Former minister Lee Hee-beom of the Ministry of Trade, Industry and Energy, dubbed a seasoned official-turned businessman, has made a comeback in business circles as chairman of Booyoung Group.
In his inaugural speech, Booyoung Chairman Lee said, “I feel honored to take office as chairman of Booyoung Group, which has made strenuous efforts to play a part as a ladder of housing so people can own their homes by supplying the biggest number of rental apartments across the nation.”
“Even though we’re facing a difficult situation due to external and internal economic uncertainties, if we are united at this hard time, we will be able to overcome a crisis and create new opportunities,” he said.
Lee has been credited with having achieved a successful career in several areas. He graduated from Seoul National University Engineering College and topped the 12th higher administration examination.
He climbed the career ladder to be appointed MOTIE minister.
He previously held positions such as chairman of Korea Production Center, chairman of the Korea International Trade Association, chairman of Korea Enterprises, chairman of STX Industries, chairman of LG International, CEO of Gyeongbuk Art & Culture Foundation, president of Seoul National University of Science and Technology, and chairman of Hyundai Motor Haebichi Foundation.
Former MOTIE minister Lee’s appointment of Booyoung Group chairman may be considered as him having the right stuff to give the company a leg-up to over its rivals by making the most of his rich experience and greater understanding of pending issues.
The public’s attention is on how long the new chairman will retain his position, in which chairman and owner Lee Jung-keun is out of management.
Now that Chairman Lee has taken the helm of Booyoung group from former chairman Shin Myung-hoe, who held office four years and eight months, the former is predicted to hand over management to Chairman-owner Lee four years from now.
Some business analysts forecast that new Chairman Lee will retain his position for a long period of time, since Booyoung badly needs his management abilities and human networks.
New Chairman Lee is expected to throw his heart and soul in restructuring the business group’s business portfolio during his career. He is predicted to prioritize the housing business the group had halted.
Booyoung has not implemented housing projects since May 2022, but this year will be different.
The business group plans to implement the Hwangji-dong 1 and 2 Complex Housing Project in Taebaek, Mokseong A-2 Block Housing Project in Gwangyang, and Mokseong A-1 Block Rental Housing Project in Gwangyang.
Lee has a likelihood of serving as a relief pitcher to rescue Booyoung, which is still reeling from a management crisis.
Upon his appointment, Chairman Lee has lots of pending tasks he should tackle urgently.
The construction industry is struggling with its sagging business, caused by the declining real estate market in the doldrums.
Booyoung Group has posted a poor business performance. Booyoung Group logged 2.455.9 billion won in sales and 228 billion won in operating profit in 2020, but the business group saw sales and operating profit for 2021 shrink to 1,674.4 billion won and 48.6 billion won, respectively.
The figures represented a 31.8 percent drop and a 78.6 percent plunge year-on-year in terms of sales and operating profit, respectively.
Booyoung is now in a difficult business situation, as other construction companies have struggled.
For Chairman Lee, managing Booyoung is considered both a burden and an opportunity. Lee could cash in on social contribution activities the business group has conducted to restore its declining image, as ESG has come a management asset of late.
In accordance with Chairman-Owner Lee Jung-ken’s management tenets, Booyoung Group has continued to conduct social contribution activities.
The business group has spent more than 1 trillion won by conducting activities, such as scholarship programs, donating culture and education facilities, giving patronage to hosing of expos, improving of senior citizens’ facilities and “children’s houses without rent.”
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