Hope Korea Forum 2008

Samsung Electronics Vice Chairman Yun delivers key speech at annual event

The National Academy of Engineering of Korea held the Hope Korea Forum 2008: Excellent Enterprises and Topnotch Talent at the Marriot Hotel in Seoul Dec. 3 with the support of the Ministry of Commerce, Industry and Energy.
Professor Park Oh-soo of Seoul National University's Economics Department emceed the event with Chairman Lee Hee-bum of the Korea International Trade Association as head chair of the event.
Vice Chairman Yun Jong-yong of Samsung Electronics Co. delivered a speech entitled "Top-class Enterprise"to open a panel discussion on the subject. Participants in the panel discussion included Choi Seung-chol, president of Doosan Infracore Co., Dr. Kim Jun-han, president of POSCO Management Institute, Vice President Lee In-hi of 3M Korea, Professor Cho Byuk of Donguk University and the Michigan Engineering College and Sotaro Suzuki, Seoul correspondent of the Nihon Keizai Shimbum newspaper in Japan.
Yun said the history of the human race is made of inventions and technological revolutions, which make life affluent, safe and convenient. The inventions of tools and the advancements in science and technology brought about industrial development and spurred the development of national economies and social progress, said the CEO of the world's largest electronics maker.
Looking back at the 250 years of industrial history, there were changes in major industries roughly every 50 years led by core enterprises and their leaders.
The industrial revolution began in the late 18th century, the spinning and weaving industry in the early 1800s, railroad and steel in the 1850s, automobiles, electricity and petrochemicals in the early 1900s, electronics in the 1950s and the digital revolution in recent decades.
The Samsung executive said many first-class firms spurred the development of the national economy and industrial progress in advanced countries and many first-class firms are increasing in emerging countries, too.
But in Korea, the number of those companies is small and has not been expanding, compared to both advanced and emerging countries.
He continued to say that Korea needs more first-rate companies to trigger another big leap in its economic growth. Samsung Electronics has been making continuous efforts to become a world-class electronics maker.
He said he tried to find the factors that first-class companies had in common in the 250 year industrial history.
He said the three biggest common factors they had were: leading industrial development, excellent management processes and longevity.
The vice chairman also pointed out six major requirements to be a first-class firm: a revolutionary product; a fast mover; best-cost competitiveness; the most appropriate process; the ability to attract global customers and a dynamic organization.
He also revealed the seven growth factors for first-class companies that won't change despite the changes in the business environment. The first one is dreams and visions, the second is the ability to size up the situation and to separate it; the third is change and reform; the fourth is creativity and challenge; the fifth is technology and information; the sixth is speed and the rate of speed; and the seventh is trust and confidence.
For Korea to be a first-rate country in the 21st century, business firms should take advantage of the seven factors so that many of them would develop into first-class firms.
In order to bring that about, one of the most important matters is a healthy and just social governance structure, the Samsung leader said.
First, the social environment must be conducive to doing business, along with laws and systems that could lead to building a basic structure for scientific progress.
Second, the social infrastructure must be suitable to foster talented manpower with the construction of an education system and the build-up of systems and regulations to encourage the development of science and technology.
The vice chairman also pointed out that the social sentiment must be conducive to business with no anti-business sentiment. The society must have a common understanding that business is at the center of stable employment and economic development, with an open rather than unreceptive attitude to businesses with real substance over unrealistic goals.
In conclusion, he said, when the country is ready with a sound governance structure many first-class business firms will be born to lead the national economy through another industrial development and carry the country a step higher up the ladder of development. In order to do that, a country with scarce natural resources needs manpower and technology above all else. nw

Samsung Electronics Vice Chairman Yun Jong-yong delivers a speech at Hope Korea Forum 2008.