The Magician’s Memorial - Chapter 57



Only Krnovel

Episode 57 Become a master (5)

“SAVE Investment Company will cover all funds required to acquire NEXT.”

“Are you asking for more shares instead? You still own 20% of the shares. “It’s hard to raise the stakes here.”

“I will not ask for more shares. Instead, I would like to have ownership of the software I create in the future.”

“Can software make money?”

I quietly got to the point.

The current era still places more importance on hardware.

However, as times changed, software profits increased, and I wanted to monopolize all of it.

And there was one more thing the board of directors was mistaken about.

I own 20% of Apple?

I had been steadily collecting Apple stock for several years, and in order not to attract attention, I split it into several companies and held a large amount of Apple stock.

Revealing that will happen later.

Now I’m crying out for ownership of the software.

“It may not make any money now, but if Apple’s products become hugely successful, wouldn’t it pay off someday? ah! And if you want Steve to become Apple’s CEO, wouldn’t you have to give him some of the shares? “I will cover up to that amount.”

“Are you saying you will buy some of our shares and give them to Steve?”

“The amount of equity you want to buy is not that much. “It’s enough for Steve to take ownership of Apple again and focus on it.”

I subtly changed the subject.

The change in topic was possible because the board of directors neglected software.

“I guess you really trust Steve. If it fails, SAVE Investment Company will suffer huge losses.”

“All investments involve risk. And even if it fails, SAVE Investment Company can easily handle it.”

“SAVE Investment Company says they will take full responsibility, so wouldn’t it be okay to give them a push?”

“I will do that. “SAVE Investment Company says they will take action, so we have to push for it.”

The entire board, starting with George, voted in favor.

On the surface, it was a negotiation in which SAVE Investment Company suffered severe losses.

After a few years, it would be them, not me, who would regret it.

* * *

After the board meeting, I went straight to see Steve.

I wanted to tell them the good news quickly, but I also had to move quickly because there was not much time left to return to Korea.

“The board unanimously approved Steve’s return.”

“What is that all of a sudden? … “Really?”

Are you overwhelmed with emotions?

Steve, who seemed cold-blooded, was unable to speak for a moment to control his emotions.

“That’s why. “How about quitting the mobile phone development project you are currently working on?”

“What does that mean all of a sudden? “You can’t stop a project that is almost complete.”

“To be honest, it would be a very good thing for Taewoo Electronics if Steve took charge of the next model. “But it won’t do much for Steve’s reputation.”

In the case of Innophone, there were significant innovations.

A flip phone with various schedule management functions.

However, the next model did not contain any innovative features except that it was a slide phone.

Of course, due to Steve’s perfectionist personality, various functions were included.

However, it was not an innovative product. It’s just one of the good products.

“I’m telling you to stop the project for me, not for Taewoo Electronics.”

“I plan to completely remove Steve’s name from the next model. Taewoo Electronics will be responsible for all remaining development.”

“Are you saying we should go back to Apple and focus only on innovative products?”

“That’s right. Please make products that lead the times, not superior products like Innophone or Daum models.”

It was Steve who was wondering.

It wasn’t something the CEO of Taewoo Electronics would say.

What does Apple’s success have to do with Taewo Group?

You might ask this question:

However, to complete the picture I want to paint, Apple had to succeed quickly, and only then would there be a way to dispose of Taewoo Electronics, which was full of debt, and a way to solve the problems of the remaining affiliates.

“I don’t know why, but I can’t refuse… … . So what kind of product do you want me to create?”

“You are in charge of Apple’s overall products, but the product I would like to recommend is the MP3 player.”

“MP3? “I’ve heard of it, but I haven’t yet heard of an electronic product that can play MP3s being made.”

“We have already started development in Korea.”

“I’ll think about it.”

Before there was the iPhone, Apple had the iPod.

It was a portable digital media player, an MP3 player that resembled the iPhone in many of its designs and features.

You had to have an iPod to have an iPhone.

In order to expedite the release of the iPod, which would not be made until 2001, I passed on information about MP3 to Steve.

“There is no need to think about it difficult. If you use an already made message pad, it will not be difficult to make it. And although the related technology and patents are difficult right now, we can provide them within the next year or so.”

“First, we need to go back to Apple and change the system first. “After that, I will research MP3.”

“It’s not urgent, so you can proceed slowly.”

“Whew, my head is spinning now that I’m returning to Apple.”

“You will do well.”

This was something that no one but Steve could do.

Although he returned to Apple two years earlier than before, it was clear that Apple would come back to life.

* * *

I returned to Korea with Dimon.

Of course, he did not take a position at Taewoo Electronics, but at the Korean branch of SAVE Investment Company.

“What can I do here now?”

“Do you know where I belong?”

“I heard brief information from SAVE Investment Company employees. “He is the successor to a large Korean company.”

