[Person人] 'Pilsajiksaeng' Lee Dong-geol, KDB Industrial Bank Chairman, to Continue 'Nomashipga' for 3 More Years

Three Core Pillars Including Innovative Growth Presented
Steadfast Achievements in Corporate Restructuring
Challenges Remain for Doosan Heavy and Asiana

[Asia Economy Reporter Kangwook Cho] "If you try to die, you will live; if you try to live, you will die."

In June, amid the severe management difficulties caused by the novel coronavirus disease (COVID-19), KDB Industrial Bank Chairman Lee Dong-geol (photo) made this resolute statement to companies undergoing restructuring. Chairman Lee quoted Admiral Yi Sun-sin’s famous saying '必死卽生 必生卽死 (Pilsa Jeuksaeng Pilsaeng Jeuksa)' meaning "If you are determined to die, you will live; if you are determined to live, you will die," emphasizing that companies only trying to survive without seriously letting go and reflecting must adopt a more earnest resolve.

Reappointed as Head After 26 Years with 'Pilsa Jeuksaeng' Resolve

Regarding his reappointment, he said, "I am sufficiently tired. I have no lingering attachments," and stated he would focus solely on his duties during the remaining term. Notably, he repeated the word "none" three times?"There is no need to think about what comes next, I do not think about it, and I have no time"?which was interpreted as an indirect refusal of reappointment. However, three months later on the 11th of this month, Chairman Lee dismissed all rumors surrounding him and succeeded in his reappointment. This marks the first time in 26 years since President Lee Hyung-gu (25th and 26th terms) that the head of KDB has been reappointed.

The 'Pilsa Jeuksaeng' resolve emphasized by Chairman Lee was considered applicable not only to restructuring companies but also to KDB and even himself. At that time, he stressed, "A CEO must do their best until the last day of their given term, which is the duty and virtue of a good manager." He also pledged to devote himself solely to his core duties during the remaining term. This focus on work rather than his reappointment during the emergency situation caused by COVID-19 is interpreted as the reason for his 'vote of confidence' and successful reappointment.

Starting Second Term with 'Noma Sipga (駑馬十駕)' Attitude

On the first day of his second term, Chairman Lee emphasized the attitude of 'Noma Sipga (駑馬十駕),' meaning "Even a slow horse can keep up with a heavenly steed if it pulls the cart for ten days," in a letter to employees. His main message was to move forward one step further with humility for the construction of Korea’s future industries. He particularly identified innovation-driven growth, restructuring, and organizational change and innovation as the three core pillars for the future.

Coincidentally, these align with the three goals he set when he first took office as KDB chairman in 2017. At that time, Chairman Lee set three objectives: "supporting innovation-driven growth," "completing restructuring of insolvent companies," and "enhancing KDB’s competitiveness." He urged employees to faithfully carry out their duties with the confidence and will of 'Injeong Seungcheon (人定勝天),' meaning "human determination can overcome heaven."

Similar to the current COVID-19 situation, the circumstances surrounding KDB at that time were challenging. The restructuring of large companies under KDB’s management such as Kumho Tire, STX Offshore & Shipbuilding, Daewoo Shipbuilding & Marine Engineering, Hyundai Merchant Marine, Daewoo Construction, and KDB Life Insurance showed no signs of completion. In 2018, Chairman Lee introduced the phrase 'Geuksecheokdo (克世拓道),' meaning overcoming difficulties and forging a new path. This was during a time when KDB faced criticism for failing to normalize management despite injecting tens of trillions of won in public funds. Chairman Lee expressed his determination to overcome the tough remaining tasks.

The changes in KDB became noticeable starting last year. Chairman Lee emphasized 'Seonjeok Jein (先則制人),' meaning "If you act first, you can control others." He self-assessed that although there were many difficult challenges, everyone worked together wisely to overcome them. In fact, since his inauguration, KDB completed the sale of Kumho Tire and the restructuring of STX Offshore & Shipbuilding, and prevented GM’s withdrawal from the Korean market. Especially at a meeting in March of that year, marking the halfway point of his term, he said, "I believe restructuring has made significant progress, and innovation-driven growth has also advanced considerably," indicating that two of the three goals set at the start of his term had been achieved. This confidence stemmed from successfully completing the sale of Daewoo Shipbuilding & Marine Engineering?a task that predecessors had failed to resolve for 20 years?in just one and a half years.

"If I Fail, I Will Step Down as Chairman" Determination

He appeared to maintain the 'Pilsa Jeuksaeng' resolve at that time as well. When KDB and Hyundai Heavy Industries signed a conditional memorandum of understanding (MOU) for the merger and acquisition (M&A) of Daewoo Shipbuilding in January last year, Chairman Lee said, "The sale of Daewoo Shipbuilding involved great risks, and I approached it with the determination to step down if it went wrong." This principle and conviction, prioritizing what benefits the national economy over his own position, is why his leadership is highly regarded.

Chairman Lee often emphasizes, "Restructuring must be conducted transparently according to strict principles and the best judgment standards that benefit the national economy and the target companies." He also instructs employees, "Regardless of all interests, consider only whether restructuring benefits the national economy and can increase the value of the companies involved. I will take full responsibility."

Tangled Challenges Due to COVID-19... Numerous Tasks to Resolve

Despite achieving results in corporate restructuring with steadfast determination against political and labor union opposition, everything became entangled due to the COVID-19 crisis. Now, Chairman Lee will be responsible until the end for restructuring major companies such as Doosan Heavy Industries & Construction and Asiana Airlines. The sales processes for Daewoo Construction and Hanjin Heavy Industries also remain. The goal of leading KDB’s innovation and growth with the wisdom of 'Paongguu (破甕救友),' meaning "breaking the jar to save a friend," which aimed to break old frameworks earlier this year, has returned to square one.

On the last day of his first term, Chairman Lee visited the Yongin factory of Korea’s leading meal kit company Fresh Easy, and on the first day of his reappointment, he visited the headquarters of Asiana Airlines, where M&A negotiations with HDC Hyundai Development Company had failed. Describing himself as a 'slow horse,' Chairman Lee is once again hastening his steps, facing not congratulations for his successful reappointment but a mountain of unresolved tasks.

This content was produced with the assistance of AI translation services.