[So Jongseop's Sokterview] 'Semiconductor Pioneer' Dr. Kang Kidong "A Company Like My Child... Samsung Electronics Must Succeed"

[Semiconductor History]① Korea's First Semiconductor Company Korea Semiconductor Established
The C-MOS He First Introduced to Korea Is Cutting-Edge Technology
"Samsung Did Not Keep Promise to Give 10% Stake," Claims

[Asia Economy So Jong-seop Trend & Weekend Managing Editor] On the afternoon of the 17th at 5:20 PM, at Incheon Airport Terminal 1, an elderly man wearing hiking boots, a jumper, and jeans appeared in the arrival hall. He smiled and waved when he saw the welcoming party. He was Dr. Kang Ki-dong, Korea's 'Semiconductor Pioneer.' About 20 relatives and acquaintances greeted him holding a placard that read ‘Welcome Semiconductor Scientist Dr. Kang Ki-dong.’

After a simple welcoming ceremony including the presentation of a bouquet, I sat down with him at a coffee shop on the first floor of the airport. Despite being 89 years old, his handshake was firm. His voice was clear, and his memory sharp. Coincidentally, 50 years ago (January 17, 1973), on this very day, he had created a semiconductor business plan at his home in Sunnyvale, USA.

The history of Korea's semiconductor industry began on January 26, 1974, when Korea Semiconductor Co., Ltd. (hereafter Korea Semiconductor) was established in Bucheon, Gyeonggi Province. (The factory was completed on October 4 of the same year.) The founder of this company was Dr. Kang Ki-dong. Former Samsung Electronics Chairman Kang Jin-gu wrote in his autobiography (Goryeo Won, 1996), “Korea Semiconductor, founded by Dr. Kang Ki-dong, was the first full-scale semiconductor factory established in the then-undeveloped semiconductor field.”

Dr. Kang, who founded Korea’s first semiconductor company, is called the ‘Pioneer of Korean Semiconductors’ and ‘the person who sowed the seeds of semiconductors.’ Although he is an important figure in the history of Korean semiconductors, few remember him. Related article▶ Who is Korea's 'Semiconductor Pioneer' Kang Ki-dong?

Dr. Kang Ki-dong, known as the "Pioneer of Korean Semiconductors," who served as president of Korea Semiconductor and Samsung Semiconductor, is being interviewed after returning to Korea through Incheon Airport on the 17th. Photo by Heo Young-han younghan@

This is your first return to Korea in five years since 2018. How have you been?

I live alone in Reno, Nevada, USA. (Dr. Kang has one son and one daughter, and his wife Kim Soon-ho passed away in 2018.) I have a cellphone but rarely use it, and since I have no one to contact, it’s almost useless. I live quietly.

What brought you back to Korea this time?

I want to correct misunderstandings. It is not true that Kang Ki-dong was a failure. He never failed. Korea Semiconductor never went bankrupt. The management was not poor. The major shareholder decided to fake bankruptcy and sold the company to Samsung. After losing everything in Korea, I returned to the U.S. and cut ties with Korea for 30 years. The technology I brought to Korea in 1974 was the world’s top semiconductor manufacturing technology, now used as a global standard. I am determined to devote the rest of my life to making Korea the world’s second strongest semiconductor power. I plan to stay in Korea until mid-February, visit the old Korea Semiconductor factory, and visit the Department of Electrical Engineering at Seoul National University, among other scheduled activities.

(Dr. Kang graduated from Gyeonggi High School and Seoul National University’s Department of Electrical Engineering. He went to study abroad in 1958 and earned his master’s and doctorate degrees in semiconductor research at Ohio State University. He led a semiconductor research institute. In 1962, he joined Motorola, then a semiconductor leader, and learned the latest technology at the semiconductor forefront. In 1969, he moved to Stewart Warner in Silicon Valley, and in 1974, he simultaneously established ICII (Integrated Circuit International, Inc.) in the U.S. Sun Valley and Korea Semiconductor in Bucheon, Gyeonggi Province.)

You were doing well in the U.S., so why did you establish a semiconductor company in Korea, which was a barren land for semiconductors?

Thanks to my father, I was able to study abroad in the U.S. At that time, plane tickets were expensive, but he bought one for me. While researching semiconductors at an American university, working on major projects with the Department of Defense, and working at Motorola, I accumulated a vast amount of semiconductor knowledge. That knowledge was of a high level not only in the U.S. but worldwide. Bringing that to Korea would surely surprise the world. I thought it would be a real hit, so I started. The hardest part was severing ties with the U.S. Department of Defense because semiconductors were related to military secrets. (At that time, Dr. Kang was involved in secret projects for the Department of Defense and was under scrutiny for potential technology leaks.) That’s why the first product was a watch chip. The CMOS (Complementary Metal-Oxide Semiconductor) technology I brought to Korea was 20 years ahead of Intel. It was that advanced.

What was the state of the global semiconductor market at that time?

Developing technology was my whole life. The company supported me, so I just enjoyed it. I had no interest or concept about what other companies were doing or the status of competitors. It wasn’t about how I made it; I created something that didn’t exist before, so there was no one to ask. When I attended conferences and saw others’ presentations or questions, I could gauge the level. That’s how I understood my position.

