HOAM THE HO-AM FOUNDATION

Lifelong belief in contributing to the national prosperity

“I think that perhaps people are happiest when they know what they are living for. Fortunately I have always known that I should dedicate my life to entrepreneurship and I have never wavered in my quest to contribute to the national prosperity.”

- November 1976, from 'My Management Philosophy,' (Bulletin of Federation of Korean Industries)

The nation is the foundation of everything

“The nation is the basis of everything. The nation must prosper in order for business to prosper and for the people to find happiness.”

- January 1, 1981 from New Year’s Address

Responsibility of an entrepreneur

“The duties and social responsibilities of entrepreneurs are to create quality products through technological innovation before others; to increase exports, employment and income; and to secure resources for business expansion by generating surplus through efficient management so that ultimately they can serve the nation.”

- June 1976, 'Reflections of the Business World' (Seoul Economic Daily)

Credibility is difficult to gain but easy to lose

“The most important thing for long-term business success is credibility. Gaining credibility is extremely difficult. It also takes considerable time. And it is much more difficult and important to maintain credibility once you acquire it, since it’s the easiest thing in the world to lose. Credibility amounts to people's trust in a corporation. I believe that we must never do anything that betrays this trust.”

- June 1976, 'Reflections of the Business World' (Seoul Economic Daily)

Nature cannot be deceived

“Animals and plants are different from humans and cannot be deceived. We must understand theory and practice, and always research and improve them rather than to become complacent. If necessary, let us go abroad to study and learn, not just to Japan but to Europe as well. We must reduce the rate of failure and grow more rapidly. If you work hard, you can work as long as you want without worrying about retirement. You can also start your own business by learning skills. Every person with responsibilities has to do one’s best to ensure things are successful to the end.”

- September 10, 1986 at Yongin Farmland

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People first, human-centered principles

“People first and human-centered principles are Samsung's management philosophy and the foundation of management which I have long put into practice. An entrepreneur must put his heart and soul into fostering talent. As long as an entrepreneur’s expectations and affection for nurturing talent are conveyed to each and every employee, that business will lead the way to infinite prosperity.”

- October 1982 from a column for the magazine 'Korean'

Entrepreneurs who fail to nurture talent are poor managers

“If a corporation fails to nurture people as valuable talent who can develop into someone essential for society and the nation, it is equivalent to a failure of an entrepreneur fulfilling his social duty and mismanagement akin to a criminal act. I believe that nurturing talent is not just about bringing together competent individuals, but also requires an entrepreneur’s true character and leadership as a unifying force.”

- November 5, 1976 from 'My Management Philosophy' (Bulletin of Federation of Korean Industries)

Cooperation is a skill

“If you always follow others like firefighters follow fires, you’re bound to fail and lag behind the competition. Don’t try to everything by yourself. I hope that you can have the ability and virtue of always seeking the cooperation and collective wisdom of others in the company.”

- December 1979 at a regular meeting with company presidents

What determines a person

“In the West, it seems that employee evaluation is more focused on one’s innate abilities. However, the U.S. is unique because there seems to be more emphasis on education than on innate talent. I place 60% on underlying talent and ability and 40% on education. People can change according to effort but not everyone can make such an effort. In that sense, it seems that the ability to make an effort is a separate quality. That is the reason why I put more emphasis on innate talent than on education. Yet, on the other hand, it is also important to continuously provide incentives to people to make their efforts worthwhile and to motivate them to keep striving.”

- June, 1976 'Reflections of the Business World' (Seoul Economic Daily)

Group effort is more valuable than individual effort

“It is useless to rely just on an individual who does one’s best. It is important to establish discipline and encourage mental fortitude so that everyone can do their best.”

- September 30, 1982 at a meeting with semiconductor staff

One is sometimes better than 10

“Having a large number of people is not always important. A smaller number of truly sincere people is better.”

- September 22, 1984 at Yongin Farmland

Taking action is important

“The worst thing is not taking action to correct faults or mistakes once you become aware of them. In such cases, there is no other way but to take strong measures to correct such behavior.”

- December 22, 1980 at a regular meeting with company presidents

Covering up a mistake is a mistake in itself

“If you think that something is going wrong while you are working, you should tell the other person repeatedly about what is wrong. You should not cover up or conceal the mistake.”

- October 1, 1983 at a meeting with semiconductor staff

Do not become a ‘yes-man’

“Abstain from flattery and give tough advice to superiors. Do you accept a president’s or a managing director's orders even though you know they’re impossible to execute? Have you ever drafted another plan and suggested “Please consider this.” to them?”

- June 1970 at a meeting with company presidents

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Technological innovation doesn’t happen overnight

“Technological innovation may serve as a lever for increased productivity, but it is impossible to adopt the advanced technologies of developed nations and make it our own in a day. Accumulation of technology is necessary and levels of technology built up in each field should be spread across society in a balances way. If you take these steps and procedures too lightly and set management plans assuming a technological leap is possible, then you cannot be called an entrepreneur.”

- October 1982 from a column for the magazine 'Korean'

Don’t be satisfied with small achievements

“It is often said that Samsung naturally developed the 64Kb DRAM as a fruition of intensive efforts. But we should think of it as a small step, and not a big achievement, and always strive to develop even greater things in the future.”

- December 10, 1983 at a meeting with semiconductor staff

21st century management system

“If a company, whatever it produces or sells, has higher cost-competitiveness, productivity, and quality than those of developed countries or rival companies, it can be considered 21st century management. But if they are merely equal, that’s only 20th century management. If they are inferior to those of rivals, they are no better than 19th or even 17th century management. The 21st century management system should also apply to every part of a company including sales, production, and resources management as well as cost, quality and productivity.”

