He is Already a Tycoon at a Young Age! - Chapter 37



Only Krnovel

#037

“Yes, that’s right. But if you take over Korea Semiconductor, which is up for sale, then.”

“Analysis should not include personal opinions.”

“Yes, I will only report the results of the analysis. Anyone who acquires Korea Semiconductor will be caught in the trap of the winner’s curse.”

As expected, my eyes are a treasure.

‘They say that Analyst Kim Eung-soo is the best when it comes to analyzing secured data.’

I had instructed analyst Kim Eung-soo to analyze Korean semiconductors. But I didn’t know he would predict the winner’s curse.

“The winner’s curse, hmm.”

Before me, my great-aunt, the general manager, muttered to herself and groaned.

“Do you think the semiconductor industry will face a recession?”

“Yes, based on data analysis, the current semiconductor demand is at its limit. There is no longer any place for semiconductors to be used. If there is no demand for semiconductors in new places, all semiconductor companies will have no choice but to enter a chicken game to survive. Therefore, Korea Semiconductor, which is only the fifth largest in Korea, will have a hard time holding on.”

“So how can we survive the worst case scenario?”

Analyst Kim Eung-soo stared at me intently at my question.

“We will secure a solid capital base to survive in the chicken game and liquidate all business divisions operated by Korea Semiconductor except the memory semiconductor division. And if we reduce the size of our semiconductor production plants and accelerate the development of next-generation non-memory semiconductors, we will likely grow significantly.”

“Why does it grow so much?”

“Samsung Electronics is putting all its efforts into developing mobile phones, and the mobile phone penetration rate is increasing every quarter. So, it seems that new semiconductor demand will come from mobile phones. If this is the case, and if Samsung Electronics develops and sells a groundbreaking mobile phone, and if you acquire Korea Semiconductor, the best effect can be achieved.”

“Thank you for your effort.”

After speaking to analyst Kim Eung-soo, I saw four investment managers and a general director.

“Should I participate in the Korea Semiconductor M&A battle? Or not?”

No one was able to readily express their opinion in response to my question.

‘This is a turning point.’

First, after becoming a negotiator and successfully completing the acquisition, you must then begin holding out. So, even though you have already decided to participate in the Korea Semiconductor acquisition battle, you must collect everyone’s opinions until the end.

“Why aren’t you saying anything?”

“Sir.”

Surprisingly, my uncle, who was the general manager, did not call me Ji-seong, but called me Director.

“yes?”

“All business decisions are made by the CEO and he is responsible for them. From what I’ve seen, it seems like the CEO has already decided to acquire Korea Semiconductor. If that’s the case, we should move forward without hesitation.”

I’m surprised that my great-uncle, who I thought would object, is even speaking to me formally.

“Yes, I make all the decisions.”

“That’s why.”

“Then I will take full responsibility, so I will jump into the Korea Semiconductor takeover battle. And I do not want to hand over Korea Semiconductor to GL Electronics.”

When I suddenly mentioned GL Electronics, the four investment managers looked like they had no idea what was going on, but my uncle, who knew that the chairman of GL Group and the president of GL Electronics had given my aunt a hard time, just nodded.

“Then I guess we need to form a takeover team.”

“Yes, I will acquire Korea Semiconductor and change the name to Taean Semiconductor. So, I would appreciate it if you could take charge of the acquisition.”

“Me?”

“Yes, once Taean Semiconductor is established, we will scout out professional managers, but until Taean Semiconductor is normalized through a rigorous restructuring, I would like the CEO to concurrently serve as the CEO of Taean Semiconductor.”

“That’s a problem for later. If we decide to jump into the acquisition battle, we have to succeed in the acquisition first. And since you appointed me as the person in charge, I will ask Samsung Electronics not to participate in the acquisition of Korea Semiconductor. And I will carefully check the status of mobile phone development.”

Now, the color LCD mobile phone that Samsung Electronics has almost succeeded in developing will be commercialized.

“All right.”

“Then let’s end today’s meeting here.”

I immediately got up from my seat.

‘What if my great-uncle says I will take over the mobile communications division of Korea Telecom?’

I think you’ll be terrified.

* * *

May 7, 1993, the presidential office at the Blue House.

Taean Industry President Park Moon-soo was reporting details of the Bear Project to the President together with the Minister of National Defense.

“In the end, when importing Russian weapons, 50% is deducted as a loan that was not received, and the remaining 50% is given to Russia in dollars by the South Korean government.”

“yes.”

“I have to get the money I owe back, even if it means doing that.”

“Along with that, the Russian government promised me that it would export the latest weapons and equipment that the South Korean government wanted.”

“is it so?”

“Yes, that’s right.”

“Minister of National Defense: If Russian weapons are introduced to the Ministry of National Defense of the Republic of Korea, won’t they be too far removed from the established weapons system?”

“There is that aspect, but I think it is a good opportunity to check the weapons systems of our main enemy, North Korea, and assess their performance, since most of North Korea’s weapons are weapons and equipment that were provided by the former Soviet Union. The problem is that not only Russia, but also the United States, as well as all countries that export weapons, do not export weapons or equipment that have been deployed in their own countries while maintaining their performance.”

“What does the Taean Industry CEO think about the Minister of National Defense’s opinion?”

“I will consult with the Russian generals regarding weapons exports as much as possible to ensure that weapons are not exported with their performance downgraded.”

“Let’s do that. I have high expectations. Hahaha!”

