April 26, 2024

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[THE INVESTOR] The owners or majority shareholders of eight out of 30 top industrial groups are not registered board members at any of the firms’ affiliates, according to conglomerate tracker Chaebul.com on Sept. 25.

The eight companies are Samsung, Hanwha, Hyundai Heavy Industries, Shinsegae, CJ, Dalim, Mirae Asset and Dongkuk Steel Mill. The findings were based on data as of end-August.

Among them, the owners of Hanwha, CJ, Mirae Asset and Dongkuk all resigned as registered board members after 2013. And CJ Group Lee Jay-hyun quit as a registered board member from the most number of CJ affiliates; he is currently not a member at any of CJ’s eight affiliated companies.

Lotte founder Shin Kyuk-ho and Hanwha Group Chairman Kim Seung-youn quit as registered board members, and so did other high-profile conglomerate owners, such as SK Group Chairman Chey Tae-won, Hyundai Group Chairwoman Hyun Jeong-eun and Hyundai Motor Group Chairman Chung Mong-koo. 

Hanwha Group Chairman Kim Seung-youn

Hanjin Group Chairman Cho Yang-ho quit as CEO and a registered board member of Hanjin Shipping after the firm came under court receivership.

Registered corporate board members are a part of a group of company leaders who makes decisions on key managerial matters, such as appointing CEOs and investment plans.

Industry experts say that an increasing number of conglomerate owners have chosen to give up the position, as unlike before the job gave them unlimited discretion in corporate decision-making processes that was at times aimed at favoring certain affiliates.

By Kim Ji-hyun (jemmie@heraldcorp.com)