The Magician’s Memorial - Chapter 136



Only Krnovel

Episode 136 Big crash (5)

Taeucha’s entry into China was a great success.

It was growing close to 100% every year.

Taewo Group and Shanghai Automobile were both benefiting from this.

And the Shanghai Bang faction, where Zeng Hongqin was located, also shared in the benefits.

How pretty will I look like this?

Zeng Hongqin even took the initiative without me saying anything.

“If you have any business you would like to expand into China, please let me know at any time. “I will do everything in my power to help you.”

“I was already thinking about entering the Chinese IT field.”

“Wasn’t the IT industry having a hard time due to the dot-com bubble or something?”

“These are difficult times, so shouldn’t we be able to build a foundation if we advance more actively?”

“Hehe, I like it a lot. “It feels so good to meet you, rather than just the corrupt young people these days.”

Zeng Hongqin poured Kaoliang wine into my glass.

After taking a sip of Kaoliang wine, I continued the story.

“The field we are entering this time is gaming.”

“Do large companies like Taewoo Group make games? “That’s unexpected.”

“I don’t make the games myself. “We just have a company that distributes games.”

“Still, big companies have pride, but aren’t games like that?”

The perspective on the game was no different in China or Korea.

For older people, games tend to be treated like children’s toys.

“You can think of it as a priming material to lay the foundation for IT.”

“Hmm, since they are starting from Taewoo Group, it’s not my place to interfere. So what can I do to help?”

“I would like to receive help regarding the issue of the license plate.”

“Of course I can do that much. “I will make sure you get a license for any game you bring.”

The license plate was a kind of permission document.

Unless a game was approved, it could not be officially distributed in China.

It is not difficult to get a license now, but even 10 years later, game companies had to go through a lot of trouble to get a license.

But did I come this far just to get a license?

He was drawing a bigger picture than that, and for that he needed Zeng Hongqin’s power.

“Could you give me the exclusive rights to issue all games released in Korea?”

“Hehe, are you saying that in order for Korean games to enter China, we need your permission?”

“Would it be difficult?”

“It’s not impossible, but it seems like it could be a problem.”

Monopoly rights were a sensitive issue.

Even though it was only for Korean games and not for games around the world, the moment the word “exclusive rights” was included, it caused a dangerous problem.

“I’m not saying I should monopolize it. “We want to create a joint venture and manage it together.”

“Well, it means let’s share the profits. “Can games make money?”

“If I can form a joint venture with a good Chinese distributor, I can guarantee profitability.”

It was Zeng Hongqin who had already enjoyed the joint venture.

This time, when I brought up the topic of the joint venture, they showed great interest.

They say monopolies can cause problems, but when it comes to money, it’s not that big of a problem.

“Which company do you want to form a joint venture with? “I hope it’s a company that’s friendly with us.”

“We have selected a few companies. “Could you please select the company you want?”

I took out a piece of paper listing several Chinese game distributors.

Zeng Hongqin called his aides, discussed them, and circled one company.

“This company would be great. “It’s a company we have a connection with.”

“You mean Tincent. “I also planned to create a joint venture with Tincent first.”

“Hehe, it’s you too. They know our hearts very well. But what are you going to do with the shares?”

“Would it be okay for Tincent to have 51% of the shares and Taewoo Group to have 49%?”

“Isn’t this a business where you are losing too much? Hmm, how about doing it this way? “I will help you purchase Tincent’s shares.”

You’re going to do this?

I didn’t know that Zeng Hongqin thought of me this much.

Tincent was a company that would rise to the top in market capitalization in China.

“The old man said he would help me, so of course I will.”

“They say Tincent is having a hard time due to the dot-com bubble. How do you plan to acquire about 30% of the shares? “If it’s a burden, you can lower your stake.”

“I would like to acquire 40%, not 30%. “I heard that the elders will help me, so shouldn’t I also make a big move?”

“Hehe, I heard you are different from other young men. “I will help you acquire Tincent’s shares at the lowest possible price.”

An unexpected bundle of luck rolled in.

It was a moment when I realized that all the money I had given to Zeng Hongqin was not a waste of money.

***

next day.

The power that Zeng Hongqin had was truly incredible.

In just one day, I was able to meet Ma Hwa-myeong, one of the founders of Tincent.

“I came out after being introduced by an elderly person. “This is Tincent’s magic name.”

“Nice to meet you. This is Kim Min-jae, Vice Chairman of Taewo Group. “The old man told me to have a good relationship with Tinsent.”

“I heard the story too. “I really didn’t know that the Taewo Group had such a close relationship with the elders.”

Ma Huaming looked thrilled.

He seemed thrilled that Zeng Hongqin, a powerful figure, was watching over him.

