Chairman Huh Chang-soo of GS Group.(Photo:GS Group)

Chairman Huh Chang-soo urged the top executives of GS Group to learn from the book “Jing-Bi-Rok,” which was authored by Prime Minister Yoo Seong-yong under King Seon-jo of the Joseon Dynasty. The then prime minister of the Im-jin-wae-ran, the Hideyoshi Invasion (1592-1598) of the Joseon Dynastry, wrote about his reflections on the invasion, the shortcomings of the dynasty to fight against the enemy and help the country be prepared for such incidents ever happening again in the future. 

At the second quarter meeting of the group’s key officers at Seoul GS Tower, the chairman quoted from the ancient book, pointing out the defeat of the Korean dynasty, which knew the Japanese invasion was about to come but failed to prepare for the enemy assaults adequately in the early stages of the invasion.

Huh said the defeat at the hands of the Japanese invaders is still a great lesson for Koreans in the modern age that they should always be on the alert with wide open eyes and ears to catch signs of change in the business environment and take preventive measures early.

The chairman told some 150 top-level officers of the group at the meeting of the need for early-monitoring the changes in the business environment to be able to take measures for the group to get through it. 

Included amongst the participants were CEOs of the key affiliates of the group, including GS Caltex. 

He also quoted an old adage that “If hungry enough, there is a way out,” to get the message across that they must abandon nearsighted management guidelines to find out if their companies have been creating value 

His warnings to get rid of nearsightedness was a kind of reprimand for all entire officers of the group to make sure they know where they stand in terms of their company’s operation and to follow Huh’s policies to find new growth engines so that the group could continue to expand and grow with new business models.

The style of his speech at the Q2 meeting portended that a crisis may be awaiting the group. It was a far cry from his New Year speech, which called for a return to the basics to prepare for a new take-off.

In fact, business circles were already aware that the business environment in the Q2 had grown worse compared to the early stages of the year. A number of large conglomerates have top executives in jail, management-labor conditions have been getting worse with the “Spring Offensive” continuing unabated, and the strong won continues, with the domestic economy still mired in sluggish growth.

It’s not all bad news. 

Officials of GS Group said GS Caltex suffered a 300 billion won deficit last year, but this year signals showed that business conditions had been getting better for the oil refiners. Another major affiliate, GS Construction, is now out of the woods, but still has some time to go for a full recovery of its operational conditions.

Huh also stressed transparency in management, as he is aware of the heads of a number of big business firms under investigation for various alleged criminal charges such as tax fraud and the creation of secret funds.

Huh said the public demand for transparency in management and social responsibility by business firms has been rising, and without transparency in business and trust in the market, business firms cannot go on and develop further, which he said should always be remembered by top-level executives of his group.