Among Top 100 Group Owners, Promotion to Senior Positions Accelerates Faster by the 4th Generation

Leaders Index Survey... 3rd Generation CEOs Average 18.7 Years, 4th Generation 12.7 Years
Registered Executive Ratio Decreases... 2nd Generation 70% → 3rd Generation 46.2% → 4th Generation 46.4%

It has been found that the promotion of executives from owner families in Korea's top 100 conglomerates accelerates with each successive generation. In particular, the promotion speed to vice chairman and chairman positions for the 4th generation owners is over 30% faster than that of their parents' generation. On the other hand, the proportion of registered directors has shown a declining trend.

Samsung Seocho Building, Seocho-gu, Seoul. Photo by Kang Jin-hyung.

Leaders Index, a corporate analysis research institute, announced on the 10th that it analyzed the promotion status of 290 executives currently participating in management out of 835 owner family members from Korea's top 100 groups by asset ranking, revealing these findings.

Among the top 100 groups, 6 out of 9 existing 1st generation founders are involved in management. For the 2nd generation, 130 out of 353 members, the 3rd generation has 132 out of 391, and the 4th generation has 28 out of 80 participating in management, respectively.

The survey results showed that while it took longer to become an executive after joining the company as generations progressed, the promotion period from executive to president, vice chairman, and chairman became shorter.

The 2nd generation founders joined the company at an average age of 28.7 and took 4.8 years to become executives. The 3rd generation joined at an average age of 29.6 and took 3.8 years to become executives. The 4th generation joined at an average age of 28.8 and spent 7 years before being promoted to executive.

The period to be promoted from executive to president was recorded as 8.3 years for the 2nd generation, 9.9 years for the 3rd generation, and 9.7 years for the 4th generation.

The time taken to advance from executive to vice chairman was 12.3 years for the 2nd generation, 12.9 years for the 3rd generation, and an average of 10.4 years for the 4th generation. This represents a reduction of over 2 years for the 4th generation.

The promotion speed to chairman was even faster. While the 2nd and 3rd generations took 16.5 years and 18.7 years respectively to rise from executive to chairman, the 4th generation took 12.7 years. The promotion period for the 4th generation was shortened by about 30% compared to the 3rd generation.

The average age of chairpersons also decreased. The average age of 2nd and 3rd generation owner chairpersons was 50.5 years, but the 4th generation averaged 46 years.

Conversely, the proportion of registered executives among owner family members participating in management declined from 70% for the 2nd generation to 46.2% for the 3rd generation and 46.4% for the 4th generation.

Unregistered executives among owner managers include Lee Jae-yong, Chairman of Samsung Electronics; Lee Seo-hyun, President of Samsung C&T; Lee Myung-hee, Chairwoman of Shinsegae Group; Chung Yong-jin, Chairman of Shinsegae Group; Chung Yoo-kyung, Chairwoman of Shinsegae Co., Ltd.; Kim Seung-yeon, Chairman of Hanwha Group; Kim Dong-won, President of Hanwha Life Insurance; and Lee Jae-hyun, Chairman of CJ Group.

The youngest presidents among the top 100 group presidents are Woo Ki-won (born 1991), CEO of SM Highplus, and Kim Yoon-hye, President of Hoban Property. CEO Woo Ki-won is the only son of Woo Oh-hyun, founder of SM Group. President Kim Yoon-hye is the eldest daughter of Kim Sang-yeol, founder of Hoban Group and former chairman of Hoban Construction.

Vice chairpersons born in the 1980s include Chung Ki-sun, Senior Vice Chairman of HD Hyundai (born 1982), Kim Dong-kwan, Vice Chairman of Hanwha Group (born 1983), and Lee Kyu-ho, Vice Chairman and CEO of Kolon Strategic Division (born 1984).