[MZ Successor] ③ Lee Gyuho Takes a Leap in Mobility

Kolon Mobility Group Launch Led by Chairman Lee Woong-yeol's Eldest Son
Despite Zero Ownership Stake
Facing Test to Prove Management Capability

Editor's NoteThe new year has begun, but the business environment faced by companies is far from easy. As the '3 highs and 1 low' complex crisis of high inflation, high exchange rates, high interest rates, and low growth arrives, companies are struggling to find solutions to overcome the crisis. A place where one can closely observe the efforts of companies trying to turn crisis into opportunity is in management leadership. It is no exaggeration to say that the rise and fall of groups depend on the choices made by the MZ generation third and fourth-generation successors in the business world who have stepped up to the forefront of management to inherit family businesses. We take an early look at the activities of those leading corporate change by devising new businesses, pioneering markets, or improving company management systems in line with changing times.

[Asia Economy Reporter Oh Hyung-gil] Kolon Mobility Group has officially launched. In the booming imported car market, it plans to transform into a comprehensive mobility business operator based on the distribution and sales of six brands: BMW, Mini, Rolls-Royce, Audi, Volvo, and Jeep. The group has set a goal to achieve KRW 3.6 trillion in sales and KRW 100 billion in operating profit by 2025, with an annual sales target of 50,000 units. Lee Kyu-ho, the eldest son of Honorary Chairman Lee Woong-yeol, who was promoted from Vice President of Kolon Global to CEO of Kolon Mobility Group, is leading the charge.

CEO Lee stated, “We will strengthen the overall business structure to create the best value that customers can choose.” He expressed his ambition to establish a foundation for business structure innovation and future value.

The growth of Kolon Mobility Group also plays a crucial role in CEO Lee’s succession of the group. Nicknamed a manager on the edge, although he is the eldest son of the owner, he is in a situation where he might not be able to protect the group if he fails to deliver results.

When Honorary Chairman Lee stepped down from the front lines of management in 2018, he declared, “As a father, I will pass on the assets, but if management ability is not recognized, I will not hand over a single share.” The Honorary Chairman holds 49.74% of Kolon Co., Ltd., while CEO Lee does not own a single share. He must prove his capability through performance.

Kolon Group defined this year’s management environment as an “era of great threats” and declared that it will act toward opportunities beyond the crisis with Kolon’s unique growth principles. The regular executive personnel appointments were also advanced to November last year, earlier than usual. This demonstrated the group’s determination to minimize management uncertainties during the year-end and New Year period and to enhance crisis response capabilities. At this point, the fourth-generation CEO Lee has put himself to the test.

Last year, the group separated its major affiliate Kolon Global. Kolon Global, which was created in 2012 by merging Kolon Construction, Kolon Inet, and Kolon BNS, was split again into construction & trading and automotive divisions. The automotive division is the origin of Kolon Mobility Group.

The domestic imported car market is growing both qualitatively and quantitatively, intensifying competition. The Korea Imported Car Industry Association announced that the number of imported car registrations last year reached an all-time high. A total of 283,435 imported cars were registered last year, a 2.6% increase compared to the previous year. In December alone, 29,640 imported cars were registered, marking the highest monthly registration in about two years.

While domestic automakers faced production disruptions due to semiconductor supply shortages, many imported car brands, centered on BMW and Mercedes-Benz, caught drivers’ attention. Additionally, each brand introduced new electric vehicles to respond to the demand for eco-friendly cars.

Kolon Mobility Group also forecasts continuous growth amid the expansion of the imported car market. Looking at the performance of the automotive sales division of Kolon Global before the split, cumulative sales and operating profit for the first three quarters of last year were KRW 1.7035 trillion and KRW 51.1 billion, respectively, up 9% and 10% year-on-year.

In new car distribution business, the group continues to introduce brands like Polestar, which signed dealership contracts in 2021, and adds eco-friendly mobility means such as electric motorcycles. Subscription and test-drive platform services are also being prepared.

CEO Lee focuses on establishing future growth strategies, discovering new businesses, building digital transformation, and strengthening financial capabilities, while CEO Jeon Cheol-won consolidates the sales foundation by managing sales and A/S networks.

Born in 1984, CEO Lee joined the group in 2012 by entering Kolon Industries and has worked across major affiliates including Kolon Global and Kolon Industries. Since 2020, he has served as Vice President and head of the automotive division at Kolon Global.