The gender of heirs apparent can affect the business performance of local conglomerates, research found Sunday.
Chaebul.com, a portal following the activities of larger companies, recently analyzed changes in business showings among the nation’s 20 biggest companies in which children of owners were working as executives.
The portal released the results on Sunday, saying “Sons focused more on increasing size, while daughters pursued substance.”
Ten companies where male heirs serve as executives recorded an average of 33 percent sales growth, compared to the 18.6 percent growth at 10 companies with heiresses, the portal said.
In terms of net profits, however, companies with female heirs recorded 41.9 percent growth, while those with male heirs fell behind with a 27.5 percent increase.
Since Lee Jae-yong, the only son and heir apparent of Samsung Group owner Lee Kun-hee, was promoted to an executive in 2001, Samsung Electronics has seen 25.5 percent and 16.9 percent increases in sales and net profits annually.
Hyundai Motors recorded 30 percent annual growth in sales and 24.7 percent in net profits after Chung Eui-sun, vice chairman and son of chairman Chung Mong-koo, became an executive in 1999.
When heiresses took the helm of company units, net profits soared rather than sales, the online portal found.
Since Lee Boo-jin, the eldest daughter of Samsung owner Lee, was promoted to president of Hotel Shilla in 2004, sales have increased 40.6 percent while net profits have soared 56.3 percent.
Cheil Industries vice president Lee Seo-hyun, Lee’s younger daughter, oversaw 17.7 percent growth in sales and 31.7 percent growth in net profits.
Hyundai Global has also seen 25.5 percent and 53 percent increases in sales and net profits since 2005 when Chung Ji-yi, the eldest daughter of Hyundai Group chairwoman Hyun Jeong-eun, became a company executive.
“Considering the great impact that heirs apparent have in business operations, their different managing styles seem to be a major factor affecting a company’s business performance,” said Jeong Sun-seop, president of Chaebul.com.
Of course, there were some exceptions including Shinsegae Group, which recorded higher a growth rate in net profits with 96.7 percent than in sales with 57.7 percent since vice chairman Chung Yong-jin, the only son of the retail group’s owner Lee Myeong-hee, joined the management 14 years ago.
The portal added that many sons worked for key industry sectors such as electronics and automotives whose operations are stable, while daughters served at value-added industries such as hotel and advertising.
By Lee Ji-yoon (
jylee@heraldcorp.com)
