South Korea’s conglomerates famous for corporate culture that is much hierarchical and regimented have filled executive positions with younger blood during this year’s annual reshuffle amid looming challenges at home and abroad.

According to an analysis by Maeil Business Newspaper on Friday, the average age of 27 leaders that have become chief executives of Korea’s top 10 conglomerates after November was 56.6 - younger than before when key units were spearheaded by chief executives in their 60s. The top 10 groups are Samsung, SK, LG, GS, Hanwha, Hyundai Heavy Industries, Shinsegae, CJ, LS, and Daelim.

Despite the seemingly small age gap, the latest move is considered significant considering that seniority is equally important with abilities in Korean corporate culture. This suggests that Korean companies are keen to accept the generational change in management to combat looming challenges in the fast changing environment in a more prompt and agile manner.

The CEO lineup of Samsung Electronics Co., the flagship company of Korea’s top Samsung Group, has become much younger through its year-end shakeup last month. The average age of seven chief executives who were promoted to be at forefront is 55.9. Among them, 54-year-old Kang In-yup, head of system large-scale integration (LSI) business under the device solutions division, is the youngest executive. The age of new chief executives of Samsung Electronics’ three major divisions - Kim Ki-nam of device solutions, Koh Dong-jin of information technology (IT), and Kim Hyun-suk of mobile communications, and consumer electronics - is averaged 57 versus the average age of their predecessors at 63.3.

Korea’s third-largest conglomerate SK Group has also freshened up the management with young chief executives in its recent reshuffle. The average age of the conglomerate’s chief executives is 53, the youngest among the country’s top 10 conglomerates that carried out year-end management changes. Cho Kyung-mok of SK Energy Co. and Jang Yong-ho of SK Materials are both 53 years old, while Ahn Jung-ok of SK C&C Co. 55 years old and Ahn Jae-hyun of SK Engineering and Construction’s global business division 51 years old.

GS Group has also seated young executives including Jung Chan-soo of GS Corp., Kim Hyung-kuk of GS Caltex Corp., and Um Tae-jin of GS Sports Corp. to spearhead key businesses. The average age of the new executives is 58, younger than 59 of predecessors.

LS Group also promoted 56-year-old Myung Roe-hyun, chief executive and vice president of LS Cable & System Ltd., to president, and 57-year-old Kim Yeon-soo, chief executive and vice president of LS Mtron Ltd., to president. Myung was elevated to president for his contributions in expanding business in Southeast Asia and Kim for his work in improving earnings.

By Kim Jung-hwan and Lee Eun-joo

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]