UnicoSearch Analyzes Next Year's Executive Appointments in Large Corporations
Eight Trends Including Early Promotions and Rise of Young Executives
"Owner Family Promotions Accelerate... Overcoming with Younger Age and Higher Positions"
Global headhunting specialist Unicosrch announced on the 29th that it summarized eight major corporate executive appointment trends for next year under the keyword 'ESPRESSO'.
Jeong Gi-seon, Vice Chairman of HD Hyundai, speaking at the CES 2023 press conference held in Las Vegas, USA, on January 4th (local time). [Photo by Yonhap News]
ESPRESSO stands for ▲Early executive appointments (Early) ▲Rise of young executives born in the 1970s and 1980s (Seventy-Eighty) ▲Performance-based promotion (Performance) ▲Increase in female executives (Rise) ▲Prominence of 'integrated' executives (Efficiency) ▲Reduction in the number of executives (Scale down) ▲Prominence of science and technology backgrounds (Science Technology) ▲Strengthening of young owner leadership (Owner leadership), according to Unicosrch.
Following the CEO appointments at major Hyundai Motor Group affiliates, Samsung and LG announced their appointments about a week earlier than last year, indicating a somewhat accelerated appointment schedule. The fact that the heads of conglomerates traveled abroad to support the bid for the 2030 Busan World Expo acted as a factor pulling the appointment schedule forward.
Yong Seok-woo, President and Head of the Visual Display Business Division, DX Division, Samsung Electronics. [Photo by Samsung Electronics]
Executives born in the 1970s stood out. Examples include Yong Seok-woo, the first Samsung Electronics president born in 1970 and head of the Visual Display Business Division, and Moon Hyuk-soo, born in 1970, Vice President and CEO of LG Innotek.
Unicosrch forecasted a significant difference in the scale of executive promotions between industries such as IT and distribution, which had poor performance, and the automobile industry, which showed good results. Since Hyundai Motor Company (on a consolidated basis) and Kia (on a separate basis) are likely to record the highest operating profits this year, the number of promoted executives is expected to increase. Shinsegae Group, which conducted executive appointments in September, replaced 40% of its affiliate executives. The number of executive promotions at IT companies such as Samsung Electronics and SK Hynix is expected to decrease.
The number of female executives is expected to continue increasing. 'Integrated' executives capable of managing multiple departments simultaneously are anticipated to receive high evaluations to improve management efficiency. Due to many companies experiencing poor business performance this year, the total number of executives may decrease. Since discovering new technologies is necessary, science and technology graduates are expected to be placed in key positions.
The leadership of young owners in the 3rd and 4th generation of family management is expected to strengthen. Two characteristics of young owner appointments are rapid promotion speed and a solid system centered on owner confidants. In this year's appointments, both Jeong Ki-sun, president of HD Hyundai Group, and Lee Kyu-ho, president of Kolon Group, were promoted to vice chairman. Vice Chairman Jeong Ki-sun is the eldest son of Chung Mong-joon, chairman of the Asan Foundation, and Vice Chairman Lee Kyu-ho is the eldest son of Lee Woong-yeol, honorary chairman of Kolon Group. Both were born in the 1980s.
Unicosrch stated, "The rapid promotion of young owners is to lead the organization quickly, and the handicap of youth is overcome through high positions to distinctly manifest their own management characteristics."
The tendency to place key executives in forward positions has also strengthened. Looking at LG Group appointments, Kwon Young-soo, vice chairman of LG Energy Solution who had been active since the era of former chairman Koo Bon-moo, retired, and young managers were placed in forward positions. Unicosrch predicted, "Rapid promotion and appointments of confidants of young owners will similarly unfold in other groups."
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