History, part 1. How it all began: LG from 1947 to 1980
Introduction
Hi, Habr! Hello, friends!
We are starting a series of posts (there will be three of them altogether) about the history of our company: from the appearance of the first product (we will not spoil it yet, but this is by no means electronics) to the present day.
')
We hope that you will be interested. In this issue, our history from 1947 - 1980: formation, participation in the military coup, national leadership and other interesting facts.
Go.
How it all began
Today, few people remember how the current electronics giants and automotive conglomerates, natives of Korea, began their activities.
For example, not everyone knows that our main competitor with the name of the letter S was formed in the 1930s as a company for the sale of dried fish, and such an auto giant as Hyundai began as a brigade working on construction and repair work.
The LG company (that is, we), like other Korean chaebols (we are watching Wikipedia ), did not begin with quite what we now associate with.
Let's start with the main thing. Everything that we have now, we owe this man here: Mr. Koo In-Hwoi (Mr. Ku In-Hwe).
It all started in a small industrial city of Korea called Busan during the Second World War.
In the 40s, a certain Mr. Ku Ying Hve took up the production of a simple, but extremely popular at that time product - powder for teeth. The product was new to the country, the majority of the population at that time used simple salt to clean their teeth (in general, the salt position as a means to clean the teeth was extremely strong throughout East Asia until the middle of the 20th century).
Despite the devastation, economic instability and occupation, the implementation of the dental powder was at an excellent pace, which gave confidence and, according to Mr. Qu Ying Hoi, allowed to hope for success and other products of household chemicals. That was how the first brick was laid in the future of the LG Group.
In 1947, Ku In Hwe formed the company Lak Hui Chemical Industries, which was engaged in the production of face cream. After some time in the assortment of the enterprise appears toothpaste called Lucky. It became so popular that its name became associated with any toothpaste in Korea. Over the years, the company's product range has been supplemented with household chemicals and plastic packaging.
The first strategic task set for the new company was to expand the range of products to provide the population with inexpensive and efficient household chemicals.
So in the 1950-1953-ies the company Lucky began to produce toothpastes (in the picture - an example of advertising toothpaste in those days), washing powders, cleaners for dishes and face cream "Lucky", which later became legendary.
The volume of products sold grew very quickly primarily due to the low price and extremely high demand in post-war Korea. For several years, Lucky toothpaste supplants the former market leader Colgate and becomes the best-selling toothpaste in Korea.
The real breakthrough came in 1953, when Mr. Qu In Hve offered innovative packaging for products - plastic.
Lucky was the first Korean company (and one of the first in the world), who decided to abandon glass and porcelain in the package.
The innovation worked - production became much cheaper, which allowed Lucky to capture more and more new markets for household chemicals in their home countries (cosmetics, washing-up liquids, hygiene products, etc.). Moreover, one of the areas of business was the manufacture of packaging for products of other companies.
In less than 10 years, Lucky Chemicals has become one of the largest independent companies in Korea. But Mr. Ku In Hve did not plan on his progress.
GoldStar Appearance
As with Lucky, let's start with a small remark.
In April 1942, the Japanese occupiers, who were in power in Korea at that moment, ordered all Koreans to hand over their shortwave radio receivers to the state (the goal is to deprive people of the opportunity to receive news from the outside or, as voiced by the occupiers, we’re denying you the opportunity to listen to Voice America "). Removed radios were destroyed.
Even a decade later, these events made themselves known: the majority of the population did not have contact with the outside world, the printing press was expensive to produce and could not reach remote areas, and the radio receivers were in units.
It was this problem that prompted Ku In Hwe to the decision to try himself in a new business.
Enlisting the support of the Government, Ku In Hve invests all his money in the production of transistor radios called Goldstar.
The eponymous plant opens on October 1, 1958. The first radio made in Korea goes on sale on November 15, 1959.
In the next few years, the Goldstar A-501 and Goldstar T-701 radio receivers (in the photo) become bestsellers.
The success of the first products instilled confidence in the strength of the company. Already then, Qu Ying Hve set ambitious goals for himself - to become number one not only in Korea, but also in other countries.
A new plan was adopted to expand the Goldstar product line. In July 1961, the first Korean phone was produced, which was also waiting for a smashing success.
