[Top 100 Companies Report]② Average Board Age 60... 18 Companies Without 'Female Directors'

Average Age of Registered Executives 59.9 Years... Youngest 33 Years Old
6 out of 10 Graduated from SKY, Many Majored in Business, Economics, or Law
Female Ratio 13%... 18 Companies Have '0' Women

The top 100 companies by market capitalization listed on the domestic stock market are like national representatives in sports. They represent various industries in Korea and lead the economy. The public's expectations are also high. Most stock investors buy shares of these top 100 companies. Job seekers dream of working at these top 100 companies. Every year, around the time the cherry blossoms bloom, the top 100 listed companies submit their business reports. The purpose is to self-assess how they performed as key players in Korea over the past year and whether they kept their promises. Asia Economy reviewed the health status of these companies based on the business reports submitted by the top 100 companies by market capitalization as of the end of Q1 this year. This is to check if they can continue to lead our economy this year and to help them understand their strengths and weaknesses compared to other companies.

The power elites who move the boards of directors of major Korean companies are mainly graduates of Seoul National University, in their 60s, and majored in business-related fields. This is known as ‘Seo-Yuk-Sang’ (Seoul National University, 60s, Business).

Asia Economy compiled the '2022 business reports' of the top 100 domestic listed companies by market capitalization as of the end of Q1 this year (excluding investment company Macquarie Infrastructure). The total number of registered executives (inside directors, outside directors, and other non-executive directors) was 739. This number excludes duplicates holding concurrent positions in two or more companies. By age group, those in their 60s were the most numerous. By university (bachelor’s degree basis), Seoul National University graduates were the largest group. The most common major was business administration. The proportion of women was 13.1%.

The Youngest Board of Directors: Kakao Games

The average age of the 739 registered executives of the top 100 domestic companies was 59.9 years. The oldest was Sohn Kyung-shik (83), chairman of CJ CheilJedang, and the youngest executive was Park Saerom (33), a professor at Sungshin Women’s University serving as an outside director of Kakao. The age difference between the two is exactly 50 years. Professor Park, who majored in Industrial Engineering at Seoul National University (class of ’09), was first appointed as a director three years ago.

By age group, those in their 60s (363 people) were the largest group, accounting for 49.1%. Nearly half. They were followed by those in their 50s (261), 40s (59), and those aged 70 and above (51). There were five people in their 30s, including Professor Park.

The company with the youngest board of directors was Kakao Games (average age 49.6). Among the seven directors, three, including CEO Cho Gye-hyun (53), were in their 50s, and four were in their 40s. The proportion of those in their 40s exceeded half. The second youngest was Krafton, also in the gaming industry (average age 50). Kakao Pay (average age 51.7) and Kakao (average age 52.8) followed, with the ‘Kakao trio’ sweeping the top ranks.

On the other hand, the company with the highest average board age was DB HiTek. Including Choi Hong-geon, an 80-year-old honorary professor at Korea University of Technology and Education (outside director), the average age of six members was 68.3 years. The next was another DB Group company, DB Insurance (67.8 years).

Six out of Ten Are SKY Graduates, Four Majored in Business

Among the 739 registered executives, the educational background (bachelor’s degree basis) of 698 was confirmed. Seoul National University (249) was the most common, followed by Yonsei University (95) and Korea University (81). The so-called ‘SKY’ graduates accounted for 60.8%. Six out of ten were graduates of Seoul National University, Yonsei University, or Korea University. Excluding SKY, Sungkyunkwan University (20) was the most common. Except for Bang Jun-hyuk, chairman of Netmarble (who dropped out of high school), and Scooter Braun, CEO of HYBE’s U.S. branch (who dropped out of university), all have at least a college degree.

By major, business administration (190) was overwhelmingly first. Next were economics (106) and law (94). Four out of ten majored in business-related fields. Among science majors, ‘electricity, chemistry, and mechanical engineering’ were the top three. Chemistry and electrical/electronic engineering each had 33, and mechanical engineering had 20. Humanities majors accounted for 74% (509), and science majors 26% (178), with humanities about three times more than science.

By single university and single major, Seoul National University’s business administration (including commerce) was the largest with 59. Among the seven board members of LG Household & Health Care, three were Seoul National University business administration graduates, accounting for nearly half. Following Seoul National University business administration were Yonsei University business administration (54), Seoul National University law (50), and Seoul National University economics (42).

There were 59 ‘overseas-educated’ executives, accounting for 8.4% of the total. Among them, 27% (16) graduated from the six major U.S. universities HYPSMC (Harvard, Yale, Princeton, Stanford, MIT, Columbia). Including these, the majority were from the U.S. (42), followed by Japan (7), the U.K. (5), Saudi Arabia (2), and China, France, and Canada (1 each).

Krafton’s Female-Dominated Board, 18 Companies Without Female Directors

Following last year’s amendment to the Capital Markets Act, listed companies with total assets exceeding 2 trillion won must have at least one female director on their board. Among the 739 directors, 97 (13.1%) were women. This means that at least one out of every ten registered executives is female.

The average age of female registered executives was 55.4 years, about four years younger than the overall average (59.9). The oldest was Kim Sun-wook (71), an honorary professor at Ewha Womans University and outside director of Samsung Electronics. The youngest was Park Saerom, the youngest director overall at Kakao.

Seoul National University was again the most common alma mater among women, with 30 graduates. However, the rise of Ewha Womans University is notable, tying with Yonsei University at 18 graduates, ranking joint second. This is seen as an effect of the Capital Markets Act amendment. Next was Korea University (8). The proportion of SKY graduates was 58.3%, similar to the overall figure. Unlike the overall trend, law (21) was the most common major among women, followed by business administration (14), English literature (9), and political science and diplomacy (8). Economics, which ranked second overall, dropped to fifth (6). The proportion of humanities majors (75.5%) was similar to the overall figure.

Krafton’s board is 60% female, with three out of five directors being women. It was the only ‘female-majority board’ among the top 100 companies. All three outside directors, including Professor Yeo Eun-jung of Chung-Ang University, were women. Most other companies had only one or two female registered executives. Among the top 100 companies, 18, including EcoPro, had no female directors at all. This is attributed to the lack of significant penalties despite the legal amendment.