Competitiveness
“Chairman Kang, how do you think our economy will be in the future?”
The first question from Chairman Han of Cheil Group, who came from Korea, was Eugene’s prediction about the Korean economy, not the current affairs of the Daeyang Group or his feelings about the Cheil Group.
“There will be no major changes. It has grown rapidly for over 60 years after the war, and is now in a stable state. The structure centered on large corporations that have dominated hegemony like Japan will not change, and the rich middle class will solidly support the economy.”
Eugene talked about the future that other people were thinking of without too much pressure.
“I mean, you think so.”
Chairman Han said while looking into Eugene’s eyes, as if looking into Eugene’s inner thoughts.
“The Korean economy has changed very dynamically over the past 50 years. Meanwhile, conglomerates have been changing faster than any other country’s economists in line with the changes in the world. It is also true that at one time, Korean businessmen were the most challenging and flexible in the world.”
In the global expansion that began with the construction boom in the Middle East, Korean companies made remarkable achievements and development.
It was the Korean businessmen who moved the fastest when China opened up, and it was the Koreans, who had not paid any attention until then, who advanced into East Asia and other countries around the world and built a foundation from the ground up.
The driving force was the leadership of people like the so-called chaebol, the so-called chaebol.
Of course, there were a lot of trial and error and many sacrifices in the process, but because of that, the current economic growth was achieved.
“But the time for such a challenge will not come. As the founders passed away and passed on to the third generation, the age of Mercury is coming rather than a challenge.”
“That’s right. Now is the time for Mercury to protect both in name and in reality.”
The president’s eyes were filled with regret. It is because he is feeling so desperately.
He has been working tirelessly for over 30 years, emphasizing crises and challenges, for over 30 years since he inherited the best management right from his father.
For Chairman Han, the economy has always been in a crisis, and he has lived his life only thinking about making Cheil a world-class company beyond Korea through fierce competition.
But times have changed. I know that his two sons and two daughters are working tirelessly for management rights, but it is true that it is not in the eyes of a chairman who has put Jeil first in Korea while fighting numerous competitors.
At best, they only feel like children who look young and jealous to claim the best management position their father had achieved.
At the same time, I am well aware that there is nothing I can do about it.
The founders of today’s conglomerates have always risked the fate of the company and challenged it with all their might.
They had only two options: success or failure.
However, the current third generation has neither the experience of such a fierce challenge nor the incentive to do so.
It was unreasonable to hope that the successors, who were accustomed to an affluent life while growing up, would have the urgency of the end if they failed.
“Especially the best. Nearly 20 years have passed since it has already taken the top spot in Korea. And it is also one of the best companies in the world. There is no more challenge, so the only thing left to do is keep it.”
“The best seat is actually like a sand castle that can be torn down at any time… … .”
“Probably, at least in Korea, it is unlikely that Cheil will step down from the top position. Because one president has built such a strong structure.”
“I don’t think it sounds like a compliment for some reason.”
Eugene responded with a slight smile to the words of the chairman.
“Didn’t people say that? Korea is the first republic.”
“Isn’t that what people who talk without thinking do? If you look at the reality, large corporations are constantly being beaten around.”
On the contrary, the president’s face as he said that was overflowing with pride.
On the surface, Korean conglomerates are in a very unique position.
When politicians are bored, they talk about regulations on conglomerates, and the media do not stop exposing the immorality of conglomerates.
But behind the scenes, there is an atmosphere of society that is infinitely merciful to the illegality and deviance of large corporations.
For decades, the media has planted a frame in the public that holding the chaebol groups accountable reduces investment by large companies and weakens the nation’s competitiveness.
Of course, it goes without saying that the biggest conglomerate is hiding behind the press.
Until now, whenever there has been a deviant behavior by the family of a chaebol group or an unfair act by a large corporation, the public has always been opposed to punishment for the business owner.
In a way, it can be said that the gaslighting of the media towards the people has been successful.
It is hard to find a country where citizens are so generous with the illegal acts of businessmen.
“I heard that Chairman Kang has an eye to see the world differently. In your view, do you think that the Korean economy will not be left behind in competition with global companies as it has been until now?”
“How do I know that? However, I think the competitiveness and know-how I have accumulated so far will be able to do just fine.”
“It’s okay.”
Chairman Han reflected on Eugene’s words for a moment.
“Somehow, it sounds like something with bones.”
