The Traits and Leadership Styles of CEOs in Korean Companies

Abstract

Korean firms have experienced rapid growth for more than thirty years, since the 1960s, and have elevated today's Korean economy to the status of twelfth largest trading country in the world. However, systematic research on the CEOs who have led the growth and development of Korean firms is very rare. For this reason, this study explores the distinctive traits and leadership styles of CEOs of successful and unsuccessful firms in Korea. To study the leadership styles of Korean CEOs, we need to stipulate who really is a CEO. Since the distinction between ownership and management is unclear and important strategic decisions are made by founders or owner-managers, CEO in Korea means owner-manager who founded the company or the founder's descendants. This study demonstrates a Korean uniqueness found in the leadership styles of CEOs. By comparing leadership traits and styles of CEOs of successful Korean firms with those of unsuccessful Korean firms, this study also suggests ways to develop CEOs for corporate success. The primary data used in this research are cases of successful and unsuccessful firms, given by the CEOs or the executives of leading Korean firms who participated in the Advanced Management Program at the College of Business Administration, Seoul National University, and the CEO course of the Federation of Korean Industries from 1986 to 1995. I asked the respondents to choose a successful or an unsuccessful firm, based on sales volume, market share, growth rate, and bankruptcy, where they had been employed or which they knew very well. I then asked them to write down the success factors and failure factors of the firm selected, focusing on the roles of the CEO. Three assistants extracted items of detailed traits of CEOs through content analysis of the successful and unsuccessful cases. They looked for specific words or sentences that indicated certain traits and extracted detailed characteristics. However, because different words and phrases can have the same meaning and