[New Business Families 3rd and 4th Generation]⑦ Only Share Succession Remains... Kolon, Opening of the 'Lee Gyu-ho Era'

Promoted to Vice Chairman Last Month
Position Moved to Group Holding Company
Leading Mobility Group Launch
Highly Rated Within Group
Succession Burden Due to No Shares Yet

For Lee Gyu-ho, President and CEO of Kolon Mobility who led the imported car business, 2023 is likely to be remembered as a meaningful year. Last month, he was promoted to vice chairman and moved to the holding company at the top of the group's governance structure. After 11 years with the company and just one year as president, he took charge of a position overseeing 47 affiliates ranked 39th in the business world. Internally, there is an interpretation that the fourth-generation owner succession in management, following former Chairman Lee Won-man → former Honorary Chairman Lee Dong-chan → Honorary Chairman Lee Woong-yeol → Vice Chairman Lee Gyu-ho, has officially begun.

Vice Chairman Lee joined Kolon Industries in 2012 and has held various roles including head of HR at Kolon Corporation, executive director of strategic planning, and vice president of the automotive division at Kolon Global. The group described him as "the Chief Operating Officer (COO) of Kolon Industries' fashion division FnC in 2019, leading the establishment of an online platform and pioneering global markets, and since 2021, concurrently serving as Chief Strategy Officer (CSO) of the holding company, spearheading the group's new hydrogen business." In particular, he has been highly praised for leading the portfolio restructuring of the group's key imported car distribution businesses such as BMW, Audi, Volvo, and Rolls-Royce, as well as for spearheading the launch of Kolon Mobility Group over the past three years.

Within the company, he is also noted for his unpretentious demeanor. A group official said, "(Vice Chairman Lee) joined the group as a deputy manager at the Kolon Gumi plant and steadily received management training starting from on-site work," adding, "During his time at the plant, he showed a humble personality by dining with employees in the company cafeteria."

Kolon Mobility Group co-CEOs, then President Lee Gyu-ho (left) and President Jeon Cheol-won are shaking a bell at the launch ceremony on January 4.
[Photo by Kolon Mobility Group]

Starting January next year, Vice Chairman Lee will be responsible for the group's mid- to long-term strategy. In a recent personnel reshuffle, Kolon Group divided the holding company Kolon Corporation into support and strategy divisions. Vice Chairman Ahn Byung-duk of Kolon Corporation will oversee the support division, while Vice Chairman Lee will focus on nurturing businesses that drive mid- to long-term growth and enhancing group value. A group official stated, "We are working on drawing up the blueprint for group management by the end of this year."

Attention is focused on whether Vice Chairman Lee will succeed to the position of group chairman. Since Honorary Chairman Lee Woong-yeol stepped down from management in 2018, the chairman position has remained vacant at Kolon Group.

In Kolon Group, where succession by the eldest son is the principle, the prevailing analysis is that there will be no surprises in the succession process. Vice Chairman Lee is the only son of the Honorary Chairman. However, the fact that Vice Chairman Lee currently holds no shares is a burden. He must prove his management capabilities both inside and outside the group while simultaneously increasing his actual control over the group through acquiring shares. When stepping down from management, the Honorary Chairman said, "I am giving (my son) an opportunity, and succession will only be possible if he is judged capable later," adding, "If he is not recognized for his management ability, I will not pass on a single share."

As of the end of September this year, the Honorary Chairman holds 49.74% (6,279,798 shares) of Kolon Corporation. When combined with the shares of the Honorary Chairman’s elder sisters, younger sister, and professional manager Vice Chairman Ahn Byung-duk, the total shares held by the largest shareholder and related parties amount to 52.14% (6,582,789 shares).