April 19, 2024

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[THE INVESTOR] Owners of several large companies in South Korea received handsome compensation in the first half of the year despite corporate troubles, data showed on Aug. 18, igniting criticism over their pay packages.

According to the data compiled by market researcher Chaebul.com, 237 executives of local companies received 500 million won (US$452,000) or more in compensation in the January-June period, an increase by eight from the same period a year earlier.

Among the highly paid directors are several owners of big businesses that are financially troubled or have undergone investigations by state prosecutors over a range of suspected irregularities.

Lotte Group Chairman Shin Dong-bin

Hyun Jung-eun, chairwoman of Hyundai Group, which suffered a cash crisis due to the financial hardship of flagship Hyundai Merchant Marine, received a pay package worth 2.34 billion won from other group affiliates in the first half. Early this month, the shipping company was separated from the group and placed under the wing of the main creditor Korea Development Bank.

Choi Eun-young, former head of Hanjin Shipping, earned 561 million won in the six-month period. In June, prosecutors questioned Choi over suspicions the 54-year-old and her two daughters sold shares of the financially troubled Hanjin Shipping in April after obtaining information the company would go through a creditor-led debt restructuring.

Shin Dong-bin, chairman of Lotte Group, embroiled in a family feud over group control and under investigation for irregularities, received 1.88 billion won in compensation, while his father and group founder Shin Kyuk-ho earned 800 million won.

Cho Suck-rai, chairman of Hyosung Group and who is on trial for tax evasion, earned 1.49 billion won in the first half. The 81-year-old is suspected of evading taxes of 135.8 billion won from 2003 to 2008.

In South Korea, companies are required by law to disclose the salaries of corporate executives who earn 500 million won or more per year.

(theinvestor@heraldcorp.com)