[Insight & Opinion] A Leader's Vision Determines Destiny

The 1990s saw a surge in internet traffic, leading to various technical attempts to carry data over traditional coaxial cable (circuit)-based communications. I recall that just before the new millennium, IP (internet protocol)-based communication began to dominate overwhelmingly.

Cisco, well known in the telecommunications industry today, experienced explosive growth during this period. At that time, Cisco's stock price soared vertically day after day, making it one of the hottest stocks. Traditional coaxial cable-based communication equipment companies like Lucent Technologies and Nortel were hit the hardest. It was around then that Cisco's stock price began to surpass that of Lucent Technologies.

This was the biggest turning point in the history of communication development, as IP evolved into mobile internet, and the vision of leaders determined the fate of companies. Due to a merger involving the venture company I belonged to, I suddenly became part of Lucent Technologies, which had spun off from the century-old AT&T. As the name suggests, this company was extremely bureaucratic. The ranks were as strict as those of government officials, and I was classified as a mid-level manager (D grade among A, B, C, D, E grades).

Despite having a relatively high rank and good treatment for my age, I decided to leave the company in January 2000 after listening to the CEO's speech during this crisis. The CEO made a truly pathetic remark, saying, "Companies like Cisco are catching up, but there are still billions of people worldwide, including in Africa, without landline phones, and our sales are much larger," which made me lose hope. At that time, the company's stock price was $83, but just two years later, it plummeted to $1 and eventually disappeared after being acquired by France's Alcatel. This was the era when IP-based voice communication (VoIP) was emerging, and they probably could not even imagine that nowadays IP can carry voice, data, and video all together. Now, with mobile IP and smart devices, everything is possible. Compared to then, it is a complete transformation.

Although I finished my career as part of the management team at companies like British Telecom (BT) and KT, my wandering into venture companies began from that point, moving through several firms. However, looking at the fate and stock prices of that company, I feel I made a very well-timed decision.

We are now facing a great wave of change, and it is a time when far-sighted insight and vision are desperately needed. The evolution of diverse, highly connected devices has made system semiconductors, artificial intelligence, and robotics combined with autonomous devices such as automobiles, agricultural machinery, and drones, as well as virtualization including the metaverse (extended virtual world), and strengthening platform dominance more important than ever. Not only technological evolution but also major changes in economic conditions, international politics, global supply chains, and the global environment are changing value standards, bringing a world where it is impossible to predict where things will head.

I wonder who will have the vision and take action like former Samsung Chairman Lee Kun-hee, who foresaw decades ahead and made massive investments in semiconductors. I hope we do not become like the CEO of Lucent Technologies, who failed to see the changes in the world and babbled nonsense while intoxicated by past achievements. It is understandable if one or two companies disappear, but South Korea must not collapse. The vision of leaders determines fate.

Hongjin Kim, CEO of Work Innovation Lab