Genius Grandson of the Loan Shark King

You didn't know

Choi Woo-shik, whom I hadn't seen in a long time, had dark circles under his eyes.

"President Kim Mu-hyeok. Welcome."

He noticed me and held out his hand with a fake smile.

We shook hands and sat down.

Even after sitting down, he didn't immediately bring up the matter, but instead talked about recent events and checked on Choi Woo-shik's condition.

"How is the KS Group these days?"

"Don't you know?"

A pretty sharp response came back.

It seems like he was under a lot of stress because of Sovereign.

Although we reached an agreement through my mediation, it was a fragile relationship that could break at any time.

"Well, do you think I would take care of something like this every day?"

"What? Just that?"

She smiled brightly as she looked at Choi Woo-shik, who was glaring.

"If you had tried to convert to a holding company a few years ago as I advised, this wouldn't have happened. I warned you several times already. Didn't I?"

I have advised the chairmen gathered at the Federation of Korean Industries several times to reorganize the group's governance.

It is to transform into a holding company, moving away from a circular investment structure vulnerable to external attacks.

Some groups took my advice and reorganized their governance structure into holding companies, but some groups ignored my advice until the end.

Choi Woo-shik, one of the people who didn't take my advice, opened his eyes wide.

"It takes a lot of money to try to convert to a holding company. They were attacked while they were preparing for it. Isn't it wrong to criticize them for that?"

It might have been different before the foreign exchange crisis, but it makes sense that KS Group couldn't convert to a holding company because it didn't have money.

Before the foreign exchange crisis, Korea had no choice but to choose a circular investment structure to increase the size of companies because holding companies themselves were illegal.

However, the problems with the circular investment structure were greatly revealed during the foreign exchange crisis.

In particular, the Jungwoo Group that I acquired suffered losses for all of its subsidiaries due to its circular investment structure.

It was a typical example that revealed the risk that even a good company with sales exceeding trillions of won can suddenly go bankrupt due to a circular investment structure.

It was not that the subsidiaries of the Jungwoo Group collapsed because they lacked competitiveness, but rather because they shouldered massive amounts of debt together due to circular investment.

I shrugged my shoulders as I watched Choi Woo-shik make ridiculous excuses.

"I can't believe that KS Group couldn't convert to a holding company because it didn't have enough money. There's probably no other company with as much reserves as KS Group."

Unlike other large corporations, KS Group had a solid cash cow.

They have grown the group through mergers and acquisitions, using the huge amounts of cash they earn as a weapon.

It would not be an exaggeration to say that the group had the largest amount of cash in Korea.

"Well, I guess all that cash was spent on defending management rights this time."

"······."

Advertisements

"I didn't come here today to talk about that, so let's stop. If you just keep your promise to Sovereign, there won't be any problems with management rights. It's a matter of trust."

As I made a gesture of taking a step back, Chairman Choi Woo-shik rubbed his eyes and sighed.

"Then why did you want to meet me?"

I took the object I had brought out of my bosom.

"Do you know what this is?"

"Isn't that an iPhone? Where did you get this?"

His eyes widened as he immediately recognized the identity of the item I had taken out.

"This time, I have obtained the exclusive distribution rights for the iPhone in Korea, Japan, and China."

"I see. It's not surprising anymore."

"So, I'm asking, does KS Telecom intend to distribute this exclusively?"

In Korea, KS Telecom's market share is close to 60%.

"Hmm."

Chairman Choi Woo-shik swallowed his breath and looked at the iPhone on the table with complicated eyes.

"Let's first hear the terms of the contract."

I laid out the terms of the contract that I had agreed upon with Steve Jobs.

Choi Woo-shik's face hardened with each passing moment as he read the documents I handed him.

"You didn't think I would accept these terms, did you?"

"well."

"We will never sign a contract under these terms. No, Korea Telecom and Goldstar will not accept it either."

"Don't make big promises. I came here today to give you a chance, Chairman."

Chairman Choi Woo-shik, who had been silent for a moment, shook his head again to indicate his refusal.

