ENGLISH FOR INTERNATIONAL RELATIONS 2

Chung Ju-Yung Drive His Way To Success

By Group 9: Diwintya Fernidyanti Andrian Restu Putra Michael Hardy Luthfi Ilham Rachmadi Gina Azriana Ika Prastia Ariel Iskandar Hanatasya Septiani Shinta Permata Sari Mira Ardelia Hakim Yoga Miftahul Ihsan Stanijuanita Marantika 170210110103 170210110104 170210110105 170210110106 170210110107 170210110108 170210110109 170210110110 170210110111 170210110112 170210110113 170210110114

INTERNATIONAL RELATIONS STUDY PROGRAM FACULTY OF SOCIAL AND POLITICAL SCIENCES UNIVERSITAS PADJADJARAN 2012

Hyundai, we all surely have known about it. It is the name of the biggest car company in Korea. First founded in 1947 as Hyundai Engineering and Motor Company, it stands firmly until now.1 Enduring so much transformation, rain, and storm, Hyundai never got desperate and fall. Those problems and troubles always make Hyundai get stronger day by day. Even though Hyundai is well known in the world, but not all people knows Chung Ju Yung. He is the founding father of Hyundai. He is the man behind the success of Hyundai. He was the man who holds Hyundai through the storm and kept it standing firmly. Hes been fall so many times in his struggle to build and keep Hyundai standing. Chung Ju Yung was born in Kangwon province at 25 November 1915, during a time when Korea was under Japanese rule (1910-1945).2 Born to a large impoverished family of peasants, he was the eldest out of six children. As a young boy, Chung dreamed of becoming a school teacher but his hopes were cut short because the restrictive environment at the time kept the family stuck in poverty, effectively keeping Chung away from the opportunities of higher education. Despite the setbacks, Chung continued to go to a local Confucian school run by his grandfather whenever his time was not taken up by tasks on the family farm.
3

Chung have a

hobby to read a newspaper and because that newspaper, Ju-Yung get jobs in construction in a large port Chungji. Chung Ju-Yung eventually left his family, along with his friends he went to Chungji to find a job. In the city of Wonsan, he hoped his friends there to work. But unfortunately he did not get a job and even had to sleep in the street with sky as his roof. On his way to Chungjin, he got a job as a laborer in working railways. But he was summoned home by his father. Then he tried to run away from home to find his father got him a job but returned home.4 Ju-Yung finally saw an ad for his education at a school of accounting. He was interested and decided to run away from home a third time and take his father money by 70 won and went to the station Chunglyanglee, on 10 April 1932. He used the money for school supplies. He was a

Earnhardt Hyundai. 2012. Hyundai Motor Company Founding Chairman. Accessed 22 April 2012, http://www.earnhardthyundai.com/hyundai-history/ 2 KBS World. 2010, Sejarah Penjajahan Jepang di Korea. Accessed 27 May 2012, http://world.kbs.co.kr/indonesian/program/program_askme_detail.htm?No=18674. 3 DirectEssays.com, 2012, Hyundais Chung Ju Young. Accessed 27 May 2012, http://www.directessays.com/viewpaper/13510.html 4 Agus Surono. 2012. Chung Ju Yung Pendiri Hyundai. Accessed 23 April 2012, http://intisarionline.com/read/chung-ju-yung-pendiri-hyundai-

very hardworking student and a diligent learner. He said "I do not want to go back home, doing the work of farmers, I do not want to impoverished rural".5 After finished his school, Chung was on his way to Inchon to find a job. He worked as construction laborers but he feels bored to work as a construction laborer, then he goes to Seoul. There, he got a job at the Bokheung Firm and worked as a sender of goods to the consumer with a monthly salary. At that time, 1934, Chung was still less than 20 years old. Chung's career turned out pretty well there. From his salary, Chung buy some property for his family in Tongchon. And shortly afterwards, Chung Ju-Yung was married to Byun Joong-seok, a girl from the same village. With his wife, Chung returned to Seoul and opened his grocery store named Kyongil Firm.6 (Spesific data) And then in 1937, Japan launched a military aggression to China. And eventually make a Chung Ju Yung bankrupt and collapse. So he ended up staying in the village with his family for a while. On February 1940 he opened a car repair shop with the name "A do Service". He buys some of area for 5.000 won both of his savings and loans from customers. But it was only open five days, his shop was burned. Relentless, Chung borrowed 3.000 won from the consumer and he come back to make his car repair shop for once again do it in a new place with 50 workers. His car repair shop is also implementing a strategy to implement the efficiency and promptness, so he can handle the job more quickly than its rivals. This strategy is applied in Hyundais system till now. 7 Hyundai Group actually is not only an automotive motor company. He firstly founded Hyundai Engineering and Construction Company in 1947. Then he established other kind of corporations and companies such as Hyundai Motors in 1967 as an automotive company. In 2003 it was South Korea's largest car maker and the world's seventh largest car maker.8 There are also Hyundai Corporation in 1976 as a trading arm and Hyundai Electronics in 1983. It all connected to Hyundai Group. 9 Later in 1997, Hyundai underwent a major restructuring and break-up following the East Asian financial crisis. 1997 Financial Crisis in East Asia was caused by the dropped of Thailands economy by 75%. Many Thailands Company cannot pay their debt in time. It made

5 6

Ibid Ibid. 7 Richard Steers. 1999. Made in Korea: Chung Ju Yung and the Rise of Hyundai. New York: Routledge. p. 96. 8 Ibid 9 Earnhardt Hyundai. Op. Cit.

