South Korea’s KTB Investment & Securities Co. announced a major change in management with Vice Chairman Lee Byung-chul replacing the scandal-ridden chairman as the brokerage’s largest shareholder.

The company said in a regulatory filing Monday that Chairman Kwon Sung-moon and two outside directors in his favor submitted their resignations.

Following Kwon’s resignation, Lee purchased a 5.96 percent stake from Kwon for 66.2 billion won ($62.2 million), emerging as the largest shareholder of the investment bank by securing a total 19.96 percent stake in the company. He is followed by China Oceanwide Holdings Group at 8.53 percent and China Giant Group at 4.26 percent.

The company said it expected the participation of Chinese shareholders to open up business opportunities in China and that discussions for strategic partnership in broader Asia were also underway.

Lee’s rise is expected to add stability to a company rocked by a series of scandals involving the former chairman. Last year, Kwon drew public outrage when a cable news station aired a video footage of him kicking an employee, who was later found to have been paid off to keep silent. Financial regulators also accused Kwon of breach of trust and embezzlement.

Lee, a properties investment expert, is credited for being one of the pioneers in introducing real estate investment trusts to Korea. He headed the real estate unit at Hana Financial Group Inc. and joined KTB in July 2016 where he has since led the overseas property investment department.

KTB reported 12 trillion won of assets under management as of late February. It manages 2.24 trillion won in alternative assets, with more than half invested in overseas real estate assets including offices, hotels and retailers across Japan, the U.S. and the U.K.

By Cho Hee-young and Kim Hyo-jin

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