Samsung Group Chairman Lee Kun-hee turned a crisis into an opportunity with quick and bold judgment and long-term perspective at every crisis.
In particular, the reverse idea that broke conventional wisdom at a crucial moment is evaluated as the driving force behind Samsung today.
It was in 1983 that Samsung entered the semiconductor business.
Samsung, which had no knowledge and experience at all, was able to surpass Japan and rise to No. 1 in the semiconductor market, which was an important decision.
When competition for 4 mega DRAM development struck in 1987, Samsung Electronics had to decide whether to use the stack or trench method to develop memory semiconductors.
The stack is a method of stacking circuits on a high floor, a trench is a method of digging down, and even among the developers, opinions were divided on which method to choose.
When he was hesitant to introduce the stack method, which is the first technology that professional managers try at the meeting at the time, Chairman Lee said, "Let's keep it simple. Wouldn't it be easier to stack it on top than digging it underground?"
Chairman Lee's decision was a great success, and competitors who chose the trench method at the time were pushed out by Samsung Electronics, which adopted the stack method.
In 1992, Samsung succeeded in developing the world's first 64-mega DRAM semiconductor, surpassing Japan, the memory powerhouse, and ranking first in the world.
Chairman Lee, who has a sense of engineer, came up with direct ideas in various product developments later.
Since Motorola first released a mobile phone, until then, the SEND and END buttons on the mobile phone were collectively under the number keys.
The first mobile phones Samsung also developed were built according to this practice.
However, after looking at the product, Chairman Lee said to the executives of Samsung Electronics, "The most commonly used keys are the call and end keys, but it is inconvenient to answer or hang up a call with one hand if it is at the bottom. It is better to put both keys up." .
The Samsung mobile phone with the call and end keys rising up was released, and the so-called'Lee Kun-hee phone' received a hot response from consumers.
In early June 1993, a 30-minute video tape produced by Samsung's internal broadcasting team was delivered to Chairman Lee Kun-hee just before boarding a flight to Frankfurt, Germany.
At the time, the videotape contained a scene where the washing machine production line workers cut off the lid with a knife and attached it to the main body when the washing machine lid size did not match.
The lid part had to be redesigned and produced, but the employees were shaving the plastic and making defective products without thinking.
After arriving in Frankfurt, shocked by watching the video, Chairman Lee called Seoul and said, "I've put so much emphasis on quality management, is this the result? I've been fooled until now. Bring all the bosses and executives to Frankfurt." Ordered.
Chairman Lee was also stimulated by receiving a report on Samsung Electronics' problems from Japanese Mr. Fukuda Damio, who led the design department of Samsung Electronics' information and communications division in Tokyo, Japan before flying to Germany.
"Samsung is weak in product planning. It takes a long time to develop, and it is missing the timing to put things on the market."
A week after Chairman Lee's'convocation order' fell, more than 200 people including Samsung Electronics presidents, executives, and overseas expatriates gathered in Frankfurt.
On June 7th of that year, Chairman Lee rebuked for quality management, not quantity, by saying, "Change everything except your wife and children," and made a'new management' declaration, the so-called Frankfurt Declaration.
It was declared that it would break the vicious circle of volume-oriented management that has continued so far and realize a virtuous cycle of management structure in which quantity is harmonized centering on quality.
At the time, Chairman Lee diagnosed, "Samsung Electronics had advanced cancer, Samsung Heavy Industries had malnutrition, Samsung E&C had diabetes due to malnutrition, and Samsung General Chemical was a company that should not be established from the beginning."
Chairman Lee's main management philosophy,'Megiron', also came out at this time.
If you put catfish, a natural enemy in the rice paddies where loach grows, they will eat more and move harder to survive, making them stronger and sharper.
It contains the intent of inducing internal competition by introducing external talent.
Even after the declaration of Shin-Young, in 1994, the wireless division of Samsung Electronics hurried to launch the product, and the defect rate soared to 11.8%.
It's been a year since I was accused of saying "defect is cancer", but when defective products still came out, the originality of consumers pierced the sky.
In response, President Lee gave instructions.
“After the wireless phone quality accident, we must report the progress of our practice and future plans, and post an advertisement in the entire newspaper to exchange defective products.” Afterwards, Samsung placed a large advertisement in the newspaper and exchanged the defective products. , On March 9, 1995, special measures are taken.
All 150,000 wireless phones sold on the market were recovered and stacked on the playground of Samsung Electronics' Gumi Plant, and several employees with hammers struck a pile of phones into pieces and put them in fire in front of 2,000 employees. .
At the time, the number of wireless phones turned into ashes was worth 15 billion won.
This incident, which was a tremendous shock therapy, is regarded as an anecdote that laid the foundation for the myth of Samsung Electronics' mobile phone that leads to'Anycall' and'Galaxy'.