Third-Generation Chaebol

There were several reasons why the mobile division had to be sold to Apple.

By collaborating with Apple, we could further increase our market share in the home appliance sector.

It would also help reshape Taewoo Electronics' brand image and secure funds to prepare for the financial crisis that was only a year away.

Despite all these reasons, I didn't bother explaining them to Vice President Woo Sung-il.

He was the type of person who simply needed to follow my instructions.

"You need to see the bigger picture. That's the kind of person who should be leading Taewoo Electronics. And soon, I plan to hand this position over to you."

"W-What do you mean, all of a sudden?"

"I haven't spoken to the chairman yet, but I'll be moving to the Strategic Planning Office soon. If I want to oversee the entire Taewoo Group, that's where I need to be. Can I trust you to take charge of Taewoo Electronics?"

"Thank you! I'll do my utmost!"

Woo Sung-il bowed deeply, pressing his forehead against the desk as he expressed his gratitude.

Even if I moved to the Strategic Planning Office, he would remain loyal to me without question—that was another reason I intended to appoint him as president.

And if he didn't listen?

I could always replace him.

After all, I was the largest shareholder of Taewoo Electronics.

"How are sales for the MPMan? It launched at the same time as the slide phone, right?"

"That's the strange part. With all the praise it received at CES, sales should be strong, but the order volume is ridiculously low."

"How low are we talking?"

"Despite being displayed in Taewoo appliance stores nationwide, we haven't even sold 500 units yet. We ran newspaper and TV ads, but this is the worst performance in Taewoo Electronics' history."

As expected, the MPMan was a failure.

The internet was becoming more mainstream, but MP3 files were still unfamiliar to most consumers.

And with P2P file-sharing programs not set to emerge until 1999, the MP3 player was simply too ahead of its time.

"President Hwang Young-chul must be devastated."

"We've tried contacting him several times, but he's unreachable. He hasn't been showing up at the office either."

"It must be hard for him to process his first real failure. Find out where he is."

It wasn't difficult to track him down.

I received a tip that he was drinking at a wine bar near Cheongdam-dong, and when I arrived, I found him completely passed out.

"Let's call it a night for your business."

I handed a thick wad of cash to the bar owner.

Satisfied with the weight of the money, the owner promptly vacated the space.

In the now-silent bar with the music turned off, I sat quietly beside Hwang Young-chul.

It took a full three hours before he finally regained consciousness.

"Ugh, my head… Water, someone get me some water!"

"Here you go. Are you feeling alright?"

"W-Who…? Oh! President! What are you doing here?"

"Drink some water first."

I handed him a small bottle of water.

After a moment of hesitation, he gulped it down in one go.

"…I'm so sorry for showing you such a pathetic sight."

"You don't need to apologize to me."

"Taewoo Electronics fully supported us and even handled all the advertising, but the results have been disappointing. I've caused trouble for everyone."

"Still, you can't just stop coming to work. You need to pull yourself together—for the sake of your employees."

"I feel too guilty to face them. I promised to give them generous bonuses if this product did well… They worked overtime every day to produce the MPMan…"

Tears welled up in Hwang Young-chul's eyes as he poured out his frustration.

I knew exactly how he felt.

That crushing feeling, the despair of thinking you might never recover.

But his situation wasn't all bad.

He had already sold 49% of his shares to me, making him a billionaire.

"If it's about the bonuses, I can take care of them."

"I could never ask that of you, sir. You've already lost so much because of the MPMan."

"So what are you going to do? Are you just going to drown yourself in alcohol?"

"…Honestly, I don't know what to do. Even if I make another MP3 player, I'm not sure the outcome will be any better."

A person couldn't afford to be this weak.

Hwang Young-chul's spirit was already broken. What he needed now was a strong pillar to lean on.

"May I make a proposal?"

"What kind of proposal?"

"I'd like to acquire Digital Cast."

"You mean Taewoo Electronics wants to buy our company? Does that mean you'll keep all the employees?"

"I'll make sure they can work at Apple."

What Steve needed most was MP3 player developers.

And if they were the team that created the world's first MP3 player, there was no way Apple would turn them down.

"I feel like I'm just causing you more trouble, sir. I'm sorry."

"Don't think of it as a burden. And if you'd like, I can help you move to Apple as well."

"You mean… me too?"

"Go to Apple and create a new MP3 player. I'll support you from behind the scenes."

Drip, drip.

Hwang Young-chul's tears fell like raindrops.

What he needed right now wasn't comfort—it was a fresh start.

"Do you think… I can start over?"

"Leave all the heavy burdens to me and start fresh."

"I will transfer all of my shares in Digital Cast to you, sir. I don't need any money. You've already given me so much help—how could I take more?"

He truly had no idea about the value of MP3 players.

No wonder the MP3 player patents ended up scattered across multiple companies in my past life.

