[Choi Changgeol Passes Away] Ethical Management as the Only Path... Built World No.1 with Trust and Perseverance

"Daily Change is Innovation": A Principle-Driven Leader
Unyielding Drive Built the First Smelter Amid Financial Hardship
Technological Innovation, Labor Harmony, and Sharing... A Legacy of Ethical Management

The late Choi Changgeol, Honorary Chairman of Korea Zinc, who passed away on October 6, was a business leader who built the world's top non-ferrous metal smelting company in resource-poor South Korea, guided by his management philosophy of valuing "change every single day." During his lifetime, he often remarked, "By the time you talk about innovation or reform, it's already too late," and "If you make small improvements every day, there is no need for major reforms."

The late Choi Changgeol, Honorary Chairman of Korea Zinc, inspecting the smelting plant during his lifetime. Provided by Korea Zinc.

'The Miracle of Onsan' Born from Challenge

Born in Hwanghae Province in 1941, Choi was the eldest son of the late Choi Giho, the founding chairman. After graduating from the Department of Economics at Seoul National University and earning an MBA from Columbia University in the United States, he led the founding of Korea Zinc in 1974. At that time, the company took on the smelting business in line with the government's policy to foster heavy and chemical industries, but it lacked both capital and technology.

He personally negotiated with the International Finance Corporation (IFC), a World Bank affiliate, persuading them that "45 million dollars would be sufficient," instead of the initially assessed need for "70 million dollars," thereby securing the necessary business funds. He also chose a 'direct purchase and direct construction' approach rather than a turnkey contract. Despite the lack of capital and technology, he completed South Korea's first large-scale non-ferrous smelter in Onsan, Ulsan, in 1978.

This spirit of challenge, which created something from nothing, later became known as the "Miracle of Onsan." Korea Zinc surpassed foreign smelters with 100-year histories and made its name in the global market. In the 1980s, the company established a technology research center and built integrated processes for zinc, lead, and copper. In 1990, it strengthened transparent management through an initial public offering (IPO) and expanded its business foundation by successively founding Young Poong Precision, Seorin Trading, and Korea Nickel.

The late Choi Changgeol, Honorary Chairman of Korea Zinc (left). Provided by Korea Zinc

Ethical Management that Led to World No.1

After becoming chairman in 1992, Choi adhered to his belief of "never doing anything that goes against principles," and continued to run the company with a focus on fundamentals. He prioritized technology and trust over short-term results, and personally visited worksites to find solutions to problems.

Under his leadership, Korea Zinc simultaneously pursued technological innovation and globalization. The company established the SMC zinc smelter in Australia, securing an overseas base, and adopted new processes such as Fumer and DRS to enhance efficiency and environmental performance. By commercializing a process that recycles zinc residues into cement raw materials, Korea Zinc changed the image of the smelting industry. As a result, its annual zinc production capacity grew from 50,000 tons to 650,000 tons, and sales increased from 11.4 billion won to 12 trillion won. Its market capitalization approached 20 trillion won.

Choi fostered a culture of labor-management harmony based on his philosophy that "Korea Zinc belongs to all its employees." Vice Chairman Lee Jaejoong recalled, "The honorary chairman treated employees like family and always encouraged us to introduce good systems first." Under his leadership, Korea Zinc recorded 102 consecutive quarters of profit without a single labor dispute since its founding. Even during the IMF financial crisis and the global financial crisis, the company did not carry out restructuring or offer voluntary retirement.

Photo of the late Choi Changgeol, Honorary Chairman of Korea Zinc (center). Provided by Korea Zinc

A Legacy of People, Sharing, and Change

Choi lived by his father's teaching that "it is better to teach someone how to fish than to give them a fish." Beginning with support for the Myungjin Orphanage in 1981, he consistently contributed to child welfare and scholarship programs, putting into practice his belief that "corporate profits must always be returned to society." He proposed a campaign for employees to donate 1% of their base salary to society, embedding a culture of sharing within the organization.

His good deeds extended to his family. His wife, Yoo Junggeun, chairperson of the Kyungwon Cultural Foundation, and his son, Choi Yoonbum, chairman of Korea Zinc, both joined the Community Chest of Korea's "Honor Society," earning the title of "Family Honor." In 2013, Choi received the Dongbaek Medal of the Order of Civil Merit at the Korea Sharing Awards, stating, "Giving is another responsibility of business."

Even after stepping down from management in 2002, his focus was always on the future. He devoted himself to developing new technologies and urban mining (recycling) businesses, nurturing the resource circulation industry as a new growth engine. Technologies for recovering metals from waste batteries and electronic scrap became core businesses for Korea Zinc. His management philosophy can be summed up in one sentence: "Take on challenges with sincerity, and never stop changing." That spirit continues today in the smokestacks of Korea Zinc's factories.