Dear Korea CQ members,

On May 21th, a special tour guided by CEO Lee Jeong-eun and a lecture titled 'K-Heritage: Infusing Tradition into Luxury Brands' were held at the Cheyul Flagship Store.

H.E. Ekaterini Loupas, H.E. Paul Duclos, HE. Dawn Bennet, HE. Maria Castillo Fernandez, Isabelle Bertoux, Ignacio Montojo Salazar, Frantz Hotton, by Jeong-Eun Lee, Ji Eun Lee, Ian Jeong, James Park, Michela Linda Magri, Choi Si-young, Pyo Kyung-min, Crystal Park, Choi Jungwha, Didier Beltoise attended this forum.

Jeong-Eun Lee, the CEO of Cheyul, warmly welcomed and expressed gratitude to all the attendees, while they enjoyed the exhibition of premium Korean handicrafts in the store and had the opportunity to directly experience Korean culture.

‘Cheyul’ originated from a desire to reverently regard our fading history and culture, encapsulated in the pure Korean term meaning 'to control colors'. It embodies the skills and wisdom of our artisans, capturing the essence of Korea through gentle curves of ridges and layers, adding depth to colors. Cheyul's collections, blending various colors in harmonious unity, have gained popularity among foreigners as well, showcasing the vibrant beauty of Korea.

Lattice Pattern Mother-of-Pearl Box

Traditionally used to store the most precious items, this box features a delicate and restrained design. As an art and craft piece, it intertwines everyday simplicity to create new shades and colors.

Moon Jar

Reflecting the colors of nature, the Moon Jar embodies Cheyul's philosophy with its subtle and clear light. Made from hemp, it is very lightweight and is adorned with mother-of-pearl in black and white.

Peony Medicine Cabinet

This heritage line encapsulates Cheyul's philosophy, showcasing the essence of Korean beauty. Following the traditional use and craftsmanship of antique wooden furniture, it offers a robust structure and an elegant beauty without the need for elaborate techniques.

Cheyul's heritage, craftsmanship, and design philosophy come together in collaboration projects with new artists and brands. Under the theme "Cheyul Zoo on Garosu-gil," we enjoyed various wooden works by artist Sun-hyun Han and adorable character figurines.

Cheyul's Zelkova Box

This box is made from a 400-year-old protected Zelkova tree that was struck by lightning and acquired through auction. After a long period of drying and care, it retains the tree's excellent natural appearance and has been believed to bring prosperity to homes.

This is Cheyul's new product, finished with Kwakmok tree and lacquer, blending beautifully with the colorful cloisonné of traditional lotus patterns.

We admired the Cheyul x Retrograph vacuum tube amplifier series and wine glasses that feature Cheyul's unique design, particularly in the handles and bases.

Next, Jung-Eun Lee, CEO of Cheyul, began her special lecture titled on “Visit to Cheyul – K-Heritage treasures”. Cheyul is a luxury handcrafted brand that embodies the skills and wisdom of traditional artisans, modernizing and reviving the unique beauty of Korea.

Participants all asked many questions after the informative lecture.

Afterward, we enjoyed a sumptuous dinner with a two-tiered lunch box set.

We would like to thank Jung-Eun Lee for his lecture and her warm hospitality. We'd also like to thank all members who attended, and Crystal Park for her interpretation.

‘Visit to Cheyul – K-Heritage treasures’,

Jeong-Eun Lee, CEO of Cheyul

The 21st century is a rapidly changing era, demanding numerous strategies. In the past, luxury brands evolved primarily as 'master brands' through craftsmanship, design, marketing, and value. Today, these four elements must be fully integrated.

I study the philosophy of global luxury brands. Patek Philippe famously said, "You never actually own a Patek Philippe. You merely look after it for the next generation." Chanel has expressed that luxury is ingrained in our DNA. Christian Louboutin described luxury not as a consumer good but as a service that cultivates the discernment of special quality.

The essence of luxury is handcrafted quality. From this perspective, I hold France in high esteem for its ability to preserve cultural heritage and maintain its heritage in every corner.

During my visit to Rome, Italy, I was astonished to see luxury advertisements displayed at the Colosseum. Italian companies demonstrate social responsibility by sponsoring cultural heritage rather than advertising, inspiring me to pursue a similar path of responsibility.

Denmark is another country of interest to me. The Danish have a highly developed furniture culture, reflecting their tendency to collect furniture as they earn money.

Today, if we consider luxury electronic brands, Apple stands out. As a brand launched in the 21st century, Apple provides a strong sense of luxury through its packaging, color schemes, simple design, and technology. In the UK, Dyson is a notable luxury brand, and for automobiles, Tesla is a prime example.

In the 19th century, represented by brands like Hermès and Louis Vuitton, luxury was aimed at royalty and nobility, emphasizing perpetuity and aristocracy, making it difficult for the average person to access. The 20th century, represented by Chanel, saw luxury emerge with the power of the masses, focusing on trends and often referred to as American capitalism. The 21st century is characterized by making the difficult to obtain easily accessible, often described as Asian capitalism.

