Despite the Rise of 'Yeopung', Only Outside Directors Increase... 5 CEOs from the 4 Major Groups, Difficult to Promote to President

Samsung Electronics, SK Hynix, Hyundai Motor, LG Electronics
No Female Inside Directors Among Registered Executives
Women Represent 3.4% of Vice Presidents

The personnel season for next year’s top four conglomerates (Samsung, SK, Hyundai Motor, LG) is approaching, but it is expected that there will not be many announcements of female presidents, inside directors, or CEOs as in previous years. The business community believes that not only will there be very few female executives joining the board as inside directors among presidents, but also cases of vice presidents or lower-level executives being promoted to president will be scarce.

The proportion of female executives serving as inside directors or CEOs among the top four conglomerates is not large. There are also not many vice presidents who can be considered as next president candidates. According to the semi-annual reports of major companies in the top four groups (Samsung Electronics, SK Hynix, Hyundai Motor, LG Electronics), as of June 30, there are 40 registered executives across the four companies. Among them, 7 (18%) are women, all of whom are outside directors. There are no inside directors or CEOs who are women.

Lee Jung-ae, CEO of LG Household & Health Care.
Photo by Yonhap News

Even when expanding the scope to other affiliates within the top four conglomerates, the number of female CEOs is only five. They include Yoon Sim, CEO of Miracom I&C (a subsidiary of Samsung SDS); Heo Seon-young, CEO of PS&Marketing (a subsidiary of SK Telecom); Han Su-mi, CEO of Narae Energy Service (a subsidiary of SK E&S); Lee Jeong-ae, CEO of LG Household & Health Care; and Choi Yeon-hee, CEO of Taeguk Pharmaceutical (a subsidiary of LG Household & Health Care).

The proportion of female vice presidents (or executive officers in the case of SK Hynix) is also not large. Among the total 596 vice presidents in the four major companies of the top four groups, only 20 (3.4%) are women. Samsung Electronics has 14 female vice presidents (out of 359 total, 3.9%), SK Hynix has 5 (out of 195, 2.6%), Hyundai Motor has 1 (out of 23, 4.3%), and LG Electronics has none (out of 19, 0%). SK Hynix integrated executive ranks such as vice president, executive director, and managing director into the title of executive officer in 2020.

Lee Young-hee, President and Head of Global Marketing Office, DX (Mobile·Consumer Electronics) Division, Samsung Electronics. [Photo by Samsung Electronics]

Industry insiders pointed out that for the so-called “female wave” to be considered strong, there needs to be an increase in cases of female inside directors and CEOs. Once promoted beyond president and vice president to become a board member, one assumes a position overseeing company-wide mid- to long-term management beyond just business divisions or teams.

Inside directors lead the process of establishing and executing the company’s mid- to long-term business strategies, including the Future Strategy Committee and ESG (Environmental, Social, and Governance) Committee. Although outside directors can participate in audit committees, personnel and compensation committees, and sustainability management committees, their influence is often weaker than that of inside directors.

Regarding the appointment process, while presidents can be decided by the company’s internal personnel organization and management after approval from the group head (the same person), appointing a CEO requires securing resolutions from the shareholders’ meeting or the board of directors according to commercial law. Because the appointment of CEOs and inside directors involves a complex procedure, the authority they hold is also significant.

The business community expects that, given the poor performance of major companies this year and the high economic uncertainty, there will not be many cases of appointing female presidents or directors. The cumulative operating profit for the first half (Q1?Q2) of the four major companies in the top four groups decreased by 88.1% compared to the same period last year, totaling 5.0942 trillion KRW. In particular, Samsung Electronics saw a 95.4% drop (from 28.2185 trillion KRW in the first half of last year to 1.3087 trillion KRW this year). This is why there is skepticism about the likelihood of producing female presidents for two consecutive years.

Oh Il-seon, director of the Korea CXO Research Institute, said, “Due to this year’s poor corporate performance, it is expected to be difficult to increase cases of female vice presidents or lower executives being promoted to president, or female presidents entering the board as inside directors.”

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