[Reporter’s Notebook] Why We Recommend 'Chang-eopju Gongbu'

"Borae. Even if only 1 out of 100 is defective, the other 99 are no different."

In 1947, the late Koo In-Hwoi, founder of LG Group, said this in a strong Gyeongsang-do dialect to his younger brothers. At the time, he was a rookie president who had just established Lakhee Chemical Industry. The company had launched a new product called ‘Lucky Cream,’ which was selling like hotcakes. As production increased, occasional defective products appeared, so Chairman Koo personally went to the factory to filter out the defective items. Seeing this, his brothers said, "What’s the big deal if some defective products come out?" But Koo, the eldest of six sons, responded with the phrase above.

His emphasis on perfection is displayed in framed calligraphy hanging on the walls of offices and meeting rooms at LG Twin Towers in Yeouido, Seoul, where LG Electronics employees work, as of the 5th. The LG Electronics Brand Book Publishing Office included this phrase at the very beginning of the book Bold Optimists: The People of LG Electronics, published on the 6th of last month. The book described this phrase as a "switch." It also mentioned that the founder’s phrase circulates throughout the company like a creed, alongside the revised proverb, "Burn down the whole thatched cottage to catch a single flea," changed to "Burn down the whole thatched cottage to catch a single flea."

This is truly an example of efforts to carry on the founder’s spirit. However, an unexpected problem has arisen. An industry insider hinted to the reporter that "these days, many employees don’t even know the founder’s name." LG Electronics is probably no different. Although the framed calligraphy was meant to remind employees of the founder’s spirit, recent employees may have simply passed by it without notice. Such circumstances are likely not unique to LG Electronics. Most leading companies in Korea probably face similar situations. In today’s era, where individual achievements are more important than the organization, this phenomenon may be inevitable. The founder’s name does not directly earn money or put food on employees’ tables. It is also clear that forcing employees to "memorize it at all costs" is a misguided practice of previous generations.

However, if there is a time when knowing the founder’s name and life story is essential, it might be now. We are currently in a transitional period where all companies are facing management difficulties. Everyone knows that the dawn of the artificial intelligence (AI) era is rapidly changing the industrial paradigm. From the elements needed to implement AI to the production and utilization of products that provide convenience to people’s lives through AI, all processes are becoming more complex and diversified than before. TVs, smartphones, PCs, and other products companies make and sell are becoming smaller and lighter, requiring extreme precision from production onward. Compared to 20 or 30 years ago, there are more companies with capital and production capacity, making AI competition fiercer than ever. Added to this are variables such as geopolitical risks and rapid market changes, demanding quick judgment and response from company heads to employees.

Recently, many companies have been seen wandering after missing the timing for entry and investment. If the timing is missed and huge losses are incurred, recovery is difficult. It is also hard to find opportunities for a second chance. For such companies, although it may be somewhat old-fashioned advice, I recommend revisiting the ‘founder’s spirit.’ Sometimes, the answer to overcoming a crisis can be found in the past. The renowned British historian Edward Hallett Carr (E.H. Carr) said in his book What is History? that "history is a continuous dialogue between the present and the past." This statement, which many may have heard in school, argues that history unfolds through constant interaction between the present and the past. By knowing the founder, one can continuously communicate with him, which I believe will greatly help the company’s present. Personally, it might also foster a sense of loyalty, passion for one’s job, or motivation to work.