Kosdaq firms dominated by CEOs from top conglomerates

One out of five chief executive officers of companies listed on the Kosdaq bourse has roots in the nation`s top 10 business groups, a report released yesterday found.

As many as 238 CEOs, or 19.41 percent, of the 1,226 CEOs from the 1,016 firms listed on the Kosdaq were from the nation`s top 10 groups, according to the "2009 Kosdaq CEO Book" compiled by the Kosdaq Listed Companies Association.

The top 10 groups are Samsung, Hyundai (including Hyundai Heavy Industries), SK, LG (including GS), POSCO, Lotte, Kumho Asiana and Hanjin.

The report showed that Samsung Group groomed the greatest number of CEOs with a total of 112, accounting for 9.14 percent of the Kosdaq-listed chief executives. By company, Samsung Electronics had fostered the greatest number of CEOs at 49.



LG Group, which includes GS Group, followed with 68, or 5.55 percent, and then SK Group following with 21 (1.71 percent), and then Hyundai Group (including Hyundai Motors and Hyundai Heavy Industries) with 14 (1.14 percent).

POSCO followed with 12, while Lotte nurtured three, and Kumho Asiana and Hanjin each fostered four Kosdaq-listed CEOs.

Industry experts attribute the high concentration of Samsung-origin chiefs to the Kosdaq being dominated by information-technology stocks. They noted the relative tendency of tech-savvy employees from Samsung IT affiliates to set up their own businesses.

For instance, the head of DS LCD Co. was once vice president of Samsung Electronics, while the head of Hana Micron was manager of Samsung Electronics` semiconductor planning and management division. Other IT companies with heads with a Samsung background include Suprema, Uni-Test, Kaon Media, and SBM.

Some of the firms that have CEOs originating from LG Electronics are Nara MND, Avaco, Eyes Vision, Neo Fidelity, Accuris, and Nexilion.

Critics have noted that a drawback of the Korean economic and industry sectors is that they are driven by a handful of business groups. The significant clout of these top business groups on the political, social and economic scenes of Asia`s fourth-largest economy make it a better reason for individuals with group ties to jump into business, as connections can guarantee success.

(sohjung@heraldm.com)



By Yoo Soh-jung