I Am the Third-Generation Heir of a Conglomerate - Chapter 503



Only Krnovel

503. Fierce Battle (3)

I talked with Vice Chairman Oh Yong-jae all night long.

It was not until the morning that we got up and went to work at our respective companies, and a vice president who had stayed up all night like me brought us coffee.

“The story has become quite long. Have you had any results?”

“We agreed to form a loose semiconductor alliance. And we also promised to create additional alliances of various kinds.”

“When you say different types of alliances, are you talking about different industries?”

“We decided to form an alliance in semiconductors, displays, and home appliances to respond to the trade war.”

“It doesn’t seem like a bad strategy. It seems better in many ways to come forward in the name of the alliance rather than Taewoo Group taking the lead.”

There was no need for Taewoo Group to act as a shield alone.

And by using the name of alliance or coalition, even more achievements could be achieved.

“But will large Korean companies be able to speak up properly? In particular, won’t they be afraid that if they make a mistake in their approach to China, a boycott on the level of the Korean Wave will occur?”

“Semiconductor alliances and display alliances don’t really have much meaning. Ultimately, it’s an issue that the government has to step up to.”

The United States and China were waging a trade war at the government level.

In order for Korea to respond properly, the Korean government had to take the lead, and the business alliance had to play a supporting role.

“The moment the Korean government takes action, it will become a diplomatic issue.”

“We need to do some preliminary work to prevent this from turning into a diplomatic issue. That’s why I think we need to use David to influence American politics.”

“Is this such a big deal that it even requires the US political establishment to take action?”

“One of the biggest causes of this trade war is technology theft. The U.S. is taking issue with Chinese companies’ technology theft and unauthorized patent theft, and is blocking Chinese IT companies from expanding overseas, including to the U.S.”

China really didn’t pay any attention.

If it were any other country, the moment they steal technology or steal patents, they would be embroiled in a huge lawsuit.

But in China, things were a little different.

With a huge domestic market of 1.3 billion people, we could be free from problems as long as we did not export.

However, no matter how large the domestic market was, in order to become a global company, it had to increase its size through exports, and at that stage, the United States was applying the brakes.

“Do you plan to protect the technology of Korean companies with the help of the United States?”

“China has now filed a complaint with the WTO, claiming that the US is being unreasonable. But what will happen if Korean companies also claim that they have been subject to technology theft and patent infringement?”

“Korean companies continue to file lawsuits against Chinese companies.”

“If all those companies got together and filed lawsuits at the same time, wouldn’t the stakes get huge?”

The best way to protect technology was to make it public.

Moreover, if we join hands with the United States and make this public, we could have suppressed China’s technology theft as much as possible.

“The stakes will certainly increase. However, if Korean companies join hands with the United States and proceed with the lawsuit, China will likely not stay still. It may take even more severe measures than the THAAD ban.”

“It won’t be easy to impose sanctions. China is complaining that the US sanctions are unfair. But will they appeal to Korea?”

“If China sanctions South Korea, it will be proving to itself that the United States is not being unfair.”

“Of course, we have to be very good at tightrope walking. We have to lead the negotiations in a way that is favorable to us while giving the impression that we are not planning an all-out war.”

During war, there are only allies or enemies.

But in this war, we must not be anyone’s ally, and we must certainly not be anyone’s enemy.

“No matter how exquisitely the line is drawn, wouldn’t China perceive it as joining hands with the United States to attack China?”

“So we have to show some room. If we continue to pressure Korea, we will be subtly showing our intention to completely join hands with the United States.”

“If we make even the slightest mistake, we could end up in complete discord with China. It seems more dangerous than tightrope walking on a cliff.”

“It’s not that dangerous. It’s a tightrope walk with dozens of safety devices installed. And David knows how to do it.”

Safety devices were prepared in advance.

It was a safety device that ensured that no matter how strong the wind blew, it would never fall off the cliff.

“I’ll make sure to tell David.”

“The Korean government will also soon come up with a policy related to technology protection. In particular, a bill related to industrial espionage will be proposed within this year.”

“This will be the moment when Korea officially joins the trade war.”

“It is easier to lead a war than to get caught up in it.”

Even the humiliating Hanhanryung was endured.

But now it is past time to simply endure and evade the situation.

Now it was time for Taewoo Group to take the lead and deal with the United States and China.

***

There are not many days left in 2018.

The ruling marks the beginning of a trade dispute with Japan.

“The ruling to pay 100 million won in compensation to the victims of forced labor has been finalized. The appeal by the Japanese company was dismissed, and the original verdict was upheld.”

“The verdict was as expected.”

“It is expected that measures to seize assets against Japanese companies will be taken soon.”

“It is unlikely that the Japanese companies that forced labor will readily pay compensation, so the compensation money will have to be paid through property seizure.”

It was a very natural process.

