From Rags to Riches: The Inspiring Journey of Stone Bed CEO Lee Dong-hak

Television personality Seo Jang-hoon was impressed by the story of Lee Dong-hak, the CEO of a stone bed company aspiring to become a trillionaire.

On the October 11th episode of EBS's 'Seo Jang-hoon's Neighboring Millionaire,' the spotlight was on Lee Dong-hak, a 'stone tycoon' who built his fortune from a single stone. Lee is the head of the leading stone bed company in South Korea, having surpassed one million units in cumulative sales and achieving an annual revenue of up to 50 billion KRW. His company exports to over 10 countries, including the U.S., the U.K., and Singapore, earning him the title of '55 million dollar export king' and contributing significantly to the national economy.

The episode showcased a variety of stone-heated furniture, from stone beds made with 'Geumgang medicinal stones,' one of North Korea's three famous products, to jade sofas crafted from 'Chuncheon jade,' a South Korean specialty. Lee Dong-hak has been driven by a singular dream of becoming a businessman since childhood. Helping his father with a coal briquette shop, he learned the value of money early on. His determination was evident when he improved his school ranking from 58th to 28th by studying diligently, even pricking his eyes with a needle to stay awake.

In college, Lee was known for his unique approach, practicing speech on the subway instead of studying in the library, which even got him featured in a newspaper. Reflecting on those days, he said, "It was embarrassing, but I believed that if I ran away, I could never become a businessman." At 29, in 1999, he launched an online shopping mall, realizing his entrepreneurial dream. Despite initial success, with 400 million KRW in cash after expenses, he faced unexpected failure as large online malls dominated the market.

Lee found a new path by selling jade mats, believing that products popular in Korea would also succeed overseas. His intuition proved correct as inquiries flooded in from Southeast Asia. He personally delivered samples to buyers, securing large contracts equivalent to three containers. In 2008, he fully ventured into the stone bed business.

However, selling imported products led to low profits and 14 years of deficits, leaving him with a 3 billion KRW debt in his 40s. When offered the chance to acquire a stone bed factory, he faced the challenge of raising 875 million KRW for the acquisition while already in debt. Lee wrote heartfelt letters to bank managers, securing a 400 million KRW loan without collateral. He promised to pay the remaining balance in 12 monthly installments, successfully acquiring the factory.

Lee dismantled the stone beds, eliminating unnecessary parts and sourcing cheaper, high-quality components, reducing manufacturing costs by over 30%. By 2017, he had repaid the acquisition balance of 400 million KRW, achieving explosive growth, doubling annually. By 2020, he cleared his 3 billion KRW debt and established a 3,000-pyeong headquarters in Yongin, solidifying his status as a successful entrepreneur.

Seo Jang-hoon praised Lee's acquisition of the stone bed factory as a 'divine move.' Yet, Lee humbly stated, "My prime is yet to come." His goals include achieving an annual revenue of 1 trillion KRW and donating 10,000 stone beds. He actively supports vulnerable groups, donating 1,399 stone beds worth approximately 2.8 billion KRW to low-income seniors and facilities for the disabled. Lee believes that "a company becomes extraordinary when it gives back to society," showcasing his steadfast business philosophy.

Reporter: Jung Se-yoon, TenAsia yoon@tenasia.co.kr