The time that drew people's attention of YG-1 (former Yanggiwon Tools) was when my company became a listed enterprise in the Kosdaq market.

Even though, the company was well known in the foreign industries and press, I didn't consider that the company promotion is important. That's why I didn't show up in the interview and take picture so my youth pictures were often posted in the newspaper.

In honest speaking I'm almost 50 years old. The YG-1 grew up for the half of my life with so many people's sweating and staying all night from for 20 years. Because we experienced so many painful trials and errors, dramatically we've got to be in the position in which the top world looks at. However, the reason that the name of YG-1 is neglected yet is that we are a cutting tool manufacturer by which general people cannot easily approach.

The cutting tool is a tool to cut the metals by installing in a machine tool or a general machine. Among the various cutting tools, the End Mill is a leading commodity that is essential in the mold or aircraft's moving body.

However, I'm not trying to say how much sales will be in the future. I only want to talk about how I start to walk in this field with embarrassed and humble mind.

I believed that I could be the 1st place in the subdivision field for the world.Also, I convinced that it was possible to accomplish it by making the effort according to the desired target, though I would knock against the wall.

My story starts from such trust and the conviction. Moreover, it is a footprint with the beginning of the YG-1. It seems like that world is changing so rapidly and getting results for the efforts but its meaning has been degraded.

However, when I frequently listen to the story of people who walked for the same road like me, I would find a common thing. I begin a story for my hope which people who are confused to open a business or live their life would read my story, straighten confidence and engage in their work.

I wanted to become a splendid farmer when I was in elementary school. My teacher was deeply admired my simple ambition, moreover, my dream was occupied for long in my mind.

However, it began to realize for my real goal as I was seeing the business men.It seemed like that I should know the skill to avoid the errors and there should be something to pull me for business. Anyway, I was going to study industrial engineering with business administration abroad because I already majored in the machine at the university.

However, the chance to have interests in something had come prior to my university graduation. I went to Busan to meet the chairman of the certain footwear industry company, which my father had served him as a vice president at that time in 1977. That footwear industry judged the shoes would not profitable and was preparing for the cutting tool production at that time.

Therefore, he suggested to join this operation division and I thought that taking in the office early was good unless I was not going to become a scholar.

I decided to live for about one year in the United States through technical tie-up. I undertook the person in charge of the factory design and the materials supervisor on March and took the airplane for the United States next January.

My duty was to assist the president for all of the works in that time. It was the great burden because I worried about my English barrier like my personality.

I was rather confident in the English comprehension but I was weak in conversation, so I was really desperate. Also, the technology could cause a fatal loss in above all by dealings the technology introduction or loan contract with local bank for my awkward English skills. However, the pressure of shamefulness made me to exert myself because I would be embarrassed if I didn't learn English and return to Korea. Also, for me it was not effective even though people said that it would be helpful to watch TV.

Instead, I hung around at the drugstore that opened for 24 hours.The store clerks were pleased with the foreigner who came from Korea because they had been bored, too so they started to talking with me. I participated in the local society and went out to the Korean church more positively.

Also, I confirmed the contract terms twice or three times as I test the other's party's endurance character. Therefore, my English skill was getting improved.

The learning that I had obtained in the United States was not only English. I could obtain the definite secret that made me a business man in near future.

It was exactly inside that was concealed in my challenge and confidence. When I was at University in Korea, I was a 'person who follows rules'.

Even in the United States which there's no parents' control I didn't do wrongfulness by ignoring the standard. The modifier, 'broad-minded' was attached to me which it seemed never match with me and I did everything according to my wishes.

I was changed to be an active person to engage in something interestingly, which I couldn't shake off the feeling that I studied by force, even though I knew that everything was completed after entering the top university. Moreover, in the United States I could mend the prejudice

Before I went to US I considered that Americans were more superior than us for the business at least. But they always made a mistake in the passing document after the inspection, even, the bank made a mistake. However, I indicated it every time and later my vice president came all the way to see me.

For them I was seemed like the smartest person but in Korea it was comparatively easy problem to handle. To tell the truth, I was not a terrific as those Americans thought. From that incident I realized the basic capability of the people is not very different.

It was confidence feeling and reward of recognition. Of course, I learned abundantly from them. They mistook in the telephone fee system of which they never claimed the charge for the wrong number or hung-up calls. They were obviously practical and respected consumer's profit. When the journey of 1 year and 9 months was finished and I came back to South Korea, I had the ambition that started a new challenge as such hope.

However, circumstances were not that good. The engineers and companions who returned home had hard time to set basic directions of the business, mistook the target market, and fought hard while experiencing several trials and errors.

