The Conviction of Business Leaders Rooted in Adversity: The Birth of Korea's Technology Research Institutes [Heart of Innovation, Corporate Research Institutes ⑨]

Korean Technology Research Institutes Reflect the Determination of Business Leaders
Lee Kun-hee Sought Technology in the United States
Personally Experienced the Importance of Technology: "Peddling Technology Bundles"
Lee Byung-chul Left Be

The history and details of the technology research institutes established by Korean companies are inseparable from their leaders. As Koo Ja-kyun, chairman of the Korea Industrial Technology Association, stated in an interview with our publication, it was the long-term vision and judgment of business leaders that enabled corporate research institutes to lead the Korean industrial sector for the past 60 years. Many companies established research institutes based on the convictions of their leaders, which has brought them to where they are today.

In 1980, the late Lee Byung-chul, founder of Samsung (left), and his son, the late Lee Kun-hee, former chairman of Samsung (right), are taking a photo together at their home. Provided by Samsung Electronics

Their era was one of severe hardship, often called the "barley hump," when both capital and talent were in short supply. In such challenging industrial conditions, "technology" was the only way to overcome difficulties. The leaders believed that possessing technology ahead of others would change the atmosphere and environment.

The late Lee Kun-hee, former chairman of Samsung Electronics, traveled across the United States between 1979 and 1982, when he was vice chairman, seeking technology from American companies. He was eager to start a full-fledged semiconductor business, but the technology at hand was insufficient. At that time, there were no engineers, experts, or companies in Korea with expertise in semiconductors. The only way forward was to learn from the United States and Japan, who were ahead in the field. Even after making the difficult journey overseas, American companies often refused to share their advanced technologies, frequently turning Lee away at the door. The responses he received were cold: "We do not sell technology, we sell products."

In a July 2000 interview with a domestic monthly magazine, Lee recalled that period, saying he "peddled technology bundles." Kim Kwang-ho, former vice chairman of Samsung Electronics, added, "The chairman suffered a lot of humiliation at that time." Persistent efforts and repeated requests gradually began to win over American and Japanese engineers. Lee did not hesitate to spend his own money to invite them. Eventually, American and Japanese engineers responded to his invitation, visited Samsung Electronics, and began transferring their technology. This was a historic turning point that opened the way for Samsung Semiconductors to compete in the global market.

Calligraphy "Infinite Exploration" left by the late Hoam Lee Byungchul, former chairman of Samsung. Provided by Samsung

During this time, Lee realized firsthand that technology is power, and how difficult it is to acquire that power. From then on, he consistently emphasized the importance of research and development (R&D) at every opportunity, regardless of the setting. His famous saying, "Not conducting proper R&D is like a farmer eating the seeds because he is hungry," originated from this experience. It was a conviction rooted in the harsh environment of a country with no technology and the desperate determination to succeed in business.

Lee's father, the late Hoam Lee Byung-chul, former chairman of Samsung, also had a special commitment to technology and research institutes. When the company began its full-scale entry into the semiconductor business, the first thing Hoam did was to establish a semiconductor research institute, following his son's wishes. The research institute was built in 1982 at a cost of 2.7 billion won. In 1987, Samsung Advanced Institute of Technology was established to encompass various fields of technology beyond semiconductors. Hoam left behind the calligraphy "Infinite Exploration" at this institute. At the groundbreaking ceremony in 1986, he stated, "Science and technology are the combination of knowledge and power, a world of infinite exploration that leads humanity to unknown realms and higher peaks. Bold challenges in continuous technological innovation and the development of advanced technologies are the only way for our resource-poor country to survive. This promises the prosperity of our nation and people."

Late Chung Ju-yung, Founder Chairman of Hyundai Group. Provided by Hyundai Group

Samsung is not alone. Among former Hyundai Group affiliates, including Hyundai Motor Company, the phrase "Have you tried it?" still echoes like a refrain. There is a tradition in every affiliate to pursue new businesses or technological ideas without first considering the possibility of failure. "Have you tried it?" is a famous saying left by the late Chung Ju-yung, founder of Hyundai. He used this phrase to encourage in-house leaders to change their mindset and gain momentum, especially when they were hesitant about new ideas out of fear of failure. It is said that, during times when capital was scarce and there was little to boast about, Chung believed that only creative ideas and the new technologies developed from them could enhance the company's competitiveness. This belief has been passed down and is maintained by current generations. In 2019, Hyundai Motor Group established the Fundamental Research Laboratory to focus on developing original technologies.