The 'Miracle on the Han River' Leaders Shin Kyuk-ho and Kim Woo-joong Pass Away
Second Generation Key Figures After the Foreign Exchange Crisis Also Pass One After Another
[Asia Economy Reporter Yoo Je-hoon] With the passing of Samsung Chairman Lee Kun-hee, the era of the first and second generations of business leaders who led Korea's industrialization is coming to an end. As those who spearheaded the 'Miracle on the Han River' during the industrialization era and the 'Second Founding' after the IMF financial crisis step down, the generational shift in the business world is expected to accelerate further.
The first-generation business leader who passed away this year was Shin Kyuk-ho, Chairman of Lotte Group, who died in January. After achieving success in Japan, Chairman Shin founded Lotte Confectionery in Korea in 1967 and expanded his business into confectionery, distribution, and heavy chemical industries during the 1970s and 1980s, contributing to the Miracle on the Han River.
Kim Woo-choong, Chairman of Daewoo Group, who passed away in December last year, is also regarded as a key figure in industrialization. Chairman Kim founded Daewoo Industrial in 1967 and entered the trading front. He expanded his business into construction, automobiles, and heavy industries?Korea's main industries to this day?and within about 20 years of founding, created the Daewoo myth by joining the ranks of the four major conglomerates. Slogans such as 'Global Management' and 'Tankism' are still referenced in the business community. In particular, his book "The World is Wide and There is Much to Do" (1989) has become a representative work symbolizing the myth of salaried workers during the high-growth period.
Although not a first-generation business leader, Koo Ja-kyung, Chairman of LG Group who succeeded to the chairmanship in 1970, also passed away in December last year. Born as the eldest son of founder Koo In-hwoi, Chairman Koo is credited with laying the foundation for LG Group's leap forward, focusing on electronics and chemical industries, during his 25 years as group head until 1995.
While the first-generation business leaders achieved the Miracle on the Han River, the second and third generations contributed to discovering new growth engines and the 'Second Founding' after the 1997 IMF financial crisis. Koo Bon-moo, Chairman of LG Group who passed away in 2018, focused on discovering new business opportunities early in his tenure by entering the chemical and display industries. Especially, the battery business, which Chairman Koo nurtured intensively, has recently grown into a core business not only for LG Group but also for Korea.
Cho Yang-ho, Chairman of Hanjin Group who passed away in April last year, also contributed to developing Korean Air into a flagship carrier. Learning from a series of aircraft crashes in the late 1990s, he strengthened flight safety and, despite setbacks such as the 9/11 terrorist attacks, made 'contrarian investments' to expand the fleet significantly, laying the foundation for growth. Under Chairman Cho's leadership, Korean Air achieved the world's number one ranking in air cargo transport in the mid to late 2000s. Since then, Korean Air's cargo division has become a solid source of revenue during the COVID-19 pandemic.
As business leaders who led Korea's industrialization pass away one after another, the generational shift in the business world is also accelerating. Since Chairman Lee's illness in 2014, Vice Chairman Lee Jae-yong of Samsung Electronics has effectively led Samsung Group. Hyundai Motor Group has also entered the third-generation management era with Chairman Chung Eui-sun succeeding Honorary Chairman Chung Mong-koo. Hanjin Group opened the fourth-generation management era with Chairman Cho Won-tae's inauguration in April last year.
Some companies are preparing for third- and fourth-generation management. Hanwha Group's third-generation eldest son, Kim Dong-kwan, President of Hanwha Solutions, recently took office and emerged at the forefront of management. GS Group is also seeing fourth-generation leaders such as Heo Se-hong, CEO of GS Caltex, and Heo Yoon-hong, President of GS Construction, appearing one after another in management positions. Additionally, transitions to third- and fourth-generation management systems are underway at Shinsegae Group, CJ Group, and others.
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