Doosan Group, the oldest family-controlled chaebol in Korea with 120 years of history, is set to become the first Korean corporate dynasty led by a fourth-generation heir.

Last week, Doosan chairman Park Yong maan announced he would hand over his job to Park Jeong-won, one of his nephews who is currently chairman of Doosan Corp., the holding company of Korea’s 17th largest business group.

The new Doosan chairman is the eldest great-grandson of Park Seung-jik, who opened a fabric store in 1896, laying the foundation for what later evolved into a 33-trillion won ($27.5 billion) conglomerate.

Park Jeong-won’s father is Park Yong-kon, the eldest of six brothers, who, except the youngest one, took turns in leading the group as chairman. Park Yong-maan is the fifth and last third-generation heir to the corporate dynasty.

Park Jeong-won has been groomed for chairmanship since he joined Doosan 31 years ago. He has worked in various positions for many years to accumulate experiences and learn management skills.

As chairman of Doosan Corp., he is said to have played a central role in fostering new growth engines for the group. His latest achievement was Doosan’s winning of a license to engage in the lucrative duty-free business.

Yet whether he is qualified as Doosan’s new chairman depends on how he runs the group. He faces tough challenges as Doosan’s major units are in need of deep restructuring.

Last year, the group suffered a net loss of 1.7 trillion won. Some of its flagships, including Doosan Infracore and Doosan Engineering and Construction, have been unable to cover their interest expenses with their operating incomes for years.

The new Doosan chairman should prove the legitimacy of his ascent to the group’s top post by successfully tiding over the crisis the group is facing.

These days, chaebol heirs are criticized for their lack of entrepreneurship. Korea’s first-generation chaebol owners were all aggressive and willingly ventured into new business areas. While they were blamed for excessive risk-taking, they were given credit for fostering new growth industries and expanding Korea’s global economic reach.

The failure of second- and third-generation chaebol heirs to exhibit what Keynes called “animal spirits” has called into questions the legitimacy of the generational transfer of corporate control within chaebol families.

It is hoped that the new Doosan chairman revives the group’s tradition of bold restructuring and successfully tackle its ongoing crisis. A successful turnaround will provide a good justification for generational successions in Korea’s corporate dynasties.