The Magician’s Memorial - Chapter 469



Only Krnovel

469. Prepare (4)

The drinking party with Chairman Jang Gyeong-jun ended quietly.

A word from Taewoo Group that it is not closing its Russian factory to focus on electric vehicles.

It was Chairman Jang Gyeong-jun who spent the entire drinking party deep in thought without opening his mouth once in order to figure out the hidden meaning behind those words.

It was a time when we had no choice but to acknowledge Chairman Jang Gyeong-jun once again.

Anyone else would have persistently questioned the reason for the withdrawal of the Russian factory, but he didn’t.

It was because he knew it was a difficult question to answer, and Chairman Jang Kyung-jun was careful not to say anything so as not to burden me.

A few days passed like that.

A new fish has emerged, targeting the bait of Russian factories.

Actually, it wasn’t a fish, but a school of fish.

“Mr. Chairman, we have received acquisition offers from two Japanese automobile companies.”

“Two places? I expected Toyota to come in, but where is the other one?”

“This is Honda. Do you plan to negotiate directly with the Chairman?”

“If you want to raise the price, you have to buy as much time as possible. First, you have to send Vice Chairman Han to buy some time. Please call Vice Chairman Han.”

The planning director called in a vice president.

It took over 30 minutes to get there, having to come over from the financial tower.

“Did you call?”

“Two Japanese automakers have proposed to acquire our Russian factories. Vice Chairman Han, please step forward and take your time.”

“I’m an expert at raising prices. I’ll make your heart melt.”

“And there’s one more condition.”

“What conditions are you talking about?”

“The condition is that not only the finished car factory, but also other factories such as electronics and batteries will be sold as a set.”

It was an opportunity to dispose of the Russian factory in one go.

Of course, among Japanese automobile companies, there was no one that had fully entered the electronics industry.

So, it was burdensome to take over another factory, but isn’t it necessary to take on that burden in order to increase the share of the Russian automobile market?

“Is this a strategy to use Japanese car companies as real estate agents?”

“This is a golden opportunity to acquire one of the top five automakers in Russia, so shouldn’t it be worth the effort?”

“That’s true, but no matter how I think about it, it’s an excessive condition.”

“First of all, just say that. In any negotiation, you can get a better price if you offer the worst conditions first.”

No matter how desperate the Japanese automakers are.

Taewoo Group did not have enough money to take on the numerous factories it owned.

First, a huge burden had to be placed on them so that they would be comfortable accepting the new conditions.

***

A vice president had two meetings with Japanese automobile companies.

In the process, Honda could not accept the conditions and dropped out.

Only Toyota was able to partially accept our terms and reach the final negotiating table.

“Nice to meet you. I’m Kim Min-jae from Taewoo Group.”

“This is Haruo Toyota.”

Haruo Toyota.

He served as president of Toyota Motor Corporation and was also a descendant of the company’s founder.

And the person who is certain to be the next chairman of Toyota Group visited Taewoo Group in person.

“I’ve seen you from afar a few times, but this is the first time I’ve met you in person and said hello.”

“I also took this opportunity to do some research on Chairman Kim. It seems like he took a very similar path to me. Of course, the times were different, but I also graduated from school in the U.S. and worked at an investment firm on Wall Street.”

President Haruo received his MBA in the United States.

So I had no trouble communicating in English.

“I know it may sound like I’m flattering you, but I’ve always respected you.”

“When I hear that from Chairman Kim, the corners of my mouth go up. Isn’t Chairman Kim the most recognized manager not only in Korea but also in the world?”

They were just meaningless words meant to lighten the mood.

We continued our conversation for a while, complimenting each other.

Only after finishing a cup of tea could I get to the main point.

“I want to acquire Taewoo Motors’ Russian factory. I am also willing to acquire Kai Motors and GM’s Russian factories.”

“So you’re saying you’re only going to take over the automobile factories?”

“We can take over even parts manufacturing plants, but we can’t take over electronics manufacturing plants. That doesn’t mean we didn’t try. We talked to a Japanese electronics manufacturing company, but they said it would be difficult to take over right now.”

He was a person with whom I could communicate more easily than I expected.

And it was President Haruo who made every effort to meet the conditions we set.

Shouldn’t someone who works hard be rewarded accordingly? I decided to offer him considerably more lenient terms.

“Can I understand that you are saying that the acquisition is difficult right now?”

“Isn’t it hard to enter the Russian market? It takes at least three years to prepare. It could take five years or more. But you can’t just take over a factory, right?”

“Then how about this condition? Taewoo Group sells the factory, but Taewoo Group leases the factory for five years while it prepares. Of course, we will pay the rent for five years.”

It was President Haruo who was rolling his eyes back and forth diligently.

He must have thought of many scenarios as he entered into these negotiations.

But you probably never expected that after purchasing the factory, you would be offered to lease it.

“Can I understand this to mean that the factory will be sold first and then Taewoo Group will lease it back?”

“Didn’t you say that it would take time for Japanese companies to enter Russia? If Taewoo Group leases and uses it in the meantime, wouldn’t that greatly reduce the burden?”

“Is there a reason for that? Wouldn’t it be better for both parties to proceed with the sale process after five years?”

