An analysis found that owner families of large corporations in Korea are moving away from past politics- and government-centered "marriages of convenience," with more choosing spouses from the business community or the general public.
On the 12th, CEO Score, a corporate data research institute, said that a survey of 380 people whose marital networks could be classified among 81 public-disclosure business groups (large corporation groups) with designated heads this year found that the rate of political and government marital ties among fourth- and fifth-generation owners was 6.9%. Compared with 24.1% for second-generation owners and 14.1% for third-generation owners, the rate is declining with each generation.
Among second-generation owners, corporations that formed in-law ties with politics and government include HD Hyundai, LS, and SK. Chung Mong-joon, chair of the Asan Foundation, married Kim Young-myung, the daughter of the late former Minister of Foreign Affairs Kim Dong-jo, and Koo Ja-yeol, chair of the LS board, married Lee Hyun-joo, the daughter of the late former Presidential Security Service Vice Administrator Lee Jae-jeon.
In contrast, more owners are forming ties within business families or marrying members of the general public. The rate of marital ties within business families rose from 34.5% among second-generation owners to 47.9% among third-generation owners and 46.5% among fourth- and fifth-generation owners. Marriages to members of the general public also showed an upward trend, from 29.3% among second-generation owners to 23.3% among third-generation owners and 37.2% among fourth- and fifth-generation owners.
On this, CEO Score analyzed that "in the past, forming marital ties with politics and government helped business, but recently it can expose them to greater monitoring and regulatory risk."
Looking at marital ties between groups, LS Group formed in-law relationships with the largest number of large corporations, including Hyundai Motor, OCI, BGF, Sampyo, Sajo Group, and the broader Dongkuk Steel Mill (KISCO Holdings).
LG and GS each formed marital ties with four groups. LG formed ties with DL, Samsung Electronics, GS, and Doosan, while GS connected with LG, Sampyo, Joongang, and Taekwang. Expanding to the broader GS-affiliated network, there are also in-law ties with Kumho Petrochemical and Seah.