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| From left are Hanjin Group Chairman Cho Won-tae, LG Group Chairman Koo Kwang-mo and Doosan Group Chairman Park Jeong-won |
By Nam Hyun-woo
The Fair Trade Commission (FTC) designated Hanjin Group Chairman Cho Won-tae as the group's leader as allowed for under the Fair Trade Law, after the group failed to reach a consensus that Cho, son of the late former Chairman Cho Yang-ho, was to be the next head, according to the antitrust authority, Wednesday.
The FTC announced this year's update for the country's chaebol list and the heads of each conglomerate.
The Fair Trade Act states that "enterprise group means a group of companies the businesses of which are substantially controlled by the same person." Apart from job titles such as CEO and chairman, the FTC recognizes this person as the de facto leader of a conglomerate and forces each group to designate someone, because this determines which companies are affiliated and subject to FTC regulations on conglomerates.
Among the listed conglomerates, the leaders of Hanjin, LG and Doosan Groups were changed. LG and Doosan named Chairman Koo Kwang-mo and Chairman Park Jeong-won respectively, as their predecessors Koo Bon-moo and Park Yong-gon died after last year's update.
For Hanjin, however, the FTC named Hanjin Group Chairman Cho as the leader, because the group did not submit documents stating Cho as its actual leader, sparking a suspicion over a feud with his sisters Hyun-ah and Hyun-min on the group's managing rights after their father's death last month.
"Hanjin had to submit an application to change its leader, but the group said it failed to reach a consensus," an FTC official said. "Thus, the FTC demanded the group data on Cho Won-tae among other family members and designated him as the group's leader under its authority."
The official said the FTC designated Cho as the leader because he is one of the CEOs of Hanjin Group's holding firm, Hanjin KAL, thus he has the greatest influence in the group's decision-making process.
The group announced Cho was named as the group's chairman and Hanjin KAL CEO during a Hanjin KAL board meeting April 24, but rumors have been spreading that the appointment was made without the consent of his sisters and he was not legitimately named as the group's chairman.
Meanwhile, Hyundai Motor Group kept its Chairman Chung Mong-koo as the leader, defying expectations that his son and Executive Vice Chairman Chung Eui-sun may be named as the leader amid the senior Chung's long-time absence from the group's official events.
The FTC said it has received medical documents on Chung's health and found no reason to change the leader.
In this year's update, Kakao and Hyundai Development Company were added to the list of chaebol who will be restricted from mutual investment between units.
