24.1.11 Chinese electric vehicle maker BYD Wang Chuanfu

[김상태]

KG Mobility, a Korean SUV-focused carmaker, said Thursday it has partnered with Chinese electric vehicle maker BYD to build a battery pack plant in Korea and develop next-generation vehicles.

한국의 SUV(스포츠 유틸리티 자동차)만을 주로 생산하는 자동차 제조업체인 KG모빌리티는 중국 전기차 제조업체인 BYD 와 한국내에서 배터리 팩 공장을 건설하고 차세대 자동차를 개발하기 위해 제휴하기로 했다고 목요일에 발표했다

KG Mobility and BYD have signed an agreement at the Chinese firm's headquarters in Shenzhen to build the battery pack plant in Changwon, 300 kilometers south of Seoul, and develop all-electric and hybrid models, KG Mobility said in a statement.

KG Mobility, formerly SsangYong Motor, operates a car manufacturing plant in Pyeongtaek, 60 km south of Seoul, and a vehicle engine plant in Changwon.

"We are planning to install the battery pack (to be produced in the Korean plant) in the next Torres EVX SUV models, the electric pickup truck O100 (which will be produced in late 2024) and other upcoming models," the statement said.

The company launched the Torres EVX in the domestic market in September.

"Engineers from the two companies have already entered into the project to develop a next-generation hybrid system" for vehicles, it said.

Under the partnership with BYD, KG Mobility aims to introduce the electric pickup truck O100, the Rexton SUV-based F100 flagship SUV, and the subcompact SUV KR10 starting from late 2024.

It also plans to add the Torres SUV-based hybrid model to the lineup in 2025.

The company did not provide the investment size for the plant and other details.

KG Mobility's all-electric Torres EVX SUV / Courtesy of KG Mobility

The Torres EVX is KG Mobility's second electrified model after the Korando Emotion launched in the domestic market in February 2022.

KG모빌리티의 전기차  Torres EVX SUV / KG모빌리티의 특별모델

Torres EVX는 Korando Emotion이 2022년 2월에 국내시장에 출시된 이후 KG모빌리티의 두번째 전기차 모델이다

KG Mobility has exported the Korando Emotion, but the first EV model is not available in the domestic market due to battery supply issues.

The EVX is equipped with a 73.4 kWh lithium iron phosphate (LFP) battery, and it can travel up to 433 kilometers on a single charge.

The model comes with a 10-year and 1 million-kilometer battery warranty. An LFP battery is a type of lithium-ion battery known for its enhanced safety features, high energy density and longer life span.

이 모델은 보증기간이 10년이고 100만 Km의 무상수리가 제공된다. 리튬 이온 배터리의 일종으로 안전특성이 강화되고 에너지밀도가 높으며 수명이 긴것으로 알려져 있다

From January to October, KG Mobility's vehicle sales rose 10 percent to 102,640 units from 93,344 during the same period of last year.

It current lineup consists of the Tivoli, Korando, Rexton, Rexton Sports, Torres, and Torres EVX SUVs. (Yonhap)

*****************

Why won't S. Koreans have kids? Costly housing, report says

By Yoon Min-sik

Published : Jan. 3, 2024 - 18:06

The biggest factor influencing South Korea's families in deciding whether or not to have children is the cost of housing, a state research institute-issued report published Wednesday shows, in an analysis of various economic and labor factors.

한국의 가정에서 아이를 가질까 말까를 결정할때 가장 큰 영향을 미치는 요인은 주택비용이라고 한 국책연구소가 수요일에 발표한 보고서에서 다양한 경제및 노동요인을 분석한 결과를 보여주었다

Researchers at the Korea Research Institute for Human Settlements analyzed the country's birth rate patterns, using data from Statistics Korea, and concluded that declines have been particularly profound during housing cost spikes. They noted that the birth rate has tended not to change very much when housing prices have been stable.

Using a dynamic panel data model, the researchers found a correlation between the total fertility rate -- the number of children expected to be born to a woman through the end of her child-bearing years in alignment with prevailing age-specific fertility rates -- of a given year and the factors that are thought to affect family planning. These include the various figures from the year before, including: housing prices, rents, private education fees, economic growth and the unemployment rate.

연구진은 동적 패널 데이터 모델을 사용하여 일정기간의 총출산률 ---특정연령층을 망라한 출산률에 따라 여성의 가임기가 끝날때까지 태어날것으로 예상되는 아동의 수 --- 과 가족계획에 영향을 미치는 것으로 여겨지는 요인괴의 상관관계가 있다는것을 발견했다. 여기에는 주택가격, 임대료, 사교육비, 경제성장률, 실업률 등 전년도의 다양한 수치가 포함된다 

The cost of housing -- with includes the cost of buying or renting a home -- was the biggest factor affecting married couples from having their first, second or third children, although their impact varies slightly.

