Shin Kyuk-Ho, founder of Rakuten Group, died of illness at Asan Hospital in Seoul at about 4: 29 p.m. at the age of 99, Yonhap news agency reported.

So far, none of the founders of South Korea's five chaebol (Samsung, Hyundai, LG, SK, Rakuten) are alive. South Korean media say the era of South Korea's "first generation of entrepreneurs" has come to an end.

Started from scratch and founded Rakuten in Japan

Shin Kyuk-Ho was born in 1921 in Ulsan, Gyeongsangnan, South Korea, when North Korea was under Japanese occupation, so although he is a South Korean, Shin Kyuk-Ho 's ups and downs in nearly a hundred years of life is closely related to Japan.

At the age of 20, Shin Kyuk-Ho traveled to Japan alone to major in chemical engineering at Waseda University. At that time, Japan and South Korea had not yet established diplomatic relations.

In 1948, after the end of World War II, Shin Kyuk-Ho founded Rakuten Co., Ltd. from scratch in Tokyo, mainly producing chewing gum. Why chewing gum? It is said that in Japan at that time, the profit margin of chewing gum was as high as 50%, which was a veritable sunrise industry.

In order to gain a foothold in Japan, Shin Kyuk-Ho abandoned his wife of chaff and remarried Chongguang Hatsuko, the niece of Japanese Class A war criminal Chongguang Kui during World War II. As Chongguang Kui was reused by Japan after the war, Shin Kyuk-Ho also "ascended to heaven." The two sons of Xin Dongzhu and Xin Dongbin were born to him and Chongguang's first son. According to Japanese media reports, Shin Kyuk-Ho has three wives and four children.

Since then, Rakuten has also been involved in the fields of chocolate (1963), candy (1969) and ice cream (1972) and has grown into one of the most representative food companies in Japan. After the normalization of diplomatic relations between South Korea and Japan, Rakuten established Lotte in Korea in 1967, which began its development process in South Korea.

In South Korea, Rakuten has been involved in food, tourism, logistics, construction, petrochemical and other industries, and eventually developed into one of the five major consortia in South Korea. In 1994, Rakuten entered the Chinese market, involved in food, retail, tourism, petrochemical, manufacturing, finance and other fields.

According to Yonhap news agency, Shin Kyuk-Ho contributed to promoting the tourism industry into a national strategic industry, winning the Golden Pagoda Industry Medal in the tourism industry for the first time in 1995.

Misfortune in old age:Father and son turned against each other and were sentenced for corruption and dereliction of duty

However, Shin Kyuk-Ho 's old age did not go well. In 2015, two sons, Xin Dongzhu and Xin Dongbin, kept fighting for the right to operate.

In the process of training successors, Shin Kyuk-Ho put his eldest son in charge of Rakuten's stronghold in Japan and his younger son Xin Dongbin in charge of Rakuten's industry in South Korea, according to media reports. I thought it would be able to "keep the well water from invading the river". However, under the east wind of South Korea's economic take-off after the war, Xin Dongbin, who is more talented and intelligent, soon made the business performance of Rakuten in South Korea greatly surpass that of the Japanese headquarters.

Master Xin felt that the situation was not good, so after Shin Kyuk-Ho officially delegated power, he quietly increased his stake in Rakuten, South Korea, with the intention of pre-setting capital for the future struggle for power. Unfortunately, Shin Kyuk-Ho learned secretly that his eldest son wanted to "disrupt" Rakuten's South Korean business in private, so he suddenly dismissed Xin Dongzhong's position as "second leader" in Rakuten in Japan in 2014.

After that, Mr. Xin did not give up, actively repairing the relationship with his father, while complaining that his younger brother had cleaned his old department in Rakuten, Japan, in an attempt to take over both Korean and Japanese companies. In a fit of anger, Shin Kyuk-Ho, in his 90s, went to Japan with Mr. Xin in July 2015 and announced the dismissal of several directors of Xin Dongbin and Rakuten.

The next day, Xin Dongbin, who was not willing to be outdone, said that Shin Kyuk-Ho 's dismissal order had not been voted on by the board of directors and was invalid. At the same time, he summoned the directors of Rakuten Japan to hold an emergency meeting and directly removed his father, Shin Kyuk-Ho, from his post as president, giving only the false name of "honorary president". As a result, father and son turned against each other completely, and the octogenarian Shin Kyuk-Ho vowed to "never forgive Xin Dongbin."

