[Profile] "Double the interview fee"... The 'Communication King' LS Group Youngest Son's 'Hyung-nim Leadership'

'Ambidextrous Management' Under 'Hyeongnim Leadership'
Motivation Boost with '100,000 Won Interview Fee Incident'
Top Employees Get CES Opportunity... 'Record-Breaking Performance'

[Asia Economy Reporter Moon Chaeseok]

"Don't go to other company interviews. I'll give you double the interview fee, so use it to buy drinks for your friends."

This was when Koo Ja-eun was the president of LS Cable & System before becoming the chairman of LS Group. At that time, he called all the new recruits who passed the open recruitment to congratulate and encourage them. However, one new employee said that he was actually going to another company's interview the next day and planned to use the interview fee to buy drinks for his friends.

"I'll send you double the interview fee. Don't go." In fact, Chairman Koo transferred the money to the new employee's bank account.

Because of the president's unconventional action, some new employees were treated like fools at the company. When they came to work and said, "Assistant Manager Koo Ja-eun called to congratulate me on passing," they were scolded by seniors for a long time, saying, "Don't you even know the name of the company president?" They never imagined that the person who called to congratulate them was actually the president.

Large corporations are strengthening communication leadership to capture the hearts of outstanding employees. Who is the 'communication king' praised by the business community? Koo, who will mark his second year as chairman on the 19th, is the top choice.

The 'Assistant Manager Koo incident' and the '100,000 won interview fee incident' are famous stories within LS Group. When asked if he changed after becoming chairman, the answer is "Absolutely not." On the contrary, it is said that executives worry that employees might underestimate him because of his down-to-earth leadership style.

Is that really the case? Looking at LS Group's performance in Koo's first year as chairman, it is easy to conclude that it is not. According to the consensus estimates from financial information provider FnGuide, LS Corporation's sales for this year are expected to be 18.0529 trillion won, and operating profit 722.7 billion won. If the forecast is accurate, it will be the highest ever. Last year’s sales were 13.0891 trillion won, and operating profit was 583.7 billion won, representing increases of 37.9% and 23.8%, respectively. Since Koo Ja-eun's inauguration on January 19 last year, the stock price has risen 32.3% as of the 11th.

The secret is Koo's unique 'ambidextrous management.' It is a metaphor for management that achieves results in both existing businesses such as power and future businesses like artificial intelligence (AI). This is why LS Group has captured both performance and stock price in an era of high uncertainty with rising interest rates, inflation, and exchange rates.

Interview support kit distributed by LS to candidates in the group's public recruitment interviews in the second half of last year. (Photo by LS)

Evidence that Koo's 'big brother leadership,' the foundation of ambidextrous management, has not changed can be found everywhere. Although skinship management was not possible during the COVID-19 pandemic over the past two to three years, many believe that his unique 'communication leadership,' which had been limited, will demonstrate its true value going forward.

Even during the COVID-19 pandemic, Koo's 'communication management' continued. In September last year, the group held its first-ever open recruitment for new employees at the holding company LS Corporation. They hired over a hundred employees without major restrictions for 2-3 year rotational positions in business strategy, management planning, and financial management. This was to foster future industries such as batteries, electric vehicles, and semiconductors. Although the holding company had not hired new employees before, it judged this was essential for future industry growth. Thanks to active communication with executives and employees, they were able to make this bold decision.

Right after the open recruitment, at the group innovation meeting called 'LS Future Day,' Koo showed his employee-friendly side. He expanded the annual R&D performance sharing event to include future business fields. He also made a pledge. He said that about twenty outstanding employees would be selected from three categories?'new business, technology, and innovation'?across affiliates and taken to the world's largest electronics and IT exhibition, CES 2023, held in Las Vegas, USA. He actually kept this promise. This naturally induced competition and demonstrated ambidextrous management that fosters innovation.

Many are paying attention to what kind of unconventional moves Koo will make once the winter COVID-19 pandemic ends. Expectations among group employees are high. They hope to see him participate directly in job fairs and discover future talent as he did before. A business insider said, "Many are paying attention to Koo's ambidextrous management. Although it may be difficult to move as freely as when he was an affiliate president, it is expected that he will demonstrate his unique motivational ability."

Perhaps thanks to his 'big brother leadership,' the turnover rates at major LS Group affiliates are not inferior to those of the Big Four conglomerates. According to data compiled by the job portal site Incruit based on national pension public statistics, the recent one-year resignation rates at affiliates are 8.1% for LS MnM and 7.7% for LS Electric. These rates are comparable to Samsung Display at 8.5%, Samsung Electro-Mechanics at 7.8%, Samsung SDI at 10.6%, Hyundai Mobis at 7.2%, SK Hynix at 7.5%, SK Telecom at 11.1%, SK Innovation at 16.8%, LG Electronics at 17.5%, and LG Display at 9.3%. Data for the holding company LS Corporation is not included.