[People人] 'A Gambler Who Does Not Hesitate to Change Jobs' Kang Young-kwon, Edison Motors Chairman, Aiming to Surpass Tesla by Acquiring Ssangyong Motor with Fast Fish Theory

Star PD Who Created "GeuRAl" and "Hogisim Cheongguk"
Success in Renewable Energy and Electric Bus Companies
Goal to Produce 30 Eco-Friendly Vehicle Models Within 10 Years

[Asia Economy Reporter Ki-min Lee] "A shrimp that swallowed a whale." This is the phrase Kang Young-kwon, chairman of Edison Motors, who was selected as the preferred bidder for the acquisition and merger (M&A) of Ssangyong Motor, has been hearing most often recently. Edison Motors, with sales of only 89.7 billion KRW last year, announced plans to acquire Ssangyong Motor, which recorded sales of 2.95 trillion KRW, more than 30 times that amount, prompting a natural reaction from inside and outside the industry.

However, Chairman Kang's perspective is different. He explained that Edison Motors is not a shrimp but a fast fish, and it should be seen as a fast fish eating a slow fish. This aligns with the management philosophy he adheres to: "In the past, big fish ate small fish, but now fast fish eat slow fish," echoing the words of Klaus Schwab, chairman of the World Economic Forum (WEF).

◆ From Young PD to Electric Bus CEO... A Life of Four Career Changes and Challenges = Kang, who once wanted to create scientific documentaries like Carl Sagan's "Cosmos," began his career in 1985 as a producer (PD) in the 11th public recruitment class at KBS. He debuted with KBS's youth entertainment program "Viva Youth" and moved to SBS upon its launch in 1991. He took charge of the long-running program "Unanswered Questions" and achieved a 43.8% viewership rating with the 1994 episode "Missing, Disappeared Wife," earning him the reputation of a star PD in the broadcasting industry. Despite his success, he left the company in 1998, citing a "thirst to start his own business." Even amid the IMF financial crisis, he founded the outsourcing production company CAA, producing shows like "Curiosity Heaven" and "TV Exclusive: Amazing World," surpassing 10 billion KRW in sales within three years.

His challenges did not end there. In 2003, Kang handed over CAA to a junior and invested in the renewable energy company ES Cheongwon, venturing into an eco-friendly business completely different from broadcasting. As he steadily expanded his business, he suddenly sold ES Cheongwon to the private equity firm Anchor Equity Partners in 2016 for 113.8 billion KRW. This decision was driven by his desire to acquire Korea Hi-Va, the world's first company certified for electric buses, after hearing that its eco-friendly business division had been sold to China's Taichi Motors. Kang explained that it was a decision made out of regret that domestic technology was being sold overseas. After acquiring Korea Hi-Va, he renamed the company Edison Motors and stepped into the electric vehicle market. The name Edison reflects his aspiration to build a company superior to Elon Musk's Tesla, inspired by the inventor Edison.

Chairman Kang turned Edison Motors profitable three years after acquisition in 2019. In April 2017, the company signed a contract to supply 63 electric buses to Jeju Island. In 2019, it secured a contract to supply 94 electric buses to Suwon Passenger Transport. Sales increased from 36.2 billion KRW in 2017, the first year after acquisition, to 89.8 billion KRW last year. The goal is to achieve 780 billion KRW in sales next year and 3 trillion KRW by 2023.

◆ Will the 'Fifth Challenge' of Acquiring Ssangyong Motor Succeed? = Kang's fifth challenge is to grow Ssangyong Motor into a global electric vehicle company. Utilizing Edison Motors' electric bus, smart Battery Management System (BMS), and electric vehicle platform technologies, he plans to produce over 30 eco-friendly vehicles by 2030. This idea reflects Kang's pride as a fast fish. His ultimate goal is to surpass Tesla Motors within ten years.

Of course, there are skeptical views. Some question whether an electric bus company has the technology to immediately launch electric passenger cars. In response, Kang confidently stated at a recent media briefing, "Edison Motors has already commercialized and sold electric buses capable of highway speeds, so manufacturing passenger cars is not difficult," adding, "We will make Ssangyong Motor a company that surpasses Tesla and Volkswagen."

Convincing Ssangyong Motor's main creditor, the Korea Development Bank, is also considered a hurdle. To secure up to 1.6 trillion KRW for the acquisition and operation of Ssangyong Motor, support from the Korea Development Bank is essential. Edison Motors plans to raise 310 billion KRW of acquisition funds through a paid-in capital increase by SemiSysco and from financial investors (SI) and strategic investors (FI). For operating funds of 490 to 530 billion KRW after acquisition, they plan to raise capital through paid-in capital increases by SemiSysco or Edison Motors, and additionally secure 800 billion KRW through collateral loans from financial institutions including the Korea Development Bank.