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Journal_Entrepreneurial Philosophy in Management Succession Mechanism_The Case of Global Leader in Industrial Display

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메커니즘 저널 Journal of Mechanism Management 1
Entrepreneurial Philosophy in Management
Succession Mechanism:
The Case of Global Leader in Industrial Display
Kichan PARK Han-Gu LEE Jae-Hong PARK Jung-Chul CHOI
This study examined the philosophy of an entrepreneur expressed in the
process of succession of management rights. The target company Kortek
is the world’s No. 1 manufacturer of Gaming Video Display Monitors.
Chairman Lee Han -Gu, founder of Kortek, struggled to manage the
succession of the company for two years verifying three scenarios: Family
succession, Recruitment of professional manager, and M&A . Finally the
company inherited management rights by Kim Young -Dal, President of
IDIS Holdings. Chairman Lees choice is once again confirmed through
Korteks business performance, which is still growing auspicious. This
study is an example of a company, but it is an in-depth analysis focusing
on more than 20 interviews with an entrepreneur , corporate data and
media articles. It will give effective implications for understanding the
management succession mechanism that is desirable for all Korean
entrepreneurs who are concerned about management succession.
Entrepreneur, Kortek, Industrial display, Management succession
mechanism, M&A
Kichan Park (제1저자)
Professor, Inha University
kichan@inha.ac.kr
Han-Gu Lee(공동저자)
Founder and Chairman, Kortek
hg@kortek.co.kr
Jae-Hong Park (공동저자)
Doctoral candidate, Inha University
jaehong880926@gmail.com
Jung-Chul Choi(공동저자)
Professor, Inha University
215213@inha.ac.kr
메커니즘 저널 제1권 제1 호: 1-21
Entrepreneurial Philosophy in Management Succession Mechanism:
The Case of Global Leader in Industrial Display
메커니즘저널 제1권1호 2
INTRODUCTION
Even though best practice might not be the easiest strategy for followers, benchmarking is the
most important and systematic process to search for the best practice not only for academics
but also for all businessmen (Drucker, 2007). In that sense, b enchmarking is a valuable
exercise for companies striving to improve their operational efficiency and effectiveness across
the enterprise (Detouzos et al., 1989; Park, 2010). Are there then best practices in the
succession of management rights, especially in a country like Korea where family business
hereditary is prevalent?
This case study examines the succession of management right about the company Kortek
which became a popular headline on many newspaper articles Forbes, 2010; Korea Exchange,
2011; KM, 2011; Hankyung, 2011; 2012; Fortune Korea, 2012; Etnews, 2012; Economist, 2014;
Sedaily, 2013; 2014; Hankyoreh, 2014; MK Weekly, 2019). Above all, we conducted more than
twenty interviews with the Chairman Lee Han-Gu, an entrepreneur, who created this world
leading company from scratch, now facing this succession epic.
A BUSINESSMAN EQUIPPED WITH CHALLENGE AND INNOVATION
Chairman Lee graduated from Incheon High School in 1968 and ha d no further educational
background. It was a time when the South Korean people lived poorer than North Korea and
the economic foundation was weak and at the country’s lowest. Even the most talented
students couldnt go to the best universities like Seoul National University simply because of
poverty, so many had to give up on their studies and embarked on their careers seeking bread;
even the young ones to support the family.
He recalls not having a single decent meal during his childhood. During summer seasons,
he spent all of his time making money as a street vendor near Incheon Beach. In the first year
of high school, he became a so -called housekeeper. He made a family living in place of his
father, who suffered from illness. However, with the help of a relative, he was able to complete
three years of high school while working as a private tutor. The most successful people often
say, "Im a lucky guy" (St. John, 2011; Park, 2015). He also often spoke that he was fortunate
to have had the opportunities to have the business and experience he had in his difficulties
and passion.
When the other students were mainly interested in entering university, military enlistment
felt a graduation gift for him since he could then be fed and wear donated clothes. As part of
life in the military, he was perfectly capable of serving as the Capital Defense Command in
KICHAN PARK HAN-GU LEE JAE-HONG PARK JUNG-CHUL CHOI
메커니즘 저널 Journal of Mechanism Management 3
Seoul, which was the envy of all soldiers, but he wanted to participate in the Vietnam War
where soldiers tears await. He volunteered for Vietnam, saying that it was the only way to earn
money. His hope was to start a small business after his service in Vietnam.
The first vending machine business in Korea
The ROK army’s participation in the Vietnam War ended with the final withdrawal in March
1973. When he returned from Vietnam, all of the money and items sent to his family were
already spent to earn their living life. There was only one camera left (Canon F1), which
became his most valued property. He later sold it for 75,000 won
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