Seoul’s downtown area, where major corporate headquarters are clustered. (Image courtesy of Yonhap)
SEOUL, Jan. 9 (Korea Bizwire) — Foreign nationals are becoming increasingly common among the founding families of South Korea’s largest conglomerates, particularly in the third and fourth generations, raising new questions about corporate governance and disclosure rules, according to a recent study.
An analysis released Wednesday by CEO Score found that 41 members of controlling shareholder families at major business groups—about 7 percent of the total surveyed—held foreign citizenship as of the end of last year. The study examined 582 family members with stakes in listed affiliates across 62 large conglomerates.
The shift is most pronounced among younger heirs. While only 1.7 percent of first- and second-generation founders and their peers held foreign citizenship, the figure jumped to 9.4 percent among third- and fourth-generation family members.
Of the 41 foreign nationals identified, 39 were U.S. citizens, with one Japanese and one Singaporean national. More than a quarter were actively involved in management as registered executives.
The concentration varies by group. Korea Zinc, part of the Young Poong Group, had the highest number of foreign nationals in its founding family, with 13 U.S. citizens among 47 family shareholders, though most are not involved in day-to-day management.
Other groups with multiple foreign-national heirs include SK, LS and Hyosung, while companies such as LG, Lotte and GS each had one.
CEO Score said the actual number of foreign-national owners is likely higher, as the analysis covered only family members whose citizenship was disclosed.
The findings come amid ongoing debate over how regulators should classify and oversee foreign citizens who exert control over Korean firms, including scrutiny surrounding Kim Bum-seok, the U.S.-born chairman of Coupang.
As more heirs hold foreign passports while retaining influence over domestic companies, analysts say issues such as ownership designation, disclosure of related-party transactions and the definition of controlling shareholders are likely to emerge as new policy challenges for regulators.
Ashley Song (ashley@koreabizwire.com)
