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Conglomerates' wealth transfer to younger generations accelerating: data

Sept. 9, 2015 - 08:55 By KH디지털2

Wealth transfers to succeeding generations in South Korea's family-controlled conglomerates have increased sharply on the back of accelerating management transfers, data showed Wednesday.

The younger generations in the country's top 25 business groups took up 41.7 percent of stock assets held by controlling families as of end-August, up 6.5 percentage points from the end of September 2014, according to data compiled by industry tracker CEO Score.

The sons and daughters of such families held 32.5 trillion won ($27.1 billion) worth of stocks, out of the combined 77.9 trillion won.

Lee Jae-yong, the heir-apparent and only son of Lee Kun-hee, the de facto controller of South Korea's top conglomerate Samsung Group, and his two sisters took up 53.6 percent of the family's stock holding, soaring 31.2 percentage points over the cited period.

This jump follows Samsung Group's struggle to pave the way for Jae-yong's era after his father was hospitalized in May last year after suffering a heart attack.

South Korea's retail conglomerate Lotte Group also saw its wealth-transfer rate to younger generations reach 91.9 percent, marking the highest rate among the business groups tallied. Shin Dong-bin, the younger son of the group's founder Shin Kyuk-ho, held stock assets that accounted for 44.3 percent. (Yonhap)