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Question of the Day - 27 January 2012

Q:
Anyone who has driven around the Las Vegas Valley or been a LVA subscriber for any length of time is probably at least aware of Lee’s Discount Liquor stores. This chain has been a frequent "Best of Las Vegas" winner and seems to be involved in a number of charitable events. Can you tell me a little more about the owner, Mr. Hae Un Lee, and his business interests, which I understand include Woonam Jung, a Korean restaurant located on Spring Mountain Road?
A:

Sure, no problem (thanks in no small part to a couple of interviews he and his son have granted to the R-J in recent years.)

A former investigator of drug trafficking in South Korea, Hae Un Lee emigrated to the United States at the age of 38 due to dissatisfaction with the opportunities for education and employment available to his three children. Upon arrival in America, however, Lee's inability to speak English initially proved to be a major impediment towards gaining more than temporary, low-income jobs, including a stint as a dry cleaner in New York City, which he did not enjoy.

That all changed one day when he was buying a bottle of Johnny Walker Black Label Scotch in a liquor store and noted that the sales assistant did not say a word to him -- just rang up the purchase and handed it over, with his change. It was a "Eureka!" moment for Lee, who realized he'd stumbled upon a line of work in which his language handicap might not matter. He was proved right: Although in the first month he made just $875, within 18 months the inaugural Lee's Discount Liquor store, located at Spring Mountain and Jones, was grossing monthly sales of $30,000, even though liquor stores here, unlike in many other states, have to compete with gas stations, supermarkets, casinos, and other retailers.

Today, more than 30 years later, there are no less than 15 Lee's Liquors around the Vegas Valley, plus one in Mesquite, and the top-selling stores turn almost a half-million dollars a month. In a 2008 interview, Lee said the business was generating $65 million/year, which he hoped to raise to $100 million by 2010 (the economic crash may have scuppered that aspiration -- we don't know). The brand has always had a reputation for low prices -- their markup is only 7 percent -- and for the scope of their inventory: Lee's carries more than 300 vodkas, and more than 200 varieties of pinot noir wine alone, for example, not to mention obscure liquors that you can't find in the average store.

In addition to the liquor stores, Hae Un Lee also owns Korea Town Plaza, the shopping mall at Flamingo and Rainbow that houses Woonam Jung (where you may spot Lee dining) and other Korean businesses, including a good supermarket with an excellent fish counter. The company recently opened its first tavern in Mesquite, with plans for more in Las Vegas and Henderson, plus additional liquor stores, although it looks like the one destined for the baggage claim area at McCarran will not go ahead, due to disagreements over its structure.

Although now aged 70, Lee remains CEO of the company and says he has no intention of retiring anytime soon, citing hard work as the key to his and his family's success. For relaxation, he does enjoy reading and playing golf, however. Lee is also a notable philanthropist in the valley, having contributed well over $150,000 to local children's and community charities and to education. Lee's Helping Hand hosts annual fundraising Beer and Wine Experiences that attract thousands of patrons, while each year at Thanksgiving the company supplies volunteers to serve up 500 turkeys for Catholic Charities of Southern Nevada.

Hae Un Lee is married to Sunja Lee and, in addition to his three children, now also boasts seven grandkids.

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