My Story (26) Breaking Stereotypes - When I was an employee at Samsung in 1978

(Written on May 29, 2021)

 

 

“Mr. Kim, you should now have your product line. I suggest that you handle the steel pipe products.”

I joined Samsung Company on July 7, 1977. After completing my training, I was assigned to the Metal Department, where I worked under five senior employees for about four months. After this period of internship, Manager Heo called me and said those words.

 

I felt a sense of unease when I heard them. Turning around, I noticed the peculiar expressions of the senior employees listening to me. At that time, I had been assigned to the department alongside another colleague, and two employees—Mr. J and Mr. H—had joined the company six months earlier. Mr. J, who was known for his dissatisfaction with product assignments, wore a sly, sarcastic expression. In contrast, Mr. H, a kind-hearted individual, looked at me with pity. Manager L, a senior to Manager Heo, remarked, “Oh my, what a pity for Kim Jin-tae.” Following suit, Mr. K said, “Well, that’s just how it is for a new recruit. He has no choice.”

 

The only person who responded positively was Mr. Y, who would later become my business partner in the U.S. steel pipe industry. He said, “Mr. Kim, that’s a product no trading company has successfully exported directly so far. However, the product itself is very promising, as it is one of Korea’s four main export items. Don’t be discouraged.”

 

As a side note, Mr. Y was later assigned to the Houston office, a steel specialty branch, where we worked closely together before he became independent and established a thriving business. He also encountered Jesus later in life, like me, and served as an ordained deacon at a Baptist church, dedicating his earnings to the church. I have always been a person with a positive outlook and a determination to excel. Regardless of others’ opinions, I diligently studied and prepared for the steel pipe business. I sought overseas trading partners while immersing myself in the study of steel products, acquiring knowledge comparable to that of a metallurgy graduate. This foundation ultimately led to my prominence in the U.S. steel pipe market, where I earned the nickname “Dr. Pipe.”

 

At the time, I didn’t fully understand what was happening, but my heart raced with excitement. For the first time in my life, my boss assigned me products, offering an opportunity to run my own business using the company’s resources. From that day forward, I threw myself into the task, working tirelessly to find ways to sell steel pipes. My urgency was such that I even ran to the bathroom because every moment mattered. Known for my strong gait, which shook the ground as I walked, my hurried pace caused the entire building to tremble. My colleagues could identify my path throughout the company simply by the intensity of the tremors. Some perceived me as eccentric. While I was oblivious to their opinions, I focused entirely on my mission.

“Oh my, have you seen a guy like JT? What a nut!” That was how my colleagues described me back then.

 

Despite my hard work, I initially saw no results. Though I sent letters and telexes to overseas business partners far and wide, responses were rare. When I did receive replies and went to greet the export departments of steel pipe companies daily, I was often met with laughter and cold indifference. Regardless of their treatment, I persisted. For several months, I visited these export departments every morning. Over time, female employees began to bring me coffee unprompted, and an export manager who enjoyed chess would challenge me to games, boasting he’d win. Being single, amicable, and well-liked at the time, my presence brought cheer to the female employees. After months of these visits, they eventually started offering me price quotes out of pity.

 

One day, G. Manager Kim of Pusan Pipe gave an order: “Hey, that guy keeps coming here and wasting his time and money. I feel sorry for him. Why not offer him 2,000 tons of pipes and see if he can sell them?” He allocated the pipes to me as though he were tossing coins to a beggar. Sadly, my desperate attempts to sell them failed, leaving me frustrated and defeated. I felt like giving up. Recognizing the need for drastic action, I devised a bold plan: a business trip to the United States. I submitted a formal request to my boss, aiming to establish a viable strategy for success. Here’s the gist of my proposal:

 

“Sir, I need to understand which companies are purchasing the goods, the local costs, the distribution structure, and which products of the same type are profitable. I cannot succeed by merely sitting here and waiting for inquiries from overseas partners without firsthand knowledge of the market. Given the export performance of steel pipes, the U.S. is overwhelmingly the main destination. I need to visit the market, identify business opportunities, and determine why my efforts have not yielded results. Kindly grant me permission for a two-week business trip to the U.S.”

 

My handwriting was notoriously bad, prompting Manager Heo to frown as he read the request. He asked, “Mr. Kim, what is this?”

