Third and fourth-generation members of South Korean conglomerates have been promoted to front-line management roles in the companies founded by their families. These members have been actively participating in family businesses for the past 10-20 years, with some recognized for their achievements in management.
While these members get a head start in business and are generally promoted faster than the average employee, being chosen as heir is not an easy feat. Unlike second-generation members who inherited a significant amount of shares and took control of companies, third and fourth-generation members have fewer shares, which means they need to be recognized for their management skills to solidify their position as successors.
Korean shipbuilding giant HD Hyundai promoted Chung Kisun, the president of HD Hyundai, to vice chairman in a year-end leadership reshuffle last November. Chung, 41, is the eldest son of Asan Foundation chairman Chung Mong-joon and grandson of Hyundai Group founder Chung Ju-young.
With this promotion, Chung became one of the few third and fourth-generation members of conglomerates born in the 1980s to assume leadership roles, along with Kim Dong-kwan, vice chairman of Hanhwa Group. The two are known in business circles as "model successors", and have been in the spotlight for their fierce competition in the shipbuilding and defense businesses.
Chung launched Hyundai Global Services (now HD Hyundai Marine Solution) in 2016 by spinning off HD Hyundai Heavy Industries' shipbuilding after-sales service business. Under his management, sales of the company jumped from $152 million (200 billion won) to 1 trillion won. He is also credited for making changes to the shipbuilding group's rigid culture by providing childcare support.
Kolon Group appointed Lee Kyu-ho, the eldest son of the group's honorary chairman Lee Woong-yeol, as the new vice chairman last week. The vice chairman, who has a 0% stake in Kolon, started his career at Kolon Industries in 2012 and has since taken on key roles at the group's affiliates. He led the diversification of imported car brands and the launch of the golf brand G/FORE.
When honorary chairman Lee resigned from his post in 2018 he announced that "I will not hand over a single share of the company unless [my son] is not recognized for his management ability."
Kumho Engineering and Construction vice chairman Park Se-chang, Sampyo Executive Vice President Chung Dae-hyun, BGF Retail vice chairman Hong Jeong-guk, Fashion Group Hyungji vice chairman Choi Jun-ho are also third and fourth-generation members who were promoted to leadership roles in their 30s and 40s.
Some third and fourth-generation members are being promoted as CEOs. Heo Yun-hong, the eldest son of GS Chairman Heo Chang-soo, is CEO of GS Engineering & Construction. Geon Ho Kim, the eldest son of Samyang Group Chairman Kim Yoon was appointed president of strategy at holding company Samyang Holdings and will lead the group's management.
Third and fourth-generation members are usually tasked with taking on new ventures and developing businesses that will secure the group's future growth.
Lotte Group named Shin Yoo-yeol, the 37-year-old son of Lotte Group Chairman Shin Dong-Bin as executive vice president of the group. He will be in charge of the group's future growth division.
Chey Yoon-jung, the eldest daughter SK Group chairman Chey Tae-won, was promoted to vice president of SK Biopharmaceuticals in the latest reshuffle, making her the group's youngest executive. Chey, 34, who worked at the University of Chicago Neuroscience Institute and consulting firm Bain & Company, will now lead business development at SK Biopharmaceuticals.
Kim Dong-sun, the youngest son of Hanwha Chairman Kim Seung-yeon, is head of strategic management at Hanhwa Galleria. His recent ventures include introducing popular US burger chain Five Guys to Korea.