LS Group's 3rd Generation CEO Era... Heated Year-End Personnel Moves in the Business World (Comprehensive)

Goo Bon-hyuk, President of Yesco Holdings

[Asia Economy Reporters Hyewon Kim and Yoonju Hwang] LS Group is heating up the year-end corporate personnel season by ushering in the era of third-generation CEOs. While some groups such as Hanwha and GS have advanced their personnel schedules compared to previous years, this week alone LS, LG, and Lotte Groups have announced renewal personnel changes emphasizing 'change within stability' alongside generational shifts.

According to the business community on the 24th, LS Group recently held board meetings at each affiliate and finalized the 2021 executive personnel plan, including the promotion of Vice President Koo Bon-hyuk of Yesco Holdings to President. Vice President Koo Bon-gyu of Emtron will take on the CEO role while retaining his vice president position, stepping forward alongside newly appointed President Koo Bon-hyuk as representatives of the affiliates.

Last year, Vice President Koo Bon-hyuk became the first third-generation member of LS Group to assume the CEO position at Yesco Holdings but voluntarily stepped down just ten days after his appointment, stating he wanted to receive more management training. Instead of holding the CEO position, he was recognized for leading new businesses as head of the Future Business Division over the past year.

Bong-gyu Koo, Vice President of Mtron

Among the four major groups, LG Group will announce regular personnel changes for its holding company and key affiliates such as electronics on the 26th. The biggest point of interest in this year’s LG year-end personnel is whether the ㈜LG board will officially confirm the separation of some affiliates including LG International, LG Hausys, and Silicon Works, centered around LG Group Advisor Koo Bon-joon. Attention is also focused on executive transfers related to the planned spin-off of LG Chem’s battery division scheduled for the 1st of next month. It will also be interesting to see what kind of color Koo Kwang-mo, LG Group Chairman entering his third year in office, will reveal through his personnel authority.

Lotte Group is also expected to hold a board meeting around the 26th to 27th to finalize executive personnel plans. Although regular personnel changes are usually held in mid-December, this time the schedule was moved up by about a month. This is seen as reflecting Chairman Shin Dong-bin’s determination to reorganize the organization quickly to prepare for uncertainties. Internally, there is tension as the accelerated personnel schedule is expected to bring significant personnel renewal.

Next month, starting with SK Group, Doosan, POSCO, and Hyundai Motor Group will conduct their regular personnel changes. POSCO is likely to confirm Chairman Choi Jung-woo’s reappointment at the board meeting on the 11th, followed by executive personnel changes around the 18th. Chairman Choi told our reporter at the '41st Korea-Australia Economic Cooperation Committee' held at the Federation of Korean Industries building in Yeouido that "regular executive personnel changes are planned around the same time as last year."

Hyundai Motor Group’s personnel changes, being the first under Chairman Chung Eui-sun’s leadership, are analyzed to focus on 'harmonizing the old and new.' Attention is on the fate of close aides to Honorary Chairman Chung Mong-koo, known as an 'old boy,' along with the expected appointment of new vice chairmen. There is also a possibility of surprise appointments of young talents based on ability, especially in research and development (R&D) roles. SK Group is drawing attention from the business community regarding whether Chairman Chey Tae-won will take the position of Chairman of the Korea Chamber of Commerce and Industry, separate from the year-end personnel changes.

In the case of Samsung Group, the timing of personnel changes remains uncertain every year due to prolonged judicial risks surrounding the family of the group’s head. Following the passing of Chairman Lee Kun-hee, attention has focused on the promotion of Vice Chairman Lee Jae-yong of Samsung Electronics to Chairman, but the prevailing view is that the exact timing will be after the conclusion of the state affairs manipulation judicial procedures early next year.