The company judged that there was no profitability in the domestic demand so they left the overseas export business to me. At that time, my feeling was vast as it was.

I had to grasp everything that is on my hand but there was not so much income. So I checked all the yellow pages that I asked to American embassy and I classified them according to the state and the following thing is to send the letter to related cutting tool manufacturer by the addresses and names of companies. Moreover, I found the letters related to the export that had received for last one year. The letters were disregarded as soon as arrived because they feared that export is difficult. So I sent the separate letter for the reply.

After I returned home, the time had passed away for 4 or 5 months without the income. I married soon after I had returned home and I gave all the money that I collected in the United States to my wife because I couldn't get the pay from company. Finally, I got the first order of ten thousands dollars.

The feelings at that time were good only. I had two staff and rushed into a real business. The first thing to solve was to decrease the high cost because we couldn't adjust the export price. Therefore, I analyzed the price that was already set one by one. As a result, the material price was found out to be higher by reflecting the expected price.

After people buys the machine or equipment in higher cost but they couldn't operate them properly and raise the original price. Other people began to talk that 'I would spoil the company', but I had confidence. What others in whispers spoke couldn't stop me. After that, I had luck of two class special promotion three years later while the company was difficult. As suppose that it three staff below me had been taking the lead in the sales of 80% for the company, it was not that surprised to others. However, I felt more skeptical than satisfaction and its beginning was an item, 'End Mill'.

The End Mill is a cutting tool that is used when making a mold or aircraft's moving body. The ratio that the End Mill was occupied of the sales was about 15%. The reason that company set its eyes on the End Mill was that the raw material was only 3% of the whole price. It was obviously high-value business to be greedy.

By the way, the company postponed the payment of ,000 twice which it was difficult to receive the order so company gave it up. I felt that the company's vision was getting unclear. Every one of us lied to postpone the meeting with buyers and everything was postponed even though it would be smooth when purchasing the cheap machines.

The employees never had a will to find a work or master consciousness and waited for me to order them.

But, it seemed that it was actually easier to grow the company now rather than opening a small company.

Then, I got a chance to be more serious on that problem. In the summer of 1981, my foot was broken in the company's workshop of Namyi Island and I had been in hospital and home for 8 months. In the beginning of the hospitalization, I was engaged in the company like before. The company always told me to rest but I was working hard that I called the buyers to hospital.

Then, one day the "End Mill" came across my mind and I thought what if I would do my business for my own with the buyers's ideas. Prior to the company and my own business, I constantly considered about it. When I reach to my vision and dream, I leaned on the one side.

Before I was hospitalized, I had reported to boss a business plan in Malaysia for the recovery of the company. However, the boss never gave me an answer. I felt very pathetic that company couldn't make a decision before the great opportunity.

Moreover, I worried that I could lose my belief if I entered the large enterprise, so I didn't hesitate. From the moment I decided to begin my business and the End Mill was all for me. Of course, the company wouldn't let me go.

Therefore, I took the office in company one more year and the company approved to open the business. On December, 1981 I registered the business in my parents' house for the name of "Yanggiwon Tools" and I bought the plant on April next year. From that time I spent every night in the plant after leaving the office.

There are many reasons of "Yanggiwon Tools" that is the formal name of YG-1.

As soon as my father failed in his business, he purchased the land in Icheon, Gyeonggi-do because he had a dream to have a farm. That time all of us named the ranch as "Yanggiwon Farm". As I registered the business the name of Yanggiwon kept in my mind so I got a exquisite name as the Yanggiwon Tools plant and YG-1 which means 'a meaningful place'. From the beginning my company had been engaging in the exports so the name of Yanggiwon Tools is not appropriate in English. I took the first 2 letters, Y and G and combined with '1' to become the number 1 so YG-1 had appeared for the company's new name.

Of course, I recall so many things related the name but mostly I feel hopeless. I believe that the chance is coming to people who advance constantly. The year of 1983 was that time for us.

At that time the KOTRA (Korea Trade-Investment Promotion Agency) supported the international exhibition actively and we got the 5 chances.

However, for exhibiting the first product we arrived at LA WESTEC but we were all disappointed and got raged. The KOTRA prepared the exhibition by driving several nails in the exhibition hall and did nothing because of our company's name. I protested right away against KOTRA.

However, the section chief rather abused to me without a single polite word. They never thought me who was young as a CEO in the small and medium-sized enterprise.

After all, the person who was the section chief did not show up, though I received a polite apology from the president of KOTRA. During the exhibition the chief seemed to be embarrassed because a lot of foreigners were quite crowded in our booth and he knew that I was the CEO of this company.