- June 1985 at an operations meeting

Prepare for the next 10 years

“When it comes to investment plans, we should have a long-term vision based on more than 10 years and even 50 years, not a short-term perspective about five years. Make adjustments to the plan ‘layout’ to make it sound for the long-term, so that even if there is a loss in the immediate term, the plan should be formulated with foresight despite the current loss.”

- June 17, 1977 at the Samsung shipyard construction site

Expecting failure is most dangerous

“Of course, every business can be subject to failure, but the most dangerous thing is to undertake a project and anticipating the possibility of failure.”

- July 3, 1980 from a speech at the Federation of Korean Industries (Executive Officers' Training)

Act resolutely after your decisions

“While thorough consideration is essential before making a decision, the fundamental attitude of an entrepreneur is to execute resolutely once a decision is made, undeterred by all obstacles.”

- July 3, 1980 from a speech at the Federation of Korean Industries (Executive Officers' Training)

Plan with a little more motivation

“Management planning must be highly motivated. For example, to achieve 110 percent by setting a goal of 120 percent is more desirable than to exceed slightly after setting a goal of just 90 percent.”

- February 1973 at a meeting with company presidents

Set ambitious goals

“A plan must be practical. Even though a plan may be a bit ambitious, you have to put it into practice and give it your all to achieve that goal. But you should not set a plan for short-term profits at the expense of long-term results. Even if you’re incurring losses now, you should plan in a way that will guarantee long-term profitability. Setting reckless plans is a problem, but reasonable plans should be made to put into practice. You should not push forward before planning thoroughly, nor should you make unreasonable plans. Set goals that are a bit ambitious and put them steadily into practice.”

- October 1, 1983 at a meeting with semiconductor staff

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Don’t be afraid to ask questions

“Even if you are the company president, when you do not know something, you should ask without hesitation. If you do that for two to three years, won’t the number of times you ask gradually decrease? I, too, am not managing Samsung alone; Samsung as a whole moves forward by drawing on its long history of experience.”

- June 30, 1983 at a meeting with semiconductor staff

Failure is also an asset

“I have a policy not to interfere once I entrust someone and give them full responsibility. You should not be reckless and manage a business in any way you like. But even if you thoroughly reviewed and carefully prepared a plan, it can go wrong. But that too can become an asset later, so you should take responsibility and see it through”

- April 25, 1985 in Yongin Farmland

People without pride is like people without a face

“When you go abroad, you realize that nations with traditions and well-cultured people are certain to have good art museums. The cultural standards of a people who cherish virtue and appreciate beauty are correspondingly high. A people without pride is like a people without a face. A people that abandons cultural pride is like a people that abandons themselves. Cultural heritage is the face and heart of its people.”

- March 3, 1983 from the JoongAng Fine Arts Prize catalogue

Frustrations and hardships shape your capabilities

“In life we all experience unexpected misfortune. You should be ready for coming misfortune when things are going well, just as sorrow often follows joy. Remembering past misfortunes and reflecting on them is many times more important that being captivated by today’s happiness. The same holds true for businesses. An entrepreneur who has often experienced unexpected setbacks has far greater managerial capabilities than one who has never experienced such adversity. There is a saying: More mud can make a bigger statue of Buddha and more water can make a boat float higher. Even though mud is not as good as soil, you can still make a large statue of Buddha with lots of mud. And even though rough waves can be dangerous, a boat can rise to greater heights. Even bitter persimmons can become sweet ones if they are dried well with care and dedication. But if you dry them too quickly or if you don’t make sincere efforts, such persimmons will never become sweet. Similar to transforming bitter persimmons into sweet ones, an entrepreneur also needs to look back upon the experience of the past. Without this mindset, just having a great deal of experience is useless.”

- September 17, 1975 from 'Conversation with Chief Executive Officers' (Naeway Economic Daily)

To cease growing is death itself

“Life can be both pleasant and unpleasant, depending on how you look at it. However insignificant a life may seem, it is valuable; conversely, however valuable it may seem, it can be insignificant. Life is shaped by how you cultivate it. I often think deeply about a saying I once heard: Every step is the path to enlightenment; this is what it means to live. People do not die from growing old, they beckon death when they stop disciplining and refining themselves one step at a time.”

- June 1976, 'Reflections of the Business World’ (Seoul Economic Daily)

Endless self-development

“It is natural for every person to study and develop oneself. If they neglect to develop and educate themselves, they destroy not only themselves but others as well, abandoning the qualifications of being a human.”

- October 19, 1984 in Yongin Farmland

Always reflect on yourself

“Travel is helpful in many ways. People running a business are likely to lose sight of themselves as they are busy with work. As a result, they can easily lose perspective and become narrow-minded. That is why I encourage the employees to read many books. However capable an employee may be, they are likely to lose their objective judgment and the ability to think flexibly if they are buried only in their work.”

- June 1976, 'Reflections of the Business World' (Seoul Economic Daily)

Three types of people who cannot develop themselves

“If you observe closely, there are three types of people. First is the type who avoid difficult work and only do the easy ones, and make others work by exercising their authority; the second type do not really understand anything even when you explain things; and third is the type who understand but do not act on it.”

- September 4, 1982 at a luncheon meeting with company presidents

The greatest virtue in human society is service

“I believe that the greatest virtue in human society is service. The duty of an enterprise managed by people must unequivocally be service to the nation, to its people, and to humanity.”

- April 2, 1982, Boston University Doctoral Degree Commemoration Lecture

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