Conglomerates' third generation rolling in stock options

Headquarters of Samsung group

Young heirs and heiresses worth a total of US$420 million

Though they are too young to be making a contribution to the economy, the third-generation offspring of South Korea’s family-owned industrial conglomerates, or chaebol, are flush with wealth. The combined value of stocks owned by the third generation of Korea’s top 30 chaebeol stood at about 435 billion won (US$443 million); the oldest of these young heirs is 24 years old.

According to public filings with the Financial Supervisory Service and the Korea stock exchange on Aug. 14, the top 30 chaebol’s 48 family members aged 24 and below own a total of 14.84 million shares in their listed affiliates, worth some 435.1 billion won under August 11 closing market prices.

By conglomerate, LG, GS, and LS Groups topped the list for having the richest young.

For the GS Group, 10 third-generation offspring aged 24 and below own shares of the group’s affiliates. Three twentysomething nephews of GS Group Chairman Heo Chang-soo hold shares worth 34.5 billion won, 21.9 billion won, and 14.9 billion won each. Two other nephews, aged five and six, own shares worth 11.9 billion won and 10.3 billion won each.

LG Group has 12 of the youngest, richest shareholders, including Chairman Koo Bon-moo’s 10-year-old daughter. Among them, three teenagers own shares worth 25.9 billion won, 22.7 billion won, and 10.6 billion won each.

At LS Group, six sons of LS Cable Vice Chairman Koo Ja-yeol hold shares of the group’s affiliates.

In terms of stock value, the third-generation offspring of Hanwha Group topped the rankings. Three sons of Hanwha Group Chairman Kim Seung-yeon have 33.3 million, 12.5 million, and 12.5 million won in Hanwha Corp. shares, respectively. The three sons, who are attending either high school or university, "purchased" a total of two million shares in Hanwha Corp. from Hanwha Securities Co. on July 19 this year. Last year, they twice bought shares of an unlisted unit of Hanwha S&C from their father.

The shareholding power of the nation’s young heirs is also seen at remarkable levels in the SK Group, Doosan Group, and KCC. SK Group founder Choi Jong-keon’s eldest son, at 19, owns 11.2 billion won worth of shares in SK Chemical. One son of Doosan Group’s vice chairman Park Yong-man, 21, holds 4.2 billion won of shares in the group’s affiliates, including Doosan, Samwha Crown and Closure, and Doosan Industrial Development.