On the final day where the exhibition ends he came to apologize to me. To tell the truth, such a thing often happened. There were several cases that the officials ignored us by the name of 'Tools' and the strange small and medium enterprise.

However, the name of YG-1 is exported to every country in the world by printing on the fingernail sized End Mill over .

Certainly, the 20 years had passed to take that reputation.

Everybody gets curious if a someone starts a business in the US market with a list of tool manufacturers only. Prior to talking about it, I'd rather have to tell you about my family.

I grew up in a sufficient family because my father worked in a large enterprise. At that time people usually considered a vehicle is somewhat financial power but in our garage unusual things were filled in already. However, my mother was always economical so I also saved more than half of my allowance in installment saving from the secondary school.

My mother was a good model in the aspect of diligence. When I got to hear a sound of cleaning at around 5 in the morning, I almost woke up with anxiousness that my mother would wake me up. I didn't show up that my family was wealthy. Instead, I always worried that my friends would know that fact. I argued with my parents that they gave me a ride to school but my mother persuaded me that it would help others if I didn't take a jampacked bus. When I took a ride to school, I used to get off far away from the school, which nobody could see me.

As soon as I married my parents purchased an apartment in Gangnam.

However, as I started a business next year that house was not my property any more. I desperately needed machineries to fill in the plant rather than the expensive apartment.

However, my mother opposed me very much and was angry that I sold the apartment that was my parents' property. She was very worried how reckless was to start a business at no choice and why her son should suffer from those difficulties. I could know my mother's heart but at that time the business and End Mill were all for me. Nothing was important than those two. I came down to Incheon after I sold the apartment and promised to my wife to return to Seoul when my 1-year-old child went to elementary school. I had no choice to come to Incheon because I sold the apartment for purchasing a plant. Also, I could afford machineries with difficulty by taking the plant as mortgage. It was beyond my power to start a business while I went to the company, so I couldn't complete a term of 1 year and I took over my duties to others on August. In summer of that year my company was getting equipped somewhat with 12 staffs. Then, on October 14, 1982 all of us, 16 members celebrated the anniversary of the establishment.

Our first project was an order of the End Mill that was worth about ,000. This was a missed project because my former company had postponed for 2 years, but I could get a chance because the buyers couldn't find a proper selling agency for the inflation. I firstly hired new employees from technical high school than those with a lot of experience. However, my choice brought so many errors but I had to work with them.

I had to cook dinner for my employees, changed a briquet at dawn and only slept for about 3 hours. My staffs also cooked their food for themselves and my wife often brought soup for the employees. Sometimes we were so busy that we couldn't eat lunch.

As I heard the machineries for 24 hours I fell asleep in a sleeping bag. Whenever the sound stoped, I woke up. During those days one question kept in my mind. 'Was I person who could be respected upon?' I thought about whether perhaps my employees from technical high school might have a little prejudice on me. All of us learned how to understand each other by living together in a noisy plant with machineries. A little after I established a plant I also thought about something.

Maybe the buyers from US are profitable because they always got on the first class seat in the airplane and stayed in luxurious hotels. Then, perhaps it would be more profitable when I sold my products in US directly.

However, I couldn't afford the expenses for business trip to US and people would say to me it would be useless for a small company.

But finally I got in a plane to US on October 16, 1982. I wanted to face directly if it were a market to occupy. I already had a list of 5,000 tool manufacturers that I received from 15 US clients who purchased the machineries with Korea Trade-Investment Promotion Agency and my brother studied in Chicago. Only things that I had were little expenses and couple of heavy bags with samples. I only had to confront with my physical strength and confidence. April 7, 2000

To reduce my expenses for business trip to US, I purchased the cheapest ticket of Northwest Air. I could go anywhere that Northwest was put on with ticket. In addition, I drove a rental car which was only for 1 week including insurance, slept in motels and ate fast-food or skipped a meal. When I got hungry, I went to supermarket at night and ate cheap chicken. During weekend, I could save motel expenses by sleeping over at my brother's house.

However, I was a businessman. I didn't think it was difficult because I was confident for my products' profitability. It was obvious that to receive an order of narrow End Mill from the buyers, so before leaving Korea I brought the samples from 10 companies for getting commissions.

