The number of executives promoted in the top 30 domestic groups has decreased by nearly 10% compared to last year. This is attributed to the increase in uncertainty in domestic and international businesses and the prolonged economic recession, prompting most groups to focus on management efficiency rather than expansion.
On the 24th, corporate analysis firm Leaders Index analyzed the status of 245 affiliates from 21 groups that announced executive promotions from August 1 to the 20th among the top 30 groups by asset in Korea. The number of executives promoted was recorded at 1,303, a decrease of 9.6% (139 people) from last year's 1,442.
This year, the number of affiliates that promoted executives increased by 4 from last year (152), but the total number of promoted executives has actually decreased. The reduction in high-ranking positions of president and above was greater than for lower ranks, with only one vice president promoted among the four major groups. The number of newly promoted senior executives decreased from 1,129 last year to 1,021 this year, a drop of 9.6%, and those at the level of president and above fell from 43 to about 24.
This year, the number of new chairpersons promoted includes Jeong Yu-kyung, chairperson of Shinsegae, and Jeong Gyo-seon, chairperson of Hyundai Home Shopping, totaling two individuals. The number of vice presidents promoted was four this year, down from eleven last year, including Jang Jae-hoon, vice chairman of Hyundai Motor Company; Jo Seok, vice chairman of HD Hyundai Electric; Hong Soon-ki, vice chairman of GS; and Koo Bon-hyuk, vice chairman of Yesco Holdings.
In particular, among the four major groups, there have been no vice presidents promoted for three consecutive years, excluding Hyundai Motor Group. The number of presidents promoted also decreased from 32 last year to 20 this year, a reduction of 37.5%.
The groups that had more executives promoted than last year are NongHyup, CJ, DL, Mirae Asset, and Hyundai Department Store, while the remaining 17 groups saw a decline.
Among the top 10 groups, Hanwha showed the largest decrease. The number of executives promoted in the 13 affiliates of Hanwha Group, which announced executive appointments this year, was a total of 62, down 37.4% from last year's 99. Following that were GS (-33.3%), Shinsegae (-29.6%), Lotte Group (-22%), HD Hyundai Group (-12.2%), and LG Group (-11.9%).
Among the top 10 groups, Samsung had the lowest rate of decrease in executive promotions. The number decreased from 265 last year to 260 this year, a drop of only five (-1.9%).
SK Group, which saw a significant decrease in executive promotions last year (127 to 82), recorded a slight further decrease this year, totaling 75.