
Pronunciation: gye-yeol-sa
Meaning: Affiliate company (a company belonging to the same business group) -
Expression: 순환출자 (循環出資)
Pronunciation: sun-hwan chul-ja
Meaning: Circular shareholding (a complex form of cross-shareholding) -
Expression: 지주회사 (持株會社)
Pronunciation: ji-ju hoe-sa
Meaning: Holding company -
Expression: 독과점 (獨寡占)
Pronunciation: dok-gwa-jeom
Meaning: Monopoly and oligopoly -
Expression: 경제력 집중 (經濟力 集中)
Pronunciation: gyeong-je-ryeok jip-jung
Meaning: Concentration of economic power -
Expression: 공정거래법 (公正去來法)
Pronunciation: gong-jeong geo-rae-beop
Meaning: Fair Trade Act -
Expression: 자산 총액 (資産 總額)
Pronunciation: ja-san chong-aek
Meaning: Total assets -
Expression: 규제 (規制)
Pronunciation: gyu-je
Meaning: Regulation -
Expression: 지배구조 (支配構造)
Pronunciation: ji-bae gu-jo
Meaning: Governance structure / Control structure
Understanding the Concept
These phrases help explain the purpose and function of the cross-shareholding restriction.
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Expression: 상호출자제한은 대기업 집단의 무분별한 확장을 막기 위한 제도입니다.
Pronunciation: sang-ho chul-ja je-han-eun dae-gi-eop jip-dan-ui mu-bun-byeol-han hwak-jang-eul mak-gi wi-han je-do-im-ni-da.
Meaning: Cross-shareholding restriction is a system to prevent the reckless expansion of large business groups. -
Expression: 특정 기업 집단에 경제력이 과도하게 집중되는 것을 방지합니다.
Pronunciation: teuk-jeong gi-eop jip-dan-e gyeong-je-ryeok-i gwa-do-ha-ge jip-jung-doe-neun geos-eul bang-ji-ham-ni-da.
Meaning: It prevents excessive concentration of economic power in specific business groups. -
Expression: 계열사 간 상호출자는 지배력을 강화하는 수단으로 사용될 수 있습니다.
Pronunciation: gye-yeol-sa gan sang-ho chul-ja-neun ji-bae-ryeok-eul gang-hwa-ha-neun su-dan-eu-ro sa-yong-doel su it-seum-ni-da.
Meaning: Cross-shareholding between affiliates can be used as a means to strengthen control. -
Expression: 공정위는 매년 상호출자제한 기업집단을 지정합니다.
Pronunciation: gong-jeong-wi-neun mae-nyeon sang-ho chul-ja je-han gi-eop jip-dan-eul ji-jeong-ham-ni-da.
Meaning: The Fair Trade Commission designates business groups subject to cross-shareholding restrictions every year. -
Expression: 자산 총액이 일정 기준 이상인 기업집단이 대상입니다.
Pronunciation: ja-san chong-aeg-i il-jeong gi-jun i-sang-in gi-eop jip-dan-i dae-sang-im-ni-da.
Meaning: Business groups whose total assets exceed a certain threshold are subject to this. -
Expression: 이 규제는 시장의 공정한 경쟁을 촉진하기 위한 것입니다.
Pronunciation: i gyu-je-neun si-jang-ui gong-jeong-han gyeong-jaeng-eul chok-jin-ha-gi wi-han geos-im-ni-da.
Meaning: This regulation is intended to promote fair competition in the market. -
Expression: 상호출자제한 위반 시 과징금이 부과될 수 있습니다.
Pronunciation: sang-ho chul-ja je-han wi-ban si gwa-jing-geum-i bu-gwa-doel su it-seum-ni-da.
Meaning: Penalties (fines) may be imposed for violating cross-shareholding restrictions. -
Expression: 지주회사 체제로 전환하면 상호출자 규제에서 벗어날 수 있습니다.
Pronunciation: ji-ju hoe-sa che-je-ro jeon-hwan-ha-myeon sang-ho chul-ja gyu-je-e-seo beo-seo-nal su it-seum-ni-da.