Therefore, my calculation to apply trip expenses to the commission came true. Another difficulty during my business trip was the weight of bags. Each bag weighed about 80~100 lbs. (approximately 45 kgs) because of the heavy samples and catalogues, so I broke over 20 bags. A successful businessman whom that I met in Seattle was shocked for the bags' weight even he was a bellboy once. Also, it was true that the weight of bags was limited when I boarded an airplane but I could accomplish it. I found out that I could check in no matter what if I gave tip to check-in counter outside of the building of the airline labor union. Sometimes I had to carry those heavy samples and catalogues when I got in a small airplane for the use of 10 people to the Mexican border. Like that I visited 23 cities for 43 days.

I sent letters to the tool manufacturers on the list and checked out every unknown consultation cases of KOTRA (Korea Trade-Investment Promotion Agency) for 56 years.

Also, I tried to contact with a company by checking on the rival's catalogues while I was meeting with my clients. Even passing by the 'Tool' signboard in a car, I called every company on yellow page and visited. Of course, almost 9 out of 10 companies treated me in a cold way, but one company always said to come. When the company gave check for the samples, I almost cried. Now was not the big money.

However, I was impressed that I gained trust from a person I met for the first time. The journey of 23 cities for 43 days was the most difficult and interesting time for me of my business story. I never imagined that there was a dangerous situation when I returned home. As soon as I returned from the first business trip to US, a bad news waited for me. There was a problem of End Mill exportation prior to shipping. The biggest buyer of 3 companies claimed on the samples that we already sent. It wasn't the quality matter.

The process, which we thought it for the superior one, was not satisfied for them because they misunderstood some of the processes were missing. Moreover, we found a defect on the products. I couldn't sleep for couple of days. It was a little defect that we could ignore or negotiate at the adjustable price. Also, it would damage our company if we collected those products and those products were already on board in Busan Port.

Finally, I decided to keep the promise with buyers who trusted me since the establishment of my company. I couldn't give up a belief to make the world's best quality products. Therefore, I collected all the products through complicated re-customs entry but it was prostrated because of the capital.

However, my father decided to get a loan with the mortgage on his house. I only had to stoop humbly which I was confident for the success and profits, and my employees were thoroughly absent minded. But it was urgent to reproduce the products to meet the buyers' needs and stayed up at night to make them. At about 9:30 the employees who were about to leave the plant helped me to packaging the products. Even we had pay prices for that, all of us were learning it because we recognized that we would make good products without twice or three times. To make the best quality seemed to be very difficult as we had to repeat the inspections to find one or two defects.

But the products that were produced for our two great crisis had returned to us under a principle to make the best quality. Additionally, our buyers have been continuously trusting our products till now. The bad situation yet to be over!

April 10, 2000

After 6 months I once told a buyer that I had to collect the products then he suggested to sell them at the cheap price if the quality wasn't a matter at all.

I felt there was no marking on the products but another buyer that I met in a foreign country complained on the quality of our products as he said there was better and cheaper Korean product. The product found out to be the faulty product that we disposed.

Since then, we disposed all of the defects certainly and other than the quality there is another tradition in our company. That is trust between companies, not the staffs. I knew that our staffs' strength to work in 60~70 hours for a week was originated from the absolute belief in me and company. I recognized that I had to work more than my employees.

Also, I felt that my duty is to commute to company early and return the benefits or profits to staffs by investing in the worthier field. YG-1 accomplishes the best quality and diligent administration in the world.

YG-1 respects people and provides a regulated and cheerful work site.

YG-1 acts aggressively with strong will, passion and self-confidence.

Those instructions are remained for the administration philosophy in YG-1 now.
In addition, we recorded the first sale for ,000 in 1983.

"Many tool manufacturers from the world visited our company during a year but I've never seen more competitive enterprise than YG-1." said a German buyer who visited our company with several customers last year. I was proud of myself, who I introduced the headquarters and plant in Ansan with 6, 612 m2. When we remained together alone he said "When I first deal with you and bring my boss to here, he would say that you and I were crazy." I agreed to him too.

When he first visited our company, the equipments and plant were very small and shabby. According to his saying both of us were lucky to meet each other and I think that our appreciative eyes were representing. Our relations began 17 years ago.

Then, I never knew that he would make us to deal with a big German tool manufacturer with the sale of 600 million marks and he never imagined that we could develop like this. In that time he only searched a man to interpret English for him.

During the Korean Tool Machinery Exhibition in 1983 it was very difficult to find a person who can speak English fluently among the participating enterprises. While I found a foreigner who had a hard time to communicate in exhibition hall, I helped him. He only took two of our samples and I didn't expect anything from him. Also, he bought a product of 30 marks and for next time, 500 marks. He inspected 15,000 samples that he bought and returned 3 products of the tolerance limit. He admitted that the quality of our products but we had to work actively for his peculiarity and perfection.