“If you hear it like that, you can’t help it. But in my opinion it is. Some leading companies, like Cheil Electronics, will still remain competitive, but others will be complacent in the competition to share the domestic market rather than lead the industry.”
“Well… … .”
“In reality, it would be very rare for Korean companies to lead the world other than electronics and heavy industry after the 21st century. Some IT companies monopolized the domestic market and entered the ranks of large corporations, but unlike the large corporations in the past, it can be seen from the fact that they only share the domestic market pie rather than compete in the overseas market.”
“I will.”
Eugene does not intend to underestimate the achievements of large corporations so far.
However, that does not guarantee future performance.
“Then it would be difficult to find a company with competitiveness in the global market except for those few fields.”
“In the current situation, it is.”
“Chairman Kang, then, do you think there is no way for Korean conglomerates to lead the global market?”
“I think it will be, unless we continue to produce talented people who have a sufficient internal market like the United States and prefer fierce competition.”
“They are talented people… … There’s definitely no such thing as that. It’s different from before. In the past, smart people dedicated themselves to opening up a new world by learning electronics and chemical engineering, but now they all want to become doctors.”
As with the presidents of other large corporations, Chairman Han has been at the forefront of embracing talent.
Because of that, I felt deeply that the number of people who are willing to challenge more and more in Korean society is decreasing.
“Then what do you think is necessary for Cheil Group to remain a global company in the future?”
When he first received a call from Chairman Han that he would visit, Eugene thought it was to discuss the current Daeyang Group incident.
However, a chairman who came to him did not mention a word about the Daeyang Group.
“I’m not even a person who runs a company, but I don’t know what to say to the president who made Jeil a global company.”
“Sometimes the eyes of the outside observer are much more accurate than the people working on the front line. In particular, isn’t Chairman Kang superior to anyone else in the world when it comes to determining the future value of a company?”
Chairman Han was treating Eugene like a sage with the ability to look ahead, not just a young investor who made a lot of money by luck.
“I’m sorry for telling you so. haha. But frankly, I have nothing to say about Cheil Group. I have no doubt that Cheil Electronics will lead the industry in the next 10 years, but it is difficult to say that about the group. Aren’t Korean corporate groups quite far from global standards?”
“Are you saying that the structure of the chaebol group in Korea is not right?”
“It’s because there are a lot of things that are quite unclear from an investor’s point of view.”
“Then what should I do to receive Chairman Kang’s investment?”
The president asked with a sly smile.
“I only think about the competitiveness of each company and the future market. Also, from a group level, I don’t think it’s an investment.”
Eugene was now reading the intentions of Chairman Han little by little.
A president probably doesn’t have much time left. at most 5 years. Even the president himself knew it well.
It is natural to be concerned about the Cheil Group after their death.
What he has accomplished is not just a large corporation. It is a huge empire that he and his father created with a vision for the future over decades in a barren land that had been turned into ashes.
It is a natural concern as a founding father to hope that the empire will remain strong for a long time after his death.
But none of his four children stood out.
Although one of his two sons is making progress, he didn’t have the boldness to paint the big picture and take on reckless challenges as the current president had achieved.
I am well aware that times have changed. As Eugene said, it is the age of Mercury.
However, it is also true that it is very rare for a manager to succeed through generations.
Even in the United States, there are only a handful of cases in which a single family has succeeded in inheriting a large corporation for over 100 years.
Chairman Han seems to want Eugene to be of some help in the future of Cheil Group.
“If I had to make a choice, I would invest in Cheil Electronics and Cheil Motors. Of course, on the assumption that Cheil Motors will continue to make the right choice in the future.”
Eugene gave the answer Han wanted. In fact, it is quite different from the Korean economy that Eugene is portraying.
“If it is the right choice, it seems that Dasan Motors has no intention of acquiring Daeyang Motors?”
On this day, for the first time, the story of the Daeyang Group and the Dasan Group came out.
“Dasan Motors already owns Dong-A Motors below. They seemed to think that adding a new Daeyang Automobile would only increase confusion.”
“Then what do you want from Dasan?”
“Apart from automobiles and heavy industry, the rest of the affiliates.”
“I have a lot of greed. That friend was like that from the beginning. haha.”
In response to Eugene’s answer, the chairman frowned subtly and said.
It doesn’t seem right at all. It seemed to be very different from the composition he had drawn.
That is because, if Dasan takes all the rest of the Daeyang Group affiliates, it is clear that a bloody competition will start again between Jeil and Dasan.