Why chaebol heirs opt to be officers during Korea's mandatory military service - The Korea Times

Why chaebol heirs opt to be officers during Korea's mandatory military service

 Samsung Electronics Executive Chairman Lee Jae-yong’s eldest son, Lee Jee-ho, center, salutes during an enlistment ceremony for naval cadets at the Republic of Korea Naval Academy in Changwon, South Gyeongsang Province, Monday. Courtesy of Samsung Electronics

Samsung Electronics Executive Chairman Lee Jae-yong’s eldest son, Lee Jee-ho, center, salutes during an enlistment ceremony for naval cadets at the Republic of Korea Naval Academy in Changwon, South Gyeongsang Province, Monday. Courtesy of Samsung Electronics

Son of Samsung chairman begins military service as naval cadet

Lee Jee-ho / Courtesy of Samsung Electronics

Samsung Electronics Executive Chairman Lee Jae-yong’s eldest son, Lee Jee-ho, entered the Republic of Korea Naval Academy in Changwon, South Gyeongsang Province, Monday to fulfill his mandatory military service as a naval officer.

This marks the latest in a series of cases of a chaebol scion choosing to fulfill military service as an officer, unlike previous generations who were often faced public criticism after being suspected of dodging the duty required of all able-bodied Korean men.

The change is seen as corporate efforts to portray young members of chaebol families as demonstrating social responsibility and proving their capabilities as future business leaders.

The younger Lee entered the academy’s compound aboard a minivan at around 1 p.m. Monday. The Navy said he was accompanied by family members, but it was not confirmed whether his mother or sister were among them.

Starting Monday, the 24-year-old will begin his 39 months of service, including 11 weeks of basic military training at the academy before being commissioned as an ensign.

Born in New York in 2000 to the chairman and his now-divorced wife, Daesang Group Vice Chairwoman Lim Se-ryung, the younger Lee had held dual citizenship at birth, but recently gave up his U.S. citizenship to fulfill his military duty in Korea.

A minivan assumed to be carrying Samsung Electronics Executive Chairman Lee Jae-yong's eldest son, Lee Jee-ho, enters the Republic of Korea Naval Academy in Changwon, South Gyeongsang Province, Monday. Yonhap

Before Lee, a number of heirs from Korea’s family-controlled conglomerates also chose to fulfill their mandatory service as military officers.

Chey Min-jung, the second-oldest daughter of SK Group Chairman Chey Tae-won, served as a Republic of Korea Navy officer in 2014, despite military service not being mandatory for women in Korea.

Kim Dong-kwan, vice chairman of Hanwha Group and the eldest son of Chairman Kim Seung-youn, fulfilled his military duty as an Air Force interpreter officer, while his younger brother Kim Dong-won, CEO of Hanwha Life, served as an Air Force officer.

HD Hyundai Vice Chairman Chung Ki-sun is a Reserve Officers’ Training Corps graduate and Dongkuk Steel Vice Chairman Chang Sae-wook is a retired Army major.

Then-Samsung Electronics Vice Chairman Lee Jae-yong, center, enters Samsung Medical Center in Gangnam District on Oct. 25, 2020, the day his father, then-Samsung Group Chairman Lee Kun-hee, died. On the right is his son Jee-ho and left is his daughter Won-ju. Korea Times photo by Kwak Ju-hyun

Their choice to serve as officers is widely seen as an effort to break negative perceptions of chaebol offspring and show that the privileged classes have a responsibility to serve society, not merely as a symbolic gesture but through real participation.

While standard military service in Korea lasts from 18 to 21 months, serving as an officer requires 39 months. During this period, officers are expected to gain an understanding of organizational culture, understand responsibility, exercise leadership and build problem-solving skills.

“Given that these are desirable traits for business leaders, chaebol offspring choose to serve as officers as a way to justify their future leadership roles in business, while also helping to build positive personal images and strengthen social trust,” a conglomerate official said.

Then-Samsung Electronics Vice Chairman Lee Jae-yong speaks during a press conference at the company's office in Seocho District, Seoul, May 6, 2020, during which he vowed not to hand over the group's control to his children. Yonhap

However, it remains uncertain whether Samsung’s younger Lee will assume control over Samsung Group.

In 2020, his father vowed not to hand over managing rights to his children. At the time, he admitted that controversies surrounding Samsung — such as the controversial purchase of Everland’s convertible bonds and suspicions of unfair internal transactions at Samsung SDS — stemmed from the process of him inheriting control of Samsung from his father.

He also spent nearly five years attending court sessions, until the Supreme Court in July acquitted him of wrongdoing surrounding a controversial merger between Samsung units to strengthen his control on Samsung Group.

Though Lee’s promises are not legally binding, industry officials believe they are unlikely to remain mere rhetoric, given Samsung Group’s complex shareholding structure and hefty inheritance taxes.

The executive chairman currently holds shares in Samsung companies worth about 18 trillion won ($13 billion), and if the current inheritance law is applied, the tax bill will amount to 10.8 trillion won.

Nam Hyun-woo

Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.

Interesting contents

Taboola 후원링크

Recommended Contents For You

Taboola 후원링크