Imagine a young boy, born into a poor family from a small village in Korea, working in the fields for 17 hours a day just to ensure one square meal for his family. Now, imagine this same boy growing up to become the owner of a car company worth billions. This is the extraordinary story of Chung Ju-Yung, the founder of Hyundai, a journey that demonstrates the value of perseverance and determination.

Early Life and Struggles

Chung Ju-Yung was born in 1915 in a small village in Korea. Despite his dreams of becoming a school teacher, Chung’s family’s poverty forced him to work in the fields from a young age, making it difficult for him to pursue his education. The family faced hard times when they couldn’t afford enough food, clothes, or medical care. When Chung went to a nearby city to sell wood and observed that people there lived comfortably without having to toil constantly in the fields, it was the turning point in his life. This striking difference ignited a fire in Chung to strive for a better life.

The Journey to Success

He once read in the newspaper that laborers were needed for a large construction site in a nearby city, which motivated him to work. In 1932, at just 16 years old, Chung made a bold decision. With a friend, he walked 160 kilometers to Kowon city to work as a construction laborer. Despite being caught by his father and forced back to farming, Chung’s determination to escape poverty only grew stronger. He attempted to run away two more times, but each time, his father found him.

Finally, in 1934, at the age of 18, Chung made his fourth and successful escape to Seoul. He took on any job he could find, starting as a laborer, then a factory worker, and eventually landing a job as a delivery boy at Bokheung Rice Store. His dedication and exceptional work ethic impressed both customers and shop owners. Within just six months, he was promoted to the position of store manager. Chung worked tirelessly to expand the rice store. In 1937, when the store owner fell seriously ill, he made a surprising decision. Impressed by Chung’s work ethic, he handed over the business to him, making Chung, at 22, a business owner who had transitioned from being an employee to becoming the proud owner of the business.

Building the Hyundai Empire

Chung’s journey to success faced a setback during World War II when Japan seized his rice store, destroying all his hard work. With determination and a belief that sincere effort leads to success, Chung began searching for businesses not under Japanese control. He soon decided to focus on the car repair business. In 1940, he took a loan of 3000 won and started his auto repair business. Unfortunately, just a month after opening, the garage burned down, reducing everything to ashes. Chung faced a daunting situation. He had to repay his loan and compensate his customers for their losses. Many people would have given up, but Chung was not one to back down from a challenge. He took another loan of 3500 won and built an even better garage. Chung realized that the biggest problem for the customer was the long time it took to get their cars repaired. That’s why he made speed his main focus. While his competitors took 20 days for certain repairs, Chung’s garage would do the same in 5 days. His garage was so successful that by the next three years, until 1943, his workforce grew to 80 employees. By this time, Chung had repaid all his loans and settled his family in Seoul.

Business was growing rapidly, but then another disaster struck. Japan needed to make war-related equipment for World War II, so Japan took over his garage and merged it with a local steel plant. Once again, his business was taken away from him, and Chung was forced to return to his village with his family. However, this time, he had 50,000 won saved and was confident that he would establish another business. With the end of World War II, Japan’s rule over Korea also ended. The northern areas of Korea had Soviet Union’s influence, and America’s influence was in the southern area. Both of them fought the war against Japan in World War II, which led to Korea being divided between North and South Korea.

Chung came back to Seoul in 1946 and restarted his car repair business. The business was the same, but this time, the name was different, ‘Hyundai Auto Service’, which means ‘Modern’. Chung noticed that America was constructing buildings for its military forces. He spotted a big opportunity in the construction business. Although he didn’t have much experience in construction, he still had the passion he had since he worked as a laborer in the past. That’s why at the age of 31 in 1947, he created the Hyundai Civil Works Company and entered into the construction business. He started with many small projects, and by the 1950s, his company was getting major construction projects, which became his major business. Everything was going fine, but another twist in the tale occurred. In June 1950, North Korea attacked South Korea, and North Korean troops were very close to Seoul. Chung had to escape to Pusan with all of his savings.

Even after such a big crisis, Chung didn’t give up. At that time, the US army was fighting the North Korean army along with the South Korean army. They needed tents, warehouses, and army headquarters. Chung observed that Americans had no shortage of money; they just wanted reliable and timely delivery. And, Chung provided it. He started with a small team and adopted the ‘can-do’ motto. If the price was reliable, they would take on any construction project. A war was underway, and Hyundai had to face many losses and problems. But once he gave his word, he never left any project in the middle or withdrew himself in between. Due to this reliability, he developed a strong relationship with Americans. The war ended in 1952, but Chung continued to get contracts from America. Later, to rebuild the country, the South Korean government began building bridges, dams, and roads rapidly. Hyundai played a major role in all this and had exponential growth in the business. South Korea’s biggest dam, Soyoung Dam, and the most important expressway, Kyungbu Expressway, were built by Hyundai.

