Summary

Kumho Group’s founder, Park In-chon, was born in August 18, 1901 into a poor farming family in Naju, South Jeolla province, as the third son among four sons and two daughters. At 23, he began his career as a police officer and passed the civil service exam in 1929, equivalent to today’s level 9 civil service exam. Upon passing the exam, he married Lee Soon-jung at the relatively late age of 29. Rising through the ranks to a senior position equivalent to today’s police inspector, he ended his 21-year police career in 1945 with his dismissal around the time of Korea’s liberation.

Facing financial difficulties, Park saved money through pharmaceutical deliveries and entered the taxi business. Borrowing a significant sum from a wealthy acquaintance, he purchased two used taxis and began operations on April 7, 1946, under the name Gwangju Taxi.

Having succeeded in the taxi business, Park ventured into passenger transportation business. On September 6, 1948, he established Gwangju Buslines, operating routes between Gwangju and Jangseong and Gwangju and Hwasun. Expanding actively into the South Chungcheong province and Gyeongsang province, Gwangju Buslines grew into a prominent national passenger transport company within 19 years.

On September 5, 1960, Park founded Samyang Tire to meet the increasing national demand for automobiles and to supply Gwangju Buslines’ tire needs. Initially, Samyang Tire faced quality issues, earning the nickname “pumpkin tires” among consumers. Park invested all income from Gwangju Buslines into improving tire quality and even resorted to high-interest loans, straining Gwangju Buslines’ finances. However, a 1972 government initiative to integrate private lending into institutional finance revitalized the company.

In March 1965, Samyang Tire obtained the KS mark, becoming South Korea’s military supplier and significantly increasing sales. By October 1965, it had exported 200 tires to Thailand, marking its entry into stable operations. By 1969, production capacity had expanded to 250,000 tires annually, and in 1973, it succeeded in acquiring radial tire development technology from America’s Uniroyal, becoming South Korea’s largest tire manufacturer by 1974.

Gwangju Buslines diversified into the express bus business in 1970, coinciding with the opening of the Gyeongin and Gyeongbu expressways. The completion of the Honam Expressway in 1973, following the opening of the Jeonju-Suncheon expressway, allowed Gwangju Buslines to dominate the express bus market in the Honam region, emerging as a leader in the industry. Similarly, Samyang Tire grew into a major tire manufacturer with the rising automobile ownership driven by economic growth.

During this period, the company also entered the trading business to align with the government’s export promotion policies. Established in October 1972, Kumho Industrial quickly became a core subsidiary through aggressive acquisitions, and by 1977, Kumho Group, comprising 12 affiliates, had risen to become one of South Korea’s top 10 conglomerates. However, unchecked expansion led to financial difficulties in the 1980s, necessitating major restructuring, including the sale of its electrical, electronics, and steel businesses.

Park In-chon passed away at his home on June 16, 1984, at the age of 84, as Kumho Group was preparing for its second phase of growth.

Timeline

▲ August 18, 1901 = Born in Naju, South Jeolla Province, Korea, into a poor farming family. He was the third son among four sons and two daughters.

▲ 1924 = At the age of 23, began his career as a police officer.

▲ 1929 = Passed the civil service exam, equivalent to today’s level 9 civil service exam.

▲ 1930 = Married Lee Soon-jung at the age of 29.

▲ 1945 = Ended his 21-year career as a police officer, around the time of Korea’s liberation, having risen to a senior position equivalent to today’s police inspector.

▲ April 7, 1946 = Started the taxi business by purchasing two used taxis and launching operations under the name Gwangju Taxi.

▲ September 6, 1948 = Founded Gwangju Buslines, initially operating routes between Gwangju and Jangseong, and Gwangju and Hwasun.

▲ September 5, 1960 = Established Samyang Tire.

▲ March 1965 = Samyang Tire obtained the KS mark, becoming a military supplier and significantly increasing sales.

▲ October 1965 = Samyang Tire expanded into international markets by exporting 200 tires to Thailand.

▲ 1968 = Founded Kumho Petrochemical.

▲ 1970 = Gwangju Buslines diversified into the express bus business, coinciding with the opening of the Gyeongin and Gyeongbu expressways.

▲ October 1972 = Established Kumho Industrial, which quickly became a core subsidiary of Kumho Group through aggressive acquisitions.

▲ 1973 = Acquired radial tire development technology from America’s Uniroyal.

▲ 1977 = Kumho Group, comprising 12 affiliates, rose to become one of South Korea’s top 10 conglomerates.

▲ 1980s = Faced financial difficulties due to unchecked expansion. Required major restructuring, including the sale of electrical, electronics, and steel businesses.

▲ June 16, 1984 = Passed away at his home at the age of 84.