[Mid-sized Business Master Series]⑦ Donghwa Enterprise's Seong-Young Lee, Head of Technology Innovation... 'New Intellectual 1st' Board Manufacturing Engineer

Joined in '94, Leading the Global Wood Manufacturing Market for 30 Years
Trapped for 6 Months in Vietnam Factory During COVID, Produced Boards Eating Only Lunchboxes
"Must Become a Global Expert with Professional Skills and Language Ability"

"Let's become leaders who possess both skill and character."

Lee Seong-yeong, Executive Director of the Technology Innovation Office at Dongwha Enterprise, a top expert in the wood manufacturing industry, said, "Manufacturing is about collaborating with others to create products. When you think you have the skills, you need to look into your character, and if you have good character but lack skills, you also need to reflect on that."

Lee Seong-yeong, Head of Technology Innovation Office, discussing smooth progress of waste wood processing and efficient raw material procurement at Donghwa Enterprise's Incheon Wolmido factory.
[Photo by Donghwa Enterprise]

Dongwha Enterprise, established in 1948, is a leading company in the industry producing board products such as PB (Particle Board), MDF (Medium Density Fiberboard), and laminate flooring, as well as building materials like flooring and wall materials. PB and MDF are made by finely crushing leftover wood scraps or waste construction materials, mixing them with adhesive, and solidifying them under high temperature and pressure. They have a higher density than plywood. MDF is a stronger board than PB.

Lee joined Hansol Forem in 1994 and marked 30 years of service this past January. Hansol Forem changed its name to Hansol Home Deco in 2003, and in 2005, Dongwha Enterprise acquired the Hansol Home Deco Asan MDF plant, making Lee, who was working at the Asan plant at the time, a member of Dongwha Enterprise.

That year, Hansol Group recruited 130 new employees through open recruitment, with 30 joining Hansol Forem alongside him. Only three remain to this day, all of whom moved to Dongwha Enterprise, while those who stayed at Hansol left the company over time along with the group's ups and downs. The remaining colleagues still occasionally gather to reminisce about old memories.

Competing Globally with 'Knowledge' Learned at School and 'Skills' Acquired on Site

A scene from 2007 when employees of the Asan MDF factory and Vietnam VRG Donghwa were conducting consulting on board production locally in Vietnam before establishing VRG Donghwa. The second person from the left is Seong-Young Lee, Head of the Technology Innovation Office.
[Photo by Seong-Young Lee].

Born in 1968 and part of the class of 1987, he graduated from Seoul National University’s Department of Forest Products. While the Department of Forestry focuses on planting and growing trees, the Department of Forest Products was newly established with the purpose of creating value by utilizing grown trees. Most graduates found employment in public institutions such as the Rural Development Administration, Korea Forest Service, and the National Agricultural Cooperative Federation (NongHyup), and he also passed the NongHyup exam.

However, he chose the industrial field. He was eager to apply the specialized knowledge learned at school in an actual industrial setting, but also because he wanted to work at Hansol Forem, where he had interned during his third year of university. At that time, there was a large dining table in the Hansol Forem employee cafeteria made by cutting a huge log in half, and he thought, "If I work here, I can work in a place that uses such raw wood, which would be interesting."

Assigned initially to the Asan plant, he found the work very enjoyable. All the knowledge related to dendrology, fiberboard, paper, and wood he learned at school was helpful in his work, and on site, he acquired knowledge and skills necessary as an engineer in machinery, equipment, electricity, production, and research. Later, he wanted to work overseas and was given the opportunity to be stationed in Malaysia.

The person who greatly influenced him at that time was Kim Cheol-san, head of the Technology Development Team at the Asan plant. Since many manufacturing line facilities were imported from advanced countries like Germany, he often interacted with foreign engineers who came to replace or maintain new equipment. Kim advised, "Don't look for your competitors inside; consider those engineers who come to spread advanced technology as your rivals," and repeatedly told him, "Study English hard and continuously hone your skills."

