The Magician’s Memorial - Chapter 100



Only Krnovel

Episode 100 Jamryong (3)

Electronic Software Distribution (ESD).

ESD was a method of selling software, including games, over the Internet.

Nowadays, games and software are sold through CDs, but since the Internet has become popular, there is no need to transfer them to CDs.

However, the concept of selling games over the Internet was not yet understood.

Even Steam, the world’s most famous ESD company, did not come out until after 2003.

I’m not taking on the challenge because I don’t know how big a business the Internet software distribution network is.

I knew that this was a business that could easily generate trillions in profits.

Of course, President Woo Seong-il did not understand this concept.

Bad words came out of his mouth, as he rarely gives negative opinions.

“It doesn’t seem good for a large company like Taewoo Group to distribute games. “Wouldn’t it have a negative impact on the corporate image?”

“Rather, it is an opportunity to break away from Taewoo Group’s old-fashioned image.”

Why did I secure Starbucks and Coca-Cola distribution networks?

And it was the same reason that the mobile phone division was transferred to Apple.

The purpose was to revamp Taewoo Group’s old-fashioned image.

“And the number of games developed in Korea is very small.”

“That’s something we can raise from now on. And we will secure game supply rights by negotiating with various game companies in the United States, Japan, and elsewhere.”

“Are you planning to invest in game development?”

“We plan to invest by acquiring a small stake. “If Taewoo Group’s funds are not enough, you can get help from a Wall Street investment company.”

When I came out strongly, President Woo Seong-il lowered his head.

Since I thought the scale of the game distribution business wasn’t that big, I probably thought I’d just skip it.

“We will create a separate game distribution department and proceed with it.”

“I will tell the IT department separately. “The concept of a game distribution platform is still unfamiliar, so I have to explain it myself for the project to proceed properly.”

“Because it is such an unfamiliar business, I have no idea what to do.”

“Taewoo Electronics just needs to provide rear support. “I will personally attend the meeting with the CEO of the game company.”

There was no need to persuade President Woo Seong-il.

Because he was a piece of chess that just had to move as I said.

“Taewoo Electronics will schedule the meeting. “If there is a game company you want, just let us know.”

“First, please set up meetings with all of the large Korean game companies, and set up a schedule with MCSoft, a software company, first.”

The first game I would attack was ‘Lindsey’.

It was the game that led the MMORPG craze, and it was also the game that created the Korean-style profit model.

***

next day.

I was able to meet with MC Soft President Lim Jin-tae.

As investment was desperately needed due to the foreign exchange crisis, the meeting took place in one day.

“Nice to meet you. “This is Kim Min-jae, general manager of Taewo Group.”

“I was really surprised that Taewoo Group contacted me first. “This is MC Soft’s Lim Jin-tae.”

President Lim Jin-tae did not show a low attitude.

Although the company was in a difficult situation, it maintained a confident attitude as if it had confidence in the game it was developing.

“I’m sure you’re busy, so I’ll get straight to the point. Simply put, I want to invest in games being developed by MCSoft.”

“Are you saying you want to invest in exchange for shares?”

“That’s right. “I would like to invest about 10 billion won. What do you think?”

“… … .”

It was President Lim Jin-tae who kept his mouth shut.

In the current situation, 10 billion won would be something more desperate and welcome than an oasis found in the desert.

However, he quickly came to his senses and answered in a cool tone.

“I appreciate the investment, but I can’t give you a lot of shares. “The game development is almost complete, and we are confident that the game we will release this time will be a success.”

“I’m not asking for a lot of shares. “How about 20%?”

20% on 10 billion won.

For Korean IT companies, this was greater luck than winning the lottery.

To be honest, the stake could have been acquired for a smaller amount, but the investment amount was increased for President Lim Jin-tae, who has been concentrating on game development.

“I think 10 billion won for a 20% stake is too much. “Do you have any other conditions?”

“Taewoo Electronics is planning to create a gaming platform this time. It is a platform where you can enjoy various games using one site. “We want to exclusively supply games made by MCSoft on our platform.”

“It seems like the conditions are too advantageous for us.”

Since Taewoo Electronics is in charge of distribution, it would be a welcome condition for MC Soft.

From my perspective, it was not a bad condition at all. Because from now on, all games made by MCSoft can be monopolized on the platform I created.

“And I would like to have exclusive distribution rights for all games made by MCSoft in the future.”

“Do you really want to invest 10 billion won under those conditions? Even though Taewoo Group is the richest group in Korea.”

“Is it really because you have so much money that you would make a proposal like this? I think it’s worth it. “It may be difficult to recover the investment right now, but I plan to invest with an eye on the future 10 or 20 years from now.”

In fact, it was not a business that started with an eye to the distant future.

Even if Lindsey becomes as famous as before her return, there will still be at least several billion won worth of revenue from commissions.

President Lim Jin-tae showed an expression of emotion because he did not know his true feelings.

