Kim's chief weapons in the appliance wars are his "tear-down-and-redesign" teams. Kim introduced them in 1995, when he was chief of LG's main factory for air conditioners and washing machines. The plan, modeled after General Electric Co.'s Six Sigma program, slashed costs by a third in two years. Productivity soared after Kim shortened assembly lines and product development, while defects fell by one-third.
Then came the 1997-98 Asian economic crisis, when the value of the Korean won sank. "That was a huge opportunity for us to beef up price-competitiveness," recalls Kim, who started as an engineer at LG Electronics 33 years ago. Kim's focus now is to strengthen his company's presence in the U.S. and Europe, particularly in high-end segments such as Internet-capable refrigerators and ultraquiet washing machines. Last year, LG started selling air conditioners and washing machines under its own name in the U.S., where it used to build appliances for Whirlpool and GE. If Kim can gain U.S. market share, he may well continue his winning streak.