Smooth Management Succession
Doosan Group Chairman Park Yong-maan is resigning as chairman and his nephew Park Jeong-won will succeed him. The group would be entering fourth-generation management in a 120-year old history.
Doosan Group announced that Park Yong-maan revealed his decision to retire at a board meeting on Feb. 2. At the meeting, Park said, “It is time for me to step down and I recommend Park Jeong-won, chairman of Doosan Corp., to become the next chairman of the board of directors.” Park Jeong-won will officially be named chairman at a board meeting scheduled for March 25.
Park Jeong-won is the first son of Doosan Group's honorary chairman Park Yong-gon and the first grandson of the conglomerate’s founder, Park Too-pyong. Technically, he will be the fourth-generation management given the fact that Doosan took the first step in its legendary history in 1896 when Park Seung-Jik opened a small linen store in Jongro 4, Seoul.
Until now, Doosan has maintained its unique custom that the founder’s sons have led the group in turns. Starting with honorary chairman Park Yong-gon, the first son of the founder, three other sons led the group in the past, including chairman Park Yong-maan. Now, Park Jeong-won, the first grandson of the founder, has become chairman of the group. Park joined Doosan Industrial in 1985 and has been working for the group’s liquor, trading and construction arms.
However, Park Yong-maan will remain as the chairman of Doosan Infracore. Accordingly, he is qualified to continuously lead the Korea Chamber of Commerce & Industry (KCCI). His term as chairman of KCCI will end March 2018 and he can also serve consecutive terms.
Although there are no complicated politics in management succession, the future of Doosan, which is in the Korean Guinness Book of Records as Korea’s oldest business group, is not so rosy. Park Yong-maan talked about the hope of turnaround but the group posted 1.7 trillion won (US$1.38 billion) in net losses last year. In particular, Doosan Infracore, which is led by him, decided to sell its machine tool unit to MBK Partners on Feb. 2.