[Once Upon a Time] Park Heungsik, Great Merchant of a Dark Age

In the Chinese-character civilization sphere, including Joseon, China, and Japan, there were traditionally severe restrictions on individuals’ economic activities. Because of the rigid social hierarchy known as “scholars, farmers, artisans, and merchants,” commerce was held in even greater contempt. Regrettably, this disdain for and restriction on commerce was most severe in Joseon. Regulations on commercial activity were entirely suppressive in nature. Prejudice against trade with foreign countries was even stronger, so that until the late Joseon dynasty, commercial transactions with foreigners were effectively prohibited.

The social institutions and customs that constrained individuals’ economic activities began to weaken with the Gabo Reform of 1894. For example, in Joseon society, those who had served as high-ranking officials were not allowed to engage in commerce, but the Gabo Reform finally permitted their commercial activities. This became the occasion for the full-fledged emergence of merchants in this land.

Park Heung-sik, who built the Hwashin Department Store, was the wealthiest man during the Japanese colonial period, and there must have been good reason why he was called “the richest man in Joseon.” There is a saying, “To become a member of the National Assembly, one must be born riding even the ridge between rice paddies.” This expression refers to how difficult it is to become a political leader, but it applies even more aptly to economic leaders. In politics, even a person lacking talent and character may rise to a high position through personal connections, but in business the situation is fundamentally different. That is because competition in the economic market is far fiercer than in the political market. Thus, only those with truly exceptional talent and character can build and grow a business. Even if someone is fortunate enough to expand a business easily, without talent and character that person cannot preserve it for long.

Chairman Park Heung-sik was not only a man of outstanding talent and character but also a modern entrepreneur. He introduced management methods that would compare favorably even with those of modern business executives and grew his companies.

An anecdote that shows this side of him is his successful entry into the newsprint market while operating Seonil Paper Manufacturing Co., Ltd. When Japanese newsprint producers maintained an oligopolistic system, making the product difficult to obtain, he imported it cheaply from Sweden and Canada and achieved great success. In the process, he also brought major benefits to newspapers in Joseon. A successful entrepreneur did not merely accumulate personal wealth. In that process, he created jobs, increased social value by generating consumer surplus, and helped rational and efficient economic methods and practices take root in this land.

Original title: [옛날옛적에 ] 암울한 시대의 위대한 상인, 박흥식

Author: Center for Free Enterprise (CFE)

Date: 2006-06-22

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=column&pn=21&idx=10676