"······No matter how much I think about it, these are unacceptable conditions. We give up."

"I see. I understand."

I organized the documents I had handed over to Chairman Choi Woo-shik.

Finally, I put the iPhone back in my pocket, which I had placed on the table.

The one who was surprised by my decisive action was Choi Woo-shik.

"Are you giving up so cleanly?"

"There's no reason to convince someone who doesn't like it. You'll probably regret your choice today."

"I know a lot about the iPhone because I've heard about it. But there are more reviews that say it's a storm in a teacup. If you want to sell it in Korea, it would be better to join hands with us."

I could guess why Choi Woo-shik was acting so sullen.

In Korea, the telecommunications companies were the absolute powers.

"It's a storm in a teacup······. Most public opinion in Korea is going that way."

"Domestic mobile phones are constantly evolving. No matter how good the iPhone is, it is not a market that can bring about dynamic change."

"That may be the case. But I am confident of success."

"What makes you so sure?"

Advertisements

Choi Woo-shik's doubts were natural. The Korean domestic market was like a graveyard for foreign phones.

But the iPhone was different.

"You'll know it when you experience it yourself. You said it was a storm in a teacup? It can't be that bad. This is a device that will change the world. In a few years, regular cell phones will probably lose their competitiveness."

"······That is an over-prediction."

"Well, if that's how you take it, then there's nothing I can do. Let's stop talking now. I'll meet with another news agency."

To put it bluntly, Choi Woo-shik bit his lips.

After choosing his words for a long time, he opened his mouth.

"······No mobile carrier will accept it."

"Why? Because I can't sell my data because of the WiFi?"

"······."

Chairman Choi Woo-shik closed his mouth to my direct question.

"I understand that the mobile phone manufacturers are dependent on it for their survival. I have also heard that Ilsung Electronics is also opposed to it. However, I don't understand why the mobile carriers are opposed to it. This device is bound to use more data than the devices currently in circulation. It is a device that is completely useless without data."

This wasn't just an iPhone thing.

The iPhone, as well as the smartphones that would be released later, prioritized data usage over calling functions.

"Don't look at the trees, look at the forest. If you do, you will be eliminated. There are still not many areas in our country where Wi-Fi is available."

"still······."

"Okay. I have no intention of persuading you, so let's stop talking."

Chairman Choi Woo-shik refused at first, but he still had feelings for her and kept clinging to her.

I once again firmly drew the line for him.

"I clearly gave you the opportunity, and it was you who turned it down. Let's talk about something else."

It was already expected that Chairman Choi Woo-shik would not be in charge of iPhone distribution.

Because KS Telecom, which has an unrivaled market share in Korea, would not necessarily go out of its way to accept Apple's demands.

I finally got to the real issue.

"Apple wants to acquire KS Teletech."

"KS Teletech? What is that all of a sudden······?"

"To be exact, they said they wanted to take over the production plant owned by KS Teletech. In order to produce iPhones in Korea."

As of now, KS Teletech's technological prowess has no meaning to the iPhone.

All I want is KS Teletech's Cheonan factory and the factory currently under construction in China.

"Don't talk nonsense. I will never sell KS Teletech. It is a company that I am actively fostering."

You're lying without even wiping your mouth shut. I looked at Choi Woo-shik and raised one corner of my mouth.

"Really? I understand that you are already in pre-negotiations to sell it to Pantech."

"Th, what is that······."

I looked straight into his eyes as he stuttered, seemingly embarrassed.

"Don't lie to me. This is a warning."

"······."

Advertisements

"I heard that the talks with Pantech have already progressed quite a bit. But Pantech is not acquiring KS Teletech just because it needs its patents and developers, but because of the production plant, right?"

"How much do you know?"

"I know as much as the Chairman knows."

Choi Woo-shik sighed softly.

When KS Telecom merged with Daehan Telecom, the number of KS Teletech terminals was limited to 1.2 million per year.

The merger of the two companies was approved on the condition that any violation would result in a fine of 1.1 billion won per day.