More specifically, researchers found that a 1 percent rise in housing prices in any given year led to the total fertility rate declining by 0.00203, and a 1 percent rise in rents led to a decline by 0.00247.

The report said that 30.4 percent of married couples' decisions to have their first child can be attributed to the cost of housing, followed by the birth rate of the previous year, with 27.9 percent.

이 보고서에 의하면 첫째 아이를 갖기로 결정한 부부중 30.4%가 주택비용을 고려한것으로 추정되며 전년도 출생률이 27.9%로 그 뒤를 이었다

For the second child, the cost of housing affected 28.7 percent of families' decisions, followed by the previous year's birth rate at 28.4 percent. The figures for third children were 27.5 percent and 26.1 percent, respectively.

The effect of private education on families' decisions, however, rose dramatically after the first child to the second, as well as to the third child. It affected couples' decisions to have their first child by only 5.5 percent, but then doubled to 9.1 percent for their second child, and rose even higher to 14.3 percent for their third child.

The effect of women's economic activity participation rate -- referring to how much of the female population is working or willing to work -- on families' decision to have children was consistently high, from affecting 16.5 percent in deciding to have their first child, to 15.9 percent and 15.5 percent in deciding to have their second and third child. These figures indicate that the women's steady employment is an important factor affecting married couples' decision to have children.

Dual-income households made up 46.1 percent of the 12.69 million married households in October 2022, according to Statistics Korea in June last year, marking an all-time-high figure since the agency started its tally.

The KRIHS researchers said that one key to addressing South Korea's record-low fertility rate is solving housing costs.

"(The government) must adopt policies so that financially-challenged newlyweds are able to acquire homes without taking out an excessive amount in loans," they wrote.

******************

How young are ‘young’ CEOs in Korea?

Younger executives increasingly taking helm not just to spur innovation but also for chaebol system

By Jo He-rim

Published : Jan. 3, 2024 - 15:31

“Generational shift” has long been a buzz phrase in the year-end leadership reshuffle at Corporate Korea for years. 2023 was no exception.

The nation’s conglomerates, especially the top four, have touted having promoted younger executives to breathe fresh air into somewhat rigid operations and prepare for the next growth drivers in the ever-evolving business environment.

세대교체는 수년째 한국재계의 년말 인사이동에서 빠지지 않고 등장하는 오랜기간의 용어(화두)이다. 한국의 대기업들, 특히 4대 그룹은 다소 경직된 경영에 신선한 바람을 불어넣고, 끊임없이 변화하는 사업환경 속에서 차세대 성장동력을 준비하기 위해 젊은 임원들을 승진시키고 있다고 설명해 왔다.

Many of the CEOs in their 60s stepped down to be replaced by those in their 50s, while managers in their 40s were promoted to executive titles.

But both company officials and experts are still reluctant to call the younger leadership a generational shift in its literal sense in Korea as the corporate rhetoric is also part of the long-held chaebol system.

Younger for future

“Young leaders and specialists in software and other advanced technology sectors were promoted to speed up the company’s generational shift,” Samsung Electronics, the country's largest conglomerate, said as it announced 90 executive promotions, the lowest since 2017, in late November.

Among the newly promoted was Yong Seok-woo, 53, the youngest-ever president in charge of the TV business, one of the tech giant’s key business divisions.

Samsung retained the co-CEOs in their 60s -- Vice Chairmen Han Jong-hee, 61, and Kyung Kye-hyun, 60 -- who handle appliance and chip businesses, respectively, citing growing uncertainties in global markets.

SK Group, the country’s second-largest conglomerate, sought a radical change in its top brass, replacing CEOs at seven key affiliates with those in their 50s or 40s.

The leadership revamp came after Chairman Chey Tae-won warned of “sudden death” at a CEO meeting in November, calling for heightened readiness for the fast-changing business environment.

그 경영진 개편은 최태원 회장이 11월 사장단 회의에서 급변하는 기업환경에 대한 대비를 강화해야 한다고 말하면서 “sudden death” 를 경고한 후에 이루어졌다

Hyundai Motor Group promoted CEOs in their 50s. Largely buoyed by upbeat sales, the world’s third-largest carmaker carried out the biggest executive promotions of 252 in its corporate history, of whom those in their 40s made up almost 40 percent.

