Former LX Hausys CEO comes back to lead turnaround mission

LX Hausys Ltd. Chief Executive Officer Han Myung-ho [Photo by MK DB]

Returning to LX Hausys Ltd. as chief executive officer after a decade, Han Myung-ho aims to reorient the company’s business portfolio toward profitability and increase sales, especially in the U.S. and Europe.

LX Hausys is one of South Korea’s leading building materials companies, but like many other businesses, it suffered a significant blow to its performance due to the Covid-19 pandemic. The downturn in housing sales, rising prices of raw materials, and poor performance of its subsidiaries contributed to an 80 percent drop in operating profit, with a particularly dismal performance in the fourth quarter of 2022, when it recorded an operating profit of 13 billion won ($9.71 million).

As a result, LX Group Chairman Koo Bon-joon saw the urgent need to improve the profitability of LX Hausys, the second-largest company in the group. To address the issue, he turned to Han, who had previously served as the CEO of LG Hausys, now known as LX Hausys, when it was established in 2009. Han was brought in as a relief pitcher last year, a decade after he left the company.

Han has shown outstanding management skills by laying the groundwork for improving the company’s performance in a short period after his return. Although LX Hausys’ first-quarter revenue for this year fell slightly by 2.5 percent from a year ago, its operating profit recorded 161 billion won, a whopping 132.2 percent jump. It was a surprise result that far exceeded the market consensus, whose original estimate was about 400 million won.

Han immediately focused on operating the company with profitability in mind upon his return. The company was able to rebound from an operating loss thanks to the improvement in overseas profitability, which resulted from the reduction of logistics costs.

To further improve profitability, Han has led efforts to transition the company’s revenue structure to high-value-added products and expand its overseas sales. “I will prioritize improving profitability and focus on rebuilding future growth drivers and will especially concentrate on the global competitiveness of our overseas flooring and E-Stone business,” he said during the shareholders’ meeting in March, as the recovery of the real estate market in the building materials sector is expected to be sluggish.

Han is considered one of the top experts in the domestic building materials industry for his sharp market insights. His top management goal is to accelerate the improvement of the company’s profitability-oriented business structure.

During his tenure as CEO from 2009 to 2012, Han led the growth of the company and spearheaded the development of new businesses such as high-performance PF insulation materials for buildings and highly insulated low-emissivity glass. These new businesses he had developed have become the mainstays of LX Hausys’ business today.

Additionally, he oversaw the construction of an artificial marble factory in Georgia, U.S, and a production plant in Wuxi, China.