The country's economy is truly becoming more harsh. As exports remain sluggish for a prolonged period, domestic consumption is also weakening. Both of these key engines that support the Korean economy are gradually diminishing since the beginning of the year. In March, exports amounted to $55.1 billion, while imports reached $59.7 billion, resulting in a trade deficit of $4.6 billion. This marks the continuation of a deficit for the past year. The significant decline in semiconductor exports by 42.5% compared to the previous year and a 24.2% decrease in exports to China are identified as the main causes for this situation.

Amid the sluggish export performance, the domestic consumption is also cooling down. Retail sales, a key indicator representing consumer spending, have decreased by 2.1%. In addition, both inflation and employment indices have exceeded market expectations, leading to a situation that can be described as a scenario of "No Landing," where there is no clear stabilization or improvement in sight.

The Korean economy, heavily reliant on exports, is being directly hit by the global recession caused by the COVID-19 pandemic. As a result, businesses are experiencing a significant decline in sales and profitability. Particularly, small and medium-sized enterprises (SMEs) are facing severe challenges, with a staggering 99% decrease in the number of businesses, an 83% reduction in the workforce, and a 60% decline in GDP. Their difficulties are further exacerbated, leading to a loss of their ability to contribute to production, employment growth, and the expansion of the industrial structure.

Due to the decline in sales and deteriorating profitability, many SMEs are facing threats to their existence. They are struggling with financial difficulties, increased financial costs, and a shortage of necessary personnel, making it challenging for them to undertake new product development or explore new markets. Observing the industrial landscape, it appears to be widely accepted as a common belief that among 1,000 small manufacturing companies, 10% survives if their lifespan is 10 years, 1% survive if it's 20 years, and 0.01% survive if it's 30 years.

Despite the COVID-19 pandemic, LCC has been able to achieve steady growth and has been actively exploring new sources of revenue, even if there has been a slight decline in sales. We have strengthened the competitiveness of our own-brand 'ORIOX' through partnerships with Korean SPA and DAISO. We successfully overcame the crisis by introducing essential products such as hand sanitizers and BUBBLE hand wash during the pandemic. Furthermore, we have developed a new item that exports over 30 million units of L/C (Lip Care) annually. Now, we are preparing to invest several million dollars in marketing expenses as a SMEs to establish the business strategy for the Dispenser Mouthwash, aiming to achieve $30 million in exports once again.

During the 25 years since its establishment, our company has never recorded a single deficit, and even during the COVID-19 period, we were able to complete new advanced factories without borrowing from banks. The background behind our ability to pursue the vision of being a century-old enterprise and an export-oriented company through debt-free management lies in our consistent efforts to nurture talents, which is particularly challenging for small and medium-sized enterprises.

In conclusion, all the team managers of our LCC were hired as fresh graduates and have been promoted from assistant managers to managers, deputy directors, and department heads, leading the company's development in their respective departments.

Since the establishment of the company, I set 'Talent Development' as a key mission and have dedicated significant efforts and passion to nurturing individuals. It is often considered impossible for SMEs to secure outstanding talent, as if plucking stars from the sky. Although we may not have graduates from top-tier universities (known as SKY universities in Korea), we have been able to identify individuals with great potential and consistently train them to become capable employees and leaders within the company. As a result, we now have an internal team leaders who are fully committed to the company's growth and development, without relying on external recruitment.

Our team managers have received recognition for possessing outstanding capabilities compared to my former company LG's team managers. In certain aspects, they had evaluated that they have even superior skills compared to LG's team managers. When faced with friction or work-related stress with superiors or colleagues, I have made every effort to persuade and regain a positive mindset. I have taken the initiative in resolving various issues, such as convincing them to stay in one workplace rather than constantly changing jobs and proactively helping them overcome personal difficulties. Naturally, I have also provided assistance during economic hardships and have never hesitated to offer housing support, ensuring a stable home life.

