36 of the top 50 chaebol groups with identifiable owners recorded stock ownership changes between July 2023 and June 2024. (Image courtesy of Yonhap)
SEOUL, July 31 (Korea Bizwire) — Over the past year, more than two-thirds of South Korea’s top 50 family-run conglomerates have undergone notable shifts in ownership structure, with approximately 1 trillion won (US$750 million) worth of shares transferred—largely through inheritance and gifts to heirs, signaling a new wave of succession planning.
According to corporate tracker CEO Score, 36 of the top 50 chaebol groups with identifiable owners recorded stock ownership changes between July 2023 and June 2024, involving a total of 978.3 billion won in gifted or inherited shares.
The largest transfer occurred at Hanwha Group, where Chairman Kim Seung-yeon gifted 4.09 billion won worth of Hanwha Corp. stock—nearly 8.49 million shares—to his three sons in April, significantly increasing their combined control from 18.8% to 42.8%.
At Shinsegae Group, Chairwoman Lee Myung-hee completed a long-anticipated succession by transferring her entire stake in Shinsegae Co.—worth 1.75 billion won—to her daughter, Chung Yoo-kyung, now the company’s president. The move boosted Chung’s shareholding to 29.2%.
Other notable transfers include:
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At Hyosung Group, the late honorary chairman Cho Suck-rae’s remaining estate was divided, with his widow and second son inheriting shares in group affiliates.
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Koo Bon-joon, chairman of LX Group, a spin-off of LG Group, gifted 1.06 billion won worth of LG Corp. stock to his son, Koo Hyung-mo, though he partially reversed the move amid stock price fluctuations.
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In an unusual cross-family share swap, KCC Chairman Chung Mong-jin and his brother, KCC Glass Chairman Chung Mong-ik, exchanged shares among their respective children and spouses, restructuring internal governance.
Beyond gifting, active buying also shaped ownership shifts. Shinsegae Group Chairman Chung Yong-jin purchased 2.25 billion won worth of E-Mart shares from his mother, reinforcing his control using personal funds.
In the tech sector, Nexon founder Yoo Jung-hyun’s daughters invested 1.65 billion won each in a capital increase for their wholly owned investment vehicle, Wise Kids, hinting at next-generation succession planning at NXC, Nexon’s parent company.
At Hyosung, co-leaders Cho Hyun-joon and Cho Hyun-sang engaged in mutual share purchases to recalibrate their ownership structure.
The findings reflect a broader trend among Korea’s major business families to solidify generational succession and streamline governance, often using strategic stock gifts and internal transactions to preserve control amid evolving market and regulatory pressures.
M. H. Lee (mhlee@koreabizwire.com)