Thailands currency decline drastically. That giant crisis in Thailand also affected another country in East Asia such as Filipina, Indonesia, and even Chung Ju Yungs Country, South Korea.10 Many company in Korea bankrupted that time. But Chungs Company could still survive as he and his family rapidly expanded Hyundai Group into various industries. During the crisis, Hyundai tried to keep their internal in a stable condition by investing in other countries to maintain a positive profit margin. In 1998, Hyundai took another strategy to survive from the crisis. Hyundai won KIA Motors in an auction and outbidding Ford Motor Company which had owned Kia Motors since 1986.11 KIA had a 12 trillion won that time, and for the winning prize, Hyundai demanded a write-off 5.6 trillion KIAs debt from the creditor. Their action has a positive effect and stabilized South Koreas economy. So, they got assistance from the government because of Chungs contribution to the South Korea.12 In 2000, the company established a strategic alliance with DaimlerChrysler and severed its partnership with the Hyundai Group. They jointly advance into world markets and improved liquidity. They also have the plan to set up a world car project. Hyundai will develop the nextgeneration car together with the two partners based on a model that it has been developing independently.13 Hyundai continues to build a strong foundation to establish from the world leader in its field. With the slogan "Drive your way" which means always meet all worldwide customers needs. The Hyundai logo is appears to be an oval shaped H (symbolizing Hyundai). It is also supposed to be symbolic of the company's desire to expand. The oval shape indicates the company's global expansion and the slanted, stylized 'H' is symbolic of two people (specifically the company and customer) shaking hands. Hyundai means "modernity" in the Korean language. Chung Ju-Yung is a hardworking and a strong willed man. He dares to dream big even though he knows that it will be a very long and heavy road. Years ago, he is the son of a farmer, now he is the founder of the biggest motor company in South Korea. Imagine if he gave up easily, he may not be as big as he is right now. His positive attitude againts all odds that happens in his life helps him to expand his company into an internationaly well known company for
10

Martin Khor. 2010. The Economid Crisis in East Asia: Causes, Effects, Lessons. Accessed 28 May 2012, http://www.ifg.org/khor.html 11 Funding Universe. 2005. Hyundai Group. Accessed 24 October 2012, http://www.fundinguniverse.com/company-histories/Hyundai-Group-Company-History.html 12 Don Kirk. 1998. Hyundai Wins Auction to Take Control of Kia. Accessed 28 May 2012, http://www.ircltd.com/media/1998OctoberInternationalHeraldTribuneHyundaiWinsAuctiontoTakeControlofKia.pdf 13 Myeong Kee Chung. 2000. Strategies Alliance and Restructuring for Survival: New Managerial Strategies of Hyundai. Accessed 28 May 2012, http://gerpisa.org/rencontre/9.rencontre/S13Chung.pdf.

inexpensive outomobile. It proves that everyone has a potential to be success. The thing that makes the differennce is attitude. Even though he has fallen so many times, he keeps stand up again. The rain and storm in his life only maks him stronger day by day. Trough out his life Chung Ju-Yung was known as an honest and strong hearted man. He didnt give up easily when things seem to be hard. He is also known for his services to his country. Chung believes that if a company is small, it belongs to the owner. When it gets bigger, it belongs to the employees. When it gets huge it belongs to the country and its people and becomes the countrys asset.14 His action proves that he is not a selfish person. He wants to share his success to other people and even his beloved country, South Korea.

14

G. Wu. 2011. Chuhng Ju Yung. Jakarta: PT Carrots

BIBLIOGRAPHY

Chung, Myeong Kee. 2000. Strategies Alliance and Restructuring for Survival: New Managerial Strategies of Hyundai. Hyundais Chung Accessed Ju Young. 28 May 2012,

http://gerpisa.org/rencontre/9.rencontre/S13Chung.pdf. DirectEssays.com. 2012 Accessed 27 May 2012,

http://www.directessays.com/viewpaper/13510.htmlEarnhardt Hyundai. 2012. Hyundai Motor Company Founding Chairman. Accessed 22 April 2012,

http://www.earnhardthyundai.com/hyundai-history/ G. Wu. 2011. Chung Ju Yung. Jakarta: PT Carrots Funding Universe. 2005. Hyundai Group. Accessed 24 October 2012,

http://www.fundinguniverse.com/company-histories/Hyundai-Group-CompanyHistory.html KBS World. 2010. Sejarah Penjajahan Jepang di Korea. Accessed 27 May 2012, http://world.kbs.co.kr/indonesian/program/program_askme_detail.htm?No=18674Steers , Richard. 1999. Made in Korea: Chung Ju Yung and the Rise of Hyundai. New York: Routledge. Kirk, Don. 1998. Hyundai Wins Auction to Take Control of Kia. Accessed 28 May 2012, http://www.ircltd.com/media/1998OctoberInternationalHeraldTribuneHyundaiWinsAuct iontoTakeControlofKia.pdf Khor, Martin. 2010. The Economid Crisis in East Asia: Causes, Effects, Lessons. Accessed 28 May 2012, http://www.ifg.org/khor.html Surono, Agus. 2012. Chung Ju Yung Pendiri Hyundai. Accessed 23 April 2012, http://intisarionline.com/read/chung-ju-yung-pendiri-hyundai.