"Corporate Succession Success Rate at 30%... Objective Assessment Needed to Identify Risks"

Forum by the Corporate Succession Activation Committee of the Korea Federation of SMEs
"Long-Term Succession Roadmap Must Be Prepared in Advance"

The Corporate Succession Activation Committee of the Korea Federation of SMEs announced on the 27th that it held a forum titled "The Power of Generational Challenge: Masterplan Strategies for Corporate Succession" in collaboration with the Family Business Association.

Kim Sunhwa, Director of the Korea Family Business Institute, who presented on the main topic, stated, "Family businesses are entering a full-fledged period of generational transition, but the success rate of succession remains at about 30%. If even one element-such as management, family relationships, or ownership structure-is not adequately prepared, corporate succession can lead to critical risks for business continuity, including management vacuums, conflicts, and dispersed equity," she pointed out.

She added, "For smooth corporate succession, it is necessary to identify succession risks such as perception gaps between managers and successors using diagnostic tools like SMD and to prepare objective, data-driven succession strategies."

Kim Sohee, President of the Korea Association of Family Business Successors, said, "Corporate succession involves complex changes in corporate culture, management systems, leadership, and family relationships, all of which occur simultaneously. Without an integrated strategy, sustainability is impossible." She emphasized, "For successful succession, proactive preparation by all parties and a long-term succession roadmap are essential, and improvements to payment systems are needed to ease the tax burden associated with succession financing."