It was discovered that the family owners of leading domestic companies are experiencing quicker advancements to executive roles and are younger when they assume the position of chairperson as each generation evolves.
As per a comprehensive survey conducted by the corporate analysis organization Leaders Index on the 9th, which looked at 233 executives from owner families within 66 major business groups, where the owners are among the top 100 asset-ranked companies, these individuals typically spent an average of 17 years and 11 months to attain the chairperson role following their promotion to executive positions.
When categorized by generation, the distinctions are evident. The second generation required an average of 18 years and 5 months to move from executive to chairperson, while the third generation took 17 years and 11 months, and the fourth generation needed 12 years and 7 months, with the time period decreasing as generations evolve. The average age for promotion to chairperson for the second generation was 52.6 years, compared to 49.1 years for the third generation, and 46 years for the fourth generation, which is 6.6 years younger than the second generation.
The average age at which owner families joined the company was 29.4 years, and they typically became executives 5 years and 2 months later, at 34.9 years old. Out of these, 28 people were granted executive positions right from the start.
Examining specific individuals, the second-generation leader who rose the quickest from joining the company to becoming chairperson was Shin Chang-jae, currently serving as Chairperson of Kyobo Life Insurance. He joined at the age of 43 and reached the position of chairperson within 1 year and 11 months. Among third-generation chairpersons, Jeong Ji-sun, who is the Chairperson of Hyundai Department Store Group, joined at 25 years old and became chairperson at 35 years old, achieving this in 10 years and 11 months, which was the fastest.
When examining the top five groups individually, excluding SK Group Chairman Chey Tae-won, who took over following the unexpected death of his predecessor, and Koo Kwang-mo, the head of LG Group, who has held his position for 12 years, it was observed that most leaders took more than 20 years to reach their current roles. Lee Jae-yong, Chairperson of Samsung Electronics, took 31 years and 4 months to become chairperson at the age of 54, after joining the company at 23. Chung Eui-sun, Chairperson of Hyundai Motor Group, became chairperson at 50 after starting his career at 24, while Shin Dong-bin, Chairperson of Lotte Group, became chairperson at 56 after joining at 33.
Leaders Index noted, “Although the third and fourth generations required a bit more time than the second generation to move from initial executive roles to president or vice chairperson, there has been an increasing tendency to minimize on-site experience and place them earlier in key management positions to adapt to the quickly evolving business landscape.”
