The Magician’s Memorial - Chapter 131



Only Krnovel

Episode 131 The disappointing side (5)

The conference room of SAVE Investment Company.

All the important people were gathered together and watching TV.

We were watching TV, drinking popcorn and cola, as if we were watching a movie, but we weren’t watching a movie.

I was watching the presidential election vote counting broadcast, which was more interesting than the movie.

“If this continues, Bush will easily be elected president. “We are ahead by 54 to 3.”

“We still have to wait and see. The vote count in the southern region, where the Republican Party is strong, finished first. “It could be overturned once the Florida vote counting begins.”

As the vote counting continued, things got interesting.

The score, which was 54 to 3 in favor, became close to 119 to 121 when Texas votes were counted.

“We have now begun counting votes in New York. “It is an area where the Democratic Party is dominant, so the vote gap may widen.”

“You might be pushed back a bit.”

It wasn’t a bit of a pushback.

The narrow gap soon began to widen to 153 to 192, and if things continued like this, it looked like it would be difficult for Bush to be elected president.

But when Ohio’s vote counting began, the game changed.

As the vote counting results in Florida turned into a contest, the gap narrowed significantly.

“It was completely a half-and-half fight. “The West and South are dominated by Republicans, and the states closer to the coast are dominated by Democrats.”

“It’s 246 to 249. “We’re falling behind a little bit, but depending on the results in Florida, I think we can turn it around.”

We continued to watch the vote counting broadcast.

Before we knew it, the sun had set and the moon had risen, and one by one, everyone was lying down on their desks to sleep.

“Flory overturned the results!”

“The results are finally out. “Now that Florida has emerged as a Bush-dominant region, there is no chance of the results being overturned.”

Now I can watch the vote counting broadcast with peace of mind.

If I remember correctly, Bush was supposed to win by a very narrow margin.

But should I intervene? Bush won Florida by a larger margin than expected.

Ji-ing!

The phone call came late after 4 am.

I knew the call was from Bush’s campaign.

“Congratulations!”

[Thank you. It’s all thanks to you. I just received a phone call from Candidate Gore.]

Bush’s voice came through the cell phone.

Although his voice was hoarse from the long campaign, his emotions were clearly conveyed.

“Did you contact me first?”

[You were the first thing that came to my mind. I will invite you to the inauguration ceremony, so please make sure to come.]

“Of course I should attend. “If you just call me, I will put everything aside and attend.”

[Then see you then. I have to contact someone else, so I’ll just hang up.]

“Congratulations again. Mr. President-elect.”

Were you nervous?

I threw my cell phone, which I was holding politely with both hands, on the desk and leaned back in my chair.

“Was it a call from President-elect Bush?”

“They say candidate Gore gave in.”

“The CEO’s choice was not wrong this time either.”

“When have I ever failed? So, please secure shares of Qualcomm quickly.”

“We have already secured up to 35%. “Up to 50% can be secured within this month.”

“Once you secure the shares, move behind the scenes so that Qualcomm can sign a foundry contract with Taewoo Semiconductor.”

“A 50% stake is enough to change the CEO. Of course we can do that.”

I was lost in thought for a moment.

Are Apple and Qualcomm enough?

Shouldn’t we also secure shares in other IT companies, including AMD?

That way, we can sign more foundry contracts.

I shook my head.

Current semiconductors are not yet capable of doing so.

The first priority was to stably supply semiconductors to Apple, and then it was not too late to target other IT companies.

Because the IT bubble has not burst yet.

Stock prices of IT companies will continue to fall until at least the next year, so there was no need to move right now.

***

After completing my schedule, I returned to Korea.

Without any time to rest, I went to work, and Taewoo Electronics President Woo Seong-il and the head of the planning department were waiting for me.

“What is the current semiconductor situation?”

“The creditors seem to have given up halfway. We are constantly in contact with foreign companies, but no one is stepping forward. In addition, the government is putting pressure on us, so we have no choice but to go through the debt relief process.”

As expected, time was on our side.

As time passed, creditors began to walk away on their own.

But time was no longer on our side.

In order to meet the launch of the iPhone, the company had to acquire current semiconductors as soon as possible.

“Please call all creditors. “I’ll have to talk to them myself.”

“The creditors have already requested a meeting several times.”

“I guess you were waiting for me.”

“Because the Chairman delegated full authority to the Vice Chairman, the creditors were just waiting.”

It was a situation where both sides were disappointed.

However, since no one knew that I had signed an exclusive contract with Apple, it seemed like only the creditors were disappointed.

“I guess I’ll have to meet the creditors tomorrow.”

“Let’s make an appointment.”

The planning director left the vice president’s office to make a schedule.

I turned my head towards President Woo Seong-il, who was left alone.

“If we acquire the current semiconductor, Taewoo Electronics will manage it. “Is it manageable?”

“We will do our best to manage it. However, there are limits to significantly reducing the deficit.”

It was something beyond President Woo Seong-il’s capabilities.

It was nearly impossible to turn a company with a deficit of 2 trillion won into a surplus in an instant.

So, I didn’t say this with the intention of blaming President Woo Seong-il.

“Deficits are natural. “If we take over the current semiconductor business, our deficit may actually increase.”