So many years had passed but the quality that was approved from them was like a Eurailpass that could be used commonly in European market. For the full scale in European market I drove about 12,000km in 12 countries for 21 days in 1987.

How could I compare that feeling of conquer like Caesar which I was in France for morning, Switzerland for afternoon and German for night? Like those times I spend a lot of time in marketing on feet now. When the given time is same whether to spend the time effectively or not depends on the marketing. I don't usually stay in a city for more than 1 day abroad and I check every bottleneck and demand in a meeting with buyer even in 10 minutes.

However, that principle is applied differently in Europe and US. In case of US they prefer to handle the work promptly and it's easy to form a relationship but Europe is different. In European market the business relationship lasts longer than US that overtakes market easily.

Therefore, I don't meet with more than 2 people in a day and take time to decide something.

The Europe, US, and Asian market including Taiwan, Hong Kong, Singapore and Bangkok are my stages. Right now YG-1 is exporting the brand to 52 companies.

I always get nervous in Korea because I want to fill in the time zone of the world. So that our employees complain that they had to start a day very early and sometimes suggest me to delay the time to attend the office for about 30 minutes in winter. However, I never concede the time that is 7:50 am. I believe that it's certain to begin a day early than the users if they sleep in some parts of the world. Even in the mid-1980's most of the cutting tools were exported goods especially Japanese products. Also, domestic big enterprises gave up in the competition and occupied some parts of cheap priced market.

YG-1 launched in domestic market since 1985 but the product line was limited in narrow End Mill. Therefore, we had to preoccupy in the high priced market for substituting Japanese brands. We fought hard with the prejudice of the merchandisers for a long time even YG-1 received a good reputation abroad already. Some of the merchandisers who knew the quality of our products suggested me to supply the products without our own brand or with Japanese brands because they wanted to sell the products for the Japanese goods at the high price. However, my answer was 'No' and I added a complicated condition of 100% cash payment.

When a president of other companies told me to collect money later, I would rather collect the products to Incheon. My hands were dirty in the first year because I delivered the products to tool stores by subway everyday but I wanted maintain my self-respect. The reason was that it was a proud of Korean brand, YG-1 other than my personal one. Not a long time after, we accomplished to substitute imported goods with domestic cutting tools. Now, YG-1 occupied in 60% of the domestic End-Mill market and reminder portion is occupied by Japanese companies that have plants in Korea.

The reason of my goal to put Japanese goods out of the market was that I was drawn to something. I did everything for business but not Japanese. That's why I insisted to sell our brand instead of the OEM in Japan. However, I decided to learn Japanese and their best strategy so I got on the airplane to Japan in 1983. I was impressed in Japan for the first time.

The Japanese enterprises were very organized and practical to reflect prime cost and profit in that time. The more shocking fact was they were negative on the Korean cutting tool enterprise, YG-1.

They were friendly but never let me see the plants and asked me plainly whether Korea could make a cutting tool or not. I couldn't stand it so I visited a cutting tool merchandiser and offered to test the Japanese best product and our product.

The results were almost same but they never admitted the superiority of our products as they expressed "Cutting edge is different!" It's almost over 10 years already to launch in Japanese market. The exportation to Japanese market is important which German enterprises considers it impregnable market. However, we feel actually the wall of negative Japan's view on the imported goods. One of the Japanese agents who has been dealing with me once confessed me.

He said in the merchandising process Japanese tool enterprises prefer Japanese products only so it's difficult to sell the products and sometimes they even can be told to be a traitor if selling imported goods actively.

However, I believed in the market's principle. The closed market will eventually lose the competitive power through isolation, so Japan needs to open their doors. The best quality product will occupy in the market and YG-1 will knock at the Japanese market fairly.

We'll make effort to produce the best products and occupy the Japanese tool market. I don't want to hurry up stubornly till then.

In 1997 YG-1 was covered in Nihon Geizai Newspaper for the special venture enterprise column. In that article YG-1 invested on the developed countries including US and Great Britain than any other big enterprises of Korea and ranked first in a field for the world so became one of good example to other companies.

Honestly, a real reason that YG-1 invested on Britain was that British government suggested an exceptional condition to us while the personnel expenses was ahead of the inflation prior to the control of IMF. The Britain government invited 12 small and medium enterprises of Korea in 1995. The condition was to provide all of the expenses and they asked us to come without any investments. Strangely they offered us business seats of Korean Air instead of British Air, and we could realize how they were friendly and sincere when we got off at Heathrow airport.

They guided me to a reception hall through VIP room while some of them moved our luggages to our hotel rooms. At the reception hall all of the representatives per county welcomed us with dinner and wine. In next day we could observe the investment environment within the industry and district by forming 4 people in one team. The government provided all of the necessary things including interpretation and transportation. I heard later that British government spent approximately ,000 per person.

