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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Sangjin] The number of executive promotions in Korea's top 30 conglomerates has decreased by nearly 10% compared to last year, reflecting a trend of prioritizing efficiency over expansion amid growing domestic and global uncertainties and prolonged economic stagnation.
According to an analysis released today by corporate research institute Leaders Index, 21 of the top 30 groups (based on asset size) conducted executive promotions between August 1 and November 20. These promotions spanned 245 subsidiaries, with a total of 1,303 executives promoted—a 9.6% decline from last year’s 1,442. While four additional subsidiaries promoted executives compared to last year, the total number of promotions still decreased.
The most significant decline was seen in promotions at the senior management level. The number of newly promoted executives at the director level dropped by 9.6%, from 1,129 last year to 1,021 this year. Meanwhile, senior executives at the president level or higher saw a sharp decline from 43 to just 24, nearly halving. Among those promoted to chairman positions were Chung Yoo-kyung of Shinsegae Group and Jung Gyo-seon of Hyundai Home Shopping.
Vice chairman promotions also dropped significantly, with only four individuals—Jang Jae-hoon of Hyundai Motor Company, Cho Seok of HD Hyundai Electric, Hong Soon-ki of GS Corporation, and Koo Bon-hyuk of Yesco Holdings—receiving the title, down from 11 last year. Notably, outside Hyundai Motor Group, no promotions to vice chairman occurred for three consecutive years among the top four conglomerates. The number of president-level promotions also fell by 37.5%, from 32 last year to just 20 this year.
Among the top 10 conglomerates, Hanwha Group recorded the largest decline in executive promotions, with only 62 executives promoted across 13 subsidiaries, down 37.4% from last year’s 99. GS Group (33.3%), Shinsegae Group (29.6%), Lotte Group (22%), HD Hyundai Group (12.2%), and LG Group (11.9%) followed. SK Group, which already saw a significant drop in promotions last year (from 127 to 82), further reduced the number to 75 this year.
Samsung Group saw the smallest decrease in promotions among the top 10 conglomerates. The number of promotions fell by just 1.9%, from 265 last year to 260 this year. Within Samsung, promotions at Samsung Electronics decreased by six, from 145 to 139. However, Samsung SDI (21 to 12) and Samsung Heavy Industries (13 to 5) experienced significant declines in executive promotions.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
