HomeArchives2016Warm Bread for Everyone: The Korean Bakery Sun Sim Dang (SSD)

Warm Bread for Everyone: The Korean Bakery Sun Sim Dang (SSD)

Sixty years ago, Sun Sim Dang or SSD - a small bakery in front of a train station, started producing steamed buns in Daejon, Korea. Now the bakery has become part of the culture of Daejon, a confectionery and food catering business with 400 employees, and a shining model of an Economy of Communion (EoC) enterpise. Back in 1999 the company had 76 employees and their annual sales were 4,275,900 Euros. In 2015, they grew to 400 sales employees with yearly sales of 30,006,376 Euros.

More than a half century ago, in 1950, SSD founder Lim Gil Soon (whose Christian name was Ambrosio), left on the last ship from the Hungnam harbor at the end of the Korean war.

With the money raised from the sale of 24 apples, he was able to survive with his entire family. After a period in a refugee camp, his family finally settled down in Daejeon in 1956. There with two sacks of flour donated by a parish priest as aid to refugees, he began the bakery making steamed buns in front of the train station. People with nothing to eat would gather at the train station, and although he did not have much, he shared some bread with the poor.

This practice continued for 60 years and is now a part of the SSD culture. Everyone came to know the story of this warm bread for everyone.

In 1980, the son of Lim Gil Soon, Lim Young Jin (Joseph) commonly known in his Focolare community by the name of Fedes, introduced innovations in baking. In 1980, Fedes also married Amata or Kim Mi Jin (Agnes). From then on the couple took over the company management.

While maintaining the legacy of his father, Fedes was dynamic and creative. He introduced innovations like fried Soboro and the original packaging of ice cream. Their monthly events created a buzz appreciated by customers and resulted in increasing sales.

In the mid-1990’s—Walking in the dark in a changing era
The ’90s were a great challenge for SSD. The movement of people away from the city to the suburbs and parking shortages in the old city made their bakeries less profitable as well as less attractive to their core customers. A relative who had franchised the SSD brand failed and they had to pay his debts. Their employees, fearful about the future of the company, began to leave and their separation pay amounted to a considerable sum.

This was also when the global economic crisis hit Korea. They hired external consultants who came up with the conclusion that they had too many products and were overstaffed. Their advice was to cut both products and staff. While simplifying their product line, the management decided to work harder and still keep all their employees. Somehow they were able to overcome the crisis.

Meeting the EoC in 1999 
Then in 1999 in Mariapolis Peace, Tagaytay city, the couple came to know about the EoC in an EoC international school. Amata shares, “We found a new perspective in management that changed our direction. Understanding that our business was not just for the benefit of its owners, the employees and their families, we realized that through the business we could contribute to universal brotherhood.

Even as a small bakery, we could effect change in the world. We saw making bread as a way to love others.” She continues, “I was very excited throughout the EoC school, but did not know how to apply what I was learning and transform it into reality. I asked myself, “EoC is an ideal but can it be done?” We were afraid to lose what we had built up through hard work.

Then too, while EoC businesses were spread all over the world, we would be the first company to try it in Korea. By then, we also owed creditors the equivalent of € 225,000, which amount made participating in EoC an even riskier proposition.” However, Amata and Fedes felt that SSD had a vocation to be a model company of the EOC. They moved slowly. Returning from the EoC school, and not wanting to lose their enthusiasm, as a first step, they first gave away 1,000,000 Won to the poor, which amount was equivalent then to the salary of one employee.

SSD’sVision: “Try to do well before all men.” 
Their mission became: “To do well in front of all people.” Amata shares, “We focused on the word “all”. In our business, “the customer is king”. But now we understood what that ALL meant—men and women, children and the elderly, rich and poor, customers, employees, suppliers, competitors, co-workers who had left the company to begin their own business – every person we met were people to be loved and were candidates to universal brotherhood. Aside from formulas learned from business manuals, we adopted the business model of the EoC. Our goal was to use our business to build a culture of love.”

2001, the start of transparent management (Red Corporation) 
In 2001, management changed the company name to “Red Co. LTD”. In full transparency, they decided to report all their sales and pay 100% of their taxes. They could have easily hidden sales figures since they were a cash-basis business, but they believed that paying the proper taxes was the first step to becoming an EoC company.

This was very difficult. Although they had a lot of sales income, after paying their employees, their suppliers and creditors, there didn’t seem to be much left. They even had to ask for the extension of a bank loan. Amata shares, “People around us thought we were crazy to pay all our taxes, but eventually, through our experience, we proved that a business can be profitable even when a company pays all its taxes.”

