My Story (29): Defying the Impossible – 1982 Samsung NY
(Written on Jan 25, 2005)
In the summer of 1982, while I was stationed at Samsung Company's New York office as a representative handling heavy chemical industries, an unusual and seemingly irrational directive arrived from headquarters. We were tasked with dismantling and transporting aging semiconductor manufacturing facilities purchased for $7 million from ITT, an American company, to Korea. This decision stemmed from a bold resolution made by Chairman Lee Byung-chul during his year-end trip to Japan—later known as "Lee's Tokyo Plan."
Chairman Lee, discussing the potential of venturing into the computer and semiconductor industries, sought advice from Matsushita Konosuke, a titan of Japanese business. Lee asked:
"Samsung is considering starting a computer and semiconductor business for the future. What is your opinion?"
Matsushita's response was dismissive and definitive:
"Chairman Lee, the semiconductor industry advances so rapidly that falling behind by just one year could take 30 years to recover. Korea, in particular, is already 30 years behind Japan in this field. Japan's semiconductor industry, second only to the U.S., has reached world-class levels. Calculations suggest that Korea would need 900 years to catch up to Japan. In short, it's impossible. Considering Korea's lack of experience in semiconductors and computers, you should abandon such dreams and focus on strengthening your current businesses."
Despite valuing Matsushita's insights and often incorporating his advice into business strategies, Lee made two revolutionary decisions that shocked both Korean and Japanese industries.
First, although he had been staunchly pro-Japanese in business, Lee shifted the source of semiconductor equipment from Japan to the U.S., marking a significant pivot. This change even led him, a known critic of America, to visit the U.S. the following year to receive an honorary doctorate from Boston University. Second, Lee abandoned any expectation of Japanese cooperation, instead purchasing ITT's aging facilities and establishing Samsung Semiconductor.
The results of these decisions are now well-known. Samsung Semiconductor, launched through this bold initiative, later merged with Samsung Electronics. Today, thanks to this pivotal move, Samsung Electronics has become a global leader in the IT industry. In both 2003 and 2004, Samsung secured the top position globally in semiconductors, with a 2004 net profit exceeding $10 billion, earning the distinction of being one of the "10 Billion Dollar Club" members. Alongside Toyota, Samsung was one of the only manufacturing companies in this elite group. Remarkably, its net profit surpassed the combined profits of Japan's top ten electronics firms, including Matsushita Electric, Hitachi, NEC, and Toshiba.
While many attribute Samsung's extraordinary success to Chairman Lee Kun-hee's sharp management acumen, I believe it was the daring vision and foresight of his father, Chairman Lee Byung-chul, that laid the foundation. Despite skepticism from others, Lee dreamed bold dreams and acted on them, knowing that perseverance would eventually bear fruit. His son, and indeed the Korean economy, now reap the benefits of that vision.
Though I do not personally admire Lee Byung-chul, I greatly respect his ability to dream boldly and challenge the impossible. This spirit of defying impossibility resonates with the teachings of Jesus Christ in the Bible:
"Lord, if it is You, command me to come to You on the water!" (Matthew 14:28)
When Peter made this audacious request, Jesus did not rebuke him but instead called him forward. Just as Peter walked on the stormy Sea of Galilee by trusting His word, we too are called to turn our eyes from reality and dream daring dreams, challenging the impossible.