When the superrich win big, they also lose big.
This is especially true regarding the stock wealth of owners of chaebol -- Korean family-owned conglomerates -- who saw great fluctuations in their riches last year.
The overall personal wealth of chaebol took a hit due to the sluggish economy. Even this year’s rich list -- those with $10 billion or more -- from Forbes and Bloomberg indicate shrinking chaebol wealth, as unlike before no Korean was included.
The Samsung Group family in particular was mainly hit as four members were in the list of top six chaebol who saw the sharpest plunge in stock wealth, losing a total of 2.8 trillion won ($2.4 billion).
According to financial information companies including the FN Guide, Samsung Electronics vice chairman Lee Jae-yong’s total stock wealth as of March 17 this year was 7.3 trillion won. In the same month last year, it amounted to 8.8 trillion won, indicating a 1.5 trillion won reduction, which is the largest domestic wealth shrinkage.
Lee currently owns a 17.23 percent stake in Samsung C&T, 9.2 percent in Samsung SDS, 1.54 percent in Samsung Engineering as well as shares of Samsung Electronics, Samsung Life Insurance, and Samsung Fire & Marine Insurance.
Although the weak economy hit vice chairman Lee’s stock wealth, his decreasing wealth was particularly attributed to the value of Samsung SDS and C&T stocks dropping from their initial high price when they jumped after being newly listed on the stock market following a merger due to structural reforms.
The country’s wealthiest person, Samsung Electronics chairman Lee Kun-hee, also lost 465.4 billion won, ranking him second to lose the most wealth with 11.9 trillion won.
Chairman Lee’s daughters Hotel Shilla president Lee Boo-jin and Samsung C&T fashion division president Lee Seo-hyun also lost big bucks just like their father and brother. Their shares of Samsung C&T with a 5.51 percent stake each decreased by 413.6 billion won, leaving them both with 2.5 trillion won.
Korea’s fourth richest Hyundai Motors chairman Chung Mong-koo also saw a 15 percent decrease in his personal stock wealth, shrinking by 844.9 billion won to 4.7 trillion won. Excluding the shares personally owned in JLC and JLC Partners, NHN Entertainment chairman Lee Joon-ho also saw a decrease in wealth when his 17.27 percent stake decreased in value by 460 billion won to 187.1 billion won.
However, there are some who saw an increase in stock wealth, with the top five chaebol seeing an increase of 600 billion won to a jaw-dropping 2.4 trillion won.
Hitting the gold jackpot last year by signing contracts for seven new drugs last year worth 8 trillion won, Lim Sung-ki chairman of Hanmi Pharmaceutical saw the greatest increase, as the value of his 34 percent stake surged by 546 percent to nearly 3 trillion won, earning him 2.5 trillion won.
Lim’s high school friend and chairman of Hanyang Precision Shin Dong-guk saw his stock wealth increase to 1.6 trillion won from 323.9 billion won largely due to the increased value of Hanmi Science shares as well.
Seeing the second largest increase and ranked as the second richest in Korea, AmorePacific chairman Suh Kyung-bae’s current stock wealth is 9.4 trillion won, higher by 1.7 trillion won from last year.
Despite his absence from the company’s management due to his imprisonment for being charged with embezzlement, CJ Group chairman Lee Jay-hyun’s company shares also increased by 870 billion won, and are currently worth 3 trillion won. BGF retail chairman Hong Seok-jo’s shares too increased by 700 billion won, with his stock wealth crossing the trillion won mark.
By The Korea Herald Superrich Team (
seoyounglee@heraldcorp.com)
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Hong Seung-wan
Cheon Ye-seon
Seo Jee-yeon
Yoon Hyun-jong
Min Sang-seek
Lee Seo-young