However, the idea of ​​exporting was still just an idea.
Goldstar under the wing of the General
The situation radically changed in 1961, when, with a military coup and the overthrow of the dictator Lee San Man in Korea, General Pak Jung Hee , a close friend and like-minded supporter Ku In Hve, came to power (according to some information, our founder took an active part in organizing the overthrow of the dictator with post).
General Park Jun-hee set himself a noble goal — to turn an agrarian, war-ravaged South Korea into an industrial power.
The bet was made on the only resource available in the country in abundance - national personnel. Moreover, this resource had very serious advantages: the Confucian culture, which at that time (and even now) was extremely strong, traditionally brings up such traits in people as diligence, perseverance and purposefulness.
It was in 1961 that the model of the country of the factory, the world industrial exporting leader, of the Korea we know now, was conceived. For Korea to enter the world market, large companies were needed, which were created as soon as possible. Park Jun-hee selected a few dozen entrepreneurs, whom he knew well personally, and gave them almost unlimited access to loans and US investments. Needless to say that among them was Qu In Hoi.
With the support of General Pak, Ku In Hwe launched the production of fans, refrigerators, washing machines, televisions, elevators, electric conveyors and other electronics.
The year 1962 became a significant date in all the historical chronicles of Korea, when Goldstar set up sales channels for its radio in two countries outside of Korea. For the first time in history, Korean-made equipment was exported to the USA and Hong Kong.
In the next 10 years, Goldstar produces:
• 1965 - the first Korean-made refrigerator;
• 1966 - Korean-made Per TV (black and white, by itself);
• 1968 - the first Korean air conditioner;
• 1969 - the first Korean-made washing machine.
In parallel, the company develops new areas of activity. For example, in 1967, Goldstar, together with Caltex, opened an oil refinery, which would later be engaged in the development and production of plastics.
The company, by the way, is still operating under the name GS Oil (part of the LG Group conglomerate).
In 1969, Qu Ying Hve suddenly died, not having time to appoint his successor.
Goldstar in the 70s: first global success
In most of the “chaebols,” leadership, like property, passed from father to son. In the case of Lucky and Goldstar, however, there was a special case that almost caused the crisis in the company.
The 45-year-old son of Mr. Ku In Hve Ku Cha Kyung was a certified school teacher, who, unlike his many relatives, never participated in running a business.
The question of the receiver has been discussed for quite a long time - a little more and there would be a split in the ranks of the board.
After a long debate, the senior member of the board pointed out Ku Cha Kyunu to the empty chair of the chairman: "From now on this is your place."
So Mr. Ku Cha Kyung becomes president of Lucky Chemicals and Goldstar Electronics.
The decision was right.
Koo Cha Kyun was not only able to continue his father’s work, but also brought the company to a new level (both financially and technologically).
Under his rule, Goldstar became the leader of the electronics industry in Korea, while actively increasing sales abroad.
And a few, but important dates:
• 1973 - the appearance of the first Korean tape cassette player;
• 1975 - the opening of an additional plant for the production of machinery in the city of Gumi;
• 1975 - opening of the first Korean private research center;
• 1976 - the opening of the largest factory at that time in the city of Changvon (preparation of products for export);
• 1977 - the release of the first Korean color TV.
At the same time, Goldstar starts research and production cooperation with AT & T, NEC, Siemens, Hitachi and other technology companies. In addition, investments in the production of semiconductors begin, with time to start producing their own microchips and move from assembly to full-cycle production.
Despite the consequences of the 1973 oil crisis, global economic stagnation and political instability in Korea, competent management and active development in several directions brings the company its results.
In 1977, Goldstar reported a record sales volume exceeding 100 billion won (more than $ 100 million).
In 1978, Goldstar became the first company in the history of the country, the total export volume of which exceeded $ 100 million in monetary terms, is a colossal amount of money at that time.
By the beginning of the 80-x Goldstar was one of the largest companies in Korea. The agenda was another goal - the conquest of foreign markets. However, quite strong competitors (both compatriots and manufacturers from Japan and Europe) have already become active in the market.
The challenge has been thrown.
To be Continued ...
<A post about the history of the company and the difficult competition with other tech giants in 1980-1990 is on the way>
Hi, Habr! Hello, friends!
