Middle-Generation Group Heirs Hold 33.5% Stake... 8 Companies Including Daedeok Over 90%

CEO Score Analyzes Stock Asset Succession Status of 81 Companies

Among the heirs of mid-sized conglomerate heads, the proportion of stock shares held by the next generation was found to be 33.5%. Among Daeduk companies, 8 out of them exceeded 90%.

According to CEO Score, a corporate data research institute, on the 24th, a survey on the succession status of stock assets held by the heirs of 81 mid-sized conglomerates with assets exceeding 2 trillion won revealed that the value of shares held by the next generation decreased by about 2.0%, from 13.6598 trillion won at the end of December 2022 to 13.3911 trillion won as of the 15th. However, the proportion of the next generation's share value increased by 1.0 percentage point to 33.5%.

In Daeduk, the proportion of the next generation's share value was 91.9% at the end of 2022 but reached 100% last year. This was because all the preferred shares of Daeduk and Daeduk Electronics, held by the late Chairman Kim Jeong-sik, were disposed of through inheritance, completing the succession of shares. The second son, President Kim Young-jae, who inherited the group, gifted 2.95% of Daeduk shares each to his two daughters in June.

Following this, Umi (99.6%), TKG Taekwang (98.7%), NICE (98.2%), Seoyon (97.5%), Gyeryong (95.9%), Sebang (92.6%), and Hwasung (91.2%) also had next generation share proportions exceeding 90%, indicating that the succession process is virtually complete.

During the same period, 39 companies saw an increase in the proportion of shares held by the next generation. Cosmax's next generation share proportion surged by 45.1 percentage points from a mere 14.5% at the end of 2022 to 59.6%. Chairman Lee Kyung-soo of Cosmax transferred all of his 19.23% stake in the group's holding company, Cosmax BTI, to his two sons, CEOs Lee Byung-man and Lee Byung-joo, through off-market sales and gifts last year. As a result, CEO Lee Byung-man's shareholding increased from 3.00% to 19.95%, and CEO Lee Byung-joo's from 2.77% to 10.52%.

Hyundai Group also saw an increase of 33.3 percentage points, though this was due to changes in the group's governance structure. Chairwoman Hyun Jeong-eun sold 7.83% of Hyundai Elevator shares to Hyundai Holdings Company in July last year, and the 5.74% shares she received as a gift from her mother, Kim Moon-hee, were sold to Hyundai Network in December last year. Hyundai Holdings Company is 61.63% owned by Chairwoman Hyun, and Hyundai Network, which was spun off from Hyundai Holdings Company in August last year, is 91.3% owned by Chairwoman Hyun.

On the other hand, 29 companies experienced a decrease in the proportion of shares held by the next generation. Iljin (Iljin Electric) saw the largest decline, with the next generation's share proportion dropping by 40.2 percentage points from 88.7% at the end of 2022 to 48.5% currently.