Logistics sector could become another area of chaebol work funnelling

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Don’t be put off by the confusing headline. “Work funnelling” is the Korean term for the way the country’s chaebols – conglomerates such as Hyundai, Samsung and Hanjin – unfairly contract work to subsidiaries within the same organisation. In this case, it appears that Samsung SDS, the group’s IT services provider, has been awarded the logistics contracts for Samsung’s numerous other arms. Firstly this is a concern for Samsung’s existing logistics providers, but secondly, the experience it gains will be ...