Descendants of chaebol founders rise in the ranks, seek change

Descendants of the founders of Korea's largest corporations are being promoted to the top as power jumps to the latest generation of chaebol leaders, with signs of openness greeted as an indication that managements will become more responsive to...

Descendants of the founders of Korea's largest corporations are being promoted to the top as power jumps to the latest generation of chaebol leaders, with signs of openness greeted as an indication that managements will become more responsive to employees and the public.

Choi Sung-hwan, the eldest son of former SK Networks Chairman Choi Shin-won and a nephew to SK Group Chairman Chey Tae-won, was promoted to be president of SK Networks on Dec. 1. He is managing new businesses and actively forming a network for global investment.

Chey In-keun, Chey Tae-won’s eldest son, currently works in the strategic planning department at SK E&S with the title of manager. SK E&S is a natural gas company that deals in renewable energy, clean hydrogen and energy solutions. Chey In-keun will be contributing to the shift from fossil fuels to more eco-friendly energies, which means he will be helping to carry out his father’s vision of a “decarbonized society.".

Shin Yoo-yeol, Lotte Group Chairman Shin Dong-bin’s eldest son, was promoted to vice president of Lotte Chemical on Dec. 15.

Lotte is expanding its business from former areas in food, retail, entertainment and services to bio, chemicals and healthcare. Shin is currently working at Lotte Chemical Japan to find new growth industries and focusing on global businesses.

Hanwha Vice Chairman Kim Dong-kwan, son of Chairman Kim Seung-youn, is leading in solar energy, aerospace and military and slowly pulling the group away from petrochemicals, finance and construction. According to local press reports, Kim Dong-kwan was behind Hanwha’s latest vision to become “one of top 10 global players in defense by 2030” and merge Hanwha Aerospace, Hanwha Defense and the defense division of Hanwha Corporation.

In the Hyundai Group, Chairman of Asan Foundation Chung Mong-joon’s eldest son Chung Ki-sun is leading change at HD Hyundai, formerly known as Hyundai Heavy Industries Holdings. Chung Ki-sun serves as the CEO. He is known to have been directly involved in the company’s rebranding as HD Hyundai, effective Dec. 27.

Lee Sun-ho, eldest son of CJ Group chairman Lee Jay-hyun, is currently aiming to spread Korean food to the global market. He serves in an executive-level position at CJ CheilJedang.

Dam Seo-won, the eldest son of Orion Group Chairman Dam Chul-gon, became managing director of Orion Corp. as of Dec. 27. He will be in charge of expanding the confectionery business to the global market.

New management styles of third-generation and fourth-generation leaders are being much mentioned in the local press. Instead of sticking to the rigid, hierarchical structures of the companies they lead, the new bosses are attempting to reach out to win the hearts of their employees and the favor of the public, according to the reports.

Samsung Electronics Executive Chairman Lee Jae-yong gets on a plane without an entourage and visits the cafeteria to directly hear the troubles of younger workers.

Photos of LG Group Chairman Koo Kwang-mo as he listens a worker are much published in the local press.

HD Hyundai’s CEO Chung Ki-sun takes a selfie with his workers, while Shinsegae Group Vice Chairman Chung Yong-jin communicates with the public through social media.

Experts say a new form of leadership is imminent as the management environment shifts.

“As leaders change, it’s important to demonstrate softness as well as competent leadership,” said Hong Dae-soon, President of the Global Institute for Strategy & Policy.

BY KO-SUK-HYUN [lee.jaelim@joongang.co.kr]