The Magician’s Memorial - Chapter 463
Only Krnovel
463. Equity Participation (3)
Taewoo Group had many research institutes.
Among them, there was also an integrated components research institute that researched and developed components used in automobiles, electronics, semiconductors, construction, etc.
It’s been a really long time since I visited the Integrated Components Research Institute.
The lab was busy showing me the parts they had developed and improved so far.
“This is a new material that was recently applied to Taewoo Electronics. It is 20% lighter than existing materials, but its strength is actually 15% stronger.”
“Are you also researching parts that can be applied to Taewoo cars?”
I briefly interrupted the director of the research institute who was explaining things diligently.
The purpose of visiting the integrated parts center was not Taewoo Electronics but Taewoo Automobile.
“We are researching various parts used in Taewoo automobiles. We are researching a wide range of materials, from advanced high-strength steel (AHSS) to aluminum.”
“You can’t produce steel plates or aluminum yourself, so where do you mainly get them from?”
“We are supplied by Korean steel companies or Japanese steel companies. In particular, we import a lot of aluminum from Japan.”
“Can I see the data on the materials that came from Japan?”
The director of the research institute gestured behind him.
Then the researchers who had been waiting moved at the same time and returned with a bundle of data.
“I will print out the data I am keeping and bring it to you now.”
“No. This amount of information is sufficient. Hmm, the information is quite detailed. Is this information confirmed through experiments conducted directly at the laboratory?”
“Most of the information was obtained from steel companies, and since all of the materials had passed JIS certification, we were able to confirm it through them as well.”
If Korea has the KS mark, Japan has the JIS certification.
It seemed that they did not conduct separate tests because they believed that the material had been verified by a certification agency and that it could be used with confidence, and in particular, they believed that Japanese products were very reliable.
“I want to get more accurate data. I need data that I have verified through experiments, not data that I get from JIS or Japanese steel companies.”
“The lab is fully equipped to check all the information. We can experiment with everything from tensile strength to hardness, conductivity, corrosion, and torsion.”
“Please compare all information disclosed through JIS through your own experiments.”
“I will try to finish it within this week at the latest.”
They were researchers who had spent their entire lives conducting experiments.
For them, verifying information through experiments was as easy as lying down and eating cold porridge.
“And please conduct this experiment in utmost secrecy. The results of the experiment should be known only to the director of the research center. Please also keep the researchers who participated in the experiment in strict secrecy.”
“Don’t worry. We will only allow a small number of trusted researchers to participate in the experiment. By the way, may I ask what the purpose of this experiment is?”
“You will know it yourself once the experiment is over.”
Suddenly, an order was given to experiment with materials from a Japanese steel company.
It might seem like an unnecessary experiment, since the experiments were conducted by steel companies or JIS.
But when the results of the experiment come out, the director of the lab will know why I gave these instructions.
***
Just two days.
He was the director of a research institute that had already completed material experiments for more than 20 Japanese steel companies.
He had been directly involved in the experiment, and his whole body reeked of iron, and his face bore the marks of a thick mask.
“It wasn’t so urgent that even the director had to conduct an experiment all night.”
“Oh, no. First, I will report the results. I found out from the first experiment why the chairman said that the purpose of the experiment would be known once the results were out.”
It was the director of the research institute speaking in a voice full of anger.
Something happened that made him, who had spent his entire life in the laboratory, furious.
“It looks like the experimental results came out very strange.”
“There is not a single part that matches the data provided by the steel company. It does not meet the JIS standard. If we only look at the results of the experiment, they should all be rejected.”
“There seems to be a big difference between the data provided by the steel company and the actual experimental data.”
“I thought the difference would be within the margin of error, but the difference is so great that it would not be noticeable unless the data was intentionally manipulated.”
Japanese steel technology was considered world-class.
It was used by many automobile companies in Japan, as well as in automobiles and airplanes in Korea and even in rockets in the United States.
Many companies and countries use Japanese steel products because they are excellent products.
But if you use manipulated data to make it look like a superior product rather than a superior product, the problem becomes more serious.
“It’s not like one material is particularly defective or that only products released during a certain period have defects, right?”
“Just in case, we searched through all the materials in the lab as well as the warehouses of affiliated companies, and even old products, and conducted experiments.”
“Is that possible in two days?”
“… … I am sorry to say that I sent an official document stating that it was the Chairman’s instructions.”
The director of the research institute was truly an amazing person.
They had a distribution network that even sold the chairman’s name to obtain research results.
“So what were the results?”
“The results for products delivered five years ago also appear to have been manipulated. The overall figures are below standards.”
“Does your automobile affiliate use a lot of materials from Japanese steel companies?”
“Although not much, we use aluminum from a Japanese steel company for heat protectors that go into vehicles.”
