Insta-scram: Korean CEOs refrain from prolific posting on social media

Industry

Published: 09 Apr. 2024, 18:29

Insta-scram: Korean CEOs refrain from prolific posting on social media

From left, Meta Chairman Mark Zuckerberg's Facebook, Shinsegae Chairman Chung Yong-jin's Instagram, and Samsung Electronics Executive Chairman Lee Jae-yong's Instagram fan page [SCREEN CAPTURE]

The recent move by Shinsegae Chairman Chung Yong-jin to delete the majority of his Instagram posts has ignited a heated debate surrounding the use of social media by business leaders.

While CEOs in the United States actively leverage platforms like LinkedIn and Instagram to champion company values and innovations, their Korean counterparts exhibit a noticeable reluctance, citing concerns over potential risks and distractions.

A recent survey conducted by the JoongAng Ilbo, an affiliate of the Korea JoongAng Daily, delved into the social media habits of CEOs at the top 100 companies listed on the Kospi market. The findings, as of March, revealed that only around 24 CEOs, founders, or chairpersons had social media accounts. The majority of the accounts, however, lay dormant for extended periods, save for exceptions like SK Chairman Chey Tae-won, Shinsegae Chairman Chung Yong-jin, and Head of Samsung Electronics Device Solutions Division Kyung Kye-hyun.

SK Group Chairman Chey Tae-won's photo of himself in a meeting during a business trip to the U.S. posted on his Instagram on July 20, 2021. In a comment, a follower jokingly asked if he licks the yogurt lid when eating yogurt, to which Chey replied in the affirmative. [SCREEN CAPTURE]

The hesitancy among Korean CEOs to fully embrace social media stems from apprehension surrounding CEO or owner risk, avoiding engagement in activities that others might perceive as risky or distractive to work. Additionally, the analysis suggests that for professional managers not linked to the founding family, the benefits of attracting public attention through social media may be minimal.

"If professional managers dedicate time to social media, they may appear less dedicated to their work and could be misconstrued as having political or job-flipping intentions," commented James Chung, founder of crisis management consulting firm Strategy Salad.

The online behavior of CEOs varies widely based on individual preferences. Platforms like LinkedIn or Facebook serve as avenues for serious public discussions on management philosophy and goals, while Instagram provides a chance to share lighter content, such as hobbies or moments in daily life, often accompanied by visual elements.

Professor Claudia Malhotra from the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill categorized CEOs' social media usage into four primary types.

According to her analysis, corporate leaders who utilize platforms like X, formerly Twitter, and boast a significant following tend to fit into the "business expert" category. They frequently disseminate business-related information such as product updates, industry trends, and insightful analyses. Malhotra said that while CEOs' perspectives on societal issues may attract attention, they may not resonate as strongly as their business-focused posts. Notable figures in this category include Tim Cook, CEO of Apple, and Jeffrey Immelt, former CEO of GE.

For Samsung Electronics' semiconductor business leader, President Kyung Kye-hyun, Instagram and LinkedIn serve as the primary platforms for sharing insights and updates.

"HBM [High Bandwidth Memory] leadership is coming to us," Kyung wrote in an Instagram post on March 29, sharing reflections on a recent business trip to the United States.

Additionally, news of Samsung taking its first steps toward establishing a new semiconductor unit aimed at developing next-generation Artificial General Intelligence chips was unveiled through his LinkedIn on March 19.

Even in sharing his reflections after reading the novel "The Hitchhiker's Guide to the Galaxy" by Douglas Adams, Kyung didn't forget to promote products, writing, “Samsung Semiconductor products like #HBM3E Shinebolt are ready to vastly improve the speed and efficiency of generative AI applications!”

However, experts have cautioned against misinterpreting a CEO's social media activity.

"It's hard to see CEO's social media activity purely as personal, regardless of their intentions," said Yoo Jae-woong, head of Korea Center for Crisis Communication. "Relying solely on their judgment could pose significant risks."

A case in point is a 2018 post by Elon Musk, the owner of X. On the platform, he claimed that he had secured the funding necessary to take his other business, Tesla, private at $420 per share. The post prompted a lawsuit by shareholders as well as an investigation into securities fraud by the U.S. Securities and Exchange Comission, which ended in a settlement.

BY KIM GYEONG-MI, LEE SOO-JEONG, SEO JI-EUN [seo.jieun1@joongang.co.kr]