Summary
Koo Ja-kyung succeeded Koo In-hwoi as the second chairman of LG from January 1970 to February 1995. After joining LG’s parent company, Lak Hui Chemical, in 1950, he developed the company from a small business to a global conglomerate before retiring at age 70. During his 25-year tenure as chairman, LG’s revenue grew from 26 billion won to 30 trillion won, and the number of employees increased from 20,000 to 100,000.
Mr. Koo did not receive management training. Instead, he spent decades on the factory floor and received extensive on-the-job training. From the 1950s to the late 1960s, LG expanded its production facilities in Busan, including the Bujeon-dong, Yeonji, Dongnae, Cho-eup, and Oncheon-dong factories, playing a key role in the country’s economic growth in the cosmetics, plastic processing, and electronics industries. Mr. Koo also played a key role in producing the country’s first plastic processing products and the first production of radio by Goldstar.
In particular, Mr. Koo laid the foundation for the company to become what it is today. After father’s passing, the company’s main business, chemicals and electronics, was expanded to include the parts business, creating a vertical integration that secured the competitiveness of the original technology. From the mid-1970s to the early 1990s, LG built PVC resin, ABS, and lead wire cracking plants in the Yeocheon Petrochemical Complex in Jeollanam-do, completing the company’s vertical integration into the petrochemical sector, from the refining of Honam Oil( to petrochemical basic oils and synthetic resins. LG also decided to re-enter the cosmetics business, which was its original business, and built the largest cosmetics production line in Korea at the Cheongju Plant.
In 1976, LG built the Daejeon Plant, the largest integrated electronics factory in Korea, which included production facilities for refrigerators, air conditioners, washing machines, elevators, and compressors. The company also built PVC resin, ABS, and lead wire cracking plants in the Yeocheon Petrochemical Complex in Jeollanam-do from the mid-1970s to the early 1990s, completing the company’s vertical integration in the petrochemical sector from Honam Oil Refinery (company known as GS Caltex today)’s oil refining to petrochemical base oils and synthetic resins. The company also decided to re-enter the cosmetics business, its original business area, and built the largest cosmetics production line in Korea at the Cheongju Plant.
Overall, Mr. Koo set the stage for LG to become a global company. During his tenure, LG established more than 50 overseas subsidiaries, including a color TV factory in Huntsville, Alabama, in 1982, which was the first overseas production base established by a domestic company. In addition to overseas investment, the company went a step further and actively developed joint venture management through strategic alliances with world-leading companies such as Siemens in Germany, Hitachi, Fuji Electric and Alpine Electric in Japan, and AT&T in the United States.
Mr. Koo also established a new management philosophy of ‘human-centered management’. He held luncheons with more than 500 executives across the group over a two-year period, and in one year, held 140 employee meetings. He also declared April as “Customer Month” every year, and each company held various customer month events throughout the month.
Timeline
▲ April 24, 1925 = Born.
▲ 1945 = Graduated from Jinju High School.
▲ 1950 = Director of Lucky Chemical.
▲ 1950 = Director of Goldstar.
▲ 1970 = Chairman of Lucky Goldstar, President of LG Yonam Culture Foundation, Vice President of Korea Enterprises Federation.
▲ 1973 = Member of the Board of Federation of Korean Industries.
▲ 1979 = President of Korea Invention Promotion Association.
▲ 1982 = Member of the Board of Academy of Korean Studies.
▲ 1983 = President of Corean Alpine Club.
▲ 1986 = Central committee of Korean Red Cross.
▲ 1987 = President of Federation of Korean Industries.
▲ 1988 = Advisor of Korea Enterprises Federation.
▲ 1989 = Honorary Chairman of Federation of Korean Industries.
▲ 1991 = CEO of LG Welfare Foundation.
▲ 1995 = Honorary Chairman of LG.