Is it possible and easy to cultivate LCC employees as talents when I am already struggling with the education of my own children at home? First and foremost, we have focused on instilling values such as honesty, diligence, and responsibility through character education rather than solely emphasizing job skills. Additionally, we have jointly established a 'Company Mission Statement' that encompasses the company's vision and management strategies, ensuring alignment and fostering the right workplace mindset by reciting it during morning meetings. Furthermore, each department has created a 'Department Mission Statement' through collaboration, aligning it with the Company Mission Statement, and seeking ways to implement specific actions. Through cooperation with other departments, we strive to generate synergy and create a conducive environment for execution.

As the company and departments 'alignment' under the leadership of the CEO and department managers, along with the implementation of bold 'empowerment' of authority, active participation in problem-solving and business improvement is encouraged, as the saying goes, 'No dedication without involvement.' The key to delegation of authority is not just giving responsibility and authority but instilling a sense of ownership in the tasks, fostering a 'sense of ownership'. When individuals take responsibility for their tasks, a dynamic atmosphere is created, leading to an increase in their job capabilities. With reduced workload, department managers can focus on more important tasks, resulting in significant improvements in efficiency and effectiveness through the participation of all employees.

The increased effectiveness of task execution refers to the ability to handle a larger workload with fewer personnel, resulting in a significant reduction in overall overhead costs for the company. This, in turn, contributes greatly to improving profitability. The increase in sales and improvement in profitability serve as a solid foundation for sustaining the company. This is achieved through transparent and ethical management practices, with most tasks being computerized and efficiently processed. As a result, overhead costs are reduced.

The ability for organizational members to have a sense of ownership and engage in voluntary and autonomous task performance is attributed to the corporate culture that promotes employee happiness, the realization of dreams, and a proactive 'saladent' through lifelong learning and self-development. There is a reward system in place that awards a total of 5,000 dollars annually based on employees' task improvements and achievements. Additionally, there is an LCC Magazine that enables communication between the company and colleagues, where employees can express their thoughts in writing. Furthermore, a collection of brief speeches called '3-Minute Speech Collection' is published, which is presented at the beginning of each workday.

Throughout the 25 years of managing a SMEs, I have come to realize the importance of 'people' in a company. While OEM production allows for a CEO-centric 'all-around play' in small-scale companies, the steady growth of our own brand, ORIOX, in a niche market and the expansion of overseas trading partners, with diverse products being exported worldwide, require exceptional talent to achieve our vision of 'becoming an 100 years company through export'. It is essential to explore overseas trading partners and domestic customers, increase sales, enhance global competitiveness in terms of price and quality, develop new products, renew packaging, and create a corporate culture and welfare conditions that make employees happy. To accomplish these goals, leaders who adhere to principles are absolutely necessary.

When we peek inside successful and thriving companies, we can observe trustworthy individuals who possess both character and competence actively taking on challenges in various departments. Moreover, we can discover that these companies prioritize people as their utmost priority and compete in investing and putting effort into talent development, fostering a corporate culture that reflects these values.

I have felt and experienced firsthand that cultivating the necessary talent within the company is truly difficult and challenging. During the early stages of our business, we had no choice but to bring in external talents with expertise and leadership skills to fill managerial positions. However, as we worked together, it became apparent that those we had scouted had incorrect work ethics, lacked the qualities and abilities necessary to generate essential synergy in a manufacturing environment. We reached the limit of our ability to fix these issues, ultimately leading to their departure from the company.

However, what is truly fortunate is that all of our staff, including team managers of LCC are mind-set with the 'The 7 Habits of Highly Effective People'. Behind them, there are numerous talented individuals ready to step up, from assistant managers to team supervisors. The fact that we have nurtured a multitude of talents of LCC employees is our greatest achievement and invaluable asset.

I firmly believe that if we continue to devote ourselves to talent development with the belief that 'a company is its people', our vision of 'Becoming an 100-years old company through export' will undoubtedly be realized.

CEO BAIK, SUNGCHUN