Lee Seong-yeong, Head of Technology Innovation Office, directing the site to improve productivity in the board manufacturing process.
[Photo by Donghwa Enterprise]

"Your Competitors Are Engineers from Advanced Countries... Don't Fall Behind in Skills"

Kim also said, "Don't just do what you're told; find things you can learn on your own." Kim was a member of the first group of 'New Intellectuals' in 1999. At that time, the government set building a knowledge society as a national goal and selected figures such as Shim Hyung-rae, Ahn Cheol-soo, Cho Tae-hoon (owner of Bungae Banjeom), and Kim Cheol-san as the first New Intellectuals.

Kim's New Intellectual group included the 'Volcano' team, consisting of five members from the Asan plant's Technology Development Team. Kim read technical books and academic journals in their original languages and English papers, and held frequent presentation sessions. Lee, the youngest member of the Volcano team at the time, recalled, "It was a tremendous stimulus," and said it was a turning point that made him vow, "When I stand in that position someday, I must not fall behind in skills in the global market."

Living as an overseas resident was an opportunity for both him and his family. His two sons, who had been troublemakers in Korea as elementary school students, grew closer as a family in a foreign country where they couldn't communicate or have friends. Attending an international school locally, they received character education and network-building focused on play-based learning, which greatly helped their character development. He especially viewed the fact that they did not have to endure Korea's intense entrance exam competition as a positive influence. He believes this is why his two sons are now evaluated as employees with both skill and character at Korean companies.

He said, "I have never once been dissatisfied with my work." He immersed himself in work and lived with wood on site for 30 years. Half of that time was in Korea, and the other half at local plants in Malaysia and Vietnam. At Dongwha Malaysia, he served as the head of the board production team, and at 'VRG Dongwha' in Vietnam, he was the head of production and the corporate representative. Currently, he leads the Technology Innovation Office at Dongwha Enterprise, which integrates and analyzes all processes of board manufacturing including production, equipment, safety, environment, quality, and research, and is responsible for raising production technology standards by introducing and applying excellent internal and external experiences and technologies.

Lee Seong-yeong, Head of the Technology Innovation Office, took a commemorative photo after a futsal match with VRG Donghwa employees in Vietnam in 2019. He is the second from the right in the back row.
[Photo by Lee Seong-yeong]

Trapped in the Factory for Six Months with 500 Employees... Just as Freedom Came, a Crisis from the U.S. Hit

The experience of being trapped in the factory for six months at VRG Dongwha in Vietnam is unforgettable. VRG Dongwha is a joint venture between Dongwha Enterprise and the Vietnamese state-owned company VRG, with a 51:49 share ratio. Dongwha Enterprise managed operations, and he was the CEO at the time. In February 2022, when COVID-19 struck Vietnam, the Vietnamese government implemented a 'regional lockdown' policy to prevent the spread of the virus. With all movement banned, 500 employees, including 18 Korean staff and 482 local Vietnamese employees, were trapped inside the VRG Dongwha factory located in Ho Chi Minh City.

They could not meet family members living in Ho Chi Minh City and had to devise survival plans with only the employees trapped inside the factory. They arranged sleeping spaces for 5 people in the office, 80 people in a dormitory designed for 50, and the rest had to set up tents inside the factory for lodging and meals. Since only lunch boxes could be supplied from outside, they had to eat three meals a day with lunch boxes. The lunch box waste piled up like a mountain in the yard.

They underwent COVID-19 tests three times a week and had to report the results. Anyone showing suspicious symptoms had to be sent to quarantine facilities, but fortunately, no suspicious symptoms appeared inside the factory.

He was also worried about the family members remaining in Ho Chi Minh City. He advised them over the phone, "Even if you feel symptoms of COVID, do not get tested." At that time, anyone showing suspicious symptoms was forcibly taken to quarantine facilities. Many worsened and died after being taken to gymnasium-like quarantine centers, where vaccines were not yet distributed and treatment was almost nonexistent. It was a terrifying time when deceased bodies were immediately cremated and families were only notified afterward.

