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A screenshot of the CEO Score homepage
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Equity ownership for younger generation increased 1.5% from previous year
Members of the ruling families at South Korea’s top 100 business groups own stocks valued at a total of 152 trillion won, with 49 trillion won of that - or 32.4 percent -possessed by the owners’ children, a study shows. According to figures provided on Sept. 12 by the corporate management assessment company CEO Score, the value of equity owned by members of the ruling families for South Korea’s top 100 groups with an individual leader as of 2017 accounting stood at a total of 152.4296 trillion won (US$136.1 billion), with second-generation members accounting for 49.4205 trillion won (US$44.1 billion), or 32.4 percent.. The equity ownership percentage for the younger generation was up 1.5 percentage points from 30.9 percent a year earlier. The businesses showing the most active efforts to transfer stock assets to the second generation in the past year were Kyungdong and OCI. At Kyungdong, the percentage of equality value for the second generation stood at 44.7 percent - an increase of 20.6 percentage points from last year. At OCI, it rose by 20.4 percentage points from 21.8 to 42.2 percent. The stock ownership percentage for OCI president Lee Woo-hyun was found to have risen sharply after the death of chairman Lee Soo-young last year. The transfer of stock assets to the younger generation was comparatively slow for the top-ranking groups such as Samsung, Hyundai Motor, and SK. At Samsung, siblings Lee Jae-yong, Lee Boo-jin, and Lee Seo-hyun accounted for a combined stock asset value of 39.4 percent; at the Hyundai Motor group, 43.2 percent of stock assets had been passed on to members of the younger generation, including vice chairman Chung Eui-sun. At SK, the value stood at just 0.3 percent. For two groups – Woongjin and Daelim – the transfer of stock assets to the second generation was complete. At both groups, the second generation was found to own 99.9 percent of the ruling family’s equity. Twenty-six other groups, including Aekyung, Hyosung, Hyundai Department Store, and Hanwha, had second-generation stock asset ownership percentages above 50 percent. By Choi Hyun-june, staff reporter Please direct comments or questions to [english@hani.co.kr]
