Yulsan Group

Yulsan Group
Company typeChaebol
Industry
  • Construction
  • Hotels
  • Electronics
FoundedJune 17, 1975 (1975-06-17)
Defunct1979 (1979)
FateDissolved
Headquarters,
South Korea
Divisions
List of divisions
  • Yulsan Industries
  • Yulsan Construction
  • Yulsan Aluminium
  • Yulsan Electronics
  • Yulsan Maritime
  • Yulsan Heavy Industries
  • Yulsan Engineering
  • Yulsan Shoes
  • Kwangsong Leathers
  • Kyonghung Products
  • Kyonghung Products
  • Seoul Combined Terminal
  • Hotel Naejang-san
  • Tonga Industries
  • Yusin Tourist

Yulsan Group was a South Korean chaebol active from 1975 to 1979 and notable for the scandal surrounding its demise.

History

Foundation

Yulsan Group was founded on 17 June 1975 by Shin Sun-Ho as an exporter of construction materials.[1][2] Its first primary business was the export of building materials to the Middle East.[3]

Collapse

In 1978, Yulsan was convicted of violating Saudi Arabian law regarding the prohibition of wholesale or retail activities by foreigners, with the resulting fine causing severe damage to Yulsan's financial position.[2] In addition, the South Korean government enacted a ban on cement exports as an inflation reduction measure.[4]

Shin Sun-Ho was arrested on 4 April 1979 on charges of embezzlement and violations of the Foreign Exchange Control Act.[5] Shin was accused of faking documents in order to secure bank loans.[6] Furthermore, he was believed to have been assisted by influential members of the government.[7] Afterwards, the group was liquidated.[1]

Operations

The Yulsan Group largely operated in the fields of construction, hotels, and electronics.[8] It consisted of fourteen affiliated companies.[9][2]

References

  1. ^ a b Park, Hun Joo (2007-08-01). "Small Business' Place in the South Korean State–Society Relations". Asian Journal of Political Science. 15 (2): 195–218. doi:10.1080/02185370701511560. ISSN 0218-5377.
  2. ^ a b c United States Joint Publications Research Service (1979-08-06). Korean Affairs Report No. 34. Internet Archive.
  3. ^ Myong-sik, Kim (1978-07-31). "Man with unlimited business expectations". The Times. Korea Exports, VIII.
  4. ^ Hallwood, Paul (1981). Oil, debt, and development : OPEC in the Third World. Internet Archive. London ; Boston : Allen & Unwin. pp. 142–143. ISBN 978-0-04-382027-8.
  5. ^ "률산 신선호씨구속". 매일경제 (in Korean). 1979-04-04. Retrieved 2025-12-28.
  6. ^ Shim, Jae Hoon (1979-04-18). "Korea's Yulsan Scandal Unfolds". The New York Times. Section D, Page 1.
  7. ^ Bun Woong Kim (1985-01-01). Administrative Dynamics and Development: The Korean Experience. Internet Archive. Kyobo. p. 27. ISBN 9781563243875.
  8. ^ Utterstrom, Lennart (1979-05-04). "When a whizz-kid crashes". Birmingham Evening Mail. p. 19. Retrieved 2025-12-28.
  9. ^ "율산산하기업 분산매각|부채 1,550억…다팔아도 모자라" [Yulsan Group's Subsidiaries Sold Off in Pieces Debt of 155 Billion Won... Even Selling Everything Won't Cover It]. 중앙일보 (in Korean). 1979-04-06. Retrieved 2025-12-29.