Meaning: Converting to a holding company structure can exempt a group from cross-shareholding regulations. -
Expression: 상호출자제한 제도는 한국의 독특한 기업 환경을 반영합니다.
Pronunciation: sang-ho chul-ja je-han je-do-neun han-gug-ui dok-teuk-han gi-eop hwan-gyeong-eul ban-yeong-ham-ni-da.
Meaning: The cross-shareholding restriction system reflects Korea’s unique corporate environment. -
Expression: 이 제도의 실효성에 대한 논의가 계속되고 있습니다.
Pronunciation: i je-do-ui sil-hyo-seong-e dae-han non-ui-ga gye-sok-doe-go it-seum-ni-da.
Meaning: Discussions about the effectiveness of this system are ongoing. -
Expression: 외국인 투자자들은 이 규제를 이해하는 것이 중요합니다.
Pronunciation: oe-gug-in tu-ja-ja-deur-eun i gyu-je-reul i-hae-ha-neun geos-i jung-yo-ham-ni-da.
Meaning: It is important for foreign investors to understand this regulation. -
Expression: 상호출자 금지는 계열사 간 자본 이동을 제한합니다.
Pronunciation: sang-ho chul-ja geum-ji-neun gye-yeol-sa gan ja-bon i-dong-eul je-han-ham-ni-da.
Meaning: The prohibition of cross-shareholding restricts capital movement between affiliates.
Contextual Usage
Here are examples of how “상호출자제한” might be used in sentences, such as in news reports or business discussions.
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Expression: A 그룹은 올해 상호출자제한 기업집단으로 신규 지정되었습니다.
Pronunciation: ei geu-rub-eun ol-hae sang-ho chul-ja je-han gi-eop jip-dan-eu-ro sin-gyu ji-jeong-doe-eot-seum-ni-da.
Meaning: Group A was newly designated as a business group subject to cross-shareholding restrictions this year. -
Expression: 정부는 상호출자제한 기준 완화를 검토 중입니다.
Pronunciation: jeong-bu-neun sang-ho chul-ja je-han gi-jun wan-hwa-reul geom-to jung-im-ni-da.
Meaning: The government is considering easing the criteria for cross-shareholding restrictions. -
Expression: 상호출자제한 때문에 신규 투자가 어렵다는 의견도 있습니다.
Pronunciation: sang-ho chul-ja je-han ttae-mun-e sin-gyu tu-ja-ga eo-ryeop-da-neun ui-gyeon-do it-seum-ni-da.
Meaning: There are also opinions that new investment is difficult due to cross-shareholding restrictions. -
Expression: 해당 기업은 상호출자 관계를 해소하기 위해 노력하고 있습니다.
Pronunciation: hae-dang gi-eob-eun sang-ho chul-ja gwan-gye-reul hae-so-ha-gi wi-hae no-ryeok-ha-go it-seum-ni-da.
Meaning: The company is making efforts to resolve its cross-shareholding relationships. -
Expression: 상호출자제한은 재벌 개혁의 핵심 과제 중 하나였습니다.
Pronunciation: sang-ho chul-ja je-han-eun jae-beol gae-hyeog-ui haek-sim gwa-je jung ha-na-yeot-seum-ni-da.
Meaning: Cross-shareholding restriction was one of the core tasks of Chaebol reform. -
Expression: 공정거래법 개정안에 상호출자제한 관련 내용이 포함되었습니다.
Pronunciation: gong-jeong geo-rae-beop gae-jeong-an-e sang-ho chul-ja je-han gwal-lyeon nae-yong-i po-ham-doe-eot-seum-ni-da.
Meaning: The revised Fair Trade Act includes content related to cross-shareholding restrictions. -
Expression: 상호출자제한 대상 기업 리스트는 매년 5월에 발표됩니다.
Pronunciation: sang-ho chul-ja je-han dae-sang gi-eop ri-seu-teu-neun mae-nyeon o-wor-e bal-pyo-doem-ni-da.
