Chung Ju-yung or Jung Joo-young (; 25 November 1915 – 21 March 2001) was a South Korean entrepreneur and the founder of Hyundai Group Group, one of the largest chaebols in South Korea. Raised as the eldest son of a poor Korean farmer, Chung was influential to the rapid development of Korea's economy by founding Hyundai Heavy Industries, developing it into the world's largest Shipbuilding, as well as expanding Hyundai Motor Group into the largest automobile manufacturer in Korea and the world's third-largest.
Chung managed his business ventures through the tumultuous times of Japanese colonial rule in Korea and the country's post-war economic stresses. Chung explained his success in his statement: "Our people succeeded because they devoted their enterprising spirits. They used the forces of other minds. Conviction creates indomitable efforts. This is the key to true miracles, man's potential is limitless."[ Made in Korea: Chung Ju Yung and the Rise of Hyundai. By Richard M. Steers. Pg. 1. 1998.]
Biography
Early life
Chung Ju-yung was born into an impoverished family in
Tongchon County, Korea, which was part of the Empire of Japan (now Kangwon Province, North Korea). He initially aspired to become a schoolteacher, but his family lacked the financial means to support his education.
When not occupied with work on the family farm, Chung attended his grandfather's Confucian school. His business acumen began to show during trips into town, where he sold wood to help support his family.
First escape attempt
At the age of sixteen, Chung and a friend decided to travel to the city of
Chongjin (Chongjin, currently in North Korea) for work, hoping to escape the harsh realities of farm life.
[ Chung ju yung ] After a 15-mile trek through the most dangerous parts of the Paechun valley, the pair reached the town of
Kowon (Kowon, in North Korea), where they took up jobs as construction workers.
Although they worked long hours for low pay, Chung enjoyed the independence of earning money. Chung and his friend continued the work for two months until Chung's father learned of their whereabouts.
Second escape attempt
The journey that Chung and his friend undertook contributed to his growing interest in civil engineering and provided a sense of personal accomplishment. Upon returning to his home village of Gasan-ri in Tsūsen-gun, Chung began planning another attempt to leave - this time with the goal of reaching Keijō (formerly
Hanseong, currently
Seoul). In April 1933, Chung departed for Keijō with two companions.
The journey faced challenges early on, including the apprehension of one of the boys by a family member. Additional difficulties arose when Chung and his friend were deceived by an individual who claimed to offer employment but instead took their money. Chung's father eventually located them, bringing the attempt to an end at his grandfather's nearby residence.
Third escape attempt
Chung returned to Asan, where he spent a year assisting his father on the family farm. After fulfilling his familial responsibilities, he sought another opportunity to escape poverty. To finance his journey, he sold one of his father's cows and purchased a train ticket for 70 won.
Once he arrived in Keijō, Chung enrolled in a local bookkeeping school, with the hopes of starting a career as an accountant. Things went smoothly for two months until his father managed to find him again, and, after an argument, took him back to Gasan.
Rice merchant
In 1933, at age 18, Chung decided to make a fourth escape. He left during the night with a friend who was trying to escape a
forced marriage. Once Chung reached the capital, he jumped at any job he could find. He worked first as a laborer at
Incheon Harbor (Incheon, currently in South Korea), as a construction worker at Boseong Professional School, and as a handyman for a starch syrup factory.
After working at the factory for nearly a year, Chung landed a job as a deliveryman at the Bokheung Rice Store in Keijō.
In 1937, the store owner decided to give the store to Chung because he had gotten ill. At 22, Chung became the owner and renamed the store to Kyungil Rice Store.
Creation of Hyundai
A-Do Service Garage
Chung returned to his village once his business failed and remained there until 1940, when he decided to try again in Keijō. After considering the restrictions imposed on Koreans in certain industries by the Japanese colonial government, Chung entered the automobile repair business. Using a service garage he purchased from a friend, Chung started the A-do Service Garage on a 3,000 won loan. Within three years, the number of employees grew from 20 to 70, and Chung was able to earn a good income. In 1943, the Japanese colonial government forced the garage to merge with a steel plant as part of the war effort.
Chung returned to Gasan with 50,000
Korean yen in savings despite the Japanese shutting down his businesses.
