Younger Business World... 30% of 30s Group Heads Are in Their 40s and 50s

Hyundai Motor's Chung Eui-sun and Hyosung's Cho Hyun-joon Apply to Fair Trade Commission for Same Person Change
Owners of 3rd and 4th Generation Fully Engage in Management
Six 50s-Age and Three 40s-Age Business Heads

[Asia Economy Reporter Su-yeon Woo] Recently, as the generational shift to the 3rd and 4th generation owners has begun in earnest within the business community, about one-third of the heads of the top 30 domestic groups are now in their 40s and 50s. With these younger leaders stepping to the forefront of management, a new wave of innovation and pragmatism is sweeping through the business sector.

According to the business community on the 2nd, Hyundai Motor Group recently submitted materials to the Fair Trade Commission requesting a change of the same person (head) from Honorary Chairman Chung Mong-koo to Chairman Chung Eui-sun. Hyosung Group also applied to change the same person from Honorary Chairman Cho Seok-rae to Chairman Cho Hyun-joon. These cases of Hyundai Motor Group and Hyosung Group reflect a natural process where the existing elderly heads step down from frontline management due to health reasons, leading to the 3rd generation owners applying for the designation change of the same person.

Chairman Chung Eui-sun of Hyundai Motor Group (left), Chairman Cho Hyun-joon of Hyosung Group (right)

If their applications are accepted, the number of heads in their 40s and 50s among the top 30 domestic groups (by assets) will increase to nine (30%). The heads in their 40s include Koo Kwang-mo, Chairman of LG Group; Cho Won-tae, Chairman of Hanjin Group; and Chung Ji-sun, Chairman of Hyundai Department Store Group. The heads in their 50s include Lee Jae-yong, Vice Chairman of Samsung Electronics; Chung Eui-sun, Chairman of Hyundai Motor Group; Park Jung-won, Chairman of Doosan; Kim Beom-su, Chairman of Kakao; Kim Nam-goo, Chairman of Korea Investment Holdings; and Cho Hyun-joon, Chairman of Hyosung Group.

More than half of the heads in their 40s and 50s are 3rd generation owners who are leading the companies by succeeding their founding grandfathers and managing fathers. As group heads, they are solidifying a one-person leadership system, improving organizational culture, and boldly venturing into new businesses, thereby revealing their own management styles.

Hanwha Group, where Chairman Kim Seung-yeon is returning to frontline management after seven years, is widely expected to begin the succession process in earnest with his return. It is analyzed that while Chairman Kim is involved in overall management, he has started groundwork to transfer key affiliates such as Hanwha Solutions and Hanwha Aerospace to his son, President Kim Dong-kwan.

Shinsegae Group’s same person is still Chairwoman Lee Myung-hee, but the 3rd generation management has already been launched in earnest last year by gifting shares to Vice Chairman Chung Yong-jin and General Manager Chung Yoo-kyung. While Chairwoman Lee oversees the group, the siblings each manage Emart and Shinsegae respectively, establishing a separated management system.

A business community official said, "Since the 2nd generation founders have become elderly over 80 years old, it is natural that the succession process has come due," adding, "With the 3rd generation stepping forward, the business atmosphere is also shifting toward pragmatism and meritocracy."