In a time of crisis, Koreans recall the unlikely legacy of Choi Myung-jae

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In a time of crisis, Koreans recall the unlikely legacy of Choi Myung-jae

Published: 04 Apr. 2025, 00:02

Audio report: written by reporters, read by AI

Lee Sang-jai

The author is a deputy director of economy and industry news at the JoongAng Ilbo.

As Korea braces for a potential trade war and mounting economic uncertainty, the story of Choi Myung-jae — a dairy entrepreneur turned education reformer — is drawing renewed attention.

On April 2, the Trump administration announced a 26 percent reciprocal tariff on Korean imports, the highest rate among U.S. free trade agreement partners. Vietnam, China, and India were also hit with significant tariffs — 46, 34, and 27 percent, respectively — dealing a sharp blow to Korean companies with production bases abroad. If China, the European Union, or ASEAN respond with retaliatory tariffs, the damage could deepen further.

Choi Myung-jae founder of Pasteur Milk in the late 1980s.[JOONGANG ILBO]

Korea’s economy, still sluggish since the pandemic, now finds its three pillars — domestic demand, investment, and exports — all under pressure. The search is on for leadership, innovation, or at the very least, an example of resilience. For some, that example is Choi Myung-jae (1927-2022).

Choi founded Pasteur Milk in the late 1980s and later established Minjok Leadership Academy, an elite boarding school known for its unconventional curriculum. He was 60 when he launched the dairy business, having made his fortune in logistics in the Middle East. Inspired by images of President Ronald Reagan vacationing on a ranch in California, Choi purchased and developed land in Gangwon Province, laying the groundwork for a small but disruptive dairy operation.

His business philosophy was as idiosyncratic as his methods. Pasteur Milk introduced Korea’s first low-temperature pasteurized milk, heated at 65 degrees Celsius for 30 minutes — a stark contrast to the high-temperature methods then standard. His aggressive advertising, calling his competitors’ products “pus milk,” scandalized the industry and captivated the public. The marketing war he waged is still remembered as one of the most dramatic in Korean consumer history.

But Choi wasn’t merely chasing market share. He believed deeply in what he was building. In 1996, he founded Minjok Leadership Academy with 100 billion won of his own money, launching bold experiments in education — eliminating grade levels and adopting English as the school’s primary language of instruction. The school, while elite, emphasized Korean identity and global perspective in equal measure.

Choi Myung-jae during the 20th anniversary celebration of Korean Minjok Leadership Academy in 2016. [KOREAN MINJOK LEADERSHIP ACADEMY]

Choi’s ventures did not end well financially. In 1998, Pasteur Milk filed for bankruptcy during the Asian financial crisis. Choi poured in personal funds — even his youngest daughter’s savings — to try to keep it afloat. Creditors eventually called him back from retirement to oversee the company’s rehabilitation. His one condition: continued financial support for the fledgling school. “It’s like a baby in an incubator,” he reportedly said. “How could I walk away?”

He couldn’t save the company. Eventually, even the school lost its funding from Pasteur. After a serious burn injury, Choi lived his final years in seclusion. Pasteur changed hands twice and now operates under Lotte Wellfood. But its brand identity and original pasteurization method remain. The company now earns 200 billion won in annual revenue and 14 billion won in operating profit. Minjok Leadership Academy continues to thrive on tuition and donations.

To many, Choi was a failure in business. But his legacy — a pioneering dairy brand and a top-tier school — tells a more complicated story. A friend of Choi, the novelist Lee Chung, once compared the businessman's exit to that of U.S. General Oliver Smith during the Korean War’s Chosin Reservoir campaign. Smith, famously, reframed a retreat as “attacking in another direction.” Choi, too, may have lost control of his company but preserved what he valued most.

As Seoul and Washington prepare to negotiate trade terms, Korea must assert its strategic value to the U.S. beyond numbers and tariffs. Few sectors illustrate this better than shipbuilding. In a geopolitical climate shaped by U.S.-China rivalry, Korea’s shipyards offer unmatched production capacity and efficiency. Energy and small modular reactor partnerships also present meaningful areas of cooperation. In this environment, Japan — facing similar pressures — may also emerge as a key ally.

On April 1, Acting President Han Duck-soo met with business leaders to launch an economic security task force — a late but necessary move to confront growing uncertainty. In the absence of full political leadership, the private and public sectors appear ready to coordinate.

Speed and clarity are now critical — both in securing new industries and managing existing threats. Choi Myung-jae’s story serves not just as a cautionary tale but as a reminder: in times of disruption, vision and perseverance can still define a legacy.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.