“I will accept the investment. “I have met many investors so far, but none have approached me as sincerely as Director Kim Min-jae.”

“I am a person who is convinced that Korean games are in the future of the IT industry. So, I am willing to invest not only in MC Soft but also in other game companies.”

“Is that so? A group of friends I’ve been hanging out with since I was in college are now making games. “If it’s okay with you, may I introduce you?”

“As much as you want. “If it’s an introduction from President Lim Jin-tae, you should always make time.”

There was a reason why the first target was chosen to be President Lim Jin-tae.

He was a talented person who graduated from Seoul National University’s College of Engineering, and his friends were also figures who would become giants in the IT industry.

“We will appoint a lawyer to proceed with the detailed contract.”

“On Taewoo Electronics’ side, the legal team and planning office will be in charge of coordinating the details. Don’t worry too much. “I will ask you to sign a contract in accordance with MC Soft as much as possible.”

“Thank you for caring me. As the general manager said, I hope to maintain a good relationship for 10 or 20 years.”

In this way, we signed a contract with a company that will dominate the Korean gaming industry in the future.

But it was just the beginning. To create a proper game distribution platform, more games were needed.

***

To be called a game distribution platform, it had to have at least 10,000 games.

You need to have a lot of games to attract users, and only then will game companies release new games on the platform.

If the system is established, it will become a virtuous cycle.

The problem was that initial investment was essential to build the system, and the participation of game companies with many games was required.

In the end, it was a problem that could be solved with money.

Since this problem could be resolved through SAVE Investment Company, I called a team leader in the United States.

“Team Leader Han, are you doing well? “I heard from David that you’re very laid-back these days, right?”

[Did David say that? These days, I can’t sleep even 3 hours a day. Every day, I visit Silicon Valley to meet promising companies. Moreover, he spends his days with his face glued to the monitor, buying IT-related stocks.]

SAVE Investment Company was investing heavily in the IT industry.

Since the IT boom will occur two years from now, you can make at least several times the profit just by holding on to it.

“Are there any gaming-related companies among the stocks we own?”

[There are several companies that focus on games, and there are also companies that develop games and software together.]

“Good for you. Secure distribution rights by negotiating with the game company. Taewoo Electronics will soon launch a gaming platform around the world, starting with the Korean market.”

[Are you going into the gaming industry? First, we will approach the companies we own shares in, and instruct David to contact large gaming companies.]

A team leader accepted it too easily.

I had already thought about what words I would use to persuade him, but I was embarrassed that he agreed so easily.

“Aren’t you opposed to suddenly entering the gaming industry?”

[Isn’t any business you run bound to be successful? I just thought that the future of the gaming industry was brighter than I expected.]

“I see.”

[If someone other than the CEO had said this, I would have been insulted.]

I felt a strong sense of trust in me from the voice of a team leader.

It was a trust he developed after working with me for several years, and I never once disappointed his trust.

“I’m sure it will be a huge hit this time too. So, secure the game distribution rights even if it costs money.”

[There are still surplus funds from the SAVE investment company floating around. If it is difficult to secure distribution rights for the game, I will purchase the copyright to the game itself.]

He was a team leader who was more aggressive than me, and his ideas were not bad.

“ah! And sooner or later there will be pressure from Wall Street. “They must be very angry because we own so much of the IT industry.”

[But what would you do? It’s not like they can take your shares by force.]

“Give the nuance that you can exchange stocks for other stocks.”

[There is no stock hotter than IT stocks these days. Are you sure that the IT market will decline?]

“You know me well because you worked with me. Stocks that rise explosively eventually burst their bubbles. Of course, the IT bubble will not burst right away, but we need to prepare in advance.”

Dot-com bubble.

It was a bubble economy in the IT industry that hit the United States and Korea.

Since it was going to happen in the next 2-3 years, we had to start doing the preliminary work now.

***

Taewoo Electronics’ IT department completed the gaming platform.

The IT department had grown to 250 people, and more than half of them were able to create a decent platform site in a short period of time.

And the site name was chosen as ‘Platform’.

The name was chosen because simplicity sometimes works best.

Thanks to the hard work of SAVE Investment Company and Taewoo Electronics, we were able to secure distribution rights for over 5,000 games.

Unexpectedly, President Woo Seong-il performed quite well.

He had worked in the electronics industry for a long time, so he had quite a few connections, and he acquired over 500 games through him.

“Finally, today is the day the platform is launched. “I’m nervous about what the outcome will be.”

“The commercial started last week, right?”

“That’s right. We are advertising the platform along with MC Soft’s Lindsey advertisement.”

The MMORPG craze that will take Korea by storm.

And the beginning of PC room culture.

When I saw these two things, I knew the platform had just launched.

With PC rooms opening across the country, the number of users enjoying games will naturally increase.

In order to enjoy MMORPGs, you must use the platform, so we have secured distribution rights for various MMORPGs, including Lindsey.

Now all I had to do was watch the results.

We launched the platform with trepidation, even though we knew it would be an unconditional success.