It was a ruling that was not at all strange, but it was not an easy ruling because the target was a Japanese company.

“The Japanese government is strongly protesting, saying that this is a violation of international law, and is even responding that the friendly relationship between Japan and Korea has been overturned. They even summoned the Korean ambassador to the Ministry of Foreign Affairs to protest.”

“That’s a typical Japanese reaction.”

“I think the Japanese government is reacting so strongly because they need to protect their own companies. Of course, from a Korean perspective, this is a really crazy reaction.”

He was a vice president whose strength was that he never lost his cool.

This incident was so emotional that it brought out some unpleasant words from him.

“I guess the Korean government is also responding in a principled way.”

“They are responding by respecting the judiciary’s decision, and they are said to have summoned the Japanese ambassador and protested the excessive reaction, just as the Japanese government did.”

It was a classic move.

It was a very rational reaction and a move that everyone could agree on.

However, it was not enough to prevent a trade dispute with Japan, and once the ruling was made, a trade dispute was bound to occur.

“The Korean government must be having a hard time. While fighting with Japan over the issue of forced labor, it is also negotiating with China to steal technology.”

“So I am a little worried. If we miss this moment, Korea’s diplomatic position could be diminished.”

“There is a saying that if you just sit still, you will get to the middle. However, if you just stay to the middle, there is nothing Korea can do about it.”

When we were developing countries, it was enough to just maintain a middle position.

But now, the Republic of Korea is truly moving towards becoming a developed country.

To achieve this, we could no longer just stay in the middle.

“Unless we can properly resolve diplomatic issues with the major powers, including the United States, China, and Japan, it is expected that President Choi Jae-seok will have difficulty being re-elected.”

“What is President Choi Jae-seok’s approval rating?”

“As of now, the approval rating is at a high 63%. Of course, it is a significant drop from the early days of the election, but it is still very high for a three-year term.”

“It’s high, but I wouldn’t call it a stable number.”

“If we maintain the current status, we can be re-elected. However, if we try something and fail, our approval ratings will drop to a level where it will be difficult to be re-elected.”

There was a reason for President Choi Jae-seok’s high approval rating.

Since his election, Korea has continued to show high growth rates, which has had a significant impact on the growth of Taewoo Group.

The biggest reason for supporting President Choi Jae-seok was the economy.

This also means that President Choi Jae-seok’s approval rating will drop significantly the moment the economy falters.

“It doesn’t matter if the approval rating drops by more than 20% from where it is now. President Choi Jae-seok will still be re-elected.”

“Since the People’s Economy Party and the two major parties coexist, theoretically, a 33% approval rating is enough to win the presidential election, but if the approval rating continues to decline, there is no guarantee.”

“There will be an opportunity to rebound in approval ratings just before the re-election. So now is the time to move aggressively.”

The current approval rating is close to an illusion.

The most important thing was the approval rating right before the presidential election, and there was still an event left that could rapidly increase the approval rating.

It was a huge event called COVID-19, and when a large-scale incident like an epidemic breaks out, the president’s approval rating is bound to rise.

“Actually, it’s not such a bad situation for the financial tower. The more the trade dispute deepens, the higher the yield for the financial tower. If Korea and Japan also get involved in the trade dispute, the yield can be 20% higher than expected.”

“Vice President Han, just focus on the money. I will take care of the rest of the issues.”

“That’s what I’m doing. And I got a call from David. He said that the American political circles are actively protesting to China about the issue of protecting Korean companies’ technology.”

As expected, it was David.

Before the Korean government, the U.S. political circles were the first to put pressure on China.

Only then will the Korean government have a justification to insist on technology protection and be able to put more pressure on China.

“I expected an answer by the end of the year, but things are progressing faster than I expected.”

“Isn’t this a perfectly good suggestion from the perspective of the American political circles? There is no reason not to use it, since there are cases in Korea that can prove that the US did not cause the conflict because of its trade hegemony.”

“The outcome will vary greatly depending on whether the White House moves in a direction that protects Korea or not.”

“It is expected that they will act in the interests of the United States rather than Korea. If they make a mistake, they could use Korea as cannon fodder and then abandon it.”

Just because we held hands doesn’t mean we’re necessarily on the same side.

The United States and South Korea had to pursue their own interests, and the relatively weak South Korea might have had to act as a fuse.

“I guess I’ll have to visit the US soon.”

“Are you planning to roast President Trump yourself?”

“Wouldn’t that be the most effective? If I go there myself, I can bring the negotiations in the direction we want as much as possible.”

He still maintained a close relationship with President Trump.

Moreover, it could be said that the relationship has become even stronger since China has resolved the issue of selling off US bonds.

Of course, that doesn’t mean you can move him around as you please.

But I knew what President Trump wanted most.

Recovering support for re-election.

It was also one of the reasons why the White House attacked China so strongly.

If I could solve that problem, I could create a technology protection agreement the way I want.