With the recent disclosure of the compensation for the chairman of a large company listed on the securities market, the curiosity about the salaries of chairmen of medium-sized companies is also increasing. Among them, there were chairmen with salaries higher than those of large companies.
ChosunBiz analyzed the 'top 10 salaries' of chairmen and chief executive officers of 51 medium-sized companies listed on the securities market that recorded revenues of 1 trillion to 5 trillion won, as commissioned on the 17th from financial information company FnGuide. Considering that the majority of medium-sized companies have yet to disclose their business reports for the previous year, the analysis is based on 2023 figures, combining the salaries of affiliated listed companies held concurrently.
◇Top 10 salaries of medium-sized companies…including diverse sectors like chemicals, defense, gaming, and food
The highest salary among them was received by Kim Sang-beom, chairman of ISU Group, with ISU Chemical as a core subsidiary. Chairman Kim received a total of 20.073 billion won from three companies, including ISU Chemical, where he received 16.123 billion won, including 13.831 billion won in severance pay, and 1.44 billion won and 2.51 billion won from ISU Specialty Chemical and ISU PETASYS, respectively.
Chairman Kim is the third son of the late Kim Jun-sung, honorary chairman of ISU Chemical, who served as the deputy prime minister and chairman of Samsung Electronics. The late chairman acquired ISU Chemical in 1995 and led the company as chairman from 2000. After receiving severance pay from ISU Chemical, he continues to oversee the management of ISU Chemical and its affiliated companies as the group chairman.
In second place is Park Joo-hwan, chairman of TKG Hyochem, a medium-sized chemical company affiliated with TAE KWANG CORPORATION, known for its Nike shoe order manufacturing. Chairman Park received a total of 9.576 billion won in 2023, including 3.383 billion won from TKG Hyochem and 6.193 billion won from TAE KWANG CORPORATION. He is the son of the late Park Yeon-cha, founder of TAE KWANG CORPORATION, and has been leading the company since 2020.
Third is Ryu Jin, chairman of Poongsan, a defense contractor, who received a salary of 8.4 billion won. Chairman Ryu received 5.065 billion won from Poongsan, which produces copper and other metals, and 3.341 billion won from its holding company, Poongsan Holdings. He is the son of the late Ryu Chan-woo, the founder of Poongsan, and a second-generation owner-manager.
In fourth place is Kim Taek-jin, founder of NCSOFT, a leading game company in the country. CEO Kim received 7.246 billion won. NCSOFT, which recorded sales of 1.7798 trillion won in 2023, is classified as a medium-sized company as it is not included in the business groups designated by the Fair Trade Commission.
Heo Gi-ho, chairman of Hanil Holdings, ranked fifth. He received 5.666 billion won, including 4.108 billion won from Hanil Holdings and 1.558 billion won from its affiliate, Hanil Hyundai Cement. Chairman Heo is a third-generation owner-manager and the eldest grandson of the late founder Heo Chae-gyeong.
In sixth place is Dam Cheol-gon, chairman of ORION, a medium-sized food company. He received 3.056 billion won from ORION and 1.575 billion won from its holding company, ORION Holdings. The total salary from both companies amounts to 4.631 billion won. Chairman Dam is the husband of Vice Chairwoman Lee Hwa-gyeong of ORION and son-in-law of the late Lee Yang-gu, the founder of Tongyang Group. ORION was separated from Tongyang Group in 2001.
Seventh is Baek Jeong-ho, chairman of Dongsung Chemical. The second-generation owner, Chairman Baek received 2.616 billion won from Dongsung Chemical and 1.447 billion won from its affiliate, Dongsung Finetec. The total is 4.063 billion won. Dongsung Chemical produces chemical products used in shoes, automotive interior materials, and insulation materials.
Eighth is Jeon Seong-ho, CEO of SOLUM, who received 3.726 billion won. SOLUM is an electronic component manufacturing company that produces power modules (components for supplying power to electronic devices) and was spun off from Samsung Electro-Mechanics in 2015. CEO Jeon, who was a vice president of the digital module business at Samsung Electro-Mechanics, leads the company and is its largest shareholder.
Ninth is Yoon Yoon-soo, chairman of FILA Holdings, who received 3.363 billion won. FILA is a brand that started in Italy in 1911, and Chairman Yoon acquired the headquarters of FILA Italy while serving as CEO of FILA Korea in 2003. Subsequently, he purchased the trademarks and business rights of FILA worldwide from the U.S. SBI, the global holding company for FILA. Currently, Chairman Yoon's son, Yoon Geun-chang, is managing FILA Holdings, establishing a second-generation management structure.
Tenth is Han Young-jae, chairman of Noroo Holdings, who received a salary of 3.248 billion won. He received 1.243 billion won from Noroo Paint and 2.005 billion won from holding company Noroo Holdings. Chairman Han is the son of the late Han Jeong-dae, the founder, and took office as chairman in 2000.
◇Chairman and employee salary gap is 204 times...”lack of performance sharing leads to loss of employee morale”
Looking at the average salaries of employees in these medium-sized companies, TKG Hyochem ranks first (110 million won), followed by NCSOFT (107 million won), ISU Chemical (95 million won), Noroo Holdings (93 million won), Poongsan (91 million won), FILA Holdings (89 million won), ORION (88 million won), Hanil Holdings (82 million won), SOLUM (82 million won), and Dongsung Chemical (72 million won).
Just because a chairman has a high salary does not mean that employee salaries are necessarily high.
For example, while Kim Sang-beom, chairman of ISU Group, received a salary of 20.073 billion won, employees earned 95 million won, creating a difference of about 211 times. Kim Taek-jin, CEO of NCSOFT, earned 91 times more than employees, and Park Joo-hwan, chairman of TKG Hyochem, earned 87 times more.
Experts noted that while it is not a problem for owners of medium-sized companies to achieve good results and receive appropriate rewards, a system must be established to share those results with employees. Otherwise, employees may lose motivation, and the organization can lose vitality.
Oh Gye-taek, senior research fellow at the Korea Labor Institute, stated, "The higher you are in a company as a superior, the more benefits you receive that are linked to performance," adding, "For a company to grow, it is essential for ordinary employees to work hard and be able to achieve results that match their efforts."
He further explained that in an era where the MZ generation (born between 1980 and 2000) is increasingly working to avoid being laid off, if owner chairpersons receive high salaries while their employees earn significantly less, this situation could lead to a loss of organizational vitality in the long term. He emphasized the need for medium-sized companies, which are facing this issue more than large companies, to seek solutions.