The Magician’s Memorial - Chapter 460
Only Krnovel
460. Big Capital (5)
A few days later.
A vice chairman came to see me after finishing his talk with the People’s Economy Party.
“We have decided to abolish regulations on performance venues. There is a just cause to promote the development of Korean culture, and President Choi Jae-seok’s approval rating is also high, so I think we will be able to abolish the regulations without much difficulty.”
“Other large companies will also be building many performance halls.”
It was a very good thing considering the cultural development of Korea.
Of course, no other large company can build a concert hall as large and extravagant as Taewoo Group, so we were going to stand out.
“But is it really worth spending 6 trillion won to build a concert hall? It’s a bit excessive.”
“Wouldn’t it take at least five years to build a concert hall? If you think about investing 1.2 trillion won a year, it’s not an excessive amount. And when the project starts in earnest next year, it could generate huge profits.”
One vice president closed his eyes and nodded.
However, he still thought it was a waste to spend 6 trillion won on one concert hall.
It seemed like he thought it was manageable considering the money he would earn in the future.
“We will hand over the performance venue plan to Taewoo Construction.”
“Do you have any other reports?”
“I got a call from the Charlotte Group. To be exact, it was from my second son, Vice Chairman Jin Dong-gu. He said he wanted to meet up for a meal soon.”
“I finally got a call.”
Many companies have suffered damage due to the THAAD ban.
But the Charlotte Group suffered the most damage.
Since the Charlotte Group was the one that provided the THAAD site, the Chinese government harassed the Charlotte Group.
“The two brothers of the Charlotte Group are engaged in a war-like succession dispute. The fierce dispute has continued since last year, and the war is expected to end within this year.”
“It is largely because Chairman Jin Ho-gyun failed to properly support his successor.”
It is better to decide on a successor in a large company as quickly as possible.
Of course, it is natural to want to pass down a business to your outstanding children.
As time went on, the children were bound to create huge factions, and the company itself could have been split in half.
“Chairman Jin Ho-gyun is supporting his eldest son, Vice Chairman Jin Dong-oh. He also forced Vice Chairman Jin Dong-goo, who was in charge of the Charlotte Group in Japan, to resign so that he could no longer exert influence.”
“If we had done it earlier, Vice Chairman Jin Dong-oh could have taken the chairmanship. But it’s too late.”
“I think the ultimate winner will be decided at the shareholders’ meeting in July.”
“So that’s why Vice Chairman Jin Dong-gu contacted me so urgently.”
Taewoo Group held shares in many large Korean companies.
He also held a considerable amount of shares in the Charlotte Group.
However, it was not enough to completely overturn the succession structure, and the result was ultimately determined by the shareholders’ choice.
“Would you like to meet Vice Chairman Jin Dong-gu?”
“We should meet and talk. Isn’t it thanks to Vice Chairman Jin Dong-gu that we are here? Even if I can’t repay the favor, I can at least listen to his story.”
Taewoo Group’s new headquarters was built on the Charlotte Group site.
Thanks to the help of Vice Chairman Jin Dong-gu, we were able to purchase the land and he even promised to make him chairman.
Well, in the current situation, even if I help, the outcome won’t change.
But since you made a promise, you should at least listen to what I have to say.
***
Captain Kang’s restaurant annex.
It’s been a long time since I had a meeting with Vice Chairman Jin Dong-gu here.
Vice Chairman Jin Dong-gu’s complexion was very pale, perhaps due to the succession war that had been going on for several years.
“You look very tired.”
“Every day feels like walking on thin ice. Somehow, I manage to walk without sinking into the thin ice. And now, if I just take one more step, I can survive on the thin ice.”
It was literally like a rink of ice.
During the succession war, no less than three general shareholders’ meetings were held.
Vice Chairman Jin Dong-gu was able to keep his position by winning all the shareholder meetings.
“We predict at the Taewoo Group level that there is a high possibility of victory at the shareholders’ meeting in July.”
“It’s really nice to hear that Taewoo Group has such a view. Thanks to Chairman Kim, we were able to come this far.”
“To be honest, I’m sorry. I should be of more help, but I can’t.”
“Absolutely not. Thanks to Chairman Kim’s foresight, we have the active support of executives and shareholders.”
Charlotte Group suffered the greatest damage from the THAAD ban.
Originally, Vice Chairman Jin Dong-gu was supposed to be in charge of advancing into China.
But thanks to the advice I gave, he was able to escape to the Charlotte Group in Japan and avoid taking responsibility for the failure of his investment in China.
“It’s all thanks to the Vice Chairman’s good management. I heard that most of the executives follow Vice Chairman Jin Dong-gu.”
“I was able to win the hearts of the executives thanks to my shouting out against the THAAD site.”
The THAAD site issue that caused the THAAD ban.
Vice Chairman Jin Dong-gu was the only person who actively opposed the provision of the THAAD site.
That is why it was able to capture the hearts of not only executives but also shareholders.
“I would like to turn the shares of Charlotte Group held by Taewoo Group into friendly shares for the Vice Chairman, but I have a promise with Chairman Jin Ho-gyun, so I must remain neutral.”
“Neutrality is enough. The only variable I was worried about was Taewoo Group’s shares going to that side. If you just stay neutral, I can win!”
What a confident response.
It was Vice Chairman Jin Dong-gu who asked us not to ask for help, but only to remain neutral.
“I will definitely keep my promise to remain neutral. Even if Chairman Jin Ho-gyun asks for help, I will remain neutral until the end.”
