■ Special lecture given at the Business Department of Hanyang University, about “Changes and Challenges of LS Cable”
■ Sohn explained the merger of JS Cable and SPSX as examples, and emphasized follow-up actions taken after the merger and the establishment of mutual trust
President Jong-ho Sohn gave a special lecture to 400 students of the Business Department of Hanyang University in the afternoon of May 26 (Tuesday) about “the changes and challenges of LS Cable.”
Mr. Sohn explained as examples the merger of JS Cable (formerly Jinro Cable Industries) and US Superior Essex (SPSX), stressing in the speech, “you cannot succeed in an M&A with money only; after the merger, integration of strategies, strengthening of competitive edge, sharing of vision, and establishment of mutual trust are far more important.”
Mr. Sohn, named as the first CEO after the merger of JS Cable in 2004, said that he tried to break the passive organizational culture and the established business strategy of focusing only on short-term results. In so doing, he actively communicated with his staff, shared his business philosophy and vision, and re-established a business portfolio strategy so as to normalize the business and to maximize synergies with LS Cable.
As a result, JS Cable was listed again in the KOSPI in 2007, only 3 years after the merger, and sales increased three fold from KRW 160 billion in 2004 to KRW 480 billion last year. JS Cable has since risen as the biggest supplier of marine and offshore cables, outrunning global companies including Nexans in France.
Mr. Sohn also added, “management is done by people,” explaining that if mutual trust is lacking between the employees of the merger and the merged after an M&A, the entire organization will be endangered by a breakaway of core human resources and aggravated business results.
Mr. Sohn mentioned his example of communicating actively with SPSX management during the merger talks last year to explain the cultural differences between the two entities. He claims “LS Cable and SPSX are of the same family.”
To seek out business opportunities among the 60 overseas bases in 40 countries in the world and to maximize the synergy of them all, LS Cable is holding regular global strategic conferences and regional meetings with SPSX. LS Cable is also actively fostering synergies by cross-selling and is trying to minimize costs with collaborative purchases.
President Jong-ho Sohn entered GoldStar Cable (currently LS Cable) in 1976 and worked in various departments including planning, sales and purchasing. Since he was named President in January 2009, he has emphasized innovation and marketing, and is leading the company in reforming its business model from sales of individual products towards applications and solutions.
Jong-ho Sohn, President of LS Cable says, “Money is not everything for M&A”
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