Samsung, SK, Hyundai Push Younger Executives Into Senior Posts (Yonhap)
SEOUL, Dec. 10 (Korea Bizwire) — Executives from South Korea’s powerful family-run conglomerates are reaching the chairmanship earlier and faster than their predecessors, as younger generations move into leadership with accelerated promotion timelines, according to new corporate data released Tuesday.
A study by Leaders Index examined 233 owner-family executives across 66 large business groups within the nation’s top 100 conglomerates. It found that, on average, it took 17 years and 11 months for an owner-family executive to rise from first-time executive appointment to group chair.
But that timeline has shortened as generations change. Second-generation leaders took an average of 18 years and 5 months to reach the chairmanship, while third-generation leaders took 17 years and 11 months, and fourth-generation leaders just 12 years and 7 months.
The average age at promotion also fell sharply: 52.6 years for second-generation chairs, 49.1 for third-generation, and 46 for fourth-generation, a gap of more than six years between the oldest and youngest cohorts.
Among second-generation leaders, Shin Chang-jae of Kyobo Life rose the fastest, becoming chairman less than two years after joining the company at age 43. He was followed by Kim Seung-youn of Hanwha Group, who entered at 25 and assumed the top role at 29; Chey Tae-won of SK Group, who ascended after 7 years and 7 months; Yoo Sang-duk of ST International (8 years and 1 month); and Chung Mong-jin of KCC (9 years and 3 months).
In the third generation, Chung Ji-sun of Hyundai Department Store Group was the fastest riser, joining at age 25 and becoming chairman at 35. Choi Yoon-bum of Korea Zinc took 15 years, while Cho Won-tae of Hanjin Group rose after nearly 16 years, and Lee Jae-hyun of CJ Group after close to 17 years. The newest entrant, Chung Ki-sun of HD Hyundai, who took office in October, joined at age 27 and reached the chairmanship at 43.
At the other end of the spectrum, some leaders took decades to ascend. Shin Dong-won of Nongshim Group spent 42 years in the company before becoming chairman at age 63, while Shin Dong-yoon of Yulchon Chemical took 40 years.
Among the largest chaebol families, promotions have generally taken 20 years or more, with a few exceptions driven by abrupt succession events — including SK Group chairman Chey Tae-won and LG Group chairman Koo Kwang-mo, the latter becoming chairman 12 years after joining the firm.
Samsung Electronics chairman Lee Jae-yong took over 31 years from first joining the company at age 23, while Hyundai Motor Group chairman Chung Euisun needed 26 years, and Shin Dong-bin of Lotte Group took 23 years.
Leaders Index noted that newer generations tend to spend more time moving between mid- to high-level executive positions before assuming the top role, reflecting a shift toward hands-on, competitive management exposure as business environments become more complex.
As the report put it, “Younger family leaders are reducing the period of early field experience while taking more time to manage frontline responsibilities, suggesting an adaptation to fast-changing business conditions.”
M. H. Lee (mhlee@koreabizwire.com)
