Korean Business World Rejuvenates... 40s and 50s Chaebols Make a Strong Leap

[Asia Economy Reporter Park So-yeon] With Chung Eui-sun, Vice Chairman of Hyundai Motor Group, ascending to chairman of the group on the 14th, the generational shift in South Korea's business circles has entered its final phase. All four major conglomerates now have 'young heads' in their 40s and 50s. In major companies, the third and fourth generations of founders are taking the lead in management.

Hyundai Motor Group officially began the 'third-generation management' era by appointing the new chairman Chung, marking the first leadership change in 20 years. As a result, all four major conglomerates now have young heads under the age of 60. Lee Jae-yong, Vice Chairman of Samsung Electronics leading Samsung Group, is 52 years old, while Choi Tae-won, Chairman of SK Group, is the eldest at 59. Koo Kwang-mo, Chairman of LG Group, is 42.

Those who share the commonality of rising to leadership through generational change are known to meet frequently to discuss business issues and foster camaraderie. Chairman Chung recently created a new scene by visiting the battery plants of Samsung, SK, and LG in succession to discuss next-generation business cooperation. Koo, the youngest among the heads of the four major groups, has been pursuing change through bold business restructuring and personnel moves since becoming chairman in June 2018 following the passing of former Chairman Koo Bon-moo.

The wave of generational change is strong in other groups as well. Hanwha Group saw Kim Dong-kwan (37), eldest son of Chairman Kim Seung-yeon and Head of Strategy at Hanwha Solutions and Vice President, promoted to President and CEO in the personnel reshuffle at the end of last month, stepping fully into management. Kim, who joined Hanwha in 2010, was promoted to Executive Director in 2015, then to Vice President earlier this year after four years, and again to President within about nine months, taking a leading role in management.

Shinsegae Group's Chairman Lee Myung-hee recently transferred shares of E-Mart and Shinsegae to her son, Vice Chairman Chung Yong-jin, and daughter, General Manager of Shinsegae Department Store Division Chung Yoo-kyung, respectively, which has been interpreted as preparation for generational change.

Third-generation head of Hanjin Group, Cho Won-tae (45), succeeded the late former Chairman Cho Yang-ho and assumed the chairmanship in April last year.

At Hyundai Heavy Industries Holdings, Jung Ki-sun (38), eldest son of Chairman of the Asan Foundation Chung Mong-joon, concurrently serves as Head of the Group's Ship & Offshore Sales Division, CEO of Hyundai Global Service, and Head of Management Support at the holding company, leading the group's new businesses.

Kolon Group is in a transitional period toward fourth-generation management following the retirement declaration of former Chairman Lee Woong-yeol at the end of 2018. Upon Lee's retirement, his eldest son Lee Kyu-ho (36) was promoted to Executive Director and appointed Chief Operating Officer (COO) of Kolon Industries.

CJ Group recently formalized its initial public offering for Olive Young, which the business community views as the start of management succession to Lee Sun-ho (30), son of Chairman Lee Jae-hyun and Manager at CJ CheilJedang.

At LS Group, after the year-end personnel reshuffle last year, all third-generation members, including Koo Dong-hwi (38), eldest son of Chairman Koo Ja-yeol and Executive Director at LS, have been promoted and are expanding their roles.

A business insider said, "The trend of younger heads and executives is a natural flow to respond to rapidly changing management environments such as the digital and mobile era," adding, "The innovation competition among major groups that have undergone generational change will become even more prominent."

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