Hyundai
In 1946, after the liberation of Korea from Japanese control, Chung launched
Hyundai Group and Hyundai Civil Industries, anticipating the post-war reconstruction and industrialization. Chung won government contracts and became responsible for building much of South Korea's transportation infrastructure, including the
Soyang Dam in 1967, the Gyeongbu Expressway in 1970, the world's largest
shipyard in
Ulsan, and the Kori Nuclear Power Plant, among others. Chung also won contracts from the United States Forces Korea to build facilities for their personnel, leveraging his younger brother's proficiency in English and good relationship with U.S. Army engineers.
During the North Korean invasion of 1950, Chung abandoned his construction projects and fled with his younger brother to Busan for safety. His son, Chung Mong-joon, was born there. Chung continued to build onto the company by gathering any kind of work he could get from the United Nations Command and the Korean Ministry of Transportation.
Chung continued to grow and diversify the company into one of South Korea's chaebols. With no experience in shipbuilding, he created the Ulsan shipyard. The first vessel was completed in three years (rather than the expected five) as Chung had the shipyard and vessel built simultaneously. He introduced the Hyundai Pony in 1975 and the Hyundai Excel in 1986, using European expertise.[Autopolis (2011). " 1975–1982 Hyundai Pony: An Almost Cinderella Story".][Autopolis (2011). "
]
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Later years
From the 1980s until recently, the Hyundai Group was split into many satellite groups. In
Seosan City, he carried out a reclamation project, using a decommissioned
oil tanker as a
cofferdam.
[Amazon (2010). " Korean Founders of Automobile Manufacturers".] In 1998, he herded 1,001 cows through the Korean Demilitarized Zone to North Korea, which he claimed was a repayment 1,000 times over for a cow he took to afford his ticket when he left his father's farm.
Chung was the first civilian to cross the Korean DMZ since the division of Korea.
He was the first to propose the
Kumgang-san sightseeing excursions.
He founded the Hyundai Heavy Steel Company, which developed a non-dock ship-making method.
Chung's philanthropy distinguished him from the other businessmen of his generation. In 1977, he founded the Asan Foundation with a scope of activities comparable to those of the Ford Foundation or Rockefeller foundations. The foundation was organized into four areas of service: medical support, social welfare, research and development, and a scholarship fund. Through its efforts, the foundation established nine hospitals throughout South Korea, built Ulsan Medical College, and funded the Asan Life Sciences Research Institute. The foundation also initiated cooperative arrangements between industry and academic institutions by supporting such academic research as the Sinyoung Research Fund.
In 1982, Chung received the Golden Plate Award of the American Academy of Achievement.
Political activities
Chung is credited with successfully lobbying for South Korea to host the 1988 Summer Olympics. In 1992, the International Olympic Committee awarded Chung an IOC Medallion for his contributions to sports as a vehicle of international understanding.
Chung ran unsuccessfully as a Unification National Party presidential candidate for the 1992 South Korean presidential election. During this time, he was estimated to have a personal wealth of $4 billion, making him the richest man in Korea, though later estimates have placed him considerably lower.
Chung also worked to normalize relations between the two Koreas. In 1998, at the age of 82, he worked with the South Korean government to provide economic assistance to the North. President Kim Dae-jung wanted to provide a $100 million donation as a way to jump-start economic development in North Korea under his Sunshine Policy. However, Kim could not find a legal way to transfer the funds. He turned to Chung, who was already negotiating a large program with the North. Kim persuaded Chung to increase his investment by $100 million with money from secret loans provided by the government-controlled Korea Development Bank. The historic 2000 inter-Korean summit took place, with Chung traveling across the border in a motorcade of cars containing some 1001 "unification cows" as a gift to the North Korean people.
Death
Chung died March 21, 2001, at the age of 85 from pneumonia after receiving at-home treatment for other long-term illnesses.
He was buried in accordance to
Korean Buddhism and Confucian customary rites.
[ 故 정주영 명예회장 묘소 참배하는 이명박 ; 이제는 새 청사진을 그려야 할 때 ] His wife, Byun Joong-seok, died on 17 August 2008, at the age of 88, due in part to long-term heart complications,
[ Hyundai's Cornerstone Passes Away; '현대家의 대모' 변중석 여사 영원히 잠들다 ] and was buried in a family graveyard in
Hanam, alongside her husband and their son.
