[Reexamining Lee Kun-hee's Leadership (Part 2)] "One Genius Can Support a Whole Nation"

Renewed Attention on Lee Kun-hee's Leadership
"One Genius Can Support the Nation" - Radical 'Talent Utilization Theory'
Critical Focus on Securing Key Talent

[Asia Economy Reporter Changhwan Lee] "One genius supports 100,000 people."

If there is one word that encapsulates Chairman Lee Kun-hee's management philosophy at Samsung, it is 'talent.' Chairman Lee emphasized the necessity of recruiting talented individuals whenever he had the chance. His theory of genius, articulated in a 2003 media interview, is a prime example. At that time, he highlighted the importance of talent acquisition by stating that one genius like Bill Gates supports many people.

During his tenure, Chairman Lee always checked "how many core talents have been secured" whenever meetings with subsidiary presidents were held. In May 2002, at a meeting of the electronics subsidiary presidents, he announced, "We will reflect in the president's evaluation criteria how many core talents have been recruited, how much the president is involved in recruiting them, and how much effort is being made to develop the secured core talents."

He declared that 30 points out of 100 in the presidents' personnel evaluation scores would be determined by how many core personnel they secured. Thanks to this, the top executives of each subsidiary, who were on overseas business trips at the time, split their busy schedules to directly participate in local recruitment to attract talent in those regions.

Following Chairman Lee's intentions, Samsung Group classifies core talents into S-grade, A-grade, etc., and even among the same rank, salaries can differ by up to four times. Due to this exceptional treatment, there was a saying in the business world: "If you become a Samsung executive director, your first generation lives comfortably; if you become a vice president, the second generation does; and if you become a president, the third generation lives well."

In 1997, Lee Kun-hee, Chairman of Samsung Group, is presiding over a meeting of Japanese electronics subgroup presidents.
[Image source=Yonhap News]

◆Talented individuals support not only companies but also the nation

In his autobiography, Let's Think While Looking at the World, he stated, "The driving force behind the United States dominating both software and hardware and making enormous money is, when you think about it, because that country is a melting pot of brains from all over the world," emphasizing, "We must create a brain paradise where geniuses from around the world can gather, cooperate, and compete." He believed that talented individuals would not only support a single company like Samsung but also greatly benefit the entire nation.

Later, at a 2010 presidents' meeting, Chairman Lee ordered, "Recruit many young and talented individuals," and personally identified and recruited top-tier personnel from prestigious overseas universities such as Harvard and Wharton School, as well as major MBA programs. His philosophy was that the best talents must be brought in even through exceptional treatment.

Samsung Electronics Vice Chairman Lee Jae-yong's recruitment in June of Sebastian Seung (Seung Hyun-joon), a top scholar in artificial intelligence (AI) from Princeton University, as head of Samsung Research aligns with Chairman Lee's talent management philosophy. Director Seung is a world-renowned scholar who pioneered brain-based AI research. Since 2018, as Chief Research Scientist (CRS) at Samsung Research, he has contributed to establishing global AI centers and recruiting AI personnel through advising on Samsung Electronics' AI strategy and advanced research.

Chairman Lee Kun-hee delivering his inaugural speech at the 1987 chairman inauguration ceremony.
[Image source=Yonhap News]

◆Talent management philosophy reflected in various systems

Chairman Lee's talent management philosophy was directly reflected in Samsung's innovative systems. A representative system is the '7-4 system,' where employees start work at 7 a.m. and leave at 4 p.m.

Chairman Lee judged that employees need sufficient time for self-development to become talents who broadly understand various fields, and thus boldly introduced the 7-4 system in 1993. At a time when the 9-6 system and overtime were normalized, his attempt was groundbreaking not only in South Korea but also worldwide. The 7-4 system has since been expanded into a flexible working hours system.

His philosophy also included not discriminating based on gender, academic background, or educational qualifications when selecting talent. He believed it was wrong to disadvantage people due to unchangeable factors such as gender and irreversible academic background or pedigree. Accordingly, Samsung Group launched the country's first 'open recruitment' in July 1995.

At that time, widespread discrimination against women in hiring and personnel matters was also eliminated. From the early days of his inauguration in 1987, Chairman Lee emphasized the importance of female talent and focused on the reality that women could not work comfortably due to childcare burdens, leading to the realization of daycare center projects.

In his autobiography, he stated, "In other countries, men and women run together, but here, men struggle alone. It's like a bicycle race with one tire flat," adding, "This is truly a national waste of human resources."

He emphasized, "At the national level, providing many affordable daycare or kindergarten facilities can reduce the economic burden on women participating in social activities," and "Companies must also open employment doors wide to women and provide infrastructure to support their employment activities." He also asked, "If women are disadvantaged in hiring or promotion simply because they are women, how will the company compensate for the opportunity loss, not to mention the frustration the individuals will experience?"

Chairman Lee spared no expense in nurturing talent. After his inauguration, he introduced new talent development programs one after another. Representative programs he created include the Regional Expert System in 1991, the 21st Century CEO Course and 21st Century Leader Development Course in 1993, Techno-MBA in 1994, and Samsung Management Technology University in 1996.

Yang Hyang-ja, a member of the Democratic Party and the first female executive at Samsung Electronics with a high school diploma, said, "Chairman Lee was a global figure who embraced the world on a tiny semiconductor and a futurist who pioneered the future based on technology," adding, "I remember his words telling us not to live with a beggar's mentality but as owners."