“The future is made by challengers.” The late Chairman Choi Jung-hyun, who completed the vertical integration from oil to textiles in Korea, which was a country where not a single drop of oil was found. Furthermore, he laid the foundation of ICT power by commercializing the world’s first CDMA. Last July 26th was the 20th anniversary of his death.
Chairman Choi was a businessman who turned the grand dream into reality with thorough preparation (intelligence) and execution (spirit) that others said was impossible.
Chairman Choi spent his entire life fostering talent by setting up a Korea Higher Education Foundation and sending poor young students abroad to study. When Choi was diagnosed with lung cancer in 1997, he appealed to save the economy while fighting his illness with an oxygen respirator. On August 26th, 1998, Chairman Choi died; he was 69 years old at the time. Chairman Choi Jung-hyun left a cremation testament when cremation was rare, and his family practiced it.
“You cannot start a big business with only luck”. Making a dream come true with careful preparation.
In 1973, when there was no capital, technology or talent, Chairman Choi Jung-hyun announced his grand goal of turning Sunkyung (now SK) into a world-class energy and chemical company. SK Corp., a mere textile company, has declared vertical stratification not only from crude oil control but also from petrochemicals, film, raw materials, and materials, which many regarded as an “unnecessary dream.” However, Choi acquired the Korea Oil Corporation (Yukong) in 1980 after a long-term vision and establishment of an oil network with the royal family in the Middle East.
Since 1983, Choi has been developing overseas oil fields. Although the success rate was only 5%, it succeeded in developing oil fields in North Yemen in 1984, the following year. Since then, in 1991, Choi completed the vertical integration of Pxylene Diamine (PX), a synthetic fiber raw material, in Ulsan.
IN 1984, Choi found the American Business Center in the US, and later made ICT a future growth engine. He also invested in ICT companies in the US and established a local corporation to prepare for the mobile communications business.
In 1992, SK was selected as the second mobile communication carrier by an overwhelming gap, but preferential treatment returned the date business license vigorously. Chairman Choi, who persuaded the company that “there is always a chance for a prepared company,” participated in the privatization of Korea’s mobile communications market in 1994 under the civilian government.
Choi suggested to buy stocks at around 70.86 dollars per share at a price of 296.73 dollars per share at the time, but Choi said, “This way, we may not be able to keep up with preferential treatment later. We need to increase the value of the company in the future.”
“To become a great economic power we have to raise future talents” A leading figure who dream of creating a first-class nation
Chairman Choi Jung-hyun showed a special affinity for fostering talent since the 1970s when even SK was uncertain about its growth. First, in 1972, the West Sea Development (currently SK Forestry) was establish in order to raise scholarship funds through its afforestation project. In 1974, he founded the Korea Higher Education Foundation by confessing his private wealth. When Korea’s per capita income was less than 500 dollars, the foundation cost more than the price of a house in Seoul at that time.
About 3,700 students have applied for scholarships, 740 of them from prestigious universities overseas, and more than 80% have become professors.
Management philosophy passed on to Chairman Choi Tae-won
Right after the acquisition of Hynix, Chairman Choi Tae-won said, “The fact that Hynix became a member of SK’s family means realizing SK’s long-cherished dream of the semiconductor business.” Chairman Choi Jung-hyun predicted that the center of the future industry would be focused on semiconductors in 1978 and established Seonkyung Semiconductor, but recalled the past that had to be fulfilled by the second oil shock that his the whole world.
When Choi Tae-won took office in 1998, SK Group’s sales grew to 33.14 billion dollars, 88.6 million dollars in net profit, and ranked 5th in the business ranking. Now, sales are 139.99 billion dollars and net profit is 15.4 billion dollars, becoming 3rd in the business ranking.
In addition, Chairman Choi’s business philosophy and philanthropy on social contribution are evolving into the social value of Choi Tae-won and shared infrastructure strategy.