Although it was a temporary regulation until 2005, it was already certain that it would be extended. No, it seemed that the regulations were going to be strengthened even further.

If KS Telecom monopolizes the supply of terminals through KS Teletech while it has a 60% market share, the negative effects will be significant.

Chairman Choi Woo-shik could not have been unaware of this. That is why he was in the process of negotiating with the condition of transferring management rights to Pantech.

"Pantech's production plant is spacious. So, if we sell the production plant separately when negotiating with Pantech, we will be able to gain an upper hand in the negotiations."

The reason Pantech wanted to acquire KS Teletech was simple.

The purpose was to acquire KS Teletech and raise the domestic market share to second place.

Pantech's terminal production capacity ranks within the top 10 in the world.

For Pantech, the production plant owned by KS Teletech was a hindrance.

This was because integrating production facilities was not something that could be done in a short period of time.

"We will give you 150 billion won to take over all domestic production plants, including the Cheonan plant, and the plant currently under construction in China."

"150 billion?"

"Yes. I heard that the group has valued KS Teletech at 400 billion won, including all of its production plants."

"······."

"I also understand that they are demanding 300 billion won on the condition of acquiring 60% of KS Teletech's shares. Of course, Pantech is saying that it is an absurd price."

Chairman Choi Woo-shik laughed in disbelief.

"I wonder where this information came from."

"That's not the important thing. What do you think? These conditions aren't bad, are they?"

"It's not that the conditions are bad, it's that they're really good. So good that I'm worried that there might be a trap hidden there."

The group's current reserve funds were already running out.

This was because the company continued to buy back its own shares and raise its stock price due to its promise to Sovereign.

The amount of treasury stock purchased to defend management rights alone exceeded 1 trillion won.

"It's a trap. Apple needs a production plant in Korea, and even if it were built now, it would take several years to start production properly. However, if KS Teletech has a production plant, it can start production in a month or two. That's why they're trying to acquire it."

"Is the CEO taking over the business himself?"

"Maybe so. But the article will say that Apple is preparing for an acquisition."

"Umm······."

"If we renegotiate with Pantech after selling the production plant, we will be able to receive more than 200 billion won."

Chairman Choi Woo-shik was silent. He seemed to be lost in thought about what would be beneficial.

The question wasn't that deep, and he answered right away.

"No matter how much I think about it, it just won't work."

Advertisements

"This is disappointing."

"I will consider it if you acquire all of KS Teletech. On the condition that you acquire all of KS Teletech's 89.2% stake held by KS Telecom."

Look at this? Chairman Choi Woo-shik was using our urgency as a weapon to show off his guts.

I asked with the thought of just hearing it out.

"What is the selling price?"

"How about 500 billion won, including the management premium?"

"You are too greedy."

"It's not about us. Don't even think about using management rights as a weapon to pressure me. We've already made a promise, and if you break it, your trust will disappear."

"No way. I would never break a promise. I would never take the side of Sovereign and hand over management rights to them."

Chairman Choi Woo-shik also knows that, which is why he is acting so boldly.

"What do you think? Would you like to take KS Teletech for 500 billion?"

The technology or terminals owned by KS Teletech were of no use.

The early appearance of the iPhone will further accelerate the transition to smartphones.

"I see. We need a production plant. We don't need KS Teletech······. I will decline your offer."

"That's too bad."

Although he said that, his face didn't show any regret at all.

'I can't help it.'

I got up from my seat without any hesitation.

"I'm going to go now."

Choi Woo-shik got up from his seat and followed me. Then he extended his hand to me.

"If you change your mind, please contact us. We are always open."

I didn't like the winner's smile on Choi Woo-shik's face.

I smiled crookedly, holding his hand.

"No. I won't be looking for it again."

He continued talking, holding hands.

"Did you know that your wife has been increasing the stock of KS Co., Ltd. and its affiliates under another person's name?"

Choi Woo-shik's face hardened in an instant.

"Oh, you didn't know. I made a mistake."

I shook his weak hand tightly and laughed again.

Sovereign is not the problem, so where's the guts?

< You didn't know > End