"Still, I can't just take the shares for free. I'll give you an additional 5 billion won—use it to give your employees their bonuses."

"Th… Thank you. Really, thank you. I'll make sure to repay this kindness someday."

Would he still feel this way in the future?

Once the iPod became a massive success, the value of MP3 player patents would skyrocket.

The patents I had purchased for 15 billion won were bound to be worth at least 100 times more.

"Drink as much as you want tonight, but starting tomorrow, you need to get back to work. Otherwise, your employees will feel uneasy. I'll transfer the money today, so make sure to give them their bonuses immediately."

"I'll do that. Meeting someone like you has been the greatest fortune of my life."

Hwang repeatedly expressed his gratitude.

I instructed my waiting driver to take him home safely.

***

After meeting with Hwang, I headed to Captain Kang's office.

As expected, Team Leader Han was still there, buried in paperwork, having pulled another all-nighter at the office.

"What brings you here at this hour, sir?"

"I suddenly remembered something that needs to be done."

"You're here to throw more work at me, aren't you? Not that I don't have enough already."

"It's a bit urgent. And this one requires a trip to Japan. You're familiar with Japan, right?"

Han was the one who had sold derivatives to Japanese companies.

He and David had traveled across Japan, selling various derivative products.

As a result, Japanese corporations were still enduring a nightmare because of them.

"Is there still more we can squeeze out of the Japanese firms? If that's the case, of course, I'm the man for the job."

"You seem quite excited."

"Why wouldn't I be? I don't have to bow or grovel—I get to dominate them. What's so hard about that?"

Han might deny it, but he had already become one of Wall Street's hyenas.

He found this type of aggressive deal-making far more thrilling than the tedious negotiations of mergers and acquisitions.

"We need to secure some shares currently held by Panasonic."

"Which shares exactly? I'll make sure to squeeze them dry."

"Have you heard of MCA Records? It's one of the three largest music distribution companies in the U.S."

"Isn't it the sister company of Universal Pictures?"

"That's right. Panasonic holds a significant stake in it. Can you secure those shares?"

"That won't be difficult. It's not like we're asking for shares in their own subsidiary—this is about another company's shares. It'll be a piece of cake!"

Team Leader Han jumped up, as if ready to fly to Japan immediately.

Then, as if something had just occurred to him, he paused and asked,

"Are you planning to enter the music business?"

"I don't have such plans yet, but if necessary, I might."

The reason MP3 players failed was the lack of MP3 files.

Of course, I couldn't just launch a P2P site and distribute them myself.

While P2P platforms were technically legal, most of the shared files were copyrighted, leading to legal disputes and inevitable criticism.

Instead, the solution was to create official MP3 files.

For that, I needed the backing of a major music distributor.

I could negotiate with record labels through Apple, but that would take too long and likely result in unfavorable terms.

Why take the long way when there was an easier path?

I just had to acquire a record distribution company myself.

Especially one that was already struggling and had sold off most of its shares—an ideal target.

"If you need it, then of course, we'll make it happen."

"It's a win-win situation. No need to worry—just proceed."

"Then I'll leave right away."

Without any hesitation, Han left the office.

Judging by his urgency, he probably planned to buy a plane ticket directly at the airport.

***

Late at night.

I returned home from the office, only to find that my grandfather was still awake, waiting for me.

"You're home quite late."

"There are a lot of things to take care of, so I got held up."

"Is something not going well?"

"Not at all. I've just been working hard to make sure Taewoo Electronics runs smoothly even without me."

"What do you mean by that? You sound as if you're planning to leave Taewoo Electronics."

I had been meaning to bring this up anyway.

Though it was a bit early, I decided to tell him about my plan to step down as president of Taewoo Electronics.

"I'd like to step down from Taewoo Electronics and move to the Strategy Office."

"All of a sudden, you want to go to the Strategy Office?"

"I went against you, Grandpa. Shouldn't I be demoted?"

"Hah! Do you really think anyone would see that as a demotion? If anything, they'll assume you're moving to the Strategy Office to take control of not just Taewoo Electronics, but the entire group."

As expected, my grandfather saw right through me.

"I've set up a system where Taewoo Electronics can operate just fine without me."

"So now you want to extend your reach to other subsidiaries? What, is there another division you're planning to sell off?"

He was still upset.

After all, I had already sold off Taewoo Shipbuilding and the mobile division. It was only natural for him to feel uneasy.

"No, I promise I won't sell any more subsidiaries without your approval. I want Taewoo Group to grow and prosper."

"And how do you plan to make that happen?"

"Just as you've always said, globalization is the key. I plan to expand not only into the U.S. but also into China and other markets."

"Hah, for the first time in a while, I actually like what I'm hearing."

The era of selling off subsidiaries was over.

Now, it was time to increase Taewoo Group's revenue and gradually reduce its debt.