By Kim Yoo-chul
Lee Boo-jin, the ambitious elder daughter of Samsung leader Lee Kun-hee, cited growth and innovation as her key motivation during a speech following her inauguration as president of Hotel Shilla, downtown Seoul, Tuesday.
The 40-year-old Lee is the first woman to head a Samsung affiliate.
``I will lead the way on the back of your support,’’ Lee told the audience during a ceremony to take the role as the hotel’s 17th CEO.
Although her older brother, the only son of Lee Kun-hee, usually steals most of the spotlight for his step-by-step promotion to president, it is notable that the new Shilla CEO leapfrogged two notches in the reshuffle.
During a 20-minute speech with 150 employees in attendance, she said she will guide Shilla to be on a par with the world’s best hotels.
Samsung officials say Lee, who is also the president of the group’s de-facto holding company Samsung Everland, will focus on hotel and duty free businesses.
She joined Samsung in 1995 and was transferred to the hotel brand in 2001.
Lee recently showed her business flair, after getting Louis Vuitton to set up a shop at Incheon International Airport.
It remains hard to read Lee Kun-hee’s mind regarding his children ― whether he wants to pit the two against each other in a winner-takes-all battle.
Yet due to Samsung’s conservative culture, it would be more relevant to think that the senior Lee is in the process of divvying up his business empire among his three children.
The younger daughter has also been promoted at the group’s textile subsidiary.
Samsung officials declined to comment.
Market analysts at least are welcoming Lee Boo-jin’s promotion, saying she will provide a stronger leadership that will foster further external growth.
``Most of the revenue comes from the duty free business. Boo-jin has expanded it to the point of making the duty free business a priority,’’ said Park Jin, an analyst at Woori Investment.
``She will be more aggressive, threatening Lee Jae-yong in some ways. Also, the synergistic effect is expected as Lee Boo-jin manages the food, restaurant and hotel businesses,’’ said one Samsung source.
With the contract between Lotte Hotel and the duty free authorities at Gimpo Airport expiring in March next year, the new Hotel Shilla CEO is expected to put more energy to win the contract, according to Samsung officials.
``Lee Boo-jin wants to nudge Lotte off its perch,’’ added the source, asking not to be identified.
The annual revenue for the hotel rose to 1.21 trillion won last year from 415.7 billion won in 2002.
In the duty free segment, the Shilla reported 981.3 billion won in 2009, up from 658.5 billion won the previous year, according to data from the Korea Exchange (KRX).