Why the British government detained investments by spending so much money? That is like 'From a cradle to grave'. The outstanding welfare system of Great Britain made people to avoid from enterprise administration. So that they needed to reduce the unemployment rate by drawing foreign investors. Moreover, the government provided machineries and land at cheap price to investors because they could get profits from the machineries or plants even if we failed.

The Britain government could decrease the unemployment rate by getting tax reduction without giving unemployment compensation. It was based on the "Break-even" system to reduce damages if the company endured for 4 years like an official said. In addition, the most shocking thing was that the government supported things for 'enterprises'. The Britain already built a plant in 1,322m2 and equipped with a system to complete the size with application that an investor wanted within 1 or 2 months. Not only they provided the electricity for half of the price from moving in, but the investors could pay back the debts for 10 years under the guarantee of the government. It was different from Korea which we owe large debts because of the high rate of land and tax whenever expanding the business.

Also, prior to the completion of the plant they offered us government office with conveniences such as telephone, drivers and cars for 100% free. We could buy the machineries at cheaper price and get supports for hiring and training employees. Additionally, they did marketing activities such as exhibition or catalogue production in the first 2 years. Like that they continuously support us aggressively till the forth year, now.

As soon as we invited Korean ambassador in the opening celebration, the government provided a mansion that the British Queen would stay to him in behalf of YG-1. Also, when we invited 10 directors of Korean Tool Machinery Association, they offered the first class hotel, transportation and meal for 2 days. Recently, we were invited in top seats which executives of the big enterprises cannot sit on while Queen Elizabeth visited Incheon.

We once requested to have a lecture with Britain ambassador. At that time Mr. Brown was very active which he was willing to spare 23 hours. He seemed like a businessman for his country's benefit, not as an official. YG-1 established a corporation in Northern Ireland in October 1996 but it was only the beginning.

April 14, 2000

It was the time that we were moving to plant after deciding investment on Britain, however, an unexpected incident began by reporting the YG-1's investment from the Financial Times that was an authoritative mass medium in Europe. The Britain tool labor union including Germany and other European unions opposed against us, and members of the House of Lords were mobilized too. They indicated to lose themselves when the government paid more subsidy to Korean outstanding enterprises for the prime cost. That's why I had to go Brussels which the headquarters of the North Irish government twice. I heard later that there had been no such a severe complaint in Britain like that because the government was willing to support a small enterprise of Korea.

Also, they boycotted the products of YG-1 so our sales were poor for the first year but there was a good aspect.

Because of the boycott, the name of YG-1 was well known and we could promote our brand without spending much money. However, we couldn't avoid from some of the failures. The biggest problem was that we couldn't afford the strategy for each district by putting local managers. We advertised through powerful media to input the local people but people denied whenever they knew the name of our company, YG-1 even after the interview.

The negative recognition toward the Korean enterprises was spread to all of the areas in North Ireland, so we had to bring all of the core agents from Korea. The extremest failure was in Germany. In 1997 after the unification of German YG-1 captured a chance to undertake a cutting tool manufacturer in East Germany. But many problems were scattered about, especially the dispute with labor union that misused their strength in work. Like that way we only could be drawn along the labor union.

Finally I had to give up the plant in Germany after establishing a plant in US. That was long time ago when President Clinton was in government of a state in 1992 and a tool company of Arkansas suggested to sell their machineries to us. In the early stage we often purchased the machineries at auction. The equipments of the competitive enterprises finished depreciation so we couldn't buy them because of the price. However, we couldn't unconditionally buy the things at cheap price in auction. We had to have know-how.

The most important thing is to distinguish participators who came to buy only one machine at auction. We had to yield the machine that they want because they would increase the price if we interfered with them.

Also, we needed information because most of the equipments were used. It was easy to know by meeting with owners who came to auction before a day of action. They considered those machineries that they worked with for 20~30 years as their own children. Also, they told that they would work with those machines forever so they knew the machineries very well. I had a purpose to buy those machineries when I visited Arkansas but I felt like to build a plant in US and it was a good idea to attach tag of the produced location on the product. There were some disadvantages when we sold the products of 'Made in USA'.

Finally, the state government promised to provide supports and benefits and then we had press conference in the Chamber of Commerce and Trade. I was offered to give a speech in the place that Mayor, economists and pressmen were crowded. It was unexpected. I began a speech in a hurry and awkwardly, and came down from the platform. On that day the news covered the YG-1's investment, maybe because I won their favors.

