Specialized managers who are properly recognized for their worth are emerging in the distribution industry one after another. In the past, the salaries of business owners were set the highest regardless of their contribution to performance, but now it seems to be changing. As corporate management becomes more advanced, it is increasingly difficult to find talented specialized managers, and thus their worth is bound to rise.
According to the Financial Supervisory Service's electronic disclosure system on the 21st, Heo In-cheol, vice president of ORION Group, was reported to have received the same salary as Lee Hwa-gyeong, vice president of ORION Group. Last year, Vice President Heo earned 2.397 billion won from ORION and 1.235 billion won from ORION Holdings, totaling 3.632 billion won. Vice President Heo's salary is the same as that of Vice President Lee Hwa-gyeong. This is because, according to ORION Group's internal regulations, owners and specialized managers receive the same level of compensation across different ranks.
Lee Hwa-gyeong, vice president of ORION Group, is the second daughter of the late Lee Yang-gu, the founder of Tongyang Group (the predecessor of ORION). Following the founder's principle that "there are no privileges even if it's my daughter. A manager must be diligent in basics," she started as a regular employee, gained more than 20 years of field experience, and then became the Chief Executive Officer.
Subsequently, ORION Group changed to a specialized management system, and Vice President Heo is leading the company. Vice President Heo began his career at Samsung C&T and rose to the position of CEO of Emart. According to ORION Group, he successfully led growth in overseas markets and discovered new growth engines for the group by entering the bio sector. He also efficiently allocated resources within the group, increasing the operating profit margin to around 20%.
In fact, last year, ORION Group recorded strong results. The group's revenue was 3.1043 trillion won, and the operating profit was 543.6 billion won. Compared to 2023, these figures represent increases of 6.6% and 10.4%, respectively. Last year's net profit was 533.2 billion won, up 38.5% from the previous year.
William Kim, CEO of Shinsegae International, received a higher salary than Jung Yoo-kyung, chairman of Shinsegae, last year. CEO William Kim's salary was 4.154 billion won. Chairman Jung's salary was 360 million won. CEO William Kim is a fashion expert who has built experience with various fashion brands including Gucci, Burberry, and AllSaints. Although Shinsegae International's performance stagnated last year, it is expected to show long-term results within the group.
A representative from Shinsegae International noted, "We considered our efforts in portfolio rebalancing, global business promotion, and strengthening digital capabilities to establish a foundation for growth and secure new growth engines through mergers and acquisitions, thereby contributing to enhancing the company's competitiveness." Shinsegae International recorded consolidated revenue of 1.3086 trillion won and operating profit of 26.8 billion won last year. These figures represent decreases of 3.4% and 44.9% compared to the previous year.
The situation at CJ CheilJedang is similar. Lee Jae-hyun, chairman of CJ Group, received compensation of 3.749 billion won from CJ CheilJedang last year, but there are two specialized managers who earned more than him. Park Min-seok, the representative of the food division, is a prime example, having received 5.852 billion won from CJ CheilJedang last year. Kang Shin-ho, Chief Executive Officer of CJ CheilJedang, also had a salary of 4.575 billion won last year, which was higher than that of Chairman Lee.
Academics studying corporate governance view this trend positively. They note a shift in the convention where business owners automatically received high salaries, and that specialized managers were paid less than owners despite their capabilities is changing. A professor at a private university, who requested anonymity, said, "If capable, it would be good for the business owner to manage, but if not, it is better to remain as the chair of the board or a shareholder receiving dividends," adding that "beginning to properly compensate specialized managers is part of the process of transitioning to a new management structure."
An executive from a headhunting firm said, "It is indeed not easy to find someone who accurately understands the circumstances of the industry and has the experience to grow the corporation without issues," adding, "Many corporations seek skilled specialized managers, but finding the perfect candidate is difficult. Once someone is classified as a highly capable candidate, their worth can only rise."