I see. How was the reaction in Korea when Korea Semiconductor was established?

I thought bringing a semiconductor project would be warmly welcomed. But it took almost a year from application to approval. It wasn’t that they didn’t know; they just didn’t grant permission. When I came to Korea, I thought I would only handle technology and that management would be done by Lee Hoon, the son-in-law of former Prime Minister Jeong Il-kwon, but he did not act. So I had no choice but to chase after related government offices myself. At that time, Korea thought semiconductor-related items like assembly headers were the semiconductor business. When I went to a semiconductor association meeting and said, ‘What you are doing is not real semiconductors,’ I was greatly insulted with ‘What does a young guy know?’ Most professors related to the field didn’t know much about semiconductors then.

Dr. Kang Ki-dong is taking a commemorative photo at Incheon Airport with former Korea Semiconductor employees, their families, and other welcoming guests. Photo by Younghan Heo younghan@

What was the shareholding structure between Korea Semiconductor and the U.S. ICII company?

ICII’s shares were 50% Kang Ki-dong and 50% Suthers. Suthers’ shares were actually money from Kim Kyu-han, an investor in Korea Semiconductor. Kim Kyu-han, who was involved in military communication network business, had Suthers as a partner. Suthers managed the commission Kim Kyu-han received. Korea Semiconductor was a 50:50 joint venture between ICII and a Korean company, investing $1 million. Initially, the Korean company was thought to be Kim Kyu-han’s Kemco, but later it turned out that Lee Sang-gyu, who was involved in the wine business, had a larger share. Due to financial problems, the semiconductor business had to continue somehow, so my 50% share was transferred. The condition at that time was full export and a new contract was signed to give 10% semiconductor shares upon successful mass production. I focused solely on developing the watch chip. At that time, I thought product development was more important than shares.

Did you gain any financial benefit from giving up the establishment or shares of Korea Semiconductor?

No. I only received a salary from ICII. I don’t know about the money flow during Samsung’s acquisition of Korea Semiconductor. That was out of my hands.

Did you meet former Samsung Chairmen Lee Byung-chul or Lee Kun-hee during Samsung’s acquisition of Korea Semiconductor?

I never met Lee Kun-hee, and I met Lee Byung-chul a few times but never discussed business.

During the company’s transition to Samsung, Samsung promised to give you 10% shares but did not keep the promise?

At that time, I didn’t know the company was being sold to Samsung. There was talk of bankruptcy, so I asked Kim Kyu-han, who said, ‘It will never go bankrupt.’ We started the company with $1 million but needed about $2 million more. We applied for a loan and received $1 million, but shortly after, the company was sold to Samsung for $500,000. The ‘10%’ promise was made by the Korean major shareholder and is in the contract. The condition was mass production and full export. I was told to sign, and I signed without reading, feeling like signing a surrender document. I expected to get a copy but never did. Samsung probably has it.

Is it possible that the contract did not mention the ‘10%’?

I didn’t see it, so it might not be there. However, after signing, Samsung treated me as a shareholder. They said things like ‘Please do this for the shareholder.’ When I asked former Chairman Kang Jin-gu for the money corresponding to 10%, he said, ‘Samsung will give it. Please wait a little.’ I sent several letters to Samsung after resigning from Samsung Semiconductor but never received a reply. I am still waiting for an answer.

(The <30 Years History of Samsung Electronics> records Samsung’s acquisition of Korea Semiconductor as follows: ‘Korea Semiconductor’s management deteriorated severely due to excessive investment while establishing a full production system. Product production was delayed, causing serious financial difficulties. As product development intensified with the factory’s completion, continuous investment was required, increasing financial pressure. Chairman Lee Kun-hee foresaw the future of the semiconductor business and personally acquired 50% of Korea Semiconductor’s Korean investment shares. At that time, Samsung Electro-Mechanics and Samsung Electric were struggling, so the group had neither the capacity nor justification to invest again in electronics. Moreover, the secretariat judged Korea Semiconductor’s business as unfeasible. Knowing the difficulty of acquiring Korea Semiconductor at the group level, Chairman Lee actively promoted the acquisition.’)

Dr. Kang Ki-dong plans to stay in Korea until mid-February and visit the Department of Electrical Engineering at Seoul National University, among other places. Photo by Huh Young-han younghan@

You must have felt great regret that the first semiconductor company you founded in Korea was taken over by Samsung.

It was more than regret. It was like my life was ruined. The company I nurtured all my life was taken over by Samsung without my knowledge. Still, I had a dream, so I served as president of Samsung Semiconductor for two years and developed semiconductors.

Samsung Electronics has now grown into the world’s number one semiconductor company. What do you think about that?

Samsung Electronics must succeed. It is like my child... It must do even better.

(Despite the difficult situation caused by the oil shock, Korea Semiconductor’s first product, the watch chip, was so popular it was sold out. Two years after Samsung acquired the company, when Dr. Kang left, export performance was $4.18 million. The 64K-DRAM was also first manufactured here. On December 30, 1977, Samsung acquired the remaining 50% of Korea Semiconductor shares held by ICII and launched Samsung Semiconductor in March 1978. On January 1, 1980, Samsung Semiconductor merged with Samsung Electronics, leading to the present.)