“It seems like my father will have a hard time coming out anymore. He is getting older and it is hard for him to participate in outside activities. And it seems like he will have to receive a limited guardianship ruling this time.”
The card that Vice Chairman Jin Dong-oh believed in was Chairman Jin Ho-gyun.
However, the moment Chairman Jin Ho-gyun receives a ruling of limited guardianship, the value of the card disappears.
Since a limited guardian means a person who lacks the ability to handle affairs, Chairman Jin Ho-gyun’s opinion will become meaningless from now on.
“It may be a little early, but congratulations.”
“Thanks to Chairman Kim. I wanted to express my gratitude and that’s why I’m here today.”
Is this something to be thankful for?
Advancing into China, THAAD deployment, THAAD sanctions, and even Charlotte Group’s site.
From Charlotte Group’s point of view, there was not a single thing that was beneficial.
However, Chairman Jin Dong-gu expressed his gratitude.
Because even if I lost ten things, I just had to sit on the throne.
***
The next day.
A vice president came and asked about yesterday’s events.
“Did you have a good conversation with Vice Chairman Jin Dong-gu?”
“I feel like I’ve received a hundred more compliments. Judging from the atmosphere, it looks like Vice Chairman Jin Dong-gu will take the throne.”
“The financial tower is also expecting the same.”
We talked for a long time about the Charlotte Group.
Although it was clearly not a bad story, Vice Chairman Han’s expression was not bright.
“Is there anything bad?”
“There’s a report from Taewoo Communications. It’s a matter that could become quite serious, and it’s also related to an American IT company that the chairman owns.”
“What’s going on at Taewoo Communications?”
“The telecommunications industry is currently hot when it comes to network usage fees.”
Network usage fee.
You could call it the cost of using an Internet line.
In Korea, there was a concept called transit fee, which included paying fees to telecommunications companies based on traffic.
“I expected that the network usage fee issue would arise at some point.”
“The problem has been occurring for several years, knowingly or unknowingly, and while there has been good consultation during that time, the problem has come to the surface since the sender pays policy was created two years ago.”
Domestic IT companies were paying huge network usage fees to telecommunication companies.
That is why the telecommunications industry has been strongly insisting that network usage fees should be collected from overseas IT companies as well, taking fairness into consideration.
“I heard that Korea has particularly expensive internet usage fees.”
“It is also because Korean telecommunications companies are classified as tier 2. They have to pay a certain amount of money for using tier 1 networks, so they have no choice but to charge high network usage fees.”
“So which companies are causing problems?”
“You can think of it as most American IT companies, including Google, Facebook, video platforms, and OTT.”
These were all companies in which I was the major shareholder.
Of course, Taewoo Telecom also charges network usage fees, but it did not want to make other telecom companies pay as well.
“What is public opinion?”
“A two-sided argument is unfolding. Telecommunication companies are being criticized for charging high telecommunication fees while not properly laying the network and only charging high network usage fees, and American IT companies are being criticized for not paying taxes properly in Korea.”
Telecommunications companies have been investing less than they earn.
Although they say they are investing in 4G and 5G lines, the returns are not comparable.
It was certainly not desirable for Korea, known as an Internet powerhouse, to not have a telecommunications company with a tier 1 network.
But the same was true for American IT companies.
Although they earn billions of dollars in income in Korea, they pay only pennies in taxes.
It was difficult to avoid criticism because the company avoided paying taxes by establishing a corporation overseas.
“It’s a very complicated problem to solve.”
“When public opinion is biased, it’s easy to find a solution. But in this case, both sides are at fault, so it’s hard to find a solution.”
“Let’s think simply first. Let’s only look at the direction that benefits Taewoo Group.”
“Should I just look at the Taewoo Group? Or should I also consider the shares held by the chairman?”
This was also a problem.
If you simply think of Taewoo Group, you only need to consider Taewoo Telecom.
However, the stake I held in American IT companies was by no means small, and there were companies in which I held so many shares that they could be considered subsidiaries of the Taewoo Group.
“I think about it by taking into account the shares I own. If you look at it broadly, it can be seen as an asset of the Taewoo Group.”
“Then, it would be beneficial to reduce the current network usage fees.”
“What if Taewoo Telecom unilaterally offers cheaper network usage fees compared to other telecommunications companies?”
“It’s not easy. You’re going to be completely at odds with the telecommunications cartel. You can’t make that decision unilaterally without a perfect justification.”
There was a close partnership between Korean news agencies.
The moment you break the agreement, you will be ostracized by the Korean telecommunications industry.
Moreover, since breaking the agreement would result in huge disadvantages, it was impossible to move without a perfect justification.
“Korea could be the starting point. If Korea sets high internet usage fees, Europe may follow suit.”
“There is talk that the EU is watching Korea’s case with interest.”
“If Korea becomes a precedent, it will be difficult. It may be good for Korean telecommunications companies to increase their sales in the short term, but in the long term, Korea’s internet ecosystem could be threatened.”
First, we had to put out the urgent fire.
To do that, a somewhat drastic method was needed.
“Renew your contract with Taewoo Telecom and the US IT company for network usage fees. At half the price of what it is now.”
“Is that okay?”
“What could go wrong? Let’s sign the contract first and then see how things turn out.”
The policy of reducing network usage fees was only a pretense.
It was a measure to find out how other telecommunications companies would react and even the mood of the political world and public opinion. It was also a strategy that could help increase Taewoo Telecom’s market share.
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