"Do Not Be Arrogant"... Chairman Lee Kun-hee Who Explored the Essence of '業' Throughout His Life

Giant Tree Seen at the Reporting Site
Every Time Samsung Thrives, "This Is a Crisis"
Top Priority on Talent Care with Unprecedented Treatment

[Image source=Yonhap News]

[Asia Economy Reporter Myung Jin-gyu] The leader who emphasized experience through achievement rather than mere numbers, saying that number one has its own DNA; the entrepreneur who never ceased the lifelong journey to find the essence of business; the elder who always warned against complacency, saying "Now is a crisis"?this is the story of Chairman Lee Kun-hee of Samsung.

Exactly seven years ago, on October 28, 2013, Chairman Lee's "20th Anniversary of New Management" dinner was held. As Chairman Lee entered the Shilla Hotel holding the hand of his wife, Hong Ra-hee, director of the Leeum Museum of Art, with his left hand and the hand of his executive secretary with his right, camera flashes began to sparkle simultaneously. He briefly smiled at the voices of the reporters greeting him, but his tightly closed lips remained unchanged.

That day, Chairman Lee praised the greatest achievements since the company's founding but also urged, "Do not be complacent; rearm yourselves with a sense of crisis." When Samsung Electronics Vice Chairman Kwon Oh-hyun (currently Chairman of the Samsung Advanced Institute of Technology), who prepared for the event, said, "I thought we were doing well at this level, but the chairman's words make me feel a sense of crisis," it was possible to understand why Chairman Lee emphasized crisis throughout his life.

At that time, while publishing the book "Young Lee Kun-hee," which had been prepared for about a year, I covered Chairman Lee before and after the New Management era. I met many people, including current and former CEOs of affiliates, secretariat staff, employees stationed at the Japanese branch where Chairman Lee stayed to plan management strategies, and the head of Samsung Talent Development Institute.

Most current and former CEOs of affiliates spoke of Chairman Lee's strictness. Whenever he met CEOs of affiliates with successful businesses, Chairman Lee's stern expression and words, "Do not be complacent," were considered the highest praise. On the other hand, a female employee who attended a luncheon before Chairman Lee was bedridden described him as a "warm and affectionate manager."

The secretariat spoke about Chairman Lee's numerous memos and unexpected questions. Whenever something came to his mind while eating or reading the newspaper, he left a memo and delivered it to the affiliates. From political, economic, and social issues to small matters such as testing newly released competitor home appliances to find improvements and reflecting them in Samsung Electronics products. For example, he emphasized solving the heating issue in DVD players and making 3D TV glasses more convenient. Both products helped Samsung Electronics defeat competitors and rise to number one.

More important than business was talent development and corporate culture. During the peak of the mobile phone business, when manpower shortages were a concern, Chairman Lee ordered, "Train university and graduate students to become the necessary workforce within five years." He also said, "Reduce working hours as much as possible, and if that is not possible, consider special pay or better treatment."

During overseas trips, he showed curiosity about major industries in famous tourist spots and asked about history in small European countries. At that time, a secretariat official said, "The biggest task was to think about everything happening 24/7 in relation to management and send memos about it to the executives."

Shin Tae-gyun, former head of Samsung Talent Development Institute, who was interviewed at the time, explained Chairman Lee's unique "frame of thinking." Chairman Lee, who viewed a favorite movie from various perspectives and angles, developed insight to grasp the essence of the business through long training. He described the hotel industry not as a service industry but as a device industry and emphasized "speed" rather than technology itself in the semiconductor business. Based on this, Samsung Electronics' "super-gap" strategy, which overwhelms competitors with the speed of technology development and investment, was born. This is also the reason Samsung has maintained the number one position in the memory semiconductor market since entering the semiconductor market in 1993.

With Chairman Lee's passing, the founding generation that built the economic foundation of Korea and the second generation that developed global companies are disappearing into the annals of history. The number one DNA he planted and the exploration of the essence of business are more urgently needed than ever in our business community, which is being challenged by advanced countries' checks and developing countries' pursuits.

One phrase from Chairman Lee's last New Year's address in 2014 before he was bedridden remains memorable: "In the 20 years of New Management, some businesses have become global number ones, while others have remained stagnant. Leading businesses are constantly being chased, and struggling businesses have no time. We must change once again!"

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