PR Plays Huge Role in Korean Conglomerates

I thought this was an interesting article in Korea Times...

An increasing number of [Korean]conglomerates are bringing public relations officials to the fore of management amid the growing importance of communications activities.

Doosan Group promoted Kim Jin, vice president of the groupÂ’s PR team, to president of Doosan Bears, the conglomerate's professional baseball team, only two years after he became a vice president. He will concurrently serve as the president of the PR team.

Kim entered the group in 1978 and has worked in the communication division since 1984. Given a vice president or those of lower positions has traditionally headed the PR team, his appointment as president is quite surprising, Doosan officials said.

Daewoo Electronics also promoted Lee Seung-chang, a director of its PR team, to president. From 1993 to 1995, Lee worked at the planning and coordination bureau of the now-defunct Daewoo Group, then second largest South Korean conglomerate, and worked for then chairman Kim Woo-choong.

``In the past, it was uncommon to promote PR officials to executive-level posts, and they played a small part in making crucial decisions,"’ a Doosan official said. ``Now they have more say during key meetings of executives and owners keep them close at hand to seek their advice."’

The official said PR officials usually have a strong human network that is necessary for effective risk management.

Hyundai-Kia Automotive Group chairman Chung Mong-koo also thinks highly of the wisdom and ability of PR officials. Choi Han-young was promoted to president of the strategic coordination division of the group after serving as the spokesman for Chung when the chairman was involved in a family feud over management rights a few years ago. Hyundai insiders say Chung promoted him due to the role he played during the period.

Kia Motors president and CEO Kim Ik-hwan also worked as a PR person at Hyundai Industrial Development and Kia Motors for 10 years before being promoted to the position.

In LG Group, Kim Young-soo, CEO and vice president of LG Sports, which manages LG’s professional sports teams, headed LG'’s communication team for a long time before taking up the CEO post.

Shim Jae-hyuk, president of Hanmu Development, an LG Group subsidiary, also was a director of LG'’s PR division in the mid-1990s. Hanmu Development manages the operation of the chain of the Intercontinental Hotel, which is owned by GS Engineering and Construction, and has split from LG Group.

Hanwha Group chairman Kim Seung-yeon has promoted Chung Ie-man and Nam Young-sun, who worked as the head of the group'’s PR division as the presidents of its subsidiaries. Hanwha officials said Chung and Nam played important roles in improving the image of the conglomerate when Hanwha purchased Korea Life Insurance in 2002.

Samsung Group has also promoted Bae Dong-man, who was a secretary for Samsung chairman Lee Kun-hee between 1994-1997 and headed the PR team, to president of Cheil Communications, the group'’s advertising unit.