Now YG-1 has large-sized plants in Ansan, Gwangju and Incheon. I'll continuously expand the marketing by expending plants in the world including US and Britain. I'll follow a surviving principle that says "We exist in a large size than small." I believe that YG-1 would be reach to billion sale in 12 years from now.

April 17, 2000

I perceived that something happened in Korean economy since summer of 1997. The bank capital was abnormal and YG-1 could be fatal which we imported raw materials for 100% when we bankrupted. It was important to secure cash first. At that night I called every buyer in Europe and US. It was morning for them. I offered to send cash to us and we would decrease interests instead.

Fortunately, the buyers said ok and it was the time that they would help us. I was impressive. On the second day that I was clinging to same work, my wife said she couldn't understand why I acted like the world would be end. I replied that after 2 to 3 months the whole world would realize it and my expectation was right.

However, the IMF crisis was severe even with my preparation and it was hard to import the raw materials right away. The letter of credit that Korean banks issued was not effective any more and it was impossible to receive L/C from the European banks. Also, we had to make the payment first to get raw materials because the bank situation was extreme. The banks and securities companies began to collect the risk properties that they provided for credit. As soon as our main banks withdrew, 3 billion won that banks guaranteed tightened us up immediately, but new banks that undertook the existing ones didn't seem to care with a reason of insufficient personnel. I imagined the walk-out but one thing to another will be failed obviously. I only had to believe potential energy of YG-1.

Fortunately, under those severe conditions YG-1 had 40% of sales growth in 1998 because of our new product, X-Power. The End Mill rotated within the holder so its rotation speed was very important factor. In that time I developed a suitable End Mill in high-speed processing by benchmarking the technology which only Japan and Switzerland had possessed. It was possible to use without any cutting oil and we could supply our tools at half of the price in rival companies. Although Korea was suffering from the depression, we could receive a lot of orders and we couldn't find any product in domestic market.

On February, 1999 Templeton suggested us the investment. There were a lot of offers to invest but we always denied because of the time and efforts. However, we accepted Templeton's offer by setting up a condition to get a conclusion within 6 weeks. Even though it was very complicated but they decided to invest 9 billion won within only 4 weeks. It was unusual. Of course, there was a justified reason that Templeton invested on a small enterprise for about 6 billion won for the convertible bond and 3 billion won for the corporate bond.

The first reason was the quality of YG-1 was the best in the world. To confirm the fact Templeton inspected on it seriously by contacting our main customers abroad.

Moreover, the administration with strong sale and experiences and business of the core field stimulated them. Among those reasons careful and sincere entrepreneurship was the important element to draw their trust. YG-1 constantly has been growing whenever there was depression. In that time we can easily hire a person and have other advantages. Therefore, I don't afraid of difficulties from the external environment. The most important thing is whether we have a capability to solve the problem internally or not.

The ability to solve the internal problem is the confidence. "Believe that there is a chance in a very difficult situation when you exert yourself in." and "Always think positive." Those are the potential power that YG-1overcame the Korea's financial crisis in 1997.

What is marketing? That is the 'customer satisfaction' like an ad copy. If you don't forget a purpose, there's a way. What do customers want? Be kind to the customers who want to buy the high-quality product at cheap price or complain on something. One clear thing is that the customers don't like a severe merchant who only knows the profits. I think that we should be warmhearted in front of them. The virtue to yield something to others made me to success in my business.

In 1991 an agent of Taiwan indicated a problem on our products because the quality was 90% superior but there was 10% defect. So I visited the buyer with a technician and actually we found that some of the processed goods from the End Mill were cut in the middle. The technician concluded that the burr couldn't be removed properly by the cutting oil.

Therefore, I said to make a new sample but they didn't seem to believe me and they said what if the samples were good but not the real products. Then, I suggested to make 5,000 samples first and if they didn't like those after the test we wouldn't get payment for it. It was an obvious reason that they accepted it. Finally, the buyer was very satisfied with the new products. Moreover, we stayed in our buyer's stock warehouse with our staff without sleeping. We distinguished the faulty products after taking off all of the stickers on the kept goods.

The remaining employees clung to that work for 1 week. The buyer who saw that was completely fascinated in YG-1. The quantity of order was increased million for the next year from couple of ,000. I realized that there was an opportunity to impress others by confronting a failure. Also, we refunded the problems that were poor in sale. In that time we damaged ,000 financially but when we see forward to 10 years from then we could get million sale through those customers. This principle is also same with the domestic market.

