[Inside Chodong] The Extreme Job: Even a Trend of Avoiding Korean CEO Positions

[Asia Economy Reporter Park Sun-mi] "Where else can you find a more extreme job than a company’s Chief Executive Officer (CEO)?"

As the year-end personnel reshuffle approaches at major companies, the expressions of executives who are likely to be promoted to president, the pinnacle of the organizational pyramid, are not very bright. Being promoted to president is a ‘goal’ that anyone might have dreamed of at least once since joining the company, and it is something to be happy about and celebrate. However, in today’s corporate environment, it is not necessarily a welcome promotion.

A company representative I recently met said, "If you think about it, there is no more extreme job than a CEO," adding, "During this summer’s typhoon season, presidents with business sites located along the typhoon’s path must have spent sleepless nights every day."

CEOs internally struggle with the discord caused by the gap between their hope to be leaders who communicate well and the reality of communication. Especially nowadays, there is a growing atmosphere that considers communication with the MZ generation (Millennials + Generation Z) an essential virtue for CEOs, making it even more difficult. Upon appointment as president or CEO, they try to create opportunities to communicate with the MZ generation and narrow the gap through conversations on various topics, but the feeling after the talks is often, "The younger generation is definitely different from our time."

One CEO confessed, "Back in our day, we were armed with a hungry spirit and perseverance to get things done, but these days, young people clearly lack that," and added, "If I point out how they are different from us, I become an old-fashioned person, so I suffer silently and sometimes complain about the same topic when meeting other presidents."

Externally, the increasing responsibility and punishment for representatives is like sitting on a bed of nails. Especially from this year, with the introduction of the Serious Accident Punishment Act, if a worker is injured or dies due to an industrial accident, corporate managers who have not properly established safety management systems are held accountable.

In September, the shipbuilding, steel, and chemical industries with business sites in the expected path of Typhoon Hinnamnor faced an emergency situation where not only CEOs but the entire management team stayed awake at dawn, maintaining a state of tension. Even if natural disasters are the cause, the responsibility for facility safety management lies with the business owner or management. Recently, at an SPC-affiliated plant in Pyeongtaek, a woman in her 20s died in a crushing accident, and the bereaved family sued Chairman Heo Young-in for violating the Serious Accident Punishment Act.

In Korea, violations of labor laws such as the Labor Standards Act, Industrial Safety Act, and Serious Accident Punishment Act result in fines followed by imprisonment. This contrasts with countries like the United States, Japan, Germany, the United Kingdom, and France, where labor law violations mostly result in fines, and imprisonment is imposed only when violations are intentional and repeated. Particularly, under the Serious Accident Punishment Act, Korea holds both the primary contractor and subcontractor responsible for accidents at subcontractors, and both the business owner and corporation of the primary contractor are punished simultaneously. However, ironically, despite the strengthened punishment of responsible parties, industrial accidents continue unabated. This has even led to a phenomenon among some foreign companies avoiding Korean CEOs.

The era when a CEO was evaluated solely by their ability to run a business well and bring significant profits to the company seems unlikely to return. As important as devising good management strategies and enhancing execution to achieve business results, it has become crucial for companies to fulfill their social roles and create a stable organizational culture for sustainable management. It is clear that the CEO position has become a more extreme job than in the past, but since compensation and treatment are provided, it is only natural to bear the corresponding responsibilities and weight. Extreme job, CEO. As the year-end personnel reshuffle approaches, we hope the crown will be placed on those who can bear the weight.

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