The mother of the two brothers, Chongguang Hoguang, stood by the younger son against her husband and eldest son. Relying on his influence in the business community, Chongguang Chuzi brought in a stronger backup team and stronger financial strength for Xin Dongbin. In the end, the youngest son won the internal struggle and is now the president of Rakuten Group.

In recent years, Shin Kyuk-Ho has also been involved in judicial investigations on suspicion of illegal operation. On October 17, 2019, Shin Kyuk-Ho was sentenced to three years in prison by South Korea's Supreme Court for corruption and dereliction of duty. On October 23 last year, when he was executed outside prison for six months, the Central District Prosecutor's Office in Seoul, South Korea, determined that Shin Kyuk-Ho suffered from advanced Alzheimer's disease, was unable to move and could not communicate, and was unable to serve his sentence in prison because of the risk of rapid deterioration or even death.

In the early years, Shin Kyuk-Ho and his youngest son Xin Dongbin were also accused of having an affair with a South Korean actress who hanged herself. In 2009, 26-year-old South Korean actress Jang Ziyan hanged herself at home. According to South Korean media reports, she left a long suicide note before her death, saying that she was forced to provide sexual services for more than 30 people. Shin Kyuk-Ho and Xin Dongbin also appeared on the list.

It is said that Zhang Ziyan made her debut by filming Lotte's snacks. After the news was exposed, it caused a lot of attention and doubt. In 2014, when hearing the case of Zhang Ziyan, the court did not investigate the matter too much on the grounds that the person concerned had died and could not be verified. But Rakuten's image has fallen sharply since then.

In 2016, Rakuten also angered China with the much-publicized "THAAD entry into South Korea" incident. At that time, South Korea announced that it would deploy the THAAD system at Rakuten's Xingzhou golf course; in February 2017, Rakuten agreed to give up the land, followed by the deployment of THAAD base by two launchers and X-band radar, sparking an outcry among local people. After the news came out, China and Russia raised objections at the same time, followed by a domestic public boycott of Rakuten, refusing to buy Rakuten's related products.

Revenue of 350 billion in the first three quarters of 2019South Korea also has four big chaebol.

However, in recent years, several major South Korean chaebol have not weakened their strength, but have grown. It is understood that the total annual turnover of Samsung, Hyundai, LG, SK and Rakuten accounts for more than 60% of South Korea's GDP.

According to the announcement on the Rakuten Group's website, in the first three quarters of 2019, Rakuten Group's revenue was 349.9 billion won, up 59% from the same period last year; operating profit was 242.3 billion won, up 95.5% from the same period last year; and net profit was 37.81 billion yuan, a year-on-year increase of 56.68 billion due to a loss of 188.7 billion yuan in the same period of 2018.

At the close of trading on January 17, 2020, Rakuten shares fell 0.56% to 35700 won, with a market capitalization of about 3.745 trillion won, or about US $3.2 billion, at the closing price of the day.

In the second half of the last century, driven by these big plutocrats, South Korea's economy developed rapidly and created a "Han River miracle" that attracted the world's attention.

In addition to Rakuten Group, the other four of South Korea's top five chaebol are: Samsung Group, Hyundai Group, LG Group, SK Group. Before Shin Kyuk-Ho 's death, the "Genesis" of the four chaebol had passed away.

1. Samsung Group

Li Bingzhe, founder of Samsung Group, was born in a peasant family in South Korea on February 12, 1910. When he was in high school, Li Bingzhe went to study in Japan and returned home as a sophomore due to foot disease.

After a period of depression, Li Bingzhe regained his momentum and set up a Mashan rice milling factory in 1936, mainly engaged in grain processing and fruit and vegetable export, and earned his first bucket of gold two years later. In 1938, Li Bingzhe founded Samsung Chamber of Commerce Co., Ltd. and began to deal in food trade. This is the predecessor of Samsung Group.

Samsung's chip industry can be traced back to the 1970s. Although Samsung started as a low-tech appliance, Li Bingzhe realized that the chip was the top priority affecting the performance of household appliances and was determined to invest heavily in chip research and development. In 1974, Samsung acquired a 50% stake in Korea Semiconductor. In 2015, Forbes magazine published a ranking of the 50 richest families in Asia, with the Li Bingzhe family topping the list with assets of $27 billion.

Li Bingzhe died on November 19, 1987 at the age of 77. After Li Bingzhe died, his third son, Li Jianxi, took over the group. Since Lee Kun-hee was hospitalized with a heart attack in 2014, Samsung Group has been run by Lee Jae-yong, the group's vice chairman and only son of Lee Kun-hee.