“It’s a request for a business trip to the U.S., Sir. What kind of business am I supposed to do without understanding the market? I need to go there to make progress,” I replied.

“Come on! Do you think I can’t read it?” he retorted.

 

As I spoke to Manager Heo, employees around us stared wide-eyed, clearly thinking, “Is this guy crazy?”

Unaware of the hierarchy, I didn’t realize only managers were allowed overseas business trips, which were considered rewards for significant contributions. For a new recruit to request a trip to the U.S.—a coveted destination—was unheard of. Yet, Manager Heo, kind-hearted and supportive, stamped his approval seal despite his initial hesitations. Amazingly, the proposal was approved by all bosses in line, including the manager, the managing director, and the vice president. At the time, I thought their approval was entirely natural. I didn’t even say "thank you." Instead, I demanded their stamps with an attitude resembling a debt collector. From their perspective, my approach might have seemed audacious. But to me, bosses were merely machines stamping documents. In my mind, their role was to trust and support me.

 

Behind the scenes, there were twists and turns. Later, I learned that the key supporter of my bold request was Vice President Joo Young-seok. Upon seeing my proposal, he laughed and exclaimed, “What a guy!” before approving it. Mr. Joo had studied in the U.S., managed Pohang Iron and Steel’s branch there, and was instrumental in fostering global operations.

 

Returning to my proposal, I was confident no one would reject it. I was oblivious to the gossip spreading among company executives about my audacity. It was years later that I learned of their chatter, but I had little interest in gossip at the time. While company policy limited overseas trips to two weeks, I wrote my proposal accordingly, knowing I intended to extend my stay to thoroughly explore the vast U.S. market.

 

That winter, I embarked on my first-ever air ride aboard Northwest Airlines, landing first in Los Angeles. As a country bumpkin with limited English skills, I relied on phone books and taxis to find business partners. Time flew quickly, and I planned to visit cities like LA, Houston, Chicago, New York, Mexico City, and Montreal. Realizing the impossibility of covering them all in two weeks, I sent a telex from LA to the headquarters:

 

“America is too big to cover in two weeks. I’ve come to the U.S. and seen how vast this land is. It’s absurd to think the market can be explored in such a short time. Please extend my trip to one month. I’ve only received two weeks’ expenses, but I’ll borrow additional funds from the branch office. Kindly reimburse them later.”

 

Only much later did I learn my telex caused an uproar at the headquarters. My opening line, “America is too big to cover in two weeks,” became a famous saying among Samsung employees. My request for an extension and additional expenses seemed outrageously bold. My department staff, especially those who looked down on me, said, “Let’s see what happens when this ridiculous guy returns from his trip.”

 

Managing Director Seo Ju-in, head of the Heavy Industry Division, read my telex and laughed. “What can I do with a telex after he’s already acted? Let’s see what happens,” he said.

Fortunately, his leniency granted me an extension and ensured I received the necessary expenses. I returned home “safely,” having gained invaluable experience.

 

Upon my return, none of my bosses reprimanded me, though envious employees muttered about my audacity. Nonetheless, I resumed my duties, determined to make the most of the trip’s outcomes. As you’ve likely gathered, once I make up my mind, I charge forward relentlessly, unaffected by criticism. Those who tried to hinder me often found themselves falling behind.

 

If I were to recount all my experiences from that trip, it would fill a book. For now, I’ll share my achievements, which may inspire aspiring entrepreneurs aiming for big business success.

 

First, I secured my first major export order, which marked a turning point in my journey. During my business trip, I met numerous partners and collected contact information from many of them. Upon returning, I spent countless nights telexing all of them, determined to make deals. Yet, not a single response came my way. After a month of futile attempts, I began questioning whether I was wasting my time. As you've seen in other stories, I possess a persistent spirit: when I set a goal, I pursue it relentlessly. I value peace and never instigate conflicts, but once a challenge arises, I tackle it head-on and never let go.

 

Despite the creeping anxiety, I persisted with my telexing efforts for two long months. Finally, a single response came through—like a sudden slap in the face. The reply was from an electric conduit pipe manufacturer in the central United States, a company that also imported steel pipes. They inquired if I could supply steel conduit pipes, a new product for Korean manufacturers. This company produced electric conduit pipes and supplied them across the eastern United States, but sought imports to meet high demand.