We were willing to refund the money on products whenever a customer wanted and received claims. They wouldn't request same inquiry for twice and never forget our kindness. When this principle is applied within the company, good relationship between CEO and staffs can be maintained. The formula is established when the CEO does his best to company and staffs then those staffs would believe and follow him. 10 years ago some of the executives at fields visited me prior to my business for Taiwan. They asked me to delay the business trip because some of the employees seemed to form a labor union.

Like they said, one of our employees who couldn't join a training in Japan, which was applied to the long-service workers, was discontented. He complained that the CEO made a trap to form a company union with those participators and tried to formulate a labor union by getting signatures. However, I couldn't give up the business trip so I left for Taiwan and when I came back, the employee submitted a self-examination after acknowledging his fault. The workers in fields demanded to leave the company if I didn't take his resignation and then there was one more opinion to form a labor union among the employees.

However, most of the people didn't need a labor union because they felt it was sufficient enough. I spend 4~5 months abroad of 1 year. My employees are familiar with my absence and know what to do. Most of the main executives have been working with me more than 10 years so I trust them but I consider about the CEO's role more than the trust to my staffs. Particularly in a small or medium enterprise, CEO's positiveness depends on whether the company would develop or not. Several foreign companies with a CEO who knows his duties well have been succeeding in the world.

It's true that an owner should do his best than anyone and every staff should take care of his duties with efforts. I'll constantly do my roles to reduce the errors, interpret the market flow and forecast and make everyone of my staffs to be an owner of YG-1 by sharing with them.

Because there would be a good result when CEO and staffs are moving together.

April 19, 2000

I hated to sing in front of people. Even when I sing together in chorus for class or sing the national anthem in the official position, I only opened my mouth. Because my voice couldn't be heard by others.

I always pretended to sleep in a tour bus and to save my face I sang Edelweiss at the engagement ceremony by practicing it whole time. As being a CEO my employees wanted hear my song wherever and at anytime but I could get out of my complex which I'm tone-deaf as the time went on. It was not my natural talent, but confidence.

This is also applied to business.

To set a goal, realize it and overcome difficulties, and efforts and possibilities depend on confidence and trust. Therefore, I always tell my employees to have a bigger dream and active mind. A person who dream to be a tiger would become a cat at least. The person with a normal dream cannot survive in competition. The thing other than the first rank eventually disappears. Why it's so difficult to be the first? Of course, I don't have confidence to get a gold medal in Olympics but it's not quite difficult to be the best in a field of business.

There's a lot of things that you can earn money or start a business if you keep doing one thing but if your purpose is only money the competitive power is easily forgotten. That's why I don't invest on real estate with YG-1's profits. When people easily earn money, the passion for business would be failed. The true competitive power is like the spring that isn't drought. In the end only thing is the mental power.

You should maniac in the work and realize freshness during 1~2 minutes after working for 24 hours. Every Korean has that potential. The reason that Korean win in the soccer tournament than Japan with a lot of soccer population is the mental power. The motive power of Japan is organization force and for US is basic science but for Korea the development is based on the Korean concept like exciting management. It's important to have innovative R&D through a suitable benchmarking. There's no thing that suddenly develops. Everything should pass one step to another.

YG-1 also can possess the world's best competitive power in End Mill now through those steps. Such results of the selection of the best quality enterprises 50 (National Technology Institution), the first enterprise of the precision technology (Korea Testing Laboratory), acquisition of ISO9001 certification (TUV CERT), superior competitive power of technology (Small and Medium Business Administration) and etc are the fruits of our constant research and development. In European market YG-1 brand is known as the Europa. By possessing the first or second rank in a market we expand the market share, which is our strategy.

YG-1 will reach to billion in next 12 years from now through globalization and R&D. We make the first pretext to enjoy working and the second to return the profits to society and employees. I once was awarded the World's Young Entrepreneur Price that was held in Britain of 1996.

The ratio for getting this award is very low because it was long time after we invested on North Ireland. Also, other companies like Acer Computer that had sales 10 times over than us were enormous. While I was chatting with somebody without wearing tuxedo, I was called. The interview that I had before the award might be very impressive to judges. I only said that "Small is beautiful" and I would share the profits with my employees. A company is where people gather together. Without any warmhearted mind to respect others the company cannot be managed. I'd to like to emphasize on the fact that to become a super company by focusing in a field with challenge isn't a false dream, which is not limited in only big enterprises.

Our shabby plants grew to a little giant to threaten the world's tool enterprises for 20 years. I hope my story would be helpful to a manager, who dreams to start a little business in this time, could walk aggressively toward the future. I'd like to say thanks to my staffs who value and share each other like family from the bottom of my heart.

pril 22, 2000