Only 4 out of 10 large companies are managed by the CEO… Owner family avoids registered executives

It was found that in 4 out of 10 large corporate groups with owners, the CEO (same number) runs the business but does not serve as a registered executive.

On the 21st, Leaders Index, a business analysis research institute, conducted a survey of 47 out of 82 large conglomerates with assets of 5 trillion won or more and found that 19 out of 47 (40.4%) did not hold registered executives.

In 2018, out of 47 CEOs, 14 (29.8%) were not registered executives. This is an increase of 5 people so far this year.

In 2018, large conglomerates whose heads were not registered executives included Lotte, CJ, DL, OCI, Samsung, Taekwang, Dongkuk Steel, Eugene, Doosan, HD Hyundai, Shinsegae, DB, Hite Jinro, and Hansol. Of these, four companies, including Lotte, OCI, Doosan, and Hansol, had their CEOs listed as registered executives as of this year, but nine companies, including Booyoung, Kolon, Kumho Petrochemical, Kumho Asiana, Dongwon, Naver, Samchully, Hankook Tire, and Hanwha, were added.

When expanding to relatives, the number of people who are the head of the company and their relatives concurrently serving as registered directors of three or more companies was 70 in 2018, but this year the number decreased by 18 to 52 during this period. The number of ownership family members listed as registered executives in more than 10 companies also decreased from 5 to 2.

Jungheung Construction Group is where the number of owner families participating as registered executives in affiliates has decreased the most. In 2018, Jungheung Group Chairman Chung Chang-seon and five others were serving as registered executives in 40 companies, but as Chairman Chung’s second son, Citi Group Chairman Won-cheol Won, was separated in 2019, the number of affiliates decreased to 26.

In 2018, Hoban Construction Group Chairman Kim Sang-yeol and nine other relatives were registered as registered executives of 30 affiliates, but this year, six CEOs and their relatives were registered in only nine affiliates. 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.

Leaders Index analyzed that this phenomenon is becoming noticeable among large conglomerates whose main industry is construction following the passage of the Serious Accident Punishment Act in 2021.

Meanwhile, in the top 10 groups by assets, Samsung, Hanwha, and HD Hyundai Group did not have their heads listed as registered executives.

[저작권자 @머니투데이, 무단전재 및 재배포 금지]