content summary40% of large conglomerates worth KRW 5 trillion or more do not have their CEO as a registered executive.
Samsung Lee Jae-yong, Shinsegae Lee Myung-hee, and Hanwha Kim Seung-yeon are also not registered.
[한스경제=조나리 기자] It was found that in 4 out of 10 large corporate groups with owners, the CEO manages the business but does not serve as a registered executive. This phenomenon is especially noticeable among groups whose main focus is the construction industry, and appears to be an attempt to avoid responsibility in relation to the Serious Accident Punishment Act.
Leaders Index, a business analysis research institute, surveyed and disclosed on the 21st the status of management participation and employment status of registered executives of 72 large conglomerate groups where the same person is a natural person among the 82 conglomerate groups with assets of 5 trillion won or more.
According to the data, in 2018, 14 (29.8%) of the 47 CEOs were not registered executives, but this year, 5 more people (40.4%) were not registered executives.
The situation is similar when looking at relatives. In 2018, 213 (81.9%) of the 260 family members participating in management were registered as registered executives of 564 affiliates. However, this year, the number of affiliates with relatives listed as registered executives was 401, a decrease of 163 from five years ago.
In 2018, large conglomerates whose heads are not registered executives include △Lotte (Shin Dong-bin) △CJ (Lee Jae-hyun) △DL (Lee Jun-yong) △OCI (Lee Woo-hyun) △Samsung (Lee Jae-yong) △Taekwang (Lee Ho-jin) △Dongkuk Steel (Jang Se-ju) △Yujin ( There were 14 places, including △Doosan (Park Yong-gon) △HD Hyundai (Chung Mong-jun) △Shinsegae (Lee Myung-hee) △DB (Kim Jun-ki) △Hite Jinro (Park Mun-deok) △Hansol (Lee In-hee).
Of these, Lotte, OCI, Doosan, and Hansol have their CEOs listed as registered executives as of this year. However, △Booyoung (Lee Jung-geun) △Kolon (Lee Woong-yeol) △Kumho Petrochemical (Park Chan-gu) △Kumho Asiana (Park Sam-gu) △Dongwon (Kim Jae-cheol) △Naver (Lee Hae-jin) △Samchully (Lee Man-deuk) △Hankook Tire (Cho Yang-rae) △Hanwha (Kim Seung-yeon) In 9 other cases, the head of the company was changed to a large conglomerate group rather than a registered executive.
The proportion of registered executives held concurrently by the CEO and his relatives is also decreasing. In 2018, the number of CEOs and their relatives concurrently holding three or more positions as registered directors was 70, but this year the number decreased by 18 to 52.
The conglomerate with the largest decrease in the number of owner family members participating as registered executives of affiliates is Jungheung Construction Group. In 2018, Jungheung Group Chairman Chung Chang-seon and five others served as registered executives in 40 companies, but this year, as Citigroup Chairman Jeong Won-cheol, the second son of Chairman Jeong Chang-sun, was separated in 2019, the number of affiliates decreased by 26.
Next is Hoban Construction Group. In 2018, Hoban Construction Group Chairman Kim Sang-yeol and 9 other relatives were registered as registered executives of 30 affiliates, but this year, 6 heads and their relatives are registered in 9 affiliates.
Compared to 2018, SM Group’s 18 affiliates lost heads of companies and their relatives from registered executives this year. SM Group Chairman Woo Oh-hyun and 12 other relatives were listed as registered executives in 87 affiliates, but this year the number decreased to 69.
In 2018, Booyoung Group Chairman Lee Boo-young and four others served as registered executives of 25 affiliates, but this year, Chairman Lee Boo-young’s eldest daughter Lee Seo-jeong, Executive Director of Booyoung Housing, and two others are registered executives of 10 affiliates.
Meanwhile, among the top 10 groups in terms of assets, Samsung (Jae-Yong Lee), Hanwha (Seung-Yeon Kim), and HD Hyundai (Mong-Jun Chung) did not have their heads listed as registered executives.
Reporter Nari Jo [email protected]