CEO COLUMN

Published Nov-2020, [No.258]
Subject Three Good Fortune in my life



Nowadays, I've been living around half of my lifetime, and I've had so many blessings, and I can't help but feel that I'm receiving so much help from my family and other people around me. People are worried about how to spend time after retirement, going in and out of hospital doors because of ill health, worrying about spending money for an alcoholic drink with friends, and worrying about take care of their children and family. I think I'm really happy because I don't have to worry like this.


It used to be "Mr. Yulgok" said that we have a happy life as long as we avoid the three major misfortunes of life. He claimed that we should avoid three misfortune such as who succeed at a young age and are prone to arrogance, the loss of husband or wife in middle age, and the miserable old age in which short of money in later years.

I feel grateful to God considering that I have extent the five elements necessary for a happy old age. I'm satisfied with my life because I have health that is the driving force behind my vibrant life, my beloved wife that always encourages me, my wealth that enrich my life, spiritual health through work and hobby, best friend who are with my old age. It seems that I can organize some of the blessings of my life as follows.


My first good fortune was the establishment of LCC and the transformation into an export company.

At the end of December 1996, when I was working as a plant manager in Ulsan, I was transferred to Seoul office due to a personnel reshuffle at the end of the year, and a few days later, I submitted my resignation to the head office. Since I have worked mainly in the factory for over 20 years, my co-workers persuaded me that I need a new experience and challenge. On the other hand, my wife recommended me I should decide a new challenge after working in Seoul office. Due to this Reason, I started my "one-room" life in Seoul.

While working as the manager of Skin Care products, I became close friends with "Gusko" who was dispatched from Germany's BDF, and while working together, I often communicate with him regarding 'proliferation of Nivea products into the Korea market'. While celebrating my 48th birthday on September 2nd, Gusko proposed to me that build a factory to manufacture and supply Nivea product because he will close the business with 'LG' for 15 years and go on a independence business.


I submitted a feasibility report for factory construction to the German BDF, and Mr. Wünsche, the vice president of the headquarters, came to Korea for final approval through a face-to-face interview.

Most of LG's seniors and juniors thought negatively about how to have a business with BDF, which mainly has seasonal weaknesses and principles of selling cosmetics in winter. However, once I had made up my mind, I submitted my resignation on October 31st, 1997, and decided to seek out the factory site. And I organized my assets and obtained a loan from the bank to secure investment funds. Coincidentally, IMF financial crisis occurred, many small and medium-sized company have gone bankrupt, and interest rates at banks have soared by more than 20% a year. As a result, I faced the biggest crisis as soon as i start my own business.


As the phrase ¡®crisis is an opportunity¡® suggests, factory sites and facilities were purchased relatively low price due to IMF.

I worked day and night, i could held the completion ceremony in May 8th 1998year. And then Nivea Pilot production was carried out, and received an approval from BDF.

Following Germany's BDF, the company began accepting orders for products from Global such as Unilever TheraBreath(USA) based on its quality and price competitiveness.

In Korea, we also supply YUHAN Pharma, 3M, Aekyung industry's product through ODM. And We spread out our own brand products, ORIOX, in to Niche Market.

More than anything else, the success of Propolinse Mouthwash, which started in 2011, in Japan market with its specialty and expensive, has led to the transformation of it into an export company.


Our factory's Site is about 33,057§³ site. Total five factories are operating in that area. We hired 200 employees and total investment is about 36 million dollars. Lip Care, Mouthwash, Hand Sanitizer, and Body Lotion record the largest production volume in Korea. With the global price and quality competitiveness, we recorded $10 million dollars in 2019 export. In 2021, we will record $20 million dollars in export.

From order receiving to purchase, production, and shipment, accounting, quality control, warehousing, measurement, etc.. we invested about $4.5 million dollars in ERP and POM-MES computer system. from this investment, we transformed into SMART factory. In addition, with the vision of 'one hundred year company with an export' correct and transparent management are implemented through company mission. We are advancing into 'LCC' where employees can happily realize their dreams. In addition, we secure the fiscal sustainability with a non-loan management. We act a role in social responsibility through contributing about 10 thousand dollars in society per year.


My second good fortune was learned a martial art named Gukseon-do. And habituate of climb a mountain.

After having cancer surgery in March 2005, I gave up everything and started to organize myself. I met people to sell my company, and I was looking for a living house in my hometown. I can't sleep because I feel frustrated that I have to end my life in the middle of my 50s. I suddenly visited KYOBO book store thinking that, 'Even if the sky collapses, there is a hole that sticks out' and while reading all the cancer-related books for a few days, I discovered a tiny 'hope'. I was able to read a post-training book that says that training in hypogastric breathing helps prevent cancer from recurring and helps to restore health. I found a nearby training center through Internet search, visited the Gangnam Training Center of the World Gukseon-do Federation, met Cho Kyung-jin teacher, and learned a lot from him.


