"40% of Large Conglomerate Heads Participate in Management Only as Non-Registered Executives"

Leaders Index Analysis
Number of Non-Registered Executives Increased by 5 in 5 Years
Decrease in Concurrent Registered Executive Positions in Family-Affiliated Companies

Among large business groups with owners, it was found that in about 4 out of 10 cases, the head of the group (same person) participates in management but does not hold a registered executive position.

Leaders Index, a corporate analysis research institute, announced on the 21st that it surveyed the management participation and registered executive status of the heads and their relatives in 47 out of 82 large business groups with assets of 5 trillion won or more, confirming this result.

Samsung Electronics Seocho Building. Photo by Jinhyung Kang aymsdream@

The survey results showed that in 2018, 14 out of 47 heads (29.8%) were not registered executives, but this year, the number increased by 5 to 19 (40.4%).

As of 2018, the large business groups whose heads were not registered executives included Lotte (Chairman Shin Dong-bin), CJ (Chairman Lee Jae-hyun), DL (Chairman Lee Jun-yong), OCI (Chairman Lee Woo-hyun), Samsung (Chairman Lee Jae-yong), Taekwang (Chairman Lee Ho-jin), Dongkuk Steel (Chairman Jang Se-ju), Eugene (Chairman Yoo Kyung-sun), Doosan (Chairman Park Yong-gon), HD Hyundai (formerly Hyundai Heavy Industries Group, Chairman Chung Mong-joon), Shinsegae (Chairwoman Lee Myung-hee), DB (Chairman Kim Joon-gi), Hite Jinro (Chairman Park Moon-duk), and Hansol (Chairman Lee In-hee).

Among these, Lotte, OCI, Doosan, and Hansol registered their heads as executives this year, but nine additional groups where the heads are not registered executives were added, including Booyoung (Chairman Lee Joong-geun), Kolon (Chairman Lee Woong-yeol), Kumho Petrochemical (Chairman Park Chan-gu), Kumho Asiana (Chairman Park Sam-gu), Dongwon (Chairman Kim Jae-chul), Naver (Chairman Lee Hae-jin), Samchully (Chairman Lee Man-deuk), Hankook Tire (Chairman Cho Yang-rae), and Hanwha (Chairman Kim Seung-yeon).

Expanding the scope to the head’s family, in 2018, 260 relatives participated in company management, of whom 213 (81.9%) were registered executives. This year, among 241 management participants, 191 (79.3%) were registered executives, a decrease of 19 compared to five years ago. The top five large business groups with the largest decrease in registered executive participation by the head’s family in affiliates were Jungheung Construction (-26), Hoban Construction (-21), SM (-18), Booyoung (-15), and KCC (-14).

The number of heads and relatives concurrently serving as registered executives in affiliates has generally decreased. In 2018, 70 heads and relatives concurrently held registered executive positions in three or more affiliates, but this year the number dropped to 52. The number of owner family members concurrently serving as registered executives in 10 or more affiliates also decreased from 5 to 2. As of this year, the head or relative with the most concurrent registered executive positions is Park Heung-jun, son-in-law of Woo Oh-hyun, Chairman of SM Group, who serves as a registered executive in 14 affiliates. Chairman Woo Oh-hyun holds 13 concurrent positions, ranking second.

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