[New Business Families 3rd and 4th Generation] The 'Young CEO Era' Emerging 10 Years Earlier Than the Father's Generation

3040 Executives and CEOs Emerging One After Another
Different from 2nd Generation with Many Siblings

The trend of ultra-fast promotions among the 3rd and 4th generation family members of major group heads continues. Vice chairmen born in the 1980s have appeared, and some have become CEOs about 10 years earlier than their fathers. Unlike the previous generation, where management was successively inherited by brothers or in the event of the former chairman's absence, the younger generation starts management training at an early age and quickly steps into frontline management.

However, most of them have lower shareholding ratios than the 2nd generation, so it is expected to take considerable time before they effectively take over the group.

In this year-end personnel reshuffle, many 3rd and 4th generation family members of the heads of the top 50 domestic conglomerates were promoted. Choi Yoon-jung (34), eldest daughter of Choi Tae-won, chairman of SK Group, was appointed the youngest executive within the group as head of the Strategic Investment Team in the Global Investment Division of SK Biopharm. Shin Yoo-yeol (37), eldest son of Shin Dong-bin, chairman of Lotte Group, was promoted to executive director at Lotte Holdings' Future Growth Office just four years after joining the company.

Among the three sons of Kim Seung-yeon, chairman of Hanwha Group, Kim Dong-kwan (40), vice chairman, and Kim Dong-won (38), president of Hanwha Life Insurance, were followed by Kim Dong-sun (34), head of Hanwha Galleria's Strategy Headquarters, who was promoted from executive director to vice president, solidifying the 'three brothers management.'

In GS Group, among the 4th generation, Heo Yoon-hong (44) was appointed CEO of GS Construction, and Heo Seo-hong (46), vice president and head of GS Future Business Team, moved to become vice president of GS Retail's Management Strategy Service Unit (SU), which operates convenience stores and home shopping. Heo Cheol-hong (44), executive director and CEO of GS M-Biz, was promoted to vice president, and Heo Ju-hong (40), head of GS Caltex's Basic Chemicals Division, and Heo Chi-hong (40), head of GS Retail's MD Division, were promoted to executive directors. All are in their 40s.

HD Hyundai promoted Jeong Ki-sun (41), eldest son of Jeong Mong-joon, chairman of the Asan Foundation, from president to vice chairman of HD Hyundai. Kolon Group also appointed Lee Kyu-ho (39), eldest son of honorary chairman Lee Woong-yeol, as vice chairman and CEO of the holding company Kolon Mobility.

[Image source=Yonhap News]

In the past, it was not unusual to become a business leader in one's 40s. The late Lee Kun-hee, former chairman of Samsung Group, became chairman at 45 in 1987, and Choi Tae-won took control of the group at 38 in 1998. The title of '29-year-old group head' established by Kim Seung-yeon remains unbroken. However, they share the commonality of ascending to the head position at a young age due to unexpected circumstances involving the previous chairman.

On the other hand, most 2nd generation successors who inherited management without major incidents became chairmen after turning 50. The late Koo Bon-moo, former chairman of LG Group, took over the chairmanship at 51, and Chung Mong-koo, honorary chairman of Hyundai Motor Group, became chairman at 58. Shin Dong-bin of Lotte was also 56.

As a result, it is common for some 3rd and 4th generation members to be promoted faster than their fathers. Heo Chang-soo, honorary chairman of GS Group, was only a vice chairman until age 47 before becoming chairman in 1995, but his son Heo Yoon-hong became CEO at 44. Koo Dong-hwi, COO of LS MnM and 3rd generation of LS Group, was promoted to vice president at 39, while his father Koo Ja-yeol was promoted to president at 50.

In the case of Kumho Asiana Group, former chairman Park Sam-koo became vice chairman at 56 in 2001, but his son Park Se-chang, vice president of Kumho Construction, was promoted eight years earlier at 48. A business insider explained, "In the case of the 2nd generation, there were many siblings, so management had to be shared among brothers or cousins, but recently, with fewer children, succession to the next generation is happening more quickly."

This content was produced with the assistance of AI translation services.