Because it was Korea, the damage was relatively small.
Since we mainly used Korean steel products, we did not use many products from Japanese steel companies.
“We should stop importing the problematic Japanese steel company’s products. Thanks to you, we were able to reduce the damage to our automobile affiliates.”
“I just did what I had to do.”
“Thank you for your hard work. First, please go back and rest. The planning department will contact you later about compensation.”
“I never did it with the expectation of a reward. Just one company dinner would be enough.”
“Of course we will have a company dinner. We will have a company dinner with beef, and we will even give a small bonus. I want to take care of the researchers who have been working hard behind the scenes, even if it is late, so please do not decline.”
“Thank you! I will always do my best for the group!”
I quickly sent the director out.
After staying up all night for two days, what he needed now was rest.
As soon as the director of the research institute went out, I called a vice president and showed him the results of the data comparison.
“The Japanese steel company played a very funny prank.”
“Is this true? It’s hard to believe that a Japanese steel company that prides itself on its craftsmanship would manipulate data.”
“You can trust us, as this data has been verified through experiments conducted directly at the lab.”
“If this information is true, it will be a huge mess. Not only Japanese steel companies, but also companies that use materials from here will be shaken. In particular, there could be a large-scale recall of automobiles.”
What car companies feared most was recalls.
In particular, Toyota, currently the number one automobile group, went through a dark period when it suffered a recall of over 10 million vehicles.
But this time, things could have gotten even worse.
Since most Japanese automakers use materials from Japanese steel companies, this could have resulted in a massive recall of tens of millions of vehicles.
“The Japanese government will probably try to prevent the recall in some way.”
“I would make that decision too. If all the Japanese automakers were to recall at the same time, the Japanese economy would be shaken.”
“Wouldn’t this be a good opportunity to take away the number one market share?”
Japanese steel company’s defective material supply incident.
It sounds like a huge event in words, but it was an incident whose impact depended on the response.
Before the regression, there was actually no recall due to this incident.
But what if we escalate the situation?
If we could just create a situation where a large-scale recall is inevitable, it could have a major impact on the landscape of the automobile market.
“It seems possible that the global market share of Japanese automobiles could be reduced, and in return, the market share of Taewoo-affiliated automobile companies could be increased. But is this possible?”
“First of all, we have to make an effort. First, Taewoo Group automobile companies have been instructed to stop using parts from Japanese steel companies starting today.”
“This is a measure to prepare for the case when the Japanese steel company data manipulation surfaced.”
“It will take more than half a year for the situation to occur. So, in the meantime, we will gradually replace defective parts with new ones through the Taewoo Automobile Center.”
It was a situation where we also suffered considerable damage.
However, if you prepare for more than six months, you can minimize the damage and turn it into an opportunity to build trust right away.
“When we’re ready, then we can blow it up.”
“If we mass-produce the problematic parts in the meantime, we can further reduce the damage.”
“I will personally visit the automobile affiliates and take action!”
It was an expensive undertaking.
Old parts had to be remanufactured and replaced.
In the case of new cars, new materials must be applied, so various production facilities, including molds, may need to be replaced.
It’s something that can’t be lost.
You don’t lose money if you earn as much or more from this situation as you spend.
“Please leave the visit to the automobile affiliates to the planning director. Vice Chairman Han should anticipate this situation and proceed with the investment.”
“It could be a bigger investment than you think. First, we will short sell Japanese steel companies, as well as companies that are at risk of bankruptcy due to this incident. Then, we will buy stocks of competing steel companies to double the profits.”
“This situation could escalate into a recall of Taewoo Motors affiliates. Do you know how much money a recall costs?”
“I’ll try to make enough profit to make a recall twice. Since it’s such a good item, there are many ways to make money.”
After all, people should do what they are good at.
There was a vice president who was already smiling happily as he thought about how to make money from this situation.
***
The cherry blossoms are in full bloom.
The world was filled with pink.
David brought news as beautiful as cherry blossoms.
[Boss! Companies are starting to show interest in developing Alaskan oil fields.]
“Now that crude oil prices are rising, they are finally starting to take the bait.”
[I think they judged it to be low risk since it is a business that the White House is pushing for. I think you will have to come to the US sometime soon?]
“Is there going to be an event at the White House to invite oil companies?”
[The White House appears to be using this opportunity to finalize its Alaska oil field plan.]
The Alaska oil field was a business that Taewoo Group was trying to monopolize.
It was not a good situation for other companies to rush into a monopolistic business, but the Alaskan oil fields were an exception.
Because the Corona era was waiting.
Oil companies that participate in the Alaska oil field with Taewoo Group this time will experience a downfall.
When you fall into the abyss, you tend to throw away various things to lighten your body as much as possible, and it is certain that expensive gold and jewels are among the things thrown away.
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