[2020 Corporate World Young Power] Younger and Faster Merit-Based Reform Personnel

Hyundai Motor Abolishes Regular Personnel Appointments, Switches to On-Demand Appointments
LG Increases Young Staff and Massively Appoints Female Executives
GS Group Presidents' Average Age Decreases by 3 Years

[Asia Economy Reporter Suyeon Woo] The keyword for executive appointments made by the young power leading the Korean economy in 2020 can be summarized as 'generation change' to prepare for the future. As young heads of companies in their 40s and 50s have emerged in major corporations, the age range of executives has also lowered, and a pragmatic culture emphasizing performance and practicality has begun to take root.

This year’s corporate appointments featured a series of bold moves to appoint executives in their 30s and 40s for generational change. Young executives were selected for future new business roles that require sensitive responses to new changes, and external recruitment to secure new technology talent was actively carried out. The heads of communication, who influence the company’s brand image, were also largely replaced.

Jung Eui-sun, Vice Chairman of Hyundai Motor Group, switched from the annual regular executive appointments to a flexible appointment system starting last year. This 'performance-based appointment' aims to recruit good talent whenever possible from outside and to instill a sense of urgency among existing executives.

Executives in their 40s were placed at the forefront of new business areas responsible for future growth such as hydrogen fuel cells, infotainment, and high-performance car R&D. Professor Seol Won-hee from Seoul National University was recruited externally as the head of the Future Innovation Technology Center (Vice President), and Dr. Shin Jae-won, formerly of NASA, was brought in as Vice President in charge of urban air mobility business. This is interpreted as a bold break from Hyundai Motor Group’s traditional 'pure-blood' system and seniority-based hierarchy, moving toward ability-based appointments.

The LG Group appointments in the second year of the 'Koo Kwang-mo era' are even more radical. Chairman Koo boldly replaced senior executives at LG Electronics, the group’s flagship company, increasing the proportion of young executives. Executives born in the 1950s, such as Vice Chairman Cho Seong-jin of LG Electronics and Vice Chairman Han Sang-beom of LG Display, stepped down, and their positions were filled by executives born in the 1960s, including President Kwon Bong-seok of LG Electronics and President Jung Ho-young of LG Display.

Women born in the 1980s were also boldly appointed as executives. The main figures include Sim Mi-jin, Executive Director of LG Household & Health Care, who was promoted to executive director 12 years after joining in 2007, as well as Executive Directors Lim Yi-ran of LG Household & Health Care and Kim Su-yeon of LG Electronics. Chairman Koo appointed eight new female executives in this round of appointments, bringing the total number of female executives in LG Group to 37.

SK Group Chairman Chey Tae-won sought leadership stability by retaining CEOs of key affiliates, while making changes to the group’s highest decision-making body, the SUPEX Council, and CEOs of major affiliates. Kim Jun, President of SK Innovation, who served as the Communications Committee Chair at the SUPEX Council, moved to the position of Energy & Chemicals Committee Chair, and his previous role was taken over by Jang Dong-hyun, President of SK Inc., who now oversees group communications.

GS Group, newly led by Chairman Heo Tae-soo, also emphasized strict performance-based appointments and the selection of young CEOs in this year’s appointments. After this round, the average age of GS Group’s presidents dropped by about three years to 57. Heo Yeon-su, President of GS Retail, was promoted to Vice Chairman after achieving the highest performance in three years, and Lim Byung-yong, CEO of GS Construction, was also promoted to Vice Chairman in recognition of leading the company into its first '1 trillion won operating profit era' since its founding.

Hanwha Group, which marked the full-scale start of third-generation management with the promotion of Kim Dong-kwan to Vice President of Hanwha Q CELLS & Advanced Materials, also carried out reform appointments, laying the groundwork for succession. Among the 74 newly promoted assistant general managers this year, 42, or more than half, were born in the 1970s and in their 40s. At Hanwha Q CELLS, where Vice President Kim holds a key position, team leaders Kim Kang-se and Lee Jun-woo, who have long worked harmoniously with him, were promoted to assistant general managers. The chairperson of the Communication Committee, who represents Hanwha Group’s public relations office, was newly appointed as Executive Director Lee Tae-gil.

This content was produced with the assistance of AI translation services.