Rise of the 70s Generation? Seven out of Ten Corporate Registered Inside Directors Are from the '586 Generation'

73.6% of Inside Directors in Top 100 Companies Born in the 1960s
29% Born Between 1962-64... Nicknamed the '6·25 Generation'
"Inside Director Landscape Centered on 1960s Born Likely to Remain Unchanged for Now"

Among the registered directors of the top 100 domestic companies by sales, 73% of the inside directors who exert the greatest actual influence on management are from the '586 generation.' The 586 generation refers to people born in the 1960s who attended university in the 1980s.

It was a hot topic three years ago during the general election that six out of ten elected members of the National Assembly were from the 586 generation who experienced the 'democratization' movement. Not only in politics but also in companies, the 586 generation is playing a dominant role. Seven out of ten inside directors are from the 586 generation who experienced the high-growth period of industrialization.

According to an analysis by Asia Economy based on data requested from the headhunting specialist company Unico Search on the status of inside directors of the top 100 companies, the majority of inside directors were born in the 1960s (aged 54?63). Among the 277 inside directors of the top 100 companies, 204 (73.6%) were born in the 1960s. This is higher than the 58% (177 out of 300) of National Assembly members born in the 1960s elected in the 21st general election. Although the proportion of executives born in the 1970s (aged 44?53), including non-registered executives such as executive directors, senior managing directors, and directors, rose to 52.8%, the 586 generation overwhelmingly dominates at the CEO-level senior executive positions.

Han Jong-hee, Vice Chairman and CEO of Samsung Electronics, delivering a greeting at the '54th Samsung Electronics Annual General Meeting of Shareholders' held on March 15 at the Suwon Convention Center in Yeongtong-gu, Suwon-si, Gyeonggi-do.
[Photo by Yonhap News]

Interestingly, among those born in the 1960s, those born in the early 1960s outnumber those born in the late 1960s. Those born between 1960 and 1964 (aged 59?63) accounted for 117 people, or 42.2% of the total 277 inside directors. Those born between 1965 and 1969 (aged 54?58) numbered 87, or 31.4%. This is despite the fact that the population born in the late 1960s is larger than that of the early 1960s. Considering that those born between 1960 and 1962 have generally already reached retirement age, this is regarded as an unusual phenomenon.

Also, among the 81 inside directors (29%) born between 1962 and 1964 (aged 59?61), there are many famous business leaders. In the business community, this generation is even called the '625 generation.' Representative figures include Han Jong-hee, Vice Chairman and CEO of Samsung Electronics; Cho Joo-wan, President and CEO of LG Electronics; Song Ho-sung, President and CEO of Kia (all born in 1962); Kyung Kye-hyun, President and CEO of Samsung Electronics; Park Jung-ho, Vice Chairman and CEO of SK Hynix; Lee Jung-ae, President and CEO of LG Household & Health Care (born in 1963); and Jang Jae-hoon, President and CEO of Hyundai Motor Company (born in 1964).

At the executive level below senior managing director, the rise of those born in the 1970s is prominent. According to Unico Search's survey, among 7,345 executives (including inside directors and non-registered directors, excluding outside directors) of the top 100 companies this year, 3,878 (52.8%) were born in the 1970s. This surpassed the 3,246 (44.2%) born in the 1960s.

Although the increase of those born in the 1970s is steep at the level below senior managing director, the business community analyzes that the important inside director positions are unlikely to be relinquished by those born in the 1960s for the time being. The 586 inside directors, especially those born in the early 1960s, experienced the late 1980s when the 'three lows boom' (low interest rates, low inflation, low oil prices) led to a surge in exports and the industry began to advance from heavy chemical industries to high-tech industries. Employment was stable enough that the term 'lifetime employment' for working at one company for over 30 years emerged. On the other hand, most executives born in the 1970s joined companies around the late 1990s IMF financial crisis period, when large companies were pursuing restructuring and cost-cutting policies. Their loyalty to the company is naturally lower than that of their seniors.

Park Joo-geun, CEO of Leaders Index, said, "The 586 generation of businesspeople joined during the high-growth period and quickly became executives, but after Generation X (born 1971?1984) joined, the world became a bit tougher," adding, "Those born in the 1970s will likely be slower to reach inside director positions than those born in the 1960s." During the three lows boom, the Korean economy grew by 12% annually. Organizations expanded and positions increased. But now it is an era of 1% growth. If existing inside directors do not vacate their positions, new positions will not easily open up.

Due to domestic and international variables such as the global economic downturn, there are expectations that not only inside director appointments but also executive promotions may shrink next year. Kim Hye-yang, CEO of Unico Search, said, "It is expected that more companies will engage in tight management by proactively reducing labor costs, and more companies will try to reduce the number of executives in next year's personnel changes at the end of the year compared to this year's."

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