Korean conglomerates trim vice chairman roles amid streamlining efforts

(Kim Ho-young)

Major conglomerates in South Korea are cutting back on vice chairman posts as they move to streamline management amid rising business uncertainty, according to industry sources on Sunday.

Chung Hyun-ho, who led Samsung Electronics Co.’s Business Support Task Force and had effectively served as the tech giant’s No. 2, recently stepped down, leaving Jun Young-hyun as its sole remaining vice chairman. No new vice chairmen were promoted this year.

Across Samsung Group, only two vice chairman posts remain — Jun and Choi Sung-an at Samsung Heavy Industries Co.

The number of vice chairmen at LG Group has also declined.

Following the departure of LG Chem Vice Chairman Shin Hak-chul, LG Corp.’s Kwon Bong-seok is the group’s sole remaining vice chairman. LG Electronics CEO Cho Joo-wan, previously seen as a candidate for promotion, stepped down this year.

SK Group produced its first vice chairman promotion in four years with the appointment of Lee Hyung-hee. Rather than taking charge of a specific business division, he is expected to serve as an advisor who proposes solutions suited to rapidly changing domestic and global environments.

He has not been assigned to head an independent organization.

The group seeing the largest changes is Lotte.

All four of its vice chairmen — spanning holdings, food, distribution, and construction — exited in this year’s reshuffle, leaving the conglomerate with no vice chairmen.

At GS Group, two vice chairmen were promoted from within the founding family.

Analysts say the broad pullback reflects a shift toward tighter structures as companies navigate weakening demand, geopolitical risks, and higher capital costs.

“The reduction in vice chairman roles can be seen as part of broader efforts to improve management efficiency,” said an industry official.