Lee stepped down after HHI logged a deficit of KRW 616.6bn ($601m) in the three months to the end of June, down from a KRW 66.8bn profit in 2013.
He had been running the group as joint CEO since 2013 with Kim Oe-hyun, who now takes sole charge.
“The appointment reflects our will to overcome the crisis the company is facing and to make a new leap,” the company said in a statement.
Kwon