2. Hyundai Group

Born into a poor peasant family in North Korea, Chung Ju-Yung, the founder of Hyundai Group, began to work everywhere to make ends meet after graduating from primary school, running rice shops and car repair shops in his early years. Zhang Kangyong founded modern civil engineering.

After Japan surrendered unconditionally in 1945, Chung Ju-Yung contracted the car engine replacement and car maintenance business of the US military arsenal in Seoul and put up the sign of "Modern Automobile Industry Society". Later, due to too little profit from car repair, Chung Ju-Yung took a fancy to the construction industry, founded "Modern Earth Construction" in 1947, and gradually gained a foothold at home and abroad, undertaking many large-scale construction projects in the Middle East.

In 1950, Zhang Kangyong merged auto repair with civil construction company. With the help of the construction wave after the Korean War, Chung Ju-Yung established Hyundai Motor Company in 1967 and became a partner of Ford Motor in South Korea. Because Ford did not attach importance to the Korean market, Chung Ju-Yung was faced with all sorts of difficulties and finally decided to stop the cooperation with Ford and produce its own cars.

In 1974, Hyundai's first independently developed model, the Hyundai Pony, was unveiled at the 55th Turin Motor Show and later exported, setting a precedent for South Korean car exports overseas. In the 1980s, Hyundai developed into the largest carmaker in South Korea.

Chung Ju-Yung died on March 21, 2001 at the age of 86. At present, Hyundai Group is headed by Xuan Zhenen, wife of Chung Mong Hun, the fifth son of Zhang Kangyong. Hyundai Motor and Hyundai heavy Industry have separated from Hyundai Group in the early years.

3. LG Group

The founder of LG Group Huren Hui is a Korean entrepreneur who started out in the chemical industry. Akihito experienced the era when the Korean peninsula was colonized by Japan when he was young, when he believed that only by relying on capital to enhance the country's competitiveness could the whole nation be freed from the pain of colonial rule.

After Japan surrendered, Hiroshi founded the LG Chemical Industry Association, the predecessor of the LG Group in 1947. At the beginning, LG Chemistry only produced creams, combs, soap boxes, toothbrushes and cutlery. After the company became bigger, LG turned its enterprises to the fields of electronics industry and cleaning products, and its product line expanded to household appliances such as televisions, refrigerators and air conditioners, which monopolized the Korean home appliance market at that time and was known as the "king of home appliances".

At present, LG consists of three parts: electronic plate, chemical plate and telecommunications service. In 2018, the LG Group made a profit of US $2.4 billion and annual revenue of US $544. Profits have increased by 10% over the same period. Although LG phones are not as good as they used to be in the global market, LG's LCD TVs still account for more than 80 per cent of the global business.

Hiroshi died in 1969 at the age of 62. At present, the LG Group is headed by Shigeru Uamoto, the adopted son of Koo Cha-Kyung, the son of Fujinhui.

4. SK Group

The history of SK Group can be traced back to 1953. Choi Jong-Jian, founder of SK, bought Xianjing fabric Co., Ltd., a textile factory from the South Korean government after the end of the Korean War.

He started from Xianjing fabric with only a few textile machines, and after 10 years of efforts, he developed it into a Korean textile giant with more than a thousand machines. In 1969, Xianjing fabric began to produce polyester precursor, completed the leap from fabric to precursor, and became the first batch of acetate fiber and polyester fiber companies in South Korea.

After Cui Zhongjian died at the age of 47 in 1973, his brother Chey Jong-Hyon took over as chairman of Xianjing Group. Chey Jong-Hyon proposed a "second venture", announced that "everything from oil to fiber", and set up an oil company. In the 1960s, Xianjing set its sights on the communications industry, which was relatively unfamiliar to Volkswagen at that time, and took the lead in launching mobile phone services in the world. After acquiring Korea Telecom in June 1994, Xian Jing became the largest communications network provider in South Korea.

In 1998, Xianjing Group introduced a new enterprise creative system. According to international standards, the initials S and K of "SUN-KYUNG" in Xianjing English were used as the group name, namely "SK Group". In the same year, Cui Taiyuan, the eldest son of Cui Zhongjian, took over the post of president. At present, SK Group is mainly composed of energy and chemical industry, medicine, information and communications, semiconductors, services and other plates.