Average Promotion to Executive in 3.8 Years, Faster Than Large Conglomerate Owners
32.7% of Those Surveyed Became Executives Immediately After Joining
Notable Cases Include Kim Youngmin of SCG and Hyun Jeongeun of Hyundai Group
An analysis revealed that the owner families of mid-sized domestic groups are promoted to executive positions on average within 3.8 years after joining the company. This period is less than four years, which is faster than the promotion speed of owner families in large business groups.
According to a report released on the 5th by CEO Score, a corporate data research institute, the management participation status of 237 owner family members was investigated across the top 100 mid-sized domestic groups with total assets under 5 trillion won as of the 2023 fiscal year-end. Among the surveyed groups, 101 owner family members from 58 mid-sized groups participated in management, and they joined the companies at an average age of 30.7 and were promoted to executives at an average age of 34.5. Compared to 212 owner family members of large business groups who joined at an average age of 30.4 and were promoted to executives at 34.8, this is about three months faster.
Average Time Required for Executive Promotion of Owner Families in Large Corporate Groups and Mid-sized Groups. Provided by CEO Score
The average time it took for the children generation of mid-sized group owner families to be promoted to executives was 3.8 years, which is 0.1 years shorter than the parent generation. For owner families of large business groups, the children generation took an average of 4.3 years to become executives, while the parent generation took 4.5 years on average. The period from executive to president-level promotion for mid-sized group owner families was also shorter, averaging 12.3 years compared to the large business average of 12.9 years. For the children generation of mid-sized groups, it took an average of 11.9 years to be promoted to president-level positions, which was also faster than the children generation of large business groups (average 12.5 years).
Among mid-sized group owner families, 33 individuals, accounting for 32.7% of the total, became executives immediately upon joining the company. Daesung Group had the highest number with four, followed by SPC with three, and Hyundai and Chosun Refractories with two each. Notable mid-sized group owner family members who became executives immediately after joining include Kim Young-min, Chairman of SCG; Hyun Jeong-eun, Chairwoman of Hyundai Group; Heo Jin-su, President of SPC Group; and Heo Hee-su, Vice President of SPC Group.
Key figures of the second-generation heirs who were promoted to executive positions immediately after joining among mid-sized group owners. Provided by CEO Score
On the other hand, the mid-sized group owner who took the longest time to be promoted to executive after joining was Ham Young-jun, Chairman of Ottogi, who joined at age 19 in 1977 and was promoted to executive 22 years later in 1999. Others who took a long time to be promoted to executives include Yoon Yeo-won, President of Kolmar BNH (13.5 years); Koo Ja-hoon, Chairman of LIG Cultural Foundation (13 years); Koo Ja-joon, former Chairman of LIG Insurance (12.9 years); and Park Hoon, CEO of Husteel (12.3 years).
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