We are starting a series of posts (there will be three of them altogether) about the history of our company: from the appearance of the first product (we will not spoil it yet, but this is by no means electronics) to the present day.
')
We hope that you will be interested. In this issue, our history from 1947 - 1980: formation, participation in the military coup, national leadership and other interesting facts.
Go.
How it all began
Today, few people remember how the current electronics giants and automotive conglomerates, natives of Korea, began their activities.
For example, not everyone knows that our main competitor with the name of the letter S was formed in the 1930s as a company for the sale of dried fish, and such an auto giant as Hyundai began as a brigade working on construction and repair work.
The LG company (that is, we), like other Korean chaebols (we are watching Wikipedia ), did not begin with quite what we now associate with.
Let's start with the main thing. Everything that we have now, we owe this man here: Mr. Koo In-Hwoi (Mr. Ku In-Hwe).
It all started in a small industrial city of Korea called Busan during the Second World War.
In the 40s, a certain Mr. Ku Ying Hve took up the production of a simple, but extremely popular at that time product - powder for teeth. The product was new to the country, the majority of the population at that time used simple salt to clean their teeth (in general, the salt position as a means to clean the teeth was extremely strong throughout East Asia until the middle of the 20th century).
Despite the devastation, economic instability and occupation, the implementation of the dental powder was at an excellent pace, which gave confidence and, according to Mr. Qu Ying Hoi, allowed to hope for success and other products of household chemicals. That was how the first brick was laid in the future of the LG Group.
In 1947, Ku In Hwe formed the company Lak Hui Chemical Industries, which was engaged in the production of face cream. After some time in the assortment of the enterprise appears toothpaste called Lucky. It became so popular that its name became associated with any toothpaste in Korea. Over the years, the company's product range has been supplemented with household chemicals and plastic packaging.
The first strategic task set for the new company was to expand the range of products to provide the population with inexpensive and efficient household chemicals.
So in the 1950-1953-ies the company Lucky began to produce toothpastes (in the picture - an example of advertising toothpaste in those days), washing powders, cleaners for dishes and face cream "Lucky", which later became legendary.
The volume of products sold grew very quickly primarily due to the low price and extremely high demand in post-war Korea. For several years, Lucky toothpaste supplants the former market leader Colgate and becomes the best-selling toothpaste in Korea.
The real breakthrough came in 1953, when Mr. Qu In Hve offered innovative packaging for products - plastic.
Lucky was the first Korean company (and one of the first in the world), who decided to abandon glass and porcelain in the package.
The innovation worked - production became much cheaper, which allowed Lucky to capture more and more new markets for household chemicals in their home countries (cosmetics, washing-up liquids, hygiene products, etc.). Moreover, one of the areas of business was the manufacture of packaging for products of other companies.
In less than 10 years, Lucky Chemicals has become one of the largest independent companies in Korea. But Mr. Ku In Hve did not plan on his progress.
GoldStar Appearance
As with Lucky, let's start with a small remark.
In April 1942, the Japanese occupiers, who were in power in Korea at that moment, ordered all Koreans to hand over their shortwave radio receivers to the state (the goal is to deprive people of the opportunity to receive news from the outside or, as voiced by the occupiers, we’re denying you the opportunity to listen to Voice America "). Removed radios were destroyed.
Even a decade later, these events made themselves known: the majority of the population did not have contact with the outside world, the printing press was expensive to produce and could not reach remote areas, and the radio receivers were in units.
It was this problem that prompted Ku In Hwe to the decision to try himself in a new business.
Enlisting the support of the Government, Ku In Hve invests all his money in the production of transistor radios called Goldstar.
The eponymous plant opens on October 1, 1958. The first radio made in Korea goes on sale on November 15, 1959.
In the next few years, the Goldstar A-501 and Goldstar T-701 radio receivers (in the photo) become bestsellers.
The success of the first products instilled confidence in the strength of the company. Already then, Qu Ying Hve set ambitious goals for himself - to become number one not only in Korea, but also in other countries.
A new plan was adopted to expand the Goldstar product line. In July 1961, the first Korean phone was produced, which was also waiting for a smashing success.
However, the idea of ​​exporting was still just an idea.
