In June 1998, Katsuo Inabata became chairman, and Takeo Inabata took over as president. At the time, the company faced a difficult business environment due to lingering business stagnation after the collapse of the bubble economy.

To address these challenges, in April 1999, President Takeo Inabata implemented a new system to prioritize growth areas such as IT and electronics. The divisions were reorganized into market-based groups–such as IT & Electronics Solutions Division and Building and Construction Resources Division–instead of product-based ones. The company also began holding press conferences to improve public relations.

At a press conference in December 1999, the company announced its five-year management strategy to explain its current business situation and policies. Furthermore, to facilitate management reform, 22 roundtable meetings were held with employees, and the e-newsletter “Takeo Online” was published to explain the company’s situation and policies. The goal was to promote participation from all employees and stimulate internal communication.

In April 2003, the company strengthened global expansion by pursuing strategies optimized to four overseas regions and Japan. Furthermore, a new executive officer system was introduced to achieve efficient management and accelerate decision making. Under this system, directors took charge of the overall management strategy, while executive officers managed the execution of each business. In July of the same year, the HR system was revamped to prioritize performance and create a working environment where factors such as gender, nationality, the timing of employment, age, or educational background had no influence. The goal was to improve job satisfaction for employees and stimulate human resources.

During that time, digital technology was rapidly advancing, with personal computers becoming more powerful and affordable, broadcasting and communication methods being digitized at a faster pace, and the Internet becoming more widely used. To capitalize on these developments, the company not only focused on expanding its IT and electronics business but also ventured into new sectors such as pharmaceuticals and medical products, including health foods. Furthermore, the company expanded its overseas presence by pioneering new sales channels, acquiring factories for new businesses, and establishing additional office locations to support customers’ overseas expansions.

Apart from sales, the company implemented a series of internal systems and approaches for a more modern era. These included integrated management of fund procurement and operations for the entire IK Group, as well as improved credit management. The company also worked to acquire ISO certifications and reform internal core operations.

In this way, the president tried to do away with old systems and drive innovation to adapt to existing circumstances. However, he died of illness on December 1, 2005, in the middle of pursuing IK’s development as a trading company that all employees could be proud of. His final message was: “Tradition is not something to be protected but to be created.”