It was President Haruo who was skeptical.

That was understandable, as it was an unexpected proposal of purchasing and then leasing.

“As you know, Taewoo Group is not only involved in the automobile industry, but also in many other industries. And in some industries, if you miss the right investment timing, you can suffer huge losses.”

“You are saying that you need money right now. I understand that Taewoo Group has a considerable amount of funds. Isn’t it incomparable to the funds from the sale of the Russian factory?”

President Haruo’s point was accurate.

The combined value of all Russian factories was only a few trillion won.

Taewoo Group’s internal reserves alone exceed 100 trillion won.

“I can’t tell you exactly, but we need to sell the Russian factory and secure funds by the end of this year at the latest.”

“Aren’t you in too much of a hurry?”

“I am not forcing you to do anything. If you don’t like the conditions, you can decline. I plan to offer the same conditions to the current automobile group and the German automobile group.”

Honda Motor Co. has abandoned negotiations.

So Toyota might have thought it was negotiating alone.

That is why I brought up the story of Hyundai Motor Group and German automobile groups for no reason.

First of all, to let you know that we are only in the process of negotiations and not in independent negotiations.

“Hmm, then is it okay to proceed like this? Toyota could take over all of the automobile factories, and Japanese companies could form a coalition to share the remaining factories.”

“Any method is fine as long as the money comes in within this year.”

He pretended to need money urgently.

No one would believe that the Taewoo Group chairman said he needed money urgently, but it was not completely ineffective.

“Please wait just for two weeks. I will gather Japanese companies and form an alliance.”

“Don’t push yourself too hard. If Japanese companies don’t work out, it’s okay to sell to Korean or German companies.”

“I’m not okay!”

He emphasized that what was regrettable was that it was Toyota, not Taewoo Group.

It was also a threat to sell the company to another company if it did not quickly form an alliance to secure urgent funds.

“But the most important thing is that I haven’t decided on the price for selling the factory yet. Of course, I have no intention of asking for an excessive amount. I’d be happy to receive the current value.”

“Do you have any materials ready?”

“This is data calculated by combining all facilities and equipment of each factory.”

I handed over the factory materials I had prepared in advance.

It was filled with detailed information about the size of the land and the factory facilities, and even included comparisons with the market prices of nearby factories.

“That’s a very reasonable price.”

“Since the sale was large in scale, Taewoo Group also made as many concessions as possible.”

“I think there will be quite a few Japanese companies interested in this price. I will come back with good news in two weeks.”

President Haruo got up from his seat in a hurry.

He really seemed to be coming to me within two weeks to form an alliance, and with his abilities, it was certainly possible.

“I will escort you to the main gate.”

I personally guided President Haruo to the main gate.

Following this, a vice president followed and paid his respects.

So, President Haruo hurriedly got into his car and went to the airport, and Vice President Han and I went straight up to the president’s office.

“Did the negotiation go well?”

“He really wanted to own the Russian factory. And he really liked the idea of ​​buying the factory and then leasing it out.”

“I wonder if I’ll end up being called a traitor. If the media starts talking about selling Korean factories to Japanese companies, wouldn’t that be a headache?”

If we look at it just now, there would be nothing to say even if people called me a traitor.

However, after the outbreak of the Russian War, it was possible to re-evaluate it.

“We should proceed as quietly as possible. It may be difficult to completely block media reports, but try to prevent it from becoming an issue.”

“I’ve already talked to the planning department about it.”

“More important than the media is the relocation of the factory. We need to complete the factory that will replace the Russian and Chinese factories as soon as possible.”

It wasn’t just Japanese companies that needed time.

If Japanese companies needed time to enter the Russian market, we needed time to build new factories.

“There are already some places where land contracts have been concluded. We can start construction early next year at the latest, and it seems like we can complete it within three years.”

“That should give me enough time.”

“However, the executives of the automobile affiliates are not responding very well. They have made every effort to enter the Russian market and have finally succeeded in regaining market share, but they seem very hurt by the sudden sale of the factory.”

It was enough to hurt my feelings.

I knew how hard they had worked to enter the Russian market.

But it was a time when a step back was needed to advance forward.

“Tell them that you will build a factory twice as large as the one in Russia, and promise to invest heavily in not only electric cars but also internal combustion engine vehicles.”

“Do you mean internal combustion engine vehicles? Didn’t Taewoo Motors decide to focus on electric vehicles?”

“It will take at least 20 years for electric vehicles to replace internal combustion engine vehicles. So we need to continue to invest in internal combustion engine vehicles. And wouldn’t the advancement of internal combustion engine vehicle technology lead to the advancement of electric vehicle technology?”

It was never the case that the internal combustion engine was abandoned.

To others, it may seem like Taewoo Motors is only focusing on electric vehicles.

Taewoo Group invested more in internal combustion engine vehicles than any other automobile company.

By the way, Toyota took the bait firmly.

Now all they had to do was pass on the entire risk of their Russian factories to them.

If they acquire the Russian factory, they will probably think they can increase their car sales and market share.

Dreams are bound to break eventually.

The dreams of Japanese automakers were to be shattered by the shock of the Japanese steel company data manipulation scandal.