Average executive at Korea’s top 100 companies is 52.5 years old, 4 years younger than in 2006


Corporate top brass are getting younger by the year, with the average age of executives at Korea’s top 100 companies surveyed at 52.5 years last year, having shed almost four years since 2006.

Five years earlier, the average executive was 55.9 years old. 

Monday’s figures from the Korea Listed Companies Association is an indication that top staff may get younger still as firms double their efforts to seek out new businesses to jumpstart growth, industry watchers said.

“More and more companies are embracing new lines of businesses as they are seeking to create new business opportunities, and this means younger people with more insight in new and creative areas will be recruited,” said Kim Beom-yul, a senior analyst at LG Economic Research Institute.

Spooked by concerns of what the future may bring, especially in the face of fast-dwindling supplies of fossil fuels, companies at home and abroad have been avidly committing themselves to next-generation growth engines.

“In the case of Korea, it is not only that, but the issue of addressing a very fear that companies must ceaselessly recreate and innovate to go the extra mile if they want to remain successful,” Kim said.

In 2009, the average age of local executives was 53.3, down from 54.4 in 2008 and 55.2 in 2007, showing a gradual but steady decline.

The age of CEOs and vice presidents was slightly higher at 60 years old last year, but was still lower than the 60.5 in 2006, the association data showed.

In particular, the portion of 40-something executives tripled to over 26 percent out of the 6,200 executives who were surveyed.

In sharp comparison, the percentage of executives in their 60s or above dropped to 6.3 percent from the 20.2 percent tallied in 2006. 

Conglomerate owners also seemed to have gotten younger, with the average honorary chairmen and chairwomen now aged 73.9, comparing with 79.1 five years earlier. Chaebol chairmen and chairwomen also grew younger to 64.8 from the previous 67.7.

The average age of those named “vice chairman and CEO,” commonly considered the highest post a salaried worker may rise to, was tallied at 60.5 years of age.

A case in point was Choi Gee-sung, the 60-year-old vice chairman and CEO of Samsung Electronics.

Samsung last year carried out a major reshuffling that put a number of 40-something younger staff members in key positions.

Samsung Electronics executives were on average aged under 50 years old ― the majority were aged 49 years old ― along with those at SK Telecom and LG Uplus, the association figures showed.

Regarding concerns of the marginalization of the older generation, Kim said there would be a steady demand for them if they proved to be able to adapt to new environments and changing corporate trends.

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