Meaning: The list of companies subject to cross-shareholding restrictions is announced every May. -
Expression: 순환출자 구조는 상호출자제한 규제를 우회하기 위한 방법으로 지적받기도 합니다.
Pronunciation: sun-hwan chul-ja gu-jo-neun sang-ho chul-ja je-han gyu-je-reul u-hoe-ha-gi wi-han bang-beob-eu-ro ji-jeok-bat-gi-do ham-ni-da.
Meaning: Circular shareholding structures are sometimes pointed out as a way to circumvent cross-shareholding regulations. -
Expression: 상호출자제한 규정이 기업의 경쟁력을 약화시킨다는 비판도 있습니다.
Pronunciation: sang-ho chul-ja je-han gyu-jeong-i gi-eob-ui gyeong-jaeng-ryeog-eul yak-hwa-si-kin-da-neun bi-pan-do it-seum-ni-da.
Meaning: There is also criticism that cross-shareholding regulations weaken corporate competitiveness. -
Expression: 투자 결정을 내리기 전에 상호출자제한 관련 규정을 확인해야 합니다.
Pronunciation: tu-ja gyeol-jeong-eul nae-ri-gi jeon-e sang-ho chul-ja je-han gwal-lyeon gyu-jeong-eul hwag-in-hae-ya ham-ni-da.
Meaning: Before making an investment decision, you must check the regulations related to cross-shareholding restrictions. -
Expression: 이 보고서는 상호출자제한 제도의 경제적 효과를 분석합니다.
Pronunciation: i bo-go-seo-neun sang-ho chul-ja je-han je-do-ui gyeong-je-jeok hyo-gwa-reul bun-seok-ham-ni-da.
Meaning: This report analyzes the economic effects of the cross-shareholding restriction system. -
Expression: 상호출자제한은 한국 자본시장만의 특징적인 규제입니다.
Pronunciation: sang-ho chul-ja je-han-eun han-guk ja-bon-si-jang-man-ui teuk-jing-jeog-in gyu-je-im-ni-da.
Meaning: Cross-shareholding restriction is a characteristic regulation unique to the Korean capital market.
Korean Culture Notes
Understanding the context of “상호출자제한” involves understanding the role of large conglomerates (Chaebols) in Korea.
- Chaebol Dominance: The Korean economy has historically been dominated by large, family-controlled conglomerates known as 재벌 (jae-beol). Their significant influence across various industries led to concerns about market fairness and economic power concentration.
- Purpose of Regulation: Regulations like 상호출자제한 (sang-ho chul-ja je-han) were implemented primarily by the 공정거래위원회 (gong-jeong geo-rae wi-won-hoe) to curb the potential negative effects of Chaebol dominance, such as limiting competition and enabling owner families to maintain control with relatively small direct shareholdings through complex ownership structures like cross-shareholding and circular shareholding (순환출자 – sun-hwan chul-ja).
- Public Perception: There’s ongoing public and political debate about Chaebols and related regulations. While recognized for their role in Korea’s rapid economic growth, concerns about corporate governance, transparency, and fair competition persist. Understanding terms like 상호출자제한 helps grasp these societal discussions.
- Shift to Holding Companies: To navigate regulations like cross-shareholding restrictions and improve governance transparency (at least structurally), many large business groups have transitioned or are transitioning to a 지주회사 (ji-ju hoe-sa – holding company) structure.
- Economic Policy Indicator: Changes to the criteria or enforcement of 상호출자제한 often reflect the government’s current stance on economic policy, particularly regarding large corporations versus small and medium-sized enterprises, and fair market practices.
Real Conversation Example
Situation: Two colleagues are discussing a recent news article about the Fair Trade Commission’s annual designation of large business groups.
Roles:
* A: Minjun (Regular employee interested in economics)
* B: Jiwon (Employee with more business knowledge)
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Expression: A: 지원 씨, 오늘 뉴스 봤어요? 공정위에서 상호출자제한 기업집단 명단을 발표했더라고요.
Pronunciation: ji-won ssi, o-neul nyu-seu bwat-seo-yo? gong-jeong-wi-e-seo sang-ho chul-ja je-han gi-eop jip-dan myeong-dan-eul bal-pyo-haet-deo-ra-go-yo.
