Increase in Stock Asset Proportion of Conglomerate Heirs... Samsung and LG Exceed 50%

CEO Score Analysis of 56 Major Corporate Groups
LG, Samsung, Hanjin Rank 3rd-5th in Stock Asset Growth Rate
Samsung Family Included in Top 5 Individual Stock Assets

It has been revealed that among the stock assets held by the families of conglomerate group heads, there are 22 groups where the proportion of assets held by the next generation exceeds 50%. This number has increased by 10 over the past decade, including major companies such as Samsung, LG, and Hyundai Motor. This is regarded as an indication that the succession process is virtually complete.

According to CEO Score, a corporate data research institute, this result was announced on the 30th after investigating the succession status of stock assets held by the families of conglomerate group heads among 56 comparable groups out of 81 designated conglomerate groups this year.

As of the end of July, there were a total of 22 conglomerate groups where the proportion of stock assets held by the next generation within the family of the group head was 50% or more. This is an increase of 10 groups compared to the end of 2013 (12 groups).

Four groups?Lotte, Hansol, DL, and Hankook Tire?had a 100% proportion of stock assets held by the next generation. Groups with a proportion exceeding 50% include ▲Taeyoung (98.4%) ▲DN (92.0%) ▲Doosan (83.7%) ▲LG (82.4%) ▲Hoban Construction (77.9%) ▲Hanjin (77.8%) ▲Hyosung (74.7%) ▲Samsung (74.4%) ▲Hanwha (74.4%) ▲Dongwon (73.8%) ▲Kumho Petrochemical (72.8%) ▲Shinsegae (67.5%) ▲Janggeum Shipping (64.2%) ▲DB (61.0%) ▲MDM (60.2%) ▲SeAH (51.8%) ▲LX (50.6%) ▲Hyundai Motor (50.5%) and 18 others.

Compared to 10 years ago, the proportion of stock assets held by the next generation increased to 50% or more in 11 groups including DL, DN, LG, Hanjin, Samsung, Hanwha, Shinsegae, Janggeum Shipping, MDM, LX, and Hyundai Motor. Among these, DL saw the largest increase over the past decade, rising by 58.1 percentage points. Following were MDM (56.8 percentage points), LG (56.5 percentage points), Samsung (52.2 percentage points), and Hanjin (51.6 percentage points).

The succession of the next generation in the families of conglomerate group heads is carried out through inheritance and gifts, establishment of public interest foundations, and increasing the corporate value of the next generation. Representative cases of inheritance are LG, Samsung, and Hanjin, which ranked 3rd to 5th in the increase rate of the next generation's stock asset proportion.

LG's shares were inherited by the three children (Koo Kwang-mo, Koo Yeon-gyeong, and Koo Yeon-su) following the death of Chairman Koo Bon-moo in 2018. Samsung's inheritance proceeded to the spouse, Hong Ra-hee, former director of the Leeum Museum of Art, and three children (Lee Jae-yong, Lee Boo-jin, and Lee Seo-hyun) after Chairman Lee Kun-hee passed away in 2020. Hanjin's shares were passed to the spouse, Lee Myung-hee, former chairperson of the Ilwoo Foundation, and three children (Cho Won-tae, Cho Seung-yeon, and Cho Hyun-min) following the death of Chairman Cho Yang-ho in 2019.

Groups where the parent generation holds 100% of the stock assets include Hyundai Department Store, Naver, Celltrion, Kolon, E-Land, and Kyobo Life Insurance, totaling six groups. Among these, Naver, Celltrion, and E-Land are situations where the founding generation holds all shares.

Meanwhile, as of the end of July, the scale of individual stock assets was ranked as follows: ▲Lee Jae-yong, Chairman of Samsung Electronics (?12.8006 trillion) ▲Hong Ra-hee, former director of the Leeum Museum of Art (?8.3868 trillion) ▲Lee Boo-jin, President of Hotel Shilla (?6.2391 trillion) ▲Lee Dong-chae, founder and former chairman of EcoPro (?6.061 trillion) ▲Lee Seo-hyun, Chairperson of Samsung Welfare Foundation (?5.3206 trillion).

With the Samsung family occupying major rankings, Chairman Lee and former director Hong ranked first and second as the individuals whose stock assets increased the most over the past 10 years. Chairman Lee's stock assets increased by ?10.2098 trillion over the decade. Former director Hong's stock assets grew by ?6.9009 trillion during the same period.

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