The Journey into Making Cars

In the 1960s, Chung was in his early 50s and owned a successful construction business. However, he was not satisfied with this. He had already built thousands of kilometers of roads, and now it was time to build cars to run on those roads. In 1967, Chung established Hyundai Motors Company, and in 1968, he had a deal with Ford in which he was going to assemble the Cortina cars. This joint venture ran successfully for two years, after which conflicts started developing between the two companies. Ford didn’t want Hyundai to build its own cars.

In 1973, Chung ended the partnership immediately and started looking for new partners. He tried to partner with General Motors and Volkswagen for their manufacturing technology, but everyone refused. Finally, in the same year, they partnered with Japan’s Mitsubishi Motors. Mitsubishi was ready to give Hyundai its car-making technology, and as per this deal, Hyundai could sell its own cars. Around the same time, the South Korean government issued an order for automobile companies to build a citizens car. A car that is affordable, reliable, and only uses parts made in South Korea.

In 1976, Chung set up a new plant, and Hyundai produced South Korea’s first-ever mass-produced car, the Hyundai Pony. Due to its affordability, this car was so successful in South Korea that Hyundai captured 60 percent market share. However, the total car market of South Korea was only 30,000 cars, which was not sufficient to be profitable. Also, although the Hyundai Pony was successful in South Korea, it was a huge failure in the overseas market. The quality of the car was not good; the paint would fade in the heat, and it often had mechanical issues. Due to these reasons, Hyundai Motor Company had been in loss for seven consistent years.

People suggested that he should close the company immediately. But Chung’s decision shocked everyone. Instead of closing, he was planning to build a new car factory that would manufacture 300,000 cars annually. The company’s management couldn’t understand the decision. Who will buy 300,000 cars in a market of 30,000 cars? But Chung knew the answer. South Korea’s economy was growing rapidly, and thousands of people were becoming economically empowered every year. That meant the demand for cars was going to rapidly increase in the coming years. Plus, Hyundai’s new cars were specifically made to export to foreign countries. This factory was built in 1980, and in 1982, Hyundai launched the Pony 2 with major improvements. This car was not only a huge hit in South Korea, but it was also successfully exported to Africa, Latin America, and Canada. In the following years, Hyundai sold 400,000 cars and became profitable, solidifying its position as a reputable global car company. However, the toughest challenge awaited in the USA, the world’s largest car market. To elevate from a ‘decent’ to a ‘major’ car company internationally, Hyundai needed success in the USA.

Analyzing the US market, Hyundai recognized Japan’s dominance in the compact car segment and the fierce competition in the mid to large-sized American car market. Therefore, Hyundai targeted the sub-compact car market, where competition was minimal. Hyundai also identified a substantial second-hand car market in the USA. They offered the new Hyundai Excel at the price of a second-hand car, with a 5-year warranty. This strategy revolutionized the car market in the USA. Second-hand car buyers quickly shifted to the Hyundai Excel. In 1986, Hyundai sold about 170,000 Excels in the USA, followed by approximately 260,000 cars in 1987. During these years, the Hyundai Excel became the top-selling imported car in the USA, marking unprecedented success for a new entrant in the US market. With this achievement, Hyundai established itself as a major player in the car industry. In 1987, at the age of 72, Chung retired from Hyundai and assumed the role of honorary chairman. His brothers and sons then managed the company, upholding its principles with the same determination. Today, Hyundai ranks as the world’s third-largest car company.

Hyundai’s Global Impact

Although Hyundai is globally recognized for its car business, few are aware that there are 42 companies within the Hyundai Group. These include Hyundai Elevator, Hyundai Information Technology, and Hyundai Heavy Industries, the largest shipbuilding company globally. Hyundai’s impact extends beyond cars; it has propelled South Korea ahead of Japan. In South Korea, Hyundai is more than just a company; it is an institution that has reconstructed the country, generated thousands of jobs, and brought global renown to South Korea.

In conclusion, Chung Ju-Yung’s incredible journey from a poor boy in a small Korean village to the founder of Hyundai is a story of resilience, hard work, and unwavering determination. Despite facing immense challenges and lacking basic necessities, Chung’s passion, vision, and desire for a better life drove him to success. His story is a powerful example that with perseverance and a strong will, one can overcome any obstacle and achieve greatness.