LG Group also replaced many of the CEOs in their 60s with those in their 50s. LG Electronics CEO Cho Joo-wan, 61, survived the performance-based reshuffle. The average age of the 99 new executives was 49.

Younger chaebol leaders  젊어지는 재벌 총수들

A public relations official at one of the big four groups admitted that the rhetoric for a generational change simply means new figures replacing the existing ones, citing little age difference among them, usually less than a decade apart.

4대 그룹중 한곳의 홍보관계자는 이들간의 나이차이가 적어서 보통 10년 이내가 된다고 말하면서 세대교체라는 

말은 단순히 새로운 인물이 기존 인물을 대체하는  것이라고 시인했다.

“I believe it will be almost impossible for the large-size behemoths in Korea to pursue generation shift in the literal sense, like to kick out all those in the 50s and 60s and bring in those in their 20s and 30s,” the official said under the condition of anonymity.

"나는 한국의 규모가큰 대기업들이 50대 60대들을 다 내쫒고 20대 30대를 영입하는것 같은 문자그대로의 의미에서 세대교체를 추구하는것은 거의 불가능하다고 본다" 고 익명을 요구한 이 관계자는 말했다

Another official also noted how the average age of newly promoted executives of his company has been hovering at mid- to late-40s for years.

Cho Myeong-hyun, a business professor at Korea University and the former president of Korea Corporate Governance Service, said that family-owned chaebol groups are increasingly putting renewed emphasis on generational shift as part of their succession schemes for the third- and fourth-generation scions of the founding families.

“The rhetoric gives them the reason to fill the top brass with younger leaders, considering their chaebol chiefs may feel uncomfortable working with CEOs who are older than them,” he said.

Samsung Electronics Chairman Lee Jae-yong, 55, SK Group Chairman Chey Tae-won, 63, and Hyundai Motor Group Executive Chair Chung Euisun, 53, are all third-generation leaders of the founding families, while LG Group Chairman Koo Kwang-mo, 45, is a fourth-generation leader and the youngest among the top four chaebol leaders.

“Some executives are known to dye their hair regularly or visit a dermatologist because they do not want to look too old to carry out their duty at work,” Cho added.With the succession schemes speeding up for younger generations of chaebol families overall, the executive age at major conglomerates is likely to drop further in the future, experts said.

According to a survey by Leaders Index, a local corporate tracker, chaebol scions usually become executives in their mid-30s. They are found to assume leadership roles at an average age of 42.1.

The nation’s rigid labor law is also behind the generational shift rhetoric, according to Cho.“It is a lot more difficult to fire employees in Korea, compared to the US and other Western countries,” he said. “Big companies have tens of thousands of employees and they have to carry out large-scale costly promotions every year. They can effectively reduce high-paid top executives in the name of a generational shift.”

Younger the better?

Industry people, however, agree that wide use of the term “generational shift” shows how the public positively views the idea of young leaders.

"I believe it helps big companies erase their reputation of being rigid when they say they have young top brass, it sounds like they are more open, and fast to adapt to new ideas," said a company official who wished to be unnamed.

Kim Yong-jin, a business professor at Sogang University, noted that the corporate rhetoric needs to be taken more seriously and that the generational shift is "more than age.”

Older generations of business leaders, Kim said, had nurtured their management skill sets centering mostly on manufacturing sectors during the nation’s high-growth era. But he stressed that now the industrial paradigm is fast shifting to digital technologies and services.

“Leaders born in the late 1960s and the early 1970s are better trained on the new paradigm shift. They must take the helm at key business divisions,” he said.

“At this time of business convergences and M&As, new leaders, regardless of their age, should pursue values of creativity and horizontal work culture for sustainable growth.”

The changes in Korea’s corporate culture has been slow but sure. The top two internet companies here, Naver and Kakao, have even younger CEOs. Naver CEO Choi Soo-yeon is 42, while Kakao’s new CEO nominee Chung Shin-a is 48.

Meanwhile, older leaders appear to be favored globally.

According to a study by Penn's Wharton School of Management released in December, the average age of C-suite executives at Fortune 100 companies was 57, the same as it was 40 years ago.

The new C-suite is "older, with broader industry experience and increasingly female," wrote Wharton professor Peter Cappelli in the study.

The average hiring age of CEOs at Fortune 500 and S&P 500 companies also showed a dramatic rise over the past two decades, from 46 to 55.

“A good leader would understand the benefits of diversity in leadership. Diversity does not only mean the inclusion of different races and genders, but also of ages. Intergenerational leadership will help keep balance for businesses," Cho of Korea University said.