2005: After the fire—Finding our way in the dark 
In 2005, they faced a very great challenge when their factory burned down. Amata admits, “I thought that was the end of our business. SSD would not survive to celebrate its 50thanniversary.

But we felt detached about it, with no anxiety nor despair. I had peace in my heart. The next day, a miracle happened. Our employees, together as one family, came up with the slogan, “We will rebuild the company from the ashes.” We began the restoration. A recovery operation that was supposed to last a month was completed in one week and we were back in business.

It was a miracle! The crisis was transformed into an opportunity to build unity among all, and to rediscover and create a new identity for the company.” It was not easy going at first. During this period of recovery, they were severely challenged. They were losing money.

Yet, determined to rebuild based on their core values of “sharing” and “doing good in front of everyone, Amata continues, “I was anxious about our lack of funds. It was as if we had a single bullet to fire and we could not afford to miss. We had to hit bull’seye or die. We went back to ‘doing good to everyone’. We thought of the citizens of Daejeon. SSD should not be a luxury bakery which the poor could not afford nor a shabby hangout for the wealthy, but rather a warm place where everyone feels at home, comforted as if cradled in the arms of a mother. Before the fire, we had also planned to make refined bread.

“Now we decided to continue the practice of the founder, baking bread with love and warmth. Unlike other bakeries, we gave away all our products which were not sold at the end of the day to the poor. In fact, we were a cafeteria where people who had nothing to eat could come for free bread. Every day we lived concretely the sharing of our goods with the community around us. This was not a calculated marketing strategy, but it increased our sales by 30%.

Having regained their confidence, both managers and staff began to create a distinctive identity for SSD, through our products and the design of our sales outlets. The identity of the bakery, the land we were born in, our bread baked with the spirit of SSD, our packaging and the way we served customers were all quite distinctive.”

2006—celebration of the 50th anniversary 
Amata confides: “Whenever we would feel lost along the way, we asked ourselves: “Is this the good that everyone likes?” On our 50th anniversary, to thank our employees for remaining loyal during the hard times, we decided to share our profits with them. We shared 15% of our net income every 3 months and a 20% incentive was distributed. This continues to the present day.”

Hundredfold—everything comes back to us as a gift 
Amata shares, “God cannot be outdone in generosity. We have received so many awards and much recognition over the years. As a small business with a web presence, we have also been recognized as an honest taxpayer and a good employer, as well as commended for our food hygiene, and innovations at work by the Michelin Green Guide of France and the Gregorian Pontifical Medal Award.

In 2011, our entry in the Daejeon Lotte Department enabled us to set-up a 10-day pop-up store in the Main Seoul Lotte store where we sold 430 million won (€ 232,000) of products which made SSD a national brand. Train customers carrying SSD bags around the country provided free advertising. Then in 2014, we supplied bread during the visit of Pope Francis to Seoul.” SSD also became famous through the TV drama “Mr. Kim, King of the Bread”. Everyone learned about the SSD story.

People would visit their shops to take photos and videos, and they would post them on social media. Now there are long queues outside their stores as people from all over Korea come to buy bread.

60th—My City, My SSD 
Earlier this year a book was published on the occasion of the bakery’s 60th anniversary, “We Love SSDs, Love Champions”. For SSD workers, this is the most important book in the world.

The SSD experience has influenced its environment. A high school and a parish have adopted this distinctive way of doing business. As part of SSD’s 60th anniversary they started a project to revitalize the old city. A Seoul business administration student proposed SSD as a model for a paper on a “responsible company that lives with the local community.” Every year now, 400- 500 confectionary officials from China and Japan visit SSD to learn about their management principles.

Amata concludes, “Years ago when going to work, I would enter an old road with a few shops and fewer people because of the movement to the suburbs. As SSD became famous, the road began to fill up with customers and shops. On weekends, many people visit SSD. Seeing what a small bakery can do, I believe we can indeed do much for society.”

She adds, “‘My city, My SSD’ is the theme of our 60th anniversary celebration. We are examining what our role is in our city. People think we accomplished all this because we are a great bakery. But we only began with two sacks of flour. Our success is not only ours, but it also belongs to every person we have helped. It is not enough for our employees to practice this culture but we must spread it to the world. When we practice the culture of giving, someone gives love and someone else receives love. This creates circles of giving and receiving that connect the world.”

Jose Aranas

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