[Reexamining Lee Kun-hee's Leadership (Part 2)] Building 'Top-Tier Samsung' through Global Management

Renewed Attention on Lee Kun-hee's Leadership
From Childhood Fascination with Electronics to Advanced Machinery
Formulated Overseas Business Plans in Semiconductors While Roaming Silicon Valley
Boasts Global Connections Across Politics, Economy, and Arts Sectors

Chairman Lee Kun-hee of Samsung is declaring the New Management Initiative in Germany in 1993. (Photo by Samsung)

[Asia Economy Reporter Changhwan Lee] 'Samsung Electronics, Apple, Amazon, Microsoft, Google'

Brand consulting specialist 'Interbrand' announced the world's top brands this year on the 20th, with Samsung standing alongside global giants such as Apple and Google. Interbrand is the world's largest brand consulting firm that ranks companies' brand values annually.

Samsung entered the top 5 for the first time this year as a Korean company. This once again confirmed Samsung's global stature. The primary contributor to Samsung's establishment as a global brand is undoubtedly Chairman Lee Kun-hee.

Since assuming the chairmanship in 1987, Chairman Lee is credited with tirelessly growing Samsung into a global brand. His global management philosophy underpinned the company's growth.

Chairman Lee Kun-hee, who took office as Samsung Chairman in 1987 (Photo by Samsung)

◆Awakening to Global Management through Childhood Studies in Japan and the United States

Chairman Lee's foundation for global management was laid from his childhood. In 1953, when he was in the 5th grade at Busan Normal School Attached Elementary School, he went to study in Tokyo. At that time, Japan was transitioning from the radio era to the TV era. Home appliances such as washing machines and refrigerators were rapidly spreading. Having been interested in electronic products since childhood, Chairman Lee's interest in machinery grew as he encountered many advanced electronic products in Japan.

The serious planning of overseas business began around the time he majored in economics at the George Washington University School of Business. In the 1970s, he explored entry into the high-tech industry while traveling through Silicon Valley in the United States. It appears that his semiconductor business plans also started then. After acquiring Korea Semiconductor, he visited Silicon Valley over 50 times, striving to acquire semiconductor technology transfers.

The expansion of overseas business accelerated after his promotion to vice chairman in 1978 and his appointment as chairman of the Overseas Business Promotion Committee. After becoming chairman in 1987, he frequently stayed abroad, focusing on expanding new businesses such as semiconductors and mobile phones.

Huh Chang-soo, chairman of the Federation of Korean Industries, recalled, "Chairman Lee declared the so-called 'New Management Declaration' in Frankfurt, Germany, stating that in the era of globalization, if you do not change, you will forever remain second-rate. He made a sober self-assessment that even if a company is first-class domestically, it is far behind on the global stage, emphasizing the need to leap forward with a sense of crisis."

Chairman Lee Kun-hee in his childhood (Photo by Samsung)

◆Impressive Global Network

While Korean businesspeople today have many opportunities to meet influential overseas figures, in the 1980s and 1990s, companies from small peripheral countries had few chances to meet foreign dignitaries. However, Chairman Lee traveled the world early on, meeting influential politicians, business leaders, and cultural figures from various countries.

In 1992, he had a private meeting with then U.S. President George H. W. Bush at a hotel in Los Angeles. Subsequently, Samsung invested in semiconductors in Texas. He also met Russian President Boris Yeltsin, Chinese President Jiang Zemin, and Chinese leader Hu Jintao during his vice presidency. He met Queen Elizabeth II of the United Kingdom and Prince Albert II of Monaco, among others.

In 1994, he also met Bill Gates, chairman of Microsoft. Chairman Lee once said, "If there were three or four Bill Gateses, the national income would reach $30,000." His meetings spanned various fields, including Michael Jackson and Alvin Toffler.

Chairman Lee spared no effort in supporting Samsung employees to learn and experience diverse cultures worldwide. The regional expert system introduced in 1990 is a representative example. This system dispatches domestic employees to various parts of the world for 1-2 years to learn local languages and cultures. He believed that for Samsung to become a global company, its employees must also have a global mindset.

Prime Minister Chung Sye-kyun, who visited Chairman Lee's funeral, said, "I believe Chairman Lee can be called the second founder of global top-tier Samsung. He elevated the status of the Korean economy through semiconductors and various products and contributed significantly to the nation's wealth and job creation."