By Cathy Rose A. Garcia
Despite Korea Inc.’s efforts to embody more youthful management, the average age of executives at three of the top listed companies in Korea is still over 51 years old.
According to a survey by website Chaebul.com, executives at Hyundai Motor, Hyundai Heavy Industries and POSCO were found to be older, on average, than their counterparts at Samsung, SK and LG.
Among the top 10 Korean listed companies, shipbuilding giant Hyundai Heavy Industries employs the oldest executives, who have an average age of 53. This was followed by POSCO, the nation’s biggest steelmaker, whose executives are on average 52.5 years old
Executives at Korea’s largest automaker Hyundai Motor have an average age of 51.7. But interestingly, its sister company Kia Motors boasts younger executives, who are on average 49 years old.
Just outside of the Top 10 list, the 13th ranked petroleum and refinery company S-Oil has the oldest executives with an average age of 55 years old.
Recently, Korea’s top companies have been trying to inject more youthful energy into their organizations by hiring executives in their 40s.
In the past, seniority was an important factor to being promoted to an executive position in a Korean company. But in a highly competitive global business environment, companies are placing more emphasis on performance, which allows younger employees to move up in the ranks faster.
The most youthful management among the Top 10 firms is GS Caltex, which has an average age of 46.3. This was followed by LG, whose executives’ ages averaged 47.4.
At the biggest Korean conglomerate Samsung, its executives are an average age of 48. There are indications that Samsung is trying to ``become younger,’’ as shown by Samsung Chairman Lee Kun-hee’s recent statement that ``youth is pivotal,’’ especially amid the business environment of the 21st century.
``Young people will help Samsung make faster judgments in order to get ahead and keep ahead... Besides, young people are more adaptable to new cultures and changing surroundings," Lee was quoted as saying.
The Chaebul.com data also indicated that the era of the company executives in their 50s may be nearing its end. The current average age of executives is 50.9 years, compared to the average age of 52.3 last year.
There is an increasing trend of promoting younger employees to executive positions at many listed firms. Aside from Samsung and LG, other listed companies with executives with average ages in their 40s are SK Telecom, CJ Cheil Jedang, Cheil Industries, LG Display, Hanhwa Chemical, Shinsegae, Glovis and Samsung Electro-Mechanics.
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