The Magician’s Memorial - Chapter 63



Only Krnovel

Episode 63. black knight (5)

A few days later.

I secretly visited Captain Kang’s office and saw Dimon sitting like a corpse, completely exhausted from leading the negotiations with Taewoo Securities for several days.

“I heard that the negotiations ended today.”

“We agreed on the big picture on the first day, but we thought the devil was hiding in the details, so negotiations continued until today because we were busy negotiating small issues.”

“Did you achieve satisfactory results?”

Dimon struggled to get up from the chair and relax his neck.

He then presented the agreed upon contract and continued talking.

“It’s not bad. First of all, Taewo Shipbuilding will be spun off from Heavy Industries within this week, and the negotiations have been concluded with us purchasing all the shares, including the management rights premium.”

“What is the price?”

“We reached an agreement on 1.2 trillion won. “Thanks to the Taewoo Shipbuilding corruption data that the CEO provided, we were able to reduce the price significantly.”

Does Dimon know?

The corruption data I handed over was just the tip of the iceberg.

Once I opened all the data, I had nothing to say even if Dimon swore at me.

1.2 trillion won?

Honestly, it was an excessive amount.

Since the company had a significant amount of debt and there were even suspicions of accounting fraud, it was possible to negotiate even at 500 billion won.

But I didn’t know if my grandfather would change his mind again if I cut the money like that.

In any case, it was just a matter of transferring money from SAVE Investment Company to Taewoo Group, so there was no need to reduce the price.

Because both SAVE Investment Company and Taewoo Group will be owned by me.

“As you know, it is difficult to allow money to go directly to the Taewo Group.”

“We will make sure that the money is transferred to the joint venture corporation we will create with Aramco. To achieve this, the establishment of a joint venture with Aramco must be established quickly.”

“Don’t worry about that. David remains in Saudi Arabia and is working hard on the project.”

Thanks to Salman’s help, the establishment of a joint venture with Aramco was without problems.

Salman really wanted to start an oil company with me and worked hard to convince me to do so.

The process was by no means easy.

Salman was actively involved because SAVE Investment Company signed a secret contract to take full responsibility.

Thanks to that, when Director Kim visited Saudi Arabia, Salman himself came forward and told him good things.

“Once a joint venture is created, it is not a problem to make payments to the joint venture corporation.”

“Once again, our goal is to keep Taewoo Group’s money tied up and not being used anywhere. “That too in dollars.”

“If SS Oil is not transferred to Taewoo Group, the joint venture’s entry into Korea will have to be postponed.”

Taewo Group’s affiliates are sold to secure funds in preparation for the foreign exchange crisis.

This was my plan, but if you look at my grandfather’s personality, he would definitely spend any money that came his way.

So, the plan was to tie up funds using the joint venture with Aramco as an excuse.

“Then all we have to do now is package Taewoo Shipbuilding well and sell it to Hyunjae Group at a high price.”

“It was finally time to begin my profession. Even at first glance, there was a lot of room for improvement.”

“You should know that the corporate cultures of the United States and Korea are very different. “It is difficult to fire employees arbitrarily.”

“I studied Korean law in advance. “It may be more difficult than in the United States, but it is entirely possible.”

Before the regression, it was easy to fire employees.

It was only after the foreign exchange crisis that legal regulations on employee dismissal were created in earnest.

Even so, restructuring was not an easy task because large corporations now have a strong image of lifelong employment.

“It will be helpful as Captain Kang is looking for a justification for restructuring. “He has already found a lot of information.”

“If you fire an employee who committed corruption, I don’t think it will affect public sentiment. And wouldn’t the current group be drooling if we make sure to restructure?”

“We will definitely provide incentives, so try to sell it for the highest price possible.”

“We will take it to a level that will make the current group stumble.”

It was Taewo Shipbuilding, which was purchased for 1.2 trillion won.

However, its value would change due to Dimon, the so-called god of corporate reform.

* * *

next day.

I went to work at Taewoo Electronics with a very light heart.

The air was so refreshing. The sky was cloudy with fine dust, but the taste of the dust on the tip of my tongue felt sweet.

Even while sitting in the president’s office, I couldn’t help but hum.

Since Taewoo Shipbuilding, which had a lot of debt, was cut off from Taewoo Group, the debt ratio has now reached a stable level.

Even so, it was inevitable that the foreign exchange crisis would stumble, so we still had to organize a few more places.

Some plans were already being realized.

In the case of Taewoo Heavy Industries and Taewoo Chemical, risks will be diversified by forming a joint venture with Aramco.

And finally, the moment Taewoo Electronics is dealt with, Taewoo Group is free from danger.

When I was humming and thinking about this.

Vice President Woo Seong-il came in with a knock, and I greeted him more warmly than usual.

“You look a lot better today. “Do you eat anything that is good for your body?”

“I think my body naturally got better after working under the boss.”

Even his flattery, which would normally make me frown, was pleasantly accepted today.

And I really liked his report that followed.

“The project is producing results quickly. In particular, the instructions given by the president are being steadily reflected.”

“Let’s take a look.”

My instructions were simple.

‘Escape from tankism and create a product that captures the hearts of the public.’

Of course, if you make a durable product, customers will like it, but that doesn’t mean they buy the product based solely on its durability.

In order for Taewoo Electronics to survive, it had to shed its old-fashioned image.

So, I requested a design with sensibility and diverse performance rather than tankism.

Various projects were underway simultaneously.

“It’s definitely a lot different than before.”

“Perhaps because the organizational structure has been simplified, many creative ideas are coming out.”

“Don’t let your ideas get lost midway. And all ideas are registered for patents.”

“I will.”

Taewoo Electronics had several excellent employees.

Now that the superiors who had confined them like shackles were gone, good ideas were pouring out.

If we leave it like this, a better product than before will be created.

Taewoo Electronics’ performance was expected to be better than previous years.

While my employees focused on new products, I planned to improve performance in other ways.

“Taewoo Electronics’ debt was about 2 trillion won, right?”

“That’s right. “More than 150 billion won is being paid out in interest alone every year.”

Today’s Korea was a high-growth country.

So, the deposit interest rate alone was over 7%, and the loan interest rate was also around 10%.

Although interest rates will fall by half in just 10 years, this was an era in which money was borrowed at high interest rates.

“No matter how many products I sell, it all comes down to loan interest.”

“Still, Innophone’s performance was good, so I was able to repay part of the principal along with interest.”

“First of all, what should we do about the expensive private loan interest? “Please accurately investigate Taewoo Electronics’ debt situation and report it within today.”

“We will prepare it for you to receive it in the morning.”

Vice President Woo Seong-il was a very quick-witted person.

All the materials were brought to me before lunch time.

“Thank you for your hard work.”

“How would you like to eat? “I know a very good restaurant.”

“I decided to have lunch with my grandfather today. “Let’s do it together next time.”

“ah! Is that so? Please be careful.”

I headed to the group headquarters with the debt data.

I made an appointment in advance to have a private meal with my grandfather after a long time.

“It’s been a long time since I had lunch with President Kim. “But why did you ask me to order delivery food?”

“I don’t think I’ve ever eaten Chinese food with my grