Since having established SEB – a modern financial institution – in 1856, the Wallenberg family of Sweden has successfully owned and managed a number of outstanding global enterprises including Ericsson, ABB, Electrolux and Saab. The market value of companies in the Wallenberg sphere amounts to almost 50 percent of the total market capitalization of Stockholm Stock Exchange. However, the Swedish people or government has hardly regarded this remarkable concentration of economic power as a problem. Rather, such a beneficiary system as dual class shares has enabled the Wallenbergs to exercise more voting power than its actual shareholdings and thereby maintain the governing power for such a long period The Wallenberg family has contributed to the development of the national economy, with their unique and vigorous ‘active ownership’ policy since its inception. The family’s primary focus has been on fostering enterprises in the long run rather than on maximizing short-term capital gain. The Wallenbergs and their holding company – Investor AB – have consolidated an effective control mechanism through which they have significant influence on the board of directors and top management of affiliated companies, while keeping family members’ participation in the management to the minimum. In addition, the Wallenbergs have successfully acquired social legitimacy by keeping constant responsiveness to various dimensions of Swedish public’s interest – employment, training, education and R & D, to name a few. As global concern over corporate governance has been growing theses days, the Wallenberg family has also come to the forefront from a negative perspective. Due to the likelihood that overall shareholder value of a listed holding company is unfairly sacrificed for the sake of major shareholders’ interest, Investor AB has been noticeably underestimated in the stock market. * This work was supported by the Ewha Womans University Research Grant of 2005. ** College of Business Administration, Ewha Womans University. 106 제9권 제2호 2006년 2월 In the wake of such an atmosphere, there was even a hostile takeover attempt against the Wallenbergs in the beginning of the 2000s. Nowadays the dual class share system has been facing its abolition in accordance with the change of economic environment including the integration of European countries. The Wallenbergs’ flagship companies such as Ericsson and ABB have already experienced performance crises in the early 21st century. The highly uncertain prospect of new investments centered on high-tech industries including telecommunication also causes gloomy concern over the family’s future. In this context, five or ten years to come will be a crossroad critical to the Wallenberg dynasty, whose regime is about to being succeeded to its sixth generation passing fifth. Will the Wallenbergs be able to overcome current threats to extend the longevity of their family business well over 150 years?