The Legacy of Jinju's Jisoo Elementary: Birthplace of Samsung and LG Founders

SBS's 'The Story of That Day' (Kkokomu) recently unveiled the intriguing connections between the founders of global conglomerates Samsung and LG, tracing their roots back to Jisoo Elementary School in Jinju's Seungsan Village.

The episode, aired on October 12, titled 'The Birth of the Rich - The Village of Entrepreneurial Geniuses,' explored the origins of Korean entrepreneurial spirit through Jisoo Elementary School, known as the 'School of the Rich' and 'Cradle of Chaebols.' The show featured broadcaster Seo Dong-joo, comedian Go Myung-hwan, and YouTuber Risabae, who has 2.67 million subscribers, as listeners.

In the late Joseon period, Jinju was one of the three major cities alongside Hanyang and Pyongyang. Seungsan Village was home to prominent families known for their educational and commercial prowess. Established in 1921, Jisoo Public Elementary School was the first modern educational institution in the area.

In 1922, Lee Byung-chul from Uiryeong transferred to this school, where Jinju native Koo In-hwoi was also enrolled. Their names appeared on the same attendance list, and a pine tree they planted together to commemorate the school's opening still stands today, known as the 'Tree of Wealth.'

Koo In-hwoi began his business by adopting a cooperative purchasing and trading method to counter the Japanese-dominated distribution structure. His silk shop, opened in 1931, became the starting point for what would eventually become LG. Despite initial losses, Koo's father supported him by mortgaging their hometown land. Risabae related to this, sharing her own experience of perseverance in the broadcasting industry.

Koo employed a strategy akin to modern influencer marketing by sponsoring silk to Jinju's top courtesan, creating a buzz. However, when the 'Byeongja Year Jinju Flood' submerged all his silk, threatening his business, he chose bold investment over withdrawal, anticipating consumer recovery. He introduced limited-edition patterned silk, built trust with fixed pricing, and banned credit and haggling.

Around the same time, Lee Byung-chul also grew as an entrepreneur. Despite failures in the rice mill and transportation business during the Sino-Japanese War, he founded 'Samsung Trading Company' near Daegu's Seomun Market in 1938, with noodles as the main product, leading to the term 'Noodle Open Run' due to its popularity.

Another key figure connecting the two was Heo Man-jeong, known as the 'Warren Buffett of Jinju.' As the de facto founder of GS Group, he lived next door to Koo In-hwoi in Seungsan Village. Heo invested in both Lee and Koo, providing capital and sons to each, with instructions for his sons to learn the business but not interfere in management. This unique approach led to a joint management system between the Koo and Heo families, lasting 57 years without major conflicts until GS Group's separation in 2004.

The Heo family was also renowned for investing heavily in education and the independence movement, symbolizing capital that prioritized community. Seo Dong-joo reflected on these stories, emphasizing the importance of considering the community and humanity beyond personal and familial concerns.

The remarkable success of Samsung and LG, founded by neighbors who studied together at Jisoo Elementary, can be attributed to the unique characteristics of Seungsan Village's residents. Over 300 global entrepreneurs have emerged from Jisoo Elementary and Seungsan Village, showcasing their extraordinary legacy.

Although Jisoo Elementary closed due to rural depopulation and low birth rates, Jinju City purchased the site in 2022, transforming it into the 'K Entrepreneurship Center,' preserving the spirit of these pioneers.

After hearing MC Jang Do-yeon's stories, Seo Dong-joo remarked, "The wealth could continue because of the mindset of prioritizing the nation and community from 100 years ago," while Go Myung-hwan expressed his desire to internalize this spirit as a businessman.

Lee So-jung, TenAsia Reporter forusojung@tenasia.co.kr