Major conglomerates speed up generational shifts in leadership

From left are Lotte Chemical Vice President Shin Yoo-yeol, Kumho Engineering and Construction Vice Chairman Park Se-chang and Koo Dong-hui, chief operating officer at LS MnM. Courtesy of each firm

Korea’s major conglomerates are moving to speed up generational shifts in leadership, in a strategic move to tackle economic uncertainties by injecting younger approaches to conventional businesses.

Lotte Group’s third-generation heir apparent Shin Yoo-yeol has taken on multiple executive roles for the past few years. Late last year, the 37-year-old executive was promoted to vice president at Lotte Chemical. He is also working as a leader for Japan’s Lotte Financial. He is the eldest son of Lotte Group Chairman Shin Dong-bin.

The promotion made headlines, as it was seen as a sign of Lotte Group’s major management succession.

He is expected to accompany the incumbent chairman for a ground-breaking ceremony for its automated fulfillment center in the nation’s southern port city of Busan next week. Earlier in September, Shin made a public appearance by participating in the opening ceremony for Lotte Mall Lak Hanoi in Vietnam.

Given the Lotte chief’s public comments favoring his son, chances are Shin Yoo-yeol will be promoted to a higher-ranking executive position during the upcoming year-end reshuffle possibly as early as mid-December.

Other conglomerates have already taken similar steps during their recent reshuffles of top management.

According to industry sources, LS, Kumho and KG, recently carried out a major management reshuffles, with second- and third-generation scions promoted to top positions.

At Kumho Group, a third-generation heir apparent was promoted to vice chairman. According to the company, Park Se-chang, the eldest son of Kumho Asiana Group Chairman Park Sam-koo, was appointed as vice chairman of Kumho Engineering and Construction during the latest leadership reshuffle.

LS Group is also moving to spur its generational shift. Last week, Koo Dong-hui, vice president at LS Electric, was named chief operating officer of LS MnM, a non-ferrous metal materials arm of the group. The 41-year-old executive is also the oldest son of Koo Ja-yeol, chairman of the group’s board of directors. He will be responsibl forn spearheading the group’s battery business after the latest reshuffle.

KG Group’s heir-apparent Kwak Jung-hyun became its president. KG operates diverse affiliates in areas such as mobility and chemical products. Kwak, 42, served as vice president, but the latest promotion is widely forecast to strengthen his presence within the group. He is the eldest son of KG Group Chairman Kwak Jae-sun.

“Starting from major conglomerates, such as Samsung and LG, younger leaders and executives are coming to the fore, as the young generation is considered more suitable to deal with the rapidly-changing market circumstances,” an industry official said.