 

When I presented the inquiry to the Korean Steel Pipe Export Department, they expressed interest in the high-end product despite the manufacturing challenges. With that, I initiated efforts for a full-scale order. Later that year, I secured a deal with the company, landing my first $1 million order, renewable quarterly. This milestone transformed steel conduit pipes into one of Samsung's primary export items. Following my business trip, my colleagues, who had once murmured about my inevitable failure, began to view me with envy.

 

This period also solidified my relationship with Korea Steel Pipe, one of the top three manufacturers in Korea. By channeling most of the orders to them, I laid the foundation for the first direct steel pipe transaction between a Korean general trading company and the United States—a significant achievement and the cornerstone of my burgeoning steel pipe business.

 

My standing both inside and outside the company skyrocketed. Those at Korea Steel Pipe, from export staff who had once treated me like a beggar to executive directors, began to acknowledge me as a crucial business partner. They faithfully responded to my inquiries, with one employee even discreetly adjusting the price I paid, lower than others, to help me secure orders. I transformed from a beggar to a prince, and my enthusiasm soared. My face shone brightly as I navigated each day happily, sprinting through the company halls. Even within the company, no one dared to challenge me despite my occasional carefree attitude. My bosses rubber-stamped my proposals without a second glance.

 

During this time, U.S. branches often neglected to respond properly to my telex requests. My go-to strategy involved leveraging Vice President Joo’s authority. Drafting telexes in his name to “motivate” the branches, I would confidently walk into his office with my requests. Smiling, he would stamp the approval seal, unfazed by my unconventional approach. It was likely unprecedented at Samsung for a new recruit to frequent the Vice President's office as though it were his second home. Vice President Joo enjoyed the dynamic and offered his full support.

"You can use me as you please. That's why people like me are at the top," he once remarked.

There are many fascinating stories involving Vice President Joo, which I will recount in another article.

 

Second, I was able to develop new markets. Through my business trips, I realized why I had not been able to get through the western U.S., even when I offered prices to my business partners. The US West Coast was the closest to Korea and did not require passage through the Panama Canal, and since there were no American steel pipe manufacturers there, Korean steel pipe companies were highly competitive. Therefore, as the Pipe importers on the West Coast had been importing directly from steel pipe companies for a long time, there was no room for a latecomer like me to interfere. Realizing this, I decided to develop a market that steel pipe companies had not yet exported to.

 

"If the West Coast doesn't work, we can export to other places. Only fools would give up in advance, saying that it wouldn't work out, whether they were manufacturers or companies." That's what I said.

 

The Gulf Coast and the East Coast, and the central regions of the United States had high shipping costs, long transportation times, and were monopolized by American steel pipe manufacturers, so the common view among steel pipe manufacturers and their bosses was that imported products could not compete in the markets. There was not just one reason why it would not work, but there were three, so their thoughts were reasonable. However, I have a rebellious spirit, so I wanted to do it even more because others said it could not be done. I tried to break the stereotype that it could not be done, and that attempt later became a huge success.

 

Third, I developed a new product line with good prospects. As I mentioned earlier, the first product I sold to the United States was a new product that had not been produced in Korea before. I decided to focus on steel pipe products for the Petroleum industry, which had good marketability and prospects, as my main product. There was an incident that led to this. When I went on a business trip to the US market, I saw that the US Pipe dealers were selling Korean pipes intended for other uses as Petroleum pipes. So, I asked them: “Sir, is it okay to use regular steel pipe as a Petroleum pipe? Will it hold up?”

“Don’t talk nonsense. You don’t know how good the quality of Korean products is. Even though it’s regular steel pipe, there’s no problem using it for a Petroleum pipeline.” That was their answer. 

 

At the time, Petroleum pipes were sold at a price 20% higher than regular steel pipes, and Japanese pipe companies dominated the import market. Korean products were priced at regular steel pipes, but their quality was good enough for Petroleum pipes, so they were bound to be popular.

The only ones who didn’t know this fact and didn’t believe it were the Korean pipe manufacturers. Thinking that now was the opportunity to develop a new product, I excitedly took the inquiries from my business partners to the export departments of the pipe companies, but they all shook their heads. I was so frustrated that I asked.

