Despite growing criticism of Korea’s family-controlled conglomerates, known locally as chaebol, U.S. management consultancy McKinsey found that family businesses are stronger and more vital around the world than ever before. According to McKinsey’s report on founder- and family-owned businesses, about one-third of the Fortune Global 500 companies are founder- or family-controlled, as are 40 percent of the major listed companies in Europe. “Family businesses are especially important in emerging m

Former Samsung Group vice chairman Lee Hak-soo, the former right-hand man of group chairman Lee Kun-hee, is ready to return to center stage. But this time, it won’t be for Samsung Group. Lee has maintained a low-key profile since 2008 when he stepped down from the group’s No. 2 post with chairman Lee, taking responsibility for assisting the chairman in running secret slush funds. Last week, Chaebul.com, an online information provider of Korean ultrahigh net worth individuals, predicted that the

The stock market has played an instrumental role in creating the wealth of most South Korean billionaires.Suh Kyung-bae, 51, chairman of South Korean cosmetics-maker AmorePacific Group, is one such business tycoon who joined the big leagues of wealth thanks to a dramatic upturn in his stock values. Last week, the stock price of AmorePacific, the nation’s top cosmetics manufacturer, surpassed the 2.5 million won ($2,375) mark for the first time in its history, making Suh the second-wealthiest man

Brands come and go on Interbrand list

In an effort to create a sense of urgency for change, Hyundai Heavy Industries, the world’s largest shipbuilder, is moving toward a generational shift in its ownership. Last Thursday, the shipbuilder promoted Chung Ki-sun, the eldest son of its largest shareholder Chung Mong-joon, as a vice president, while drastically cutting back its number of executives by 31 percent, or 81 out of 262.  Hyundai Heavy Industries owner Chung Mong-joonHyundai Heavy Industries vice president Chung Ki-sunThe reshu

The superrich as patrons of the local art world

Many 21st-century billionaires have made their piles from stock investments. On the reverse side, this means that they could also lose their billions on account of stock values.As a case in point, the prices of stocks in large Korean corporations in the fields of electronics, automobiles and shipbuilding have plummeted, leading to a decrease in local billionaires’ assets.As of last month, Chung Mong-joon, the largest shareholder of Hyundai Heavy Industries, suffered the biggest drop in his stock

It seems that Kim Sung-joo, chief visionary officer of global fashion brand Modern Creation Munchen, has never been busier. On top of opening the MCM flagship store in Munich last month, she is now at the helm of the Korean Red Cross. However, following her recent appointment, Kim is now in hot water due to claims that she has never been passionate about the Red Cross. The proof, according to Rep. Kim Yong-ik of the main opposition New Politics Alliance for Democracy, is that the chairwoman fail

Shinsegae heir Chung eyes beer while Lotte chairman Shin goes for wine

Everybody knows that there are billionaires living among us, but it’s hard to determine just how many billionaires there are, where they gravitate to and exactly how they make their piles. To address these questions, Wealth-X, a Singapore-based asset information provider, and Switzerland-based UBS have released comprehensive data on the composition and dynamics of the world’s most affluent group of people since 2013.The Korea Herald Investigative Team looked into their reports ― the Wealth-X and

In the 21st century, what makes rich people rich is how many shares they own in a company. The power of stocks, which is the combination of corporations ― called the greatest invention of capitalism ― and compound interest ― the strongest energy in the universe, according to Einstein ― gets stronger every day as the world economy advances. In other words, having a business and a source of compound interest is one of the best and fastest ways to become a billionaire. For instance, Bill Gates, a y

Lee Seo-hyun, president of Cheil Industries’ fashion division, clearly has a knack for making money through fashion. The 41-year-old younger daughter of Samsung Group chairman Lee Kun-hee has recently added fashion brand NONAGON to her success list. Targeting teens and those in their early 20s who are attracted to street fashion, all NONAGON products sold out within three days of its official launch, the company said on Sept. 15. Cheil Industries’ fashion division president Lee Seo-hyun. (Korea

Feng shui can be laughed off as mere superstition in today’s highly advanced society.Still, some of the wealthiest people in South Korea believe that it helps them not only find peace and fortune, but also intentionally select the best land so that they and their ancestors can feel the qi, or energy.Coincidence or not, many superrich attempt to practice good feng shui. Tens of thousands of people wanting to feel good qi make pilgrimages to the birthplaces of conglomerate founders, while some sup

Gang Dae-sik, head of the Dong-gu District Office in Daegu, on Aug. 31 made a special but familiar trip to nearby Mount Palgongsan. It was the week before Chuseok, or Korean Thanksgiving, a time when Koreans visit the old tombs of their ancestors to pull out the weeds and trim the grass. But the person buried in the tomb Gang and his colleagues tended to was neither a relative nor an acquaintance. The tomb belongs to a member of the Son family, who came from a small village nearby. About 15 peop

A number of conglomerate heads have been working for free. Samsung Group chairman Lee Kun-hee has not received wages since 2010, along with Hanwha chairman Kim Seung-youn, GS chairman Huh Chang-soo and SK chairman Chey Tae-won. But thanks to the jaw-dropping amount they get in dividends, these tycoons are able to live in luxury. Samsung’s Lee, for instance, bagged 68.8 billion won ($67.4 million) of dividends from his shares in Samsung Electronics in the fiscal year of 2013. Hyundai Motor Group