How a Poor Boy Built Hyundai

Summary

Chang Ju-Yung, born in 1915 in rural Korea, overcame poverty and hardships to build Hyundai into a global powerhouse. Starting as a young laborer, he faced setbacks including the loss of businesses during Japan's rule and World War II. Undeterred, he founded Hyundai Auto Service and later Hyundai Motor Company. After many struggles, including initial failures with the Hyundai Pony, he strategically targeted new markets, especially in the U.S., where Hyundai excelled. By his retirement at 72, Hyundai had become one of the world's top car companies, showcasing the power of determination and vision.

Takeaways

• 😀 Chung Ju-Yung, the founder of Hyundai, came from a poor village in Korea and worked in the fields for 17 hours a day.
• 😀 Despite limited formal education, Chung's determination led him to pursue a better life, eventually becoming a self-made entrepreneur.
• 😀 At the age of 16, Chung ran away to a nearby city to work as a construction laborer, igniting his passion for construction and civil engineering.
• 😀 He faced numerous setbacks, including his rice shop being taken by the Japanese during World War II and his garage burning down, but he persisted.
• 😀 In 1946, after Japan's rule ended, Chung returned to Seoul and restarted his business, Hyundai Auto Service, focusing on car repairs.
• 😀 Chung’s persistence led him to start the Hyundai Civil Works Company in 1947, which grew rapidly, taking on major construction projects.
• 😀 During the Korean War, he successfully completed several construction projects for the US military, which strengthened his business relationships.
• 😀 In 1967, Chung expanded into the automotive industry by founding Hyundai Motor Company and, in 1968, entered a successful partnership with Ford.
• 😀 After ending his partnership with Ford, Chung secured a deal with Mitsubishi Motors, which allowed Hyundai to start producing its own cars.
• 😀 Hyundai's first mass-produced car, the Hyundai Pony, became successful in South Korea, and in 1982, Hyundai became profitable internationally.
• 😀 Hyundai's breakthrough in the US market came with the Hyundai Excel, which gained significant market share due to its affordability and warranty.
• 😀 Hyundai, today, is a global leader in the automotive industry and is part of a vast conglomerate with 42 companies, including shipbuilding and technology.

Q & A

What was Chang Ju-Yung's early life like?

Chang Ju-Yung was born in 1915 in a small village in Korea. His family was very poor, and he had to work in the fields for 17 hours a day just to get one square meal. Despite his hardship, he dreamed of a better life.

Why did Chang Ju-Yung leave his family and move to the city?

At the age of 16, Chang Ju-Yung left for the city after seeing people live with enough food and clothes without working long hours in the fields. He wanted a better life and started working as a laborer in the city.

How did Chang Ju-Yung first gain independence?

Chang worked as a construction laborer and later as a delivery boy at a rice store. His hard work and dedication led him to become the store's manager within six months, giving him his first taste of business independence.

What happened to Chang Ju-Yung's rice shop business?

During World War II, when Japan ruled Korea, the Japanese government took over all rice shops, including Chang's. This caused him to lose everything he had worked for, but he didn’t give up.

How did Chang Ju-Yung recover after losing his rice shop?

After his rice shop was overtaken, Chang started focusing on car repairs, opening an Ado service garage in 1940. Although his garage was destroyed by fire, he didn't give up and rebuilt an even better one.

What was Chang Ju-Yung's first successful business venture?

Chang's first successful business venture was Hyundai Auto Service, which he started in 1946 after the end of World War II. It became a successful car repair service, and his reputation grew in the market.

How did Hyundai evolve into a construction company?

In 1947, Chang founded Hyundai Civil Works and entered the construction business, even though he had limited experience. His company soon began securing major construction projects, including South Korea's first major infrastructure developments.

What was the turning point for Hyundai's success in the automobile industry?

The turning point for Hyundai came in 1967 when Chang Ju-Yung founded Hyundai Motor Company. In 1976, they produced South Korea’s first mass-produced car, the Hyundai Pony, which led to rapid growth in the automotive market.

Why was the Hyundai Pony unsuccessful internationally, and how did Hyundai respond?

The Hyundai Pony faced quality issues, including fading paint and mechanical problems, leading to poor international sales. Instead of closing the company, Chang decided to build a new factory and improved the car's design, launching the Pony 2 in 1982.

How did Hyundai succeed in the U.S. market?

Hyundai targeted the sub-compact car market in the U.S., where competition was minimal. They offered the Hyundai Excel at a price equivalent to second-hand cars, backed by a five-year warranty. This strategy helped Hyundai succeed in the U.S. market, selling 170,000 cars in 1986.