'Generation Change' at LG and Lotte - 'Control Tower Revival' at Samsung and SK... Year-End Business Personnel Keywords

Emphasis on Infusion of Young Blood Again This Year

[Asia Economy Reporters Kim Hyewon and Jo Inkyung] As the year-end personnel season for major conglomerates kicks off, the trend of generational change and infusion of young talent based on performance-oriented principles has once again appeared as a staple this year. Additionally, efforts by each group to strengthen the role of their control towers are emerging as a new point of interest.

According to industry sources on the 26th, this year’s year-end personnel changes in the business world will begin with LG, Lotte, and LS Group, followed by major groups such as Samsung, SK, Hyundai Motor, and POSCO.

LG Group, which opened the season, carried out the most impressive personnel changes since Chairman Koo Kwang-mo took office. While most CEOs of major affiliates remained unchanged, a generational shift occurred in the group’s control tower and the second-in-command position, which is Chairman Koo’s counterpart. Vice Chairman Kwon Young-soo moved to LG Energy Solution to address battery fire issues, and President Kwon Bong-seok of LG Electronics took over the role of closely assisting Chairman Koo. The trend of performance-based appointments continued. Notably, this year’s executive personnel changes numbered 179, the largest since Chairman Koo’s inauguration. Among the newly appointed managing directors, 62% are under 45 years old, representing young talent.

Lotte Group Chairman Shin Dong-bin chose bold innovation over stability in this personnel reshuffle. He broke the tradition of in-house promotion by recruiting top executives for the core retail and hotel businesses from outside the group. For the first time, a former executive from competitor Shinsegae Group was appointed as the new CEO of Lotte Department Store. Additionally, Lotte Department Store and Lotte Mart are conducting voluntary retirements, with the group’s policy to replenish new personnel with young talent. LS Group saw a generational change in its leadership. Following the tradition of ‘cousin management,’ Chairman Koo Ja-yeol, who led the group for nine years, was succeeded by Koo Ja-eun, Chairman of LS Mtron, who will take over as group chairman.

In the upcoming personnel changes scheduled for next week at Samsung and SK Group, the revival of the control tower is a hot topic. The common recognition among conglomerates of the need to strengthen domestic and overseas control tower functions stems from the demand, both internal and external, that agile responses to the rapidly changing global business environment require close communication channels between local governments and companies. Recently, Samsung Electronics decided to build a second foundry plant in Taylor, Texas, and SK Group is expanding its overseas production base by constructing an additional electric vehicle battery plant in Hungary. As global supply chain management in key industries such as semiconductors and batteries has become critical to corporate survival, the role of an overarching control tower has rapidly gained importance.

SK Group is reportedly finalizing plans to establish a headquarters overseeing global operations, including North America. Vice Chairman Yoo Jung-joon of SK E&S has long been designated as the suitable candidate and has been preparing for the related organizational restructuring. Samsung, after dissolving its Future Strategy Office, currently operates task forces (TFs) within Samsung Electronics, Samsung Life Insurance, and Samsung C&T, but there have been many internal criticisms regarding their effectiveness. While there is consensus on the need for an integrated control tower considering Samsung’s internal and external crises, concerns remain due to Vice Chairman Lee Jae-yong’s parole status and the negative perception of a de facto revival of the Future Strategy Office. Apart from this, the overall personnel atmosphere at Samsung and SK this year is expected to pursue stable yet gradual changes, similar to last year.

Hyundai Motor Group is expected to continue Chairman Chung Eui-sun’s performance-based organizational management policy of ‘surprise appointments of talent with expertise and leadership in future businesses and new technology development’ in the personnel changes scheduled for mid-December. POSCO Group, which traditionally concludes the year-end personnel season, is also anticipated to seek stable changes without significant shifts in its management team.

CJ Group’s personnel changes are scheduled for next month. Chairman Lee Jae-hyun recently presented the company’s vision directly for the first time in 11 years, defining CJ’s current status as ‘growth stagnation.’ Reflecting on past shortcomings in future preparedness and pledging to nurture talent, this personnel reshuffle is expected to focus on appointing new young talent with potential.

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