“Yes, Mr. President.”

“Then we will go back now.”

After the Minister of National Defense spoke to the President, he left the Blue House with Taean Industry President Park Moon-soo.

* * *

Outside the Blue House building.

“Senior, why didn’t you tell the President that the core of this Bear project was the transfer of tank and armored vehicle development technology held by Russia?”

“The Ministry of National Defense will start developing Korean tanks and armored vehicles?”

“Yes, that’s right.”

“Even when you start a business, you can’t shake off the concept of friend and foe because you have a military background.”

“yes?”

“As everyone knows, my brother-in-law is from Samjung Group, and Samjung Heavy Industries, an affiliate of Samjung Group, established a defense company called Samjung Defense.”

“So, all of the weapons and equipment-related technologies that can be secured in Russia will be transferred to Samjung Group?”

“To be exact, it is being sold, and Samjung Defense is also an investment company of Taean Industry.”

“Yes.”

“What I can assure the Minister of National Defense is that the Russian government will not downgrade the performance of weapons and equipment exported to the Ministry of National Defense of the Republic of Korea.”

“Is that true?”

“Yes, that is definitely what you promised me.”

“You are truly amazing.”

“Therefore, I hope that Taean Industry will become a technology partner for the Ministry of National Defense’s next-generation tank, armored vehicle, and self-propelled artillery development project, and ultimately, Samjung Defense will become a partner for the development of the next-generation Korean tank, armored vehicle, and self-propelled artillery with its secured technological capabilities.”

“The problem is bidding.”

“That part is a matter for Samjeong Defense to handle. As the Minister knows, Taean Industry is an arms dealer.”

“That’s true. The brokerage fee that the Ministry of National Defense will provide to Taean Industry in this Bear project has been set at 10%.”

“Thank you, Minister, hahaha!”

Everything was going just as the intellect wanted.

The president of Youngsilup had already moved to Minsk, where the Russian Navy headquarters was located, under Jisung’s instructions. Then, soon, the warships and aircraft carriers that the Russian Navy had abandoned due to operating cost problems would be put up for sale as scrap metal.

* * *

May 15, 1993, Pacific Investment Corporation office.

“I hastily formed a business team to acquire Korea Semiconductor. Along with that, I confirmed with Ji-seong that GL Group is also entering the memory semiconductor business, as you expected.”

“What about Daehyun Electronics?”

“I will probably participate in the Korea Semiconductor M&A battle.”

“If Samsung Electronics joins, it will be a war between large corporations.”

“yes.”

“I will meet my father today.”

“As planned, Samsung Electronics will not participate in the acquisition of Korea Semiconductor?”

“Yes, we can’t just increase the selling price.”

“Even if Samsung Electronics does not participate, the fact that a company ranked first or second in the electronics industry has jumped into the acquisition battle for Korea Semiconductor means that Korea Semiconductor’s acquisition price is bound to increase.”

“Yes, but I will take it.”

“Okay. And the president of Youngsil Industry has arrived in Minsk, Russia, and is mobilizing all the connections that the president of Taean Industry has built.”

CEO Park Sun maintained a very businesslike attitude when reporting business matters to me.

Although it may be called a businesslike attitude, it should be said to be the most objective report.

“It will be fine, Russia is now full of corrupt military men who will do anything for a dollar.”

“But Ji-seong, will the aircraft carrier be put up for sale as you expected?”

As I recall, the Russian Navy Command put up for sale two aircraft carriers and about 200 warships of various types.

‘The aircraft carrier is the key.’

A missile cruiser developed in Russia will also be put up for sale.

In short, the Russian Navy is carrying out crazy acts without any hesitation.

“The Russian government and the Russian Navy are trying to sell the aircraft carrier for scrap metal because they don’t have the funds to operate it. If it is officially announced that they are selling the aircraft carrier, both Japan and China will become nervous.”

When the Russian Navy announced that it would sell its warships, there was no mention of aircraft carriers, but my maternal grandfather, the president of Taean Industry, had obtained information about aircraft carriers in advance from Russian military generals whom he had secured through bribery.

‘Of course I know the future.’

I knew it in advance though.

“They say Japan and China are competing to acquire aircraft carriers.”

“The most likely candidate would be China, which has a love-hate relationship with Russia. So we need to prevent China from acquiring two aircraft carriers.”

“Do we have the ability to do that?”

“We don’t, but Japan does, and the US won’t be happy about China taking over the aircraft carrier that Russia is selling. So they’ll do whatever they want, and Young Industrial will just have to sit back and watch.”

The senior officers of the Russian Navy Command have already been sufficiently greased with bribes.

[Investors, more than 5 million dollars have been transferred to high-ranking officers of the Russian Navy Command.]

[I think that’s probably more than the acquisition cost of two aircraft carriers.]

[Can Young Real Estate really take over?]

[The person who received the money will try to get his money back somehow, so it will work out. If you take over two aircraft carriers, you can send them to Bangladesh right away. You should dismantle one and resell the other.]

[Are you reselling it?]

[After acquiring the two aircraft carriers for about $4 million, they intend to resell them for up to $500 million.]

[Who pays $500 million for an aircraft carrier?]

[This must be a country that desperately needs to have an aircraft carrier.]

[Then it would be China.]

[I guess so. Hahaha!]

It would be impossible to monopolize both ships.

So, we plan to sell one ship back to China to secure additional funds.

‘I’ve become a carrier reseller. Hahaha!’

Episode 38