Large Korean conglomerates choose stability in year-end reshuffle

[Photo by MK DB]

South Korea’s 500 large companies have chosen stability with little change in chief executive officers in this year’s year-end reshuffle during an economic downturn, a corporate tracker said on Tuesday.

Among 686 CEOs at 500 leading companies in Asia’s fourth-largest economy, only 47 CEOs, or 6.9 percent of total chiefs, were newly appointed between October and last week of December, according to the Leaders Index. Over the same period last year, 51 new CEOs were appointed, representing 7.6 percent.

By industry, banks showed the highest replacement rate at 28.6 percent, with four out of 14 CEOs newly appointed. Banks were followed by credit finance firms with 25.0 percent (4 people), public corporations with 19.0 percent (4 people), and shipbuilding and machinery with 12.0 percent (4 people).

The average age of new CEOs is 56.1, younger than last year’s 56.7.

Among the 47 new CEOs, there were two female CEOs: Lee Jeong-ae, CEO of LG Household & Health Care, and Lee Seon-jeong, CEO of CJ Olive Young.

Regarding the career background of the new CEOs, 13 people had careers in business planning and strategy, accounting for 27.7 percent, followed by sales and marketing with 12 people (25.5 percent), finance with six (12.8 percent), technology with five (16.7 percent), and management support with three (6.4 percent).