Don’t take Park’s mild manngers lightly

With one fight, Kumho Petrochemical CEO gains indelible reputation

By Kim Jae-kyoung

Kumho Petrochemical Chairman and CEO Park Chan-koo can be as affable as a neighborhood uncle. But when he reaches an important point, he rarely fails to ensure the other party fully understands his stance.

In other words, don’t take this soft-spoken, innocent-looking man lightly. He has the qualities to lead one of the nation’s top petrochemical firms. If you’re not convinced, just look at how he fought his elder brother over what he saw as “wanton management” and never retreated in a tough fight he is still emotional about.

During an interview at his office on the 22nd floor of the Kumho Asiana Building in Gwanghwamun, Seoul, the 63-year-old chief executive was calm in his greetings.

But it didn’t take long to realize a confidence and passion behind his humility. He has a unique type of leadership that sets him apart from others, which has helped him steer his group back onto the right path.

Park is decisive. Even after a couple of questions on the group’s thorny issues, he remained composed. And his answers give a clear picture of who he is.

The CEO seems to be well aware that knowing what to decide and when to decide it, as well as including the right people in the process are keys to being a successful leader. His decisiveness is well manifested in his personnel management and decision-making processes.

When asked how to handle underperforming or stubborn executives, Park said he doesn’t tell them what to do but just watches. “I don’t think it is necessary to speak to such people,” he said, suggesting that if his people keep making mistakes, he doesn’t give a second chance.

His decisive leadership was also shown in his decision to separate Kumho Petrochemical from Kumho Asiana Group by selling off his stake in Kumho Industries, the group’s holding company.

With the proceeds from the sale, he bought more shares in the petrochemical firm to solidify his managerial rights.

His attempt to part from Kumho Asiana is now in the final stage. Kumho Petrochemical holds a 13.43 percent stake in Asiana Airlines, and if Park sells this, it will finalize the separation process.

“My stance was simple. My elder brother did not respect my opinion in the group’s decision-making process despite the joint management principle agreed upon by family members. So I believed the breakup was the only solution,” he said. “If I had not decided to part from Kumho Asiana, we would have still been in trouble.”

Doing so, he said, his group was able to focus on the petrochemical business. Kumho Petrochemical posted record-breaking sales of 5.3 trillion won in 2011, with operating income of 620 billion won, despite last year’s unfavorable business environment.

He left the management of the company in 2009 as a result of the family feud with his elder brother Park Sam-koo, currently chairman and CEO of Kumho Asiana Group. But he made a comeback in 2010 and put the firm back on track. It recorded a net profit of 470 billion won in 2010, a major turnaround from net losses of 20 billion won in 2008 and of 600 billion won in 2009.

When discussing the record results, Park was composed. Although his face was full of joy and pride, he attributed the outcome to his executives and employees.

When asked about how the company achieved record sales in 2011, he took a quick look around and gave a faint smile. Then he said, “I should not take the credit. I only contributed to the results a little. All I did was to cheer the staff up. It was possible only with the support of our employees.”

In January, Park visited the firm’s factory in Yeosu to boost morale. He takes factory tours on a quarterly basis. “The most important job for a CEO is to listen to people and support them,” he said.

The Kumho family feud is still underway. Park is awaiting trial on charges of creating a slush fund, with the court date set for Feb. 16.

It seems he has feelings of both love and hatred toward his elder brother, although the two have passed the point of no return.

They work in the same building but they have different aims and hardly see each other. Their secretarial teams arrange their movements in advance so that they don’t run across each other.

Park says that what he wants is simple. “I want both of us to go on our own separate ways after a breakup. I really hope that my elder brother can put Kumho Asiana back on track. On my side, I will focus on Kumho Petrochemical and make it the world’s top company.”