 

“Come on, they’re already using your products as Petroleum pipes, so why on earth are you saying they can’t?”

Then the pipe manufacturer's export manager said this bluntly: “Mr. Kim, our current facilities and technology cannot produce steel pipe products for the oil industry. So don’t even mention the Petroleum pipes.”

 

What do you think I did? Didn't I say that I have a persistent spirit? I kept going and nagging them. Then, the person in charge of the export department, who got tired of it, said this to me. “Mr. Kim, our engineers are saying that it’s impossible, and they won’t let us win the order. So, we need to persuade the engineers first and make them say that it’s possible.”

This guy also changed his mind halfway because I kept nagging him. So, I went to the factory and started to persuade the engineers, but they wouldn't change their minds no matter what. All the facilities for Korean steel pipe companies were supplied by Japanese steel pipe companies, and they were in charge of not only the initial operation but also the training of the engineers, so the Korean engineers believed the words of the Japanese engineers as if they were from the Bible. The Japanese technicians reportedly told them this as a mantra: "Your machinery is designed to produce only water and gas pipes. Don't even think about producing steel pipes for the oil industry with that!"

 

When I heard this, I felt very sorry. "Ah, why do you fools believe your competitors so much? Do you know what's going on in the US market?"

 

Didn't they say that no tree will stand after ten axe strikes? I must have struck it about thirty times. At first, they resisted, saying that they couldn't do it, but eventually, they gave in to my persuasion.

"If there's a problem, Samsung will take responsibility, so produce it under the No Claims condition. You can insert that into the contract terms." I had promised on my own. If my bosses had known, they would have been furious and called me a company ruiner, but at the time, I just let it slide. There were more than one or two other misdeeds(?) that I committed on my own. As I was certain, there was not a single problem in the Petroleum pipe export business. In the end, Korean steel pipe companies no longer demanded the “No claim” condition. That’s because they later found out that instead of inserting that condition, I had lowered the price to the level of regular steel pipes and made a huge profit. My bold decisions like this always brought huge profits to Samsung, so no one said anything even after they found out later what I did.

 

“Well, is there a big business that doesn’t have any risk? If you wait for a business without risk, you will always end up catching the last train.” That’s what I said.

As a result, I became the first Korean to conquer the U.S. Gulf Coast Petroleum pipe market, which was booming due to the oil crisis at the time, and exported $100 million worth of products. Pusan Pipe, the largest steel pipe company in Korea at the time, granted Samsung exclusive rights to Petroleum pipes, and Korea Steel Pipe, which saw this, gave Samsung a de facto monopoly. In my third year with Samsung, my exports to the U.S. alone accounted for more than half of Korea’s total steel pipe exports to the U.S., and especially when calculating only the regions excluding the western region, I dominated the market itself. Incidentally, Korea’s total steel pipe exports to the U.S. at the time were worth $200 million. Yes, even the branches that had reluctantly helped me in the beginning began to move quickly at my word.

 

In short, my business trip was a great success. 

 

After my scandal, Samsung began allowing employees to take overseas trips. “I see, business trips aren’t always reserved for high-ranking personnel,” became a prevailing sentiment in the company. This shift in perspective paved the way for steady progress, and the steel pipe products I had spearheaded alone eventually became an independent department within a year. Later, it was further elevated to the Steel Pipe Department.

When it officially became a department, my first recruit was Mr. K, a graduate of Gyeonggi High School and Seoul National University. Despite being much more senior than I, I hired him as my assistant and trained him to manage operations in the Middle East. Following my resignation from the New York branch, Mr. K succeeded me and maintained a positive relationship with me. Over time, I found joy in taking seniors as my assistants, managers, and directors—a testament to the unconventional dynamics I fostered. By April 1981, less than four years after joining Samsung, I was assigned to its New York office.

 

This is the story of how I transformed an "ugly duckling" product that no one wanted into a “beautiful swan that lays golden eggs.” It truly resembles a Cinderella story.

 

“Set one goal and walk the path. There will be mistakes and failures. But get up again and move forward.”

 

This motto was inscribed under the map in the room I shared with my brother when I was in the 6th grade. I have carried these words with me throughout my life, always striving to embody their wisdom.