Ilhan New the Entrepreneur
Ilhan New the Entrepreneur
If a company is devoted to money-making only, it's nothing but a miser.
Dr. Ilhan New's fundamental principles of business management were love of the country and love of the people. Of course, he neither gave up nor rejected the pursuit of profits. Rather, he positively pursued profits, considering profit-making as positive. However, he considered the profits made by a company as the reward for a company's contribution made by the manufacturing and selling of quality products, believing that good products are contributions to the citizens. Hence, he thought that a company may grow and develop through the pursuit of profits to increase employment, and contribute to the development of the national economy. He was confident that this is the way an entrepreneur may contribute to the country and people. With this conviction, he made Yuhan Corp. One of the best pharmaceutical companies in Korea.
Only healthy people can get the sovereignty back.
With the success of the La Choy Food Product Inc., Dr. Ilhan New earned the profit of about 500,000 USD within just four years after the foundation. When he temporarily visited to Korea to secure raw materials, he saw the miserable reality of his own country. Thinking that he had the duty of keeping his people healthy, he established Yuhan Corp., a pharmaceutical company, on December 10, 1926. Until 1936, all the properties of Yuhan Corp. were the personal possession of Dr. Ilhan New.
However, after the business was solidly founded, he made the plan to share the ownership with others and established the company as a corporation. He gave some of the shares as bonus stocks to the employees because he thought that the company was not his own but of the employees. This is the first example of employee stock ownership in Korea. In 1962, Yuhan Corp. opened the stocks for the first time among the pharmaceutical companies, separating the ownership from the management.
Dr. Ilhan New opened the stocks not because the owner's equity was insufficient but to accomplish the democratization of the company through the public stock ownership and open accounting. In addition, according to the founder's view on tax payment, opening the stocks directly linked to his love of the country, Yuhan Corp. considered 'honest and prompt tax payment' as the most important policy. Therefore, Yuhan Corp. was highly evaluated as 'Korea's first company implementing voluntary tax payment,' and 'Korea's first company opening the accounting books.' One notable thing is that Dr. Ilhan New's last position as CEO was succeeded by the executive director, Gwon-sun Cho in the 44th regular meeting of shareholders held on October 30, 1969. He was truly a patriotic entrepreneur who finished his course of business management without following the Korea's evil practice of leaving the office of presidency to one of the business owner's children.