Daelim Group, South Korea’s 18th-largest conglomerate focusing on construction and petrochemical businesses, has embarked on the third-generation management under Lee Hae-wook, grandson of the group’s founder.

Daelim Group announced on Monday that Lee, vice chairman of Daelim Industrial Co. was promoted to group chairman, completing hereditary succession at the conglomerate nine years after he was promoted to vice chairman in 2010. The chairman post was left vacant for eight years after Lee Yong-koo, a professional businessman unrelated to the founding family, resigned in March 2011.

Lee is the eldest son of honorary chairman Lee Joon-yong and grandson of late group founder Lee Jae-joon. The 51-year-old heir joined the family business in 1995 after studying business information and analytics at the University of Denver for bachelor’s degree received in 1992 and application statistics at Columbia University for masters in 1995. He served as head of restructuring as well as planning at Daelim Industrial and chief executive of Daelim Corporation.

Daelim Group is Korea’s 18th-largest conglomerate with assets totaling 18.7 trillion won ($16.6 billion) as of May last year. The conglomerate manages 26 companies including Daelim Industrial, Yeochun NCC Co., and Polymirae Co.

Daelim Group launched third-generation management succession in 2010 after honorary chairman Lee stepped down from management and the younger Lee, then vice president of Daelim Industrial’s petrochemical business, was promoted to vice chairman. In 2011, Lee was named as chief executive and vice chairman of Daelim Industrial, tightening his grip over the family-owned business.

Industry insiders noted that the latest promotion gives Lee complete control. Lee owns a 52.26 percent stake in Daelim Corporation, the largest shareholder of Daelim Industrial with 21.67 percent.

Daelim Industrial said that Chairman Lee has been acknowledged for his contributions in boosting corporate profit by helping overcome the Asian financial crises in 1998 and playing an active role in nurturing the group’s high value-added petrochemical sector by leading the development of high reactive polyisobutylene manufacturing technology.

By Kang Gye-man and Lee Eun-joo

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