Ongoing Challenges on Managerial Innovation at the Korean High-Tech Firms (Part IV): Two Paths and Professional Managers in Chaebols

The owner-centered management system and corporate governance structure also bring up another significant issue: the role of professional managers in the chaebol system. Professional managers have largely been in charge of operational decision making. Their managerial competence has not been fully utilized due to their limited responsibilities.

However, there has been a move among Korean chaebols to get out of this owner-centered system. Unlike Samsung, another major chaebol, LG has maintained more transparent management structure since 2003 by making professional managers run its system.

As such, Korean chaebols have taken two distinct paths. Which chaebol would sustain its competitive edge over the long haul remains to be seen.