South Korean eighth largest conglomerate GS Group will be spearheaded by new chief Huh Tae-soo, vice chairman and chief executive of GS Home Shopping Inc. who will succeed Chairman Huh Chang-soo, his elder brother who has offered to resign after 15 years at the helm of the group.

GS Group said on Tuesday that its chairman Huh Chang-soo officially tendered his resignation during a presidential board meeting, and his younger brother Huh Tae-soo has been appointed as new leader.

The leadership change comes 15 years after the older Huh began leading the conglomerate that has a presence in a wide range of businesses from retail to construction and energy in 2004 after separating from LG Group. The leadership succession will be carried out after a shareholders meeting and board of directors meeting next year.

An unnamed official from GS Group said current Chairman Huh has expressed intention from earlier on to resign, citing the need of a new leader who can well prepare the conglomerate to stay ahead of its rivals during the Fourth Industrial Revolution. The group’s home shopping operator’s vice chairman and his younger brother was chosen by the board after he has proved his management ability with extensive capacity, the official said.

Huh Tae-soo – grandson of GS Group founder Huh Man-jung – is the youngest son of Huh Joon-koo, late honorary chairman of LG Construction, now GS Engineering & Construction. After graduating Korea University, he earned an MBA at George Washington University before building his global career overseas.

The new group head, who became chief executive of GS Home Shopping in 2007, has been acknowledged of his capability as the next-generation leader of the group by successfully expanding the group’s home shopping business overseas and mobile shopping platform. Dubbed as “digital innovation preacher,” he has also been putting out efforts to seek new growth engines by investing in tech startups at home and abroad.

The resigning chief Huh Chang-soo also will step down as chairman of GS board of directors to pave the way for the new chairman to promote independent management activity. But he will serve as chairman of GS Engineering & Construction from next year.

The older Huh will also continue to serve as chairman of the Federation of Korean Industries (FKI), Korea’s biggest business lobby that he has been spearhead since 2011. Earlier this year, the organization’s board approved him to carry out his fourth term that will end in 2021.

As honorary chairman of GS Group, he plans to play the role in providing advice on a wide array of business issues. His resignation comes two years before his official term ends.

After his resignation became official on Tuesday, the older Huh he has completed his “duties by laying stable foundation for the conglomerate to leap as a global entity” and it is the time for the conglomerate to actively seek new solutions to stay competitive in the rapidly changing business environment driven by digital innovation.

By Han Ye-kyung, Noh Hyun, and Lee Eun-joo

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