“Honestly, I was expecting that too. “The semiconductor cycle is so poor that the current deficit is likely to remain for the next two to three years.”

“So we need to manage more aggressively. “We plan to use all of Taewoo Electronics’ reserves to revive semiconductors.”

“Even if we use all of Taewoo Electronics’ reserves, it may not be enough.”

Taewoo Electronics had many profit models.

Starting with home appliances, IT businesses were generating huge amounts of cash every year.

Nevertheless, there was currently insufficient funds to revive the semiconductor industry.

“So we plan to use Taewoo Telecom’s funds as well. “Taewoo Electronics and Telecom are currently jointly managing semiconductors under the concept of a joint venture.”

“If we can use Taewoo Telecom’s reserves, I think we can cover the deficit. However, due to current semiconductors, Taewoo Electronics and telecommunications may collapse at the same time.”

It was CEO Woo Seong-il who was worried for no reason.

If that didn’t work out, I was planning to mobilize the financial power of SAVE Investment Company.

“Do not worry. “I will take responsibility for everything.”

“Then, we will work with Taewoo Communications to secure funds to acquire current semiconductors.”

“Don’t make it too obvious. “If the creditors smell it, the price will go up further.”

“All right. “We will do our best to prevent rumors from spreading.”

***

next day.

Currently, semiconductor creditors visited Taewo Group.

The current semiconductor issue was so serious to creditors that the president or vice president of a large bank personally stepped forward.

“Nice to meet you. This is Kim Min-jae, Vice Chairman of Taewo Group. “Thank you for coming all the way here.”

“We are grateful for the opportunity to see Taewoo Group.”

We started with a brief greeting with the creditors.

The atmosphere had been very harmonious up until now, but the moment the main topic was brought up, it turned into a hostile atmosphere.

“It is difficult for creditors to accept Taewo Group’s conditions. We are prepared to cancel some of the debt, but we cannot cancel 75% of the debt. Banks are also a type of business. “Which company would do business at a loss of 75%?”

“It sounds like you are saying that it doesn’t matter if Taewoo Group suffers a loss. Conversely, let me ask you just one question. Is there any reason to acquire a semiconductor company now while carrying 25% of the debt? “A company that has a loss of 2 trillion won every year?”

“… … .”

The creditors were speechless.

Since they are well aware of the current semiconductor situation, they also knew that the entire Taewo Group could be shaken by this merger and acquisition.

Still, from the creditors’ point of view, the current semiconductors had to be sold at a good price, so the president of Korea Exchange Bank spoke on behalf of the bank.

“Semiconductors are ultimately a cycle. “If you wait a few years, the time will come when it will turn into a surplus.”

“The deficit over several years is at least 6 trillion won. “Will it be possible to make up for the loss by turning it into a surplus?”

“I think it is possible with Taewoo Group. And for the sake of Korea’s development, wouldn’t it be better to acquire it from Taewu Group rather than a foreign company?”

In the end, he was a bank president who touched patriotism.

That’s why current semiconductors were not attractive properties.

Wouldn’t it be better if we showed off the world’s leading technology?

The moment I brought up patriotism, this negotiation was bound to go in my favor.

“Thank you for those kind words. As you said, they are currently showing interest in acquiring semiconductors, even though they are willing to take huge losses for the development of Korea. But why don’t creditors do this? “We ask for great concessions for the development of the Republic of Korea.”

“Of course we have to make big concessions. “We will provide up to 50% debt relief.”

Are you kidding?

In the case of non-performing loans, even if only 10% is received, it is said that the loan is well received.

But how much of a thief is he to take 50%?

“If you say that, Taewo Group has no choice but to stick to the existing conditions. “It is the only way to save Taewoo Electronics and Hyunjae Semiconductor at the same time.”

“Are you really saying that you will not acquire Hyunjae Semiconductor unless 75% of the debt is written off?”

“That’s right.”

“Can we talk among ourselves for a moment?”

“As much as you want. “I’ll be out for 30 minutes.”

I left the conference room.

It must be a worry. Will they receive at least 25%, or will the creditors revive the current semiconductor company?

In the case of Korea Exchange Bank, which holds the largest number of bonds, it would want to receive a little more.

But the outcome was already decided.

Of the six bank presidents included in the creditors’ group, half have already met with David.

The bank president was, after all, nothing more than a contract worker.

When the contract ended, I ended up having to leave the bank and become independent, and I was able to easily solve that problem.

“Vice Chairman, they say the creditors’ meeting has ended.”

30 minutes later, the planning manager came to see me.

After dozing on the chair for a while, I was able to head to the conference room with much lighter movements.

“The final terms were decided through a creditors’ meeting. We will provide debt relief of up to 65%. “No more than this.”

“I’ll think about it for a moment.”

It was a slightly disappointing condition.

I was confident that if I waited 1-2 more years, I would be able to get over 70% of my debt forgiven.

However, in order to meet the iPhone’s release schedule, Hyunjae Semiconductor had to be acquired right away.

Actually, it was me who was in a hurry.

To hide it, I let out a sigh.

“Whew, these are really disappointing conditions. But what can you do? “If this is the only way for creditors, Hyunjae Semiconductor, and Taewo Group to survive, they should accept it.”