I nodded and put a piece of paper on the blackboard.

It was a battery listing over 60 affiliates of the Taewoo Group.

“This is the status of affiliates of Taewo Group, of which I am the successor. And I briefly wrote down the products we produce, sales, acquisition profits, and liabilities.”

“Hmm, on the surface it seems like a very healthy company. This scale is by no means insufficient compared to companies in the United States. Of course, it will not reach the top companies.”

“I appreciate the good evaluation, but I don’t have a good view of the company’s situation. “I think the debt ratio is particularly problematic.”

Dimon took a step closer to the battery.

He conducted an evaluation by adding up the debt ratios of all affiliates.

“The debt ratio is 400%. This is a significant debt ratio. However, I know that in the case of large Korean companies, there are many cases where the debt ratio exceeds 500%, so I am not that surprised.”

“I want to lower the debt ratio. Even if it means selling unnecessary affiliates.”

“So, you want to sell useless affiliates at a high price. “I’m an expert in that.”

Dimon was also an expert in mergers and acquisitions.

The S-level abilities he possessed were restructuring and corporate revival.

Sandy Weil trusted Dimon and acquired several companies, and Dimon increased the value of the company through restructuring and improving the corporate environment.

To put it simply.

He has the ability to fix broken businesses and sell them at a high price.

“We need to sell off all but a few key affiliates.”

“It’s so easy. “I came prepared mentally because they said we would have to go through a hostile takeover.”

“ah! You left out one important thing. “My grandfather, who is also the chairman of Taewo Group, does not want to sell his affiliates.”

“… … Are you saying we have to sell affiliates without the chairman’s knowledge?”

Dyvan, who was looking at the battery, turned his head towards me and said.

If I was only going to entrust him with such an easy task, why would I put in the effort to recruit Dimon?

He was brought in to do the difficult task of forcibly taking the subsidiary away from his grandfather, who would never give up what he had in his hands, and selling it off.

“how is it? “Are you interested?”

“Now my blood is starting to heat up. However, you said you would retain core affiliates, but are you planning to sell everything except construction, heavy industry, electronics, finance, and automobiles?”

“We will also sell off heavy industry and electronics.”

“Isn’t Taewoo Heavy Industries a globally recognized company? In particular, I understand that Taewoo Heavy Industries’ shipbuilding business is very booming. And even the former? “Taewoo Electronics’ stock price is rising due to the success of Innophone.”

Taewoo Heavy Industries included shipbuilding.

After the foreign exchange crisis, Taewo Shipbuilding was pulled out of heavy industry and became a new company, but now heavy industry and shipbuilding were gathered in one place.

The largest subsidiary was Taewoo Heavy Industries.

“Actually, Dimon doesn’t have to worry about the former. “I have a plan.”

“So are you planning to sell everything except construction and cars?”

In my opinion, Taewo Group’s core affiliates were automobiles, construction, and finance.

Of course, I did not intend to completely sell off Electronics and several affiliates.

The plan was to improve the structure to diversify risk and increase profits in the manner of Wall Street.

“Then, shall we start with Taewoo Heavy Industries?”

“It’s a big affiliate from the beginning.”

“It is an affiliated company with a lot of debt. “If we just dispose of Taewoo Heavy Industries well, we can dramatically lower our debt ratio.”

“I don’t know if anyone would buy a company like that.”

“I have already decided who will buy it. “If you package it well, Hyunjae Group will quickly grab it.”

There was a story I heard from a team leader in the United States.

‘Currently, the group’s finance manager is walking around Wall Street.’

The story was that Chairman Jang Young-joo had fallen for the trick, and I was thinking of lending funds to the Hyunjae Group to purchase Taewoo Heavy Industries.

“Let me summarize it again. Are we taking over Taewoo Heavy Industries in a hostile manner and selling it back to Hyunjae Group?”

“that’s right. Is that possible?”

“I would need to know the exact shareholding structure to give you an answer, but looking at the deformed corporate structure of Korean companies, I don’t think it would be impossible.”

The corporate structure of Korean companies was truly unique.

It was a method in which the head of the group with a small stake controlled the affiliates.

In the United States, shareholders would have risen up, but in Korea, that method was possible.

Of course, the corporate structure changed a lot after the IMF.

However, because the corporate structure had not yet changed, a hostile takeover was possible.

“The stake held by the group and my grandfather is only 27%. Among them, my grandfather directly owns only 10% of the shares, and the remaining 17% of the shares are equally held by affiliates.”

“It’s a very vulnerable structure. “I have acquired many companies so far, but I have rarely found one with such a weak structure.”

“It sounds like an acquisition is possible.”

I showed Dimon the status of my shares in Taewoo Heavy Industries.

He looked at the data for a moment and smiled slightly evilly.