The key to success for luxury brands is 'craftsmanship.' In the IT industry, 'legacy' refers to outdated hardware or software still in use, but in the luxury industry, heritage is something that matures over time rather than becoming obsolete. Exceptional products and IT services must evolve with a strong sense of craftsmanship, or they risk being ignored by consumers. Having lived through periods like the COVID-19 pandemic, I believe in spreading the spirit of handmade luxury, especially in an era where human labor is increasingly replaced by machines.

Germany and Japan also exemplify 'craftsmanship' through their apprenticeship systems, which have produced many Nobel laureates. Korea must adopt this culture to become a leading country in luxury. The unique beauty of Korean luxury lies in the tradition of 'jeong' (情), an emotional bond that reflects in lovingly crafted items. Korean luxury means creating something with one's soul and utmost sincerity.

In fact, luxury is a matter of quality, not quantity. Korea, with its small territory, boasts a unique, understated elegance that is both simple and refined, creating excellent conditions for producing high-quality handcrafted goods.

As a student, I visited famous design companies across Europe, including London, Paris, Rome, Milan, and Berlin, and interviewed around a thousand brand strategists and master designers.

We also produce furniture from the Joseon Dynasty period at Cheyul. While I am an entrepreneur, I also recognize the importance of studying history and understanding customer needs and trends in order to integrate them effectively into our business.

In fact, due to rapid economic development, Korea has often lacked the leisure to appreciate its own culture. No matter how fast economic growth may be, such capital alone cannot revive heritage. Heritage has existed since ancient times, and as I mentioned before, like Italian companies, Korean companies should also take social responsibility for heritage preservation.

Finally, I would like to conclude with a favorite saying of mine: "It's easy to get 10,000 people to love a brand that 1,000 people love, but it's impossible to get 10,000 people to love a brand that 1,000 people like." The repurchase rate among our Cheyul customers is close to 85%. Just like an artist manages their fandom, Cheyul continuously dedicates efforts to innovation. Thank you for providing this valuable opportunity.

Q&A

Q1. I'm curious about the decision-making process for designs. Do you listen to artists' proposals first and then make a selection, or do the executives provide direction to the artists first?

A1. Cheyul's design process starts in-house and ends in manufacturing. We have designers and specialized workshops. We support the works created by artisans and also operate as a gallery for selling them. Of course, our workshops also function as outsourcing workshops. This is similar to Chanel and Hermès, as it's difficult to internalize everything. Currently, the focus of luxury companies worldwide is on the decreasing number of artisans. However, Cheyul has been operating a master-apprentice system for as long as 16 years, working alongside artisans.

Q2. You offer a variety of designs. I'm curious if there are differences in quality among them.

A2. The difference in quality stems from our lacquer work, especially in East Asia, where lacquer has different properties compared to other countries, making it much rarer.

Q3. What was the turning point that brought you attention?

A3. We gained attention as a result of being chosen for gifts for dignitaries. During the 2008 US presidential election, Cheyul's products were informally presented to President Obama. Subsequent word-of-mouth publicity led to many people, regardless of their corporate or political affiliations, utilizing Cheyul's products. It seems like a stroke of luck played a significant role.

Q4. How were you able to effectively manage artists from a fairly conservative society from a young age? I'm curious about how you persuaded and earned the trust of these artists.

A4. I believe my weapon was my youth. When approaching various artisans, rather than focusing solely on achieving business results, I aimed to articulate the necessity of luxury brands in Korea. Artisans are not motivated solely by capital. Therefore, I take great pride in running a business that is different from what large corporations can offer.

Q5. I sensed a strong desire from you to pass on this cultural heritage to the next generation. However, while the artisans are undoubtedly talented artists, they may also be of a fairly advanced age. Therefore, what efforts are you making to encourage younger individuals to learn these skills?

A5. Initially, I focused on creating various products to expand the market and make them more accessible to the public. However, ultimately, I faced a crossroads between maintaining the 'handcrafted' aspect or moving towards 'factory production.' I chose the latter. Within this framework, design becomes crucial in creating differentiated luxury goods. Additionally, as a member of the millennial and Gen Z demographic myself, I don't find it particularly challenging to understand the needs of the core consumer base. Therefore, I also take on the role of a marketer.

Q6. Are there any forgotten or lost techniques or traditions that you would like to reintroduce? Additionally, you mentioned that there aren't many skilled artisans, so what sustainable methods can be used to train artisans?

A6. This issue is a challenge for all global luxury companies, and it's also one of my main challenges. We can look at the example of the Bottega Veneta School in Italy, which uses a master-apprentice system to pass on artisan skills to the next generation. In Korea, there is the Korea National University of Cultural Heritage under the Cultural Heritage Administration, which plans to implement similar artisan education programs. Speaking of Cheyul artisans, in the 16 years we've been together, not a single person has left. They work like office employees, five days a week, constantly honing their skills. The high quality of Cheyul's products stems directly from this system.