In August 2022, during the COVID-19 pandemic, Lee Seong-yeong, CEO of VRG, was trapped in the factory for six months producing boards together with VRG Donghwa employees in Vietnam. After the lockdown was lifted, he took a commemorative photo with the employees. Lee Seong-yeong is in the center of the front row.
[Photo by Lee Seong-yeong]

In August 2022, the lockdown was lifted after six months. VRG Dongwha was one of the largest companies in southern Vietnam and among the highest taxpayers, so the local government paid considerable attention, including early vaccine supply. The company rewarded the employees with performance bonuses upon release. Although they looked like skeletons due to weight loss, everyone started working again with bright spirits. However, a month later in March, the U.S. lowered interest rates, triggering another hardship of recession.

"The Toughest Time Is Now... Future Unpredictable, External Factors Beyond Control Are Barriers"

MDF produced in Vietnam is made into furniture and 65% is exported to the U.S. When consumption froze due to the U.S. recession, the Vietnamese economy also faced a serious crisis. Vietnam's annual economic growth rate, which had been 6-7%, dropped to 2.4%, and Dongwha Enterprise took a direct hit. Despite this, through continuous technological innovation and cost reduction efforts, the company generated operating profits, surprising competitors.

Lee said, "It was a time when I deeply felt that the world shows no mercy," but asserted, "Still, the toughest time is now." He explained, "In the past, there was confidence and expectation that we could grow by gaining competitiveness through improvement and innovation and widening the gap with competitors through differentiation. Now, the future is so unpredictable that no matter what we do, it feels insufficient. Especially, the barriers of external factors beyond our control are very high." He added, "Nevertheless, we are struggling to find the best possible solutions now."

Having worked on site for over 30 years, he has become an expert in various fields such as machinery, equipment, production, safety, environment, and quality, and can operate equipment like forklifts without difficulty. However, he does not intervene when a more skilled technician is available, as it is more efficient. In urgent situations like during COVID-19, he is prepared to do whatever is necessary. After training at a Toyota plant in Japan, he benchmarked their production system (Toyota Production System, TPS) and integrated it with production methods at domestic plants.

The tradition of the 'Volcano' team, which led to the birth of the first New Intellectuals, continues at Dongwha Enterprise. This is embodied in the 'Board Technical Conference.' Dongwha Enterprise holds this conference once a year, where representatives and stationed employees from domestic and overseas board business sites gather to fiercely discuss ways to secure manufacturing competitiveness with a super-gap. Lee is the practical initiator of this conference.

Seong-Young Lee, Head of Technology Innovation Office, in a meeting at Donghwa Enterprise Incheon Plant Central Research Institute.
[Photo by Donghwa Enterprise]

"Become a Global Expert with Professionalism and Language Skills"

He advised juniors to "build skills to become talents with international competitiveness." He emphasized, "Study consistently to acquire global competitiveness, including expertise in wood and equipment, language skills, and understanding of overseas cultures, so you won't fall behind advanced foreign technicians." He added, "To be promoted to key executive positions, you must gain overseas work experience to develop a sense of the global market."

He also expressed concerns about Thai-made PB products that have captured the domestic market at low prices. He stated, "Korean-made boards are the strongest in the world, environmentally friendly with less odor, and of the highest quality," and added, "Since board products are widely used in domestic residential environments, environmental friendliness is very important. However, recently, products that have not gone through proper customs procedures have flooded the domestic market, raising concerns about compromising safe residential environments."

In the domestic PB market, Dongwha Enterprise holds 13%, Seongchang Enterprise 12%, while 70% is occupied by Thai-made PB, and about 5% by other Southeast Asian PB products. The problem is that the quality of these imported PB products cannot be trusted. Lee emphasized, "Many products fail to meet standards, and some containing harmful chemicals pass the KS inspection process. The quarantine (inspection) system for imported products must be strengthened institutionally."

◆Words from the Expert

One needs an attitude of wanting to study the field they work in. This applies even when making a single sheet of PB. Since the raw material is wood, you need to know about wood, and since finely chopped wood is bonded with adhesive, knowledge of chemistry is necessary. The main processes are carried out by equipment, which operates through machinery and electricity. Understanding and managing all these processes is essential to produce the final product. Whether in technical or managerial positions, one must study and understand raw materials, processes, and equipment, and develop the skills to manage accordingly.