Goldstar under the wing of the General
The situation radically changed in 1961, when, with a military coup and the overthrow of the dictator Lee San Man in Korea, General Pak Jung Hee , a close friend and like-minded supporter Ku In Hve, came to power (according to some information, our founder took an active part in organizing the overthrow of the dictator with post).
General Park Jun-hee set himself a noble goal — to turn an agrarian, war-ravaged South Korea into an industrial power.
The bet was made on the only resource available in the country in abundance - national personnel. Moreover, this resource had very serious advantages: the Confucian culture, which at that time (and even now) was extremely strong, traditionally brings up such traits in people as diligence, perseverance and purposefulness.
It was in 1961 that the model of the country of the factory, the world industrial exporting leader, of the Korea we know now, was conceived. For Korea to enter the world market, large companies were needed, which were created as soon as possible. Park Jun-hee selected a few dozen entrepreneurs, whom he knew well personally, and gave them almost unlimited access to loans and US investments. Needless to say that among them was Qu In Hoi.
With the support of General Pak, Ku In Hwe launched the production of fans, refrigerators, washing machines, televisions, elevators, electric conveyors and other electronics.
The year 1962 became a significant date in all the historical chronicles of Korea, when Goldstar set up sales channels for its radio in two countries outside of Korea. For the first time in history, Korean-made equipment was exported to the USA and Hong Kong.
In the next 10 years, Goldstar produces:
• 1965 - the first Korean-made refrigerator;
• 1966 - Korean-made Per TV (black and white, by itself);
• 1968 - the first Korean air conditioner;
• 1969 - the first Korean-made washing machine.
In parallel, the company develops new areas of activity. For example, in 1967, Goldstar, together with Caltex, opened an oil refinery, which would later be engaged in the development and production of plastics.
The company, by the way, is still operating under the name GS Oil (part of the LG Group conglomerate).
In 1969, Qu Ying Hve suddenly died, not having time to appoint his successor.
Goldstar in the 70s: first global success
In most of the “chaebols,” leadership, like property, passed from father to son. In the case of Lucky and Goldstar, however, there was a special case that almost caused the crisis in the company.
The 45-year-old son of Mr. Ku In Hve Ku Cha Kyung was a certified school teacher, who, unlike his many relatives, never participated in running a business.
The question of the receiver has been discussed for quite a long time - a little more and there would be a split in the ranks of the board.
After a long debate, the senior member of the board pointed out Ku Cha Kyunu to the empty chair of the chairman: "From now on this is your place."
So Mr. Ku Cha Kyung becomes president of Lucky Chemicals and Goldstar Electronics.
The decision was right.
Koo Cha Kyun was not only able to continue his father’s work, but also brought the company to a new level (both financially and technologically).
Under his rule, Goldstar became the leader of the electronics industry in Korea, while actively increasing sales abroad.
And a few, but important dates:
• 1973 - the appearance of the first Korean tape cassette player;
• 1975 - the opening of an additional plant for the production of machinery in the city of Gumi;
• 1975 - opening of the first Korean private research center;
• 1976 - the opening of the largest factory at that time in the city of Changvon (preparation of products for export);
• 1977 - the release of the first Korean color TV.
At the same time, Goldstar starts research and production cooperation with AT & T, NEC, Siemens, Hitachi and other technology companies. In addition, investments in the production of semiconductors begin, with time to start producing their own microchips and move from assembly to full-cycle production.
Despite the consequences of the 1973 oil crisis, global economic stagnation and political instability in Korea, competent management and active development in several directions brings the company its results.
In 1977, Goldstar reported a record sales volume exceeding 100 billion won (more than $ 100 million).
In 1978, Goldstar became the first company in the history of the country, the total export volume of which exceeded $ 100 million in monetary terms, is a colossal amount of money at that time.
By the beginning of the 80-x Goldstar was one of the largest companies in Korea. The agenda was another goal - the conquest of foreign markets. However, quite strong competitors (both compatriots and manufacturers from Japan and Europe) have already become active in the market.
The challenge has been thrown.
To be Continued ...
<A post about the history of the company and the difficult competition with other tech giants in 1980-1990 is on the way>
Source: https://habr.com/ru/post/130822/
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