The study looked at how diversification affects the value of Korean companies, focusing on different types of diversification and the impact of the Korean financial crisis. They analyzed data from 1994 to 2000 and found that diversification generally led to a decrease in firm value. Specifically, unrelated diversification lowered firm value, while related diversification had a neutral effect. Interestingly, before the financial crisis, related diversification increased firm value for chaebol-affiliated firms, but after the crisis, it had a negative impact. This suggests that chaebol-affiliated firms struggled to benefit from related diversification post-crisis.