[ 2,000 Attend Funeral Services for Chung ]
Legacy
As one of the most recognized and admired business men in Korean history, Chung's identity still pervades modern Korean society and industry. Business-related events emphasizing creativity and innovation have been named after him.
Much of the current success of Hyundai is widely attributed to Chung's insight and resolution, ideals that the contemporary Hyundai leadership vow to keep.
Books
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Trials May Not Fail ()
-
Born in This Land ()
-
Your Lips Need to Burn if You Plan to Succeed ()
Family
Chung Ju-yung had five brothers and one sister; he had eight sons and one daughter with his wife.
In addition, he had two daughters with a younger woman, with whom he started a relationship in 1973; these daughters were not acknowledged until after his death.
[
]
Brothers
-
(1920–2006). After leaving the Hyundai Group, he founded the Halla Group, whose interests included Mando Machinery, Halla Cement, Halla Construction, Halla Heavy Industries, and Halla Climate Control Corp.
-
(1925–2015). After working for Hyundai Engineering & Construction he ventured by taking Hyundai Cement with him to form the Sungwoo Business Group, which includes Hyundai Cement, Hyundai Welding, Sungwoo Automotive.
-
(1928–2005). Founder of Hyundai Motor. Left the Hyundai Group with Hyundai Development Co., Ltd., the leading housing builder in Korea.
-
Chung Shin-yung (1931–1962). Died in a car accident in Germany while working as a journalist for a Korean newspaper company. His only son, Chung Mong-hyuk, ran Hyundai Oilbank, the third largest oil refiner in Korea.
-
(1936–2021). Founder of the KCC Chemical (Keumkang) group, Korea's leading paint and glass maker.
Children
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(1934–1982). Died in a car accident in Gimcheon, in a Hyundai-built Ford Granada,
-
Chung Mong-koo (1938–). Currently the head of the Hyundai Kia Automotive Group, the second largest business group in Korea. Assumed control of Hyundai Engineering & Construction in 2011.
-
(1942–). Currently the chairman of the Hyundai Department Store Group, one of the largest retailers in South Korea.
-
Chung Kyung-hee (1944–). The only daughter of Chung ju-yung and Byeon Joong-seok.
-
(1945–1990). Committed suicide leaving three sons. His oldest son Chung Il-sun is currently the president of BNG Steel, a member of the Hyundai Kia Automotive Group.
-
Chung Mong-hun (1948–2003). Former chairman of the Hyundai Group and heir apparent to his father before he committed suicide in August 2003; this left his wife (1956–) in control of the Hyundai Group.
-
Chung Mong-joon (1951–). Politician and de facto owner of Hyundai Heavy Industries,
[ the world's largest shipbuilding firm, as well as vice-chairman of FIFA.
]
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(1955–). Chairman of Hyundai Marine & Fire Insurance, Korea's third largest non-life insurer.
-
(1959–). Former chairman of Hyundai Merchant Bank and Kangwon Bank.
-
Chung Chung-in (Grace Jeong; 1979–), actress.
-
Chung Chung-im (Elizabeth Jeong; 1981–), advertiser.
[
]
Nephews
via Chung In-yung (1920–2006)
via Chung-Soon-yung (1925–2015)
-
Chung Mong-sun. Chairman of Sungwoo Group (Hyundai Cement).
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Chung Mong-suk. Chairman of Hyundai Welding Co., Ltd.
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Chung Mong-hoon. Chairman of Sungwoo Hyokwang International Co.
-
Chung Mong-yong. Chairman of Sungwoo Automotive.
via Chung Se-yung (1928–2005)
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Chung Mong-gyu. Former Chairman of Hyundai Motor. Current Chairman of Hyundai Development Co., Ltd.
via Chung Shin-yong (1931–1962)
-
Chung Mong-hyuk. Former President of Hyundai Oil & Hyundai Petrochemical; current chairman of Hyundai Corporation.
via Chung Sang-yung (1936–)
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Chung Mong-jin. Chairman of KCC.
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Chung Mong-ik. Vice-chairman of KCC.
-
Chung Mong-yeol. President of KCC Construction Co., Ltd.
See also
Notes and references
Further reading
External links
