Lee Kun Hee

▪ 1997

      For South Korean businessman Lee Kun Hee, 1996 was a year of noteworthy events—both good and bad. As chairman of the Samsung Group of South Korea, he had left management to a corporate staff since taking over control of the conglomerate in 1987 from his late father, Lee Byung Chull, who founded Samsung in 1938. In June 1993, however, Lee Kun Hee launched a dramatic revolution from the top to make his 28 companies—the largest Asian conglomerate outside Japan—internationally competitive. Declaring that Samsung was "second rate" by global standards, he called on each employee "to change everything but your family." Lee attributed the shortcomings of Samsung to basic weaknesses in Korean society, including an educational system that stressed learning by rote and an authoritarian style of leadership. He ordered radical reforms. Under what Lee termed a "new management" concept, Samsung insisted that subordinates point out errors to their bosses. It also stressed quality of products over quantity, promoted women to the ranks of senior executives, and discouraged bureaucratic practices. By 1996 Samsung Electronics ranked as the world's leading exporter of memory chips, and the entire group's revenues in 1995 totaled $87 billion, equivalent to about 19% of South Korea's gross domestic product.

      Lee was born on Jan. 9, 1942, in the town of Uiryung, Kyongnam province, Korea. He majored in economics at Waseda University, Tokyo, and earned a master of business administration degree at George Washington University, Washington, D.C. Lee joined Samsung in 1968 as the quiet understudy of his father, who exercised absolute control over his conglomerate and decided against making two older sons his successors. The youngest Lee thus inherited control of a huge enterprise engaged in electronics, machinery, chemicals, and financial services.

      Having emerged from a shy figurehead to an assertive chief executive, Lee pushed Samsung into many new activities, such as automobile manufacturing. Bolstered by a surge of investment, he aimed to make 20% of Samsung's products outside South Korea by the year 2000. Consequently, he built an electronics manufacturing complex in Wynyard, Eng., and semiconductor plants in both Austin, Texas, and Suzhou, China. He also acquired such companies as the U.S. computer maker AST Research, Rollei Camera in Germany, and Lux, a Japanese manufacturer of audio products.

      An active sportsman, Lee spent his leisure time riding horses, racing sports cars on a private track, and raising dogs. In addition, he was president of the Korean Amateur Wrestling Association and was involved with a professional baseball team and amateur athletics. In July 1996 he was elected a member of the International Olympic Committee.

      Lee was among 11 prominent South Korean businessmen drawn into a political scandal over corporate contributions to former president Roh Tae Woo. A court ruled that such payments—though customary in South Korea—were bribes. In August 1996 Lee was sentenced to two years in prison, but the punishment was suspended for three years. (See Korea, Republic of .) (LOUIS KRAAR)

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