For 15 years, I have been training for two hours every day in the morning, and I can't help but admire and amaze at the effects of this training, which brings about physical health and mental stability. Energy springs from the inside, which prevents cancer recurrence and revives immune function to prevent adult diseases, and make me feel refreshed by training, and give me confidence in everything. While leading the company, I need to strengthen Vision, establish a sound corporate culture, make numerous decisions such as capital investment, and close the consultation with major customers with a win-win, and neutralize friction between departments and employee dissatisfaction. Just as running a turbine requires falling water, and a gasoline has to be charged in order for the vehicle to move forward, the Gukseon-do's energy-training skillfully serves as an "energy source" for business owner.


In the training of Gukseon-do, energy and blood circulate to activate cells and maintain youth, and through concentration and meditation, brain waves are converted to alpha state, and hormones such as endorphin are secreted to get out of Stress. The principles that we read together at the beginning of training play a critical role in achieving the right path with the right thoughts and actions and in implementing the right path and transparent management of companies.

I feel deeply that it is the meaning of Gukseon-do to have a comfortable mind and to have the heart of oblige in everything, to create a bright world with the wisdom and fragrance that flow out of training, and to practice the philosophy of Hongik Man that our ancestors had hoped for.


Along with the training of Gukseon-do, climbing mountain twice a week gives me a big gift of 'physical health' as a business owner. Twenty years ago, I joined the mountain climbing club named 'Hanme', which is a mountain climbing club for my high school classmates, and every Sunday I climb along Bukhan Mountain at 8:00. Mountain climbers who climb the mountain regardless of rain, snow, or typhoon, throw away their week's fatigue and stress into the forest, and descend the mountain with the energy of Mountain Bukhan. I met 86-year-old teacher Jeong Tae-hwa during the climb, and with his strong posture and walking speed, he became our role model, and encouraging my goal of climbing up to 90. Since a few years ago, I've started climbing Cheonggye Mountain in Saturday because I think I need more energy. However, since this year, Wife has been accompanying me, and I've come to realize that 'the man's wife is the best asset.'

The third good fortune is that i have a healthy and happy family.

These days, when I meet my old colleagues and friends, I hear a lot of worries and many difficulties in old age from them. One of the couples has difficulty in normal life due to adult disease and cancer surgery, and has experienced financial problem due to the child marriage, grandchild care, and hospital expenses. The wrinkles on their foreheads seem to be getting deeper due to various and complicated problems. Social successful friends also suffer from health problems and children's problems, and friends who have lived ordinary but safe lives also realize that they are living their old age due to financial difficulties and other difficulties. I realize that God doesn't give us much and everything together.


My wife and I have a physically healthy and maintain a bright and clear spiritual world. I got a cancer surgery 15 years ago, but my immune system has been enhanced through training and weekend mountain climbing, and I live a healthy and balanced life without adult diseases such as high blood pressure and diabetes. My wife also invests a lot of time in health training, swimming, yoga, golf, and so on to protect her physical health, and she seems to be working hard to hear her grandchildren call her 'Young grandmother'. In the evening, we take a walk together, climb Cheonggye Mountain together every Saturday, drink beer and wine, and enjoy Golf Rounding once a month. We live with the proverb that 'If we lose our property we lose small, if we lose our honor we lose a lot, and if we lose our health, we lose everything'.


There seems to be a lot of good fortune from children.

My children have studied in the United States, but they have made up for most of their school expenses with their own efforts and developed their own future. The eldest son is Professor KAIST tenure, and the second son is the deputy head of SAMSUNG stock company. They seem to be living with my advice, 'Always be honest and live giving to others.' Being married at the right age, having two children, and having a happy family makes me feel grateful as a parent. Both of daughter-in-law resigned from their jobs and concentrated on their children's education, so I also have hopeful expectations for my grandchildren's growth and future. For more than 20 years, my family received education (including my daughter-in-law) on the 'the seven habits of highly effective people' and created and implemented a 'Family mission' together, which seems to be contributing greatly to the creation of a 'happy family'.


Founded LCC at age of 50, the company has continued to grow for 23 years despite the currency crisis, and it is a great blessing to realize its dream of becoming a one hundred year company through export. Starting with the OEM production of cosmetics, raising ORIOX Brand in Niche Market, recording the highest production in the country in four fields, and exporting $10 million and $20 million of products overseas to create an LCC for the company's contribution to nation, must be more from heaven, nature, and others than my own efforts. Moreover, I have to say that it is another good fortune in my life to overcome cancer surgeries through mountain climbing and Gukseon-do to protect the health of the spirits and to build a happy family. I have to live the rest of my life, keeping in mind that the good fortune get from people around me might be returned into society.






CEO BAIK, SUNGCHUN

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