Meaning: Jiwon, did you see the news today? The Fair Trade Commission announced the list of business groups subject to cross-shareholding restrictions. -
Expression: B: 아, 네. 봤어요. 올해 새로 포함된 그룹도 몇 개 있더군요. 상호출자제한이 정확히 어떤 규제인지 가끔 헷갈려요.
Pronunciation: a, ne. bwat-seo-yo. ol-hae sae-ro po-ham-doen geu-rup-do myeot gae it-deo-gun-yo. sang-ho chul-ja je-han-i jeong-hwak-hi eo-tteon gyu-je-in-ji ga-kkeum het-gal-lyeo-yo.
Meaning: Ah, yes. I saw it. There were a few groups newly included this year. I sometimes get confused about what exactly the cross-shareholding restriction entails. -
Expression: A: 저도 자세히는 모르지만, 대규모 기업집단에 속한 계열사들이 서로 주식을 너무 많이 갖지 못하게 하는 거잖아요? 경제력 집중을 막으려고요.
Pronunciation: jeo-do ja-se-hi-neun mo-reu-ji-man, dae-gyu-mo gi-eop jip-dan-e sok-han gye-yeol-sa-deur-i seo-ro ju-sig-eul neo-mu man-i gat-ji mot-ha-ge ha-neun geo-ja-na-yo? gyeong-je-ryeok jip-jung-eul mag-eu-ryeo-go-yo.
Meaning: I don’t know the details either, but it’s about preventing affiliated companies within a large business group from holding too much stock in each other, right? To prevent the concentration of economic power. -
Expression: B: 맞아요. 자산 총액 기준으로 매년 대상 그룹을 정하죠. 상호출자나 순환출자 같은 복잡한 지배구조를 개선하려는 목적도 있고요.
Pronunciation: maj-a-yo. ja-san chong-aek gi-jun-eu-ro mae-nyeon dae-sang geu-rub-eul jeong-ha-jyo. sang-ho chul-ja-na sun-hwan chul-ja gat-eun bok-jap-han ji-bae-gu-jo-reul gae-seon-ha-ryeo-neun mok-jeok-do it-go-yo.
Meaning: That’s right. They determine the target groups annually based on total assets. It also aims to improve complex governance structures like cross-shareholding or circular shareholding. -
Expression: A: 그렇군요. 그럼 상호출자제한 대상이 되면 기업 활동에 제약이 많겠네요.
Pronunciation: geu-reot-gun-yo. geu-reom sang-ho chul-ja je-han dae-sang-i doe-myeon gi-eop hwal-dong-e je-yag-i man-ket-ne-yo.
Meaning: I see. Then, if a group becomes subject to cross-shareholding restrictions, there must be many constraints on its business activities. -
Expression: B: 네, 특히 계열사 간 자금 조달이나 투자 결정에 영향을 미칠 수 있죠. 그래서 지주회사로 전환하려는 그룹들이 많은 거고요.
Pronunciation: ne, teuk-hi gye-yeol-sa gan ja-geum jo-dar-i-na tu-ja gyeol-jeong-e yeong-hyang-eul mi-chil su it-jyo. geu-rae-seo ji-ju hoe-sa-ro jeon-hwan-ha-ryeo-neun geu-rup-deur-i man-eun geo-go-yo.
Meaning: Yes, it can especially affect financing between affiliates or investment decisions. That’s why many groups try to convert to a holding company structure.
Practice Tips
Understanding complex terms like 상호출자제한 (sang-ho chul-ja je-han) takes practice! Try reading Korean economic news articles or reports from the 공정거래위원회 (gong-jeong geo-rae wi-won-hoe)~ Pay attention to how this term and related vocabulary like 대규모기업집단 (dae-gyu-mo gi-eop jip-dan) and 계열사 (gye-yeol-sa) are used in context. Discussing these topics with native speakers or fellow advanced learners can also greatly improve your understanding and usage! Good luck with your studies! 화이팅! (hwa-i-ting! – Fighting!)
