Mythmaker`s management style

Chung Ju-Yung, former honorary chairman of Hyundai Group, was called a mythmaker based on his success at building the nation`s largest corporation out of a modest pre-Korean War repair business.

He used to say that ``I did everything that corporations can do through Hyundai Group.`` But Chung had to overcome a number of obstacles along the way.

Ado Service, the origin of the myth:

In 1940, when he was looking for a business opportunity, Chung found a partner and together they used borrowed money to establish a car repair shop called Ado Service. Just five days after they made full payment on the shop, a fire broke out as a result of Chung`s mistake and the business was reduced to ashes.

Chung lost not only his factory but also the cars of his clients. The accident left him in serious debt.

Chung reopened the car repair shop by borrowing even more money. He opened the business on an empty lot in Shinsol-Dong and without a business license. He then expanded his business by repairing cars faster than his competitors and doing a better job.

Nightmare of Koryong Bridge work:

The Koryong Bridge, which links Taegu with Keochang, was destroyed during the Korean War and the government wanted to rebuild it in 1953. Chung, who founded Hyundai Engineering and Construction before the war, was lucky to win the building contract.

However, it turned out to be a headache. The depth of the water in the Nakdong River, which changes seasonally, poor construction equipment and unexpected floods hampered the construction work. His family and colleagues urged him to abandon the project. But Chung sold his brothers` properties and poured money into the work. He completed the bridge in 1955, just two months later than the projected completion date.

Jubail port work inaugurates era of Middle East work:

In 1976, Saudi Arabia was seeking a contractor for its $930 million Jubail Harbor construction project. The figure was then equivalent to half of Korea`s national budget. The global construction industry called it the largest project of the 20th century. After many twists and turns, Hyundai won the project.

On Chung`s orders, all construction materials, including concrete slabs, were manufactured at Hyundai`s Ulsan shipyard and transported to the Persian Gulf using a massive barge. The shipments had to pass through the typhoon-prone Philippine Ocean.

Hyundai successfully completed the Jubail project, which paved the way for it to win a series of other major construction projects in the Middle East, such as Kuwait`s Shuaiba Port expansion project and the Dubai power plant project.

Ha Im-Sook artemes@donga.com