Annual salaries of Korean tycoons revealed

Former SK Group Chairman Chey Tae-won received the biggest paycheck last year among listed firms’ CEOs and executives, earning 30.1 billion won from the group’s four affiliates, according to the firms’ business reports filings, Monday.

Chey received the biggest paycheck as he served as a director of the board of SK, SK Innovation, SK C&C and SK Hynix, which included about 20 billion won performance bonus, although he spent most of his time in jail after he was found guilty of embezzlement and sentenced to four years in jail. After the court ruling, he stepped down from the executive post at all four affiliates.

Chey was followed by Kim Hyung-sup, former vice-chairman of Pyung-An L&C, famous for outdoor fashion brand Nepa.

He received a 20.19 billion won compensation package, which included base salary, incentives and severance pay, as he stepped down last December, according to the firm.

Disclosure of salaries purported for transparency

The disclosure of annual salaries of business tycoons and executives came as the financial authorities amended regulations last year, in which listed firms must reveal salary details of their board directors whose annual income tops 500 million won.

The measure aims to beef up transparency in the corporate pay system and protect shareholders’ rights. Previously, a company only needed to show the total sum of annual income paid to all executives.

The new regulations went into effect as of Nov. 29 last year, but most big companies are first subject to the amended rules as they close their books in December and have to disclose details of the payments in regulatory filings and financial reports by the end of March.

Hyundai Motor Group Chairman Chung Mong-koo earned 14 billion won as he served as a board director of the group’s affiliates Hyundai Motor, Hyundai Mobis and Hyundai Steel.

His eldest son, Eui-sun, who serves as vice-chairman of the group, earned 2.43 billion won in annual salary from Hyundai Motor and Hyundai Mobis.

At Samsung Electronics, vice chairman Kwon Oh-hyun, who leads the component business, took 6.77 billion won home, the largest among the firm’s executives. Co-CEO Shin Jong-kyun, in charge of mobile business, received a 6.21 billion won, while another CEO Yoon Boo-keun, the head of head of its consumer electronics business, received a 5.08 billion won paycheck.

But Samsung Electronics did not disclose Chairman Lee Kun-hee and vice chairman and his son Jae-yong’s annual salary as they stepped down from executive posts at the group last year.

Other business heavyweights getting big paychecks include Korean Re CEO Park Jong-won with a 17.6 billion won compensation package including 15.9 billion won in severance pay; and former CJ Group Chairman Lee Jae-hyun with 4.75 billion won in annual salary, although he has been behind bars for tax evasion and embezzlement. By Kim Tae-jong, The Korea Times