Representing the 70% market share of the Korean cosmetics market in the mid-1970s, Pacific faced a new dilemma because of its dominance. Now that the company was dominating the market, there was little room for further growth. There was no denying that the company could start going down the slope when it stopped growing. So, it was out of necessity that the founder Suh Sungwhan (pen name Jangwon) pushed forward with business diversification during the 1970s and 1980s.

After the diversification efforts focused on third industries such as financial and service industries, Pacific turned into a giant conglomerate having 23 affiliated companies in the early 1990s.

In terms of size, it was truly an incredible business growth. However, the problem was that this upsizing was achieved through establishment or acquisition of new businesses and most of them recorded poor performance, plunging Pacific into a crisis.

What's worse, on the evening of May 13, 1991, Suh Sungwhan received an urgent report that the labor union members who had been staging a strike at the Suwon factory finally took over the headquarters. Suh was flabbergasted. Labor disputes and strikes were common during that time in Korea and it was inevitable for Amore as well. Although the strike ended in 25 days with the intervention of riot police, there were still many conflicts unsolved.

"Pay wages to our employees as usual."
Whereas other companies refused to pay their employees during the protesting days according to the principle of 'no work, no pay', Pacific was different. Suh even sent a letter to the police pleading for a favorable arrangement for the union members who were arrested for having instigated the strike. Thanks to these efforts, the union began to open their heart for frank and open discussions.

However, there was another big problem. It was that Pacific guaranteed the debts of its poorly-performing affiliates, resulting in a cash crush followed by tremendous financial pressure on the holding company.

Suh Sungwhan was sitting in the darkness alone, deeply engaged in contemplation. All those memories of the past that had been forgotten in his mind came alive like a grand current and the rushed away. He felt tears welling up from deep down inside, thinking of all the happy and glorious moments he had experienced. 'Why does Pacific exist in this world and what does the world want from Pacific?' After asking such essential questions, he finally found an answer himself: he had to return to the very reason for the company's existence: cosmetics. It was his calling.

"If I am given another life to live, I will still be making cosmetics." Going back to the beginning was the best solution to overcome such a perilous financial situation.

Suh worked day and night and a series of crises occurred in 1991 was hard for him to bear. That year, he was diagnosed with lung cancer.

He was 68. Just 45 days after a successful operation to remove the cancerous tissue, he returned to the company. He was there with his son, Suh Kyungbae who was pushing ahead with corporate restructuring with internal innovation initiatives.

By the end of the year, Suh Sungwhan and Suh Kyungbae sat together over a cup of green tea. They sat for a while without saying a word. Finally, Suh Sungwhan said, "I want you to make decisions for our company from now on."

From that moment, Pacific decided to make a whole new start just as it did 50 years ago, leaving all the glorious and suffering times behind

* This column is extracted from the critical biography of the founder Cosmetics would still be my purpose, even in another life.