“We are planning to establish a game distribution joint venture. “It is a condition of holding a 51% stake in Tinsent.”

“It is a grateful offer, but as you know, the company’s situation is very difficult due to the Damcut bubble.”

They said they couldn’t afford to create a joint venture.

This was my mistake.

The story of the acquisition of Tincent shares should have been brought up first rather than the joint venture.

“So, we are trying to acquire Tincent’s shares. “How much would it take to acquire a 40% stake?”

“It is difficult to reach 40%. What are the conditions for acquiring 33% for $33 million?”

It’s only 33 million dollars.

Even after just 10 years, the value of $33 million soars to over $100 billion.

Even if you can’t do it, you can eat more than 4,000 portions, so how could you refuse?

It was a condition that made me want to give more money.

“What about these conditions? “We will acquire 40% of the shares on the condition that Taewoo Group covers $40 million and all funds necessary to establish the joint venture.”

“Are you sure? “If you do that, our company will also be able to breathe.”

“Taewoo Group is carrying out various IT businesses. “Why not start a joint venture with a gaming platform and music site?”

“Of course it’s great! I have also used the music site created by Taewoo Electronics. “If we just tweak the site a little to suit the Chinese situation, I think we can put it out there in the Chinese market right away!”

It was Ma Hwa-myeong who raised his voice in excitement.

For him, this proposal would be like a sweet rain in a drought.

Since the game platform is shared with an already completed music site, it is possible to release it into the Chinese market without spending a penny on development costs.

“The legal team will arrive in China within this week. “We will deposit $40 million as soon as the contract is signed.”

“It was great to come out today. I never thought it would be possible to sign a contract with such good terms. “It’s all thanks to the elders.”

“As you know, a portion of Tincent’s share of the profits from the joint venture must go to the seniors.”

“Don’t worry about that. “I will take care of it so that the seniors do not feel uncomfortable.”

For me, it was a condition that only benefited me.

Tincent is responsible for paying for the room in Shanghai.

Since I could monopolize the Korean game market, game companies that wanted to enter China had to use the game platform.

To be honest, I didn’t want to use this method either.

I had no choice because Taewoon Semiconductor was making more money than I thought.

***

After good negotiations, I returned to Korea.

I immediately summoned representatives of several game companies that had signed distribution contracts with game platforms to the company.

“I wanted to deliver good news as soon as possible, so I brought you here even though I knew it would be rude.”

“What news?”

MC Soft CEO Lim Jin-tae confidently spoke out.

He was full of confidence because his MMORPG game Lindsey was a huge success.

“The gaming platform’s entry into China has been confirmed. “We will now be able to receive approval for all Korean games distributed on gaming platforms within this month!”

“Are you saying we can now enter China?”

“That’s right. “I am on my way to build a veneer myself.”

“But in order to enter China, there is a lot of work to do, starting with changing the language.”

“That’s the problem, you just have to proceed slowly. “We can introduce the game to the Chinese market when it is ready.”

The game company representatives looked at each other.

It was a look full of restraint.

As game companies faced fierce competition in the Korean market, it was natural for them to keep each other in check.

“China’s population is over 20 times that of Korea. So there will be plenty of pie to share. Taewoo Electronics also plans to actively support the company’s expansion into China. “We will help you with everything from language changes to BM.”

“We at MC Soft will only trust Taewo Group.”

President Lim Jin-tae spoke in a firm tone.

Representatives of other game companies followed suit.

No one raised an opposing opinion.

That’s because the amount of support Taewo Group gave to game companies was not just one or two pennies.

“And I would like to ask you one more favor.”

“I will listen to any request you may have. “Just say the word.”

“Do you know anything about the new cell phone coming out from Apple?”

“I know it was announced at CES. “I also heard that it’s more like a small laptop than a cell phone.”

Perhaps because they were from the gaming industry, everyone knew about the iPhone.

In fact, some people even saw the iPhone at CES.

“Please make a game exclusively for the iPhone.”

“Are you talking about a game exclusive to mobile phones? “Games for mobile phones are only made by small and medium-sized companies.”

Mobile phone games have become less profitable.

However, with the advent of the iPhone, profitability would increase dramatically, so games for the iPhone had to be produced as soon as possible.

“It’s not a game for mobile phones, it’s a game for iPhone. As someone said earlier, the iPhone has performance close to that of a small laptop. “It has specifications that can run low-end PC games.”

“It’s possible to modify existing games to lower specifications, but I don’t see why that should be done.”

It was a very different reaction from entering China.

Perhaps because of their pride as a PC game company, they disapproved of making games for the iPhone.

No, what good is pride when it comes to money?

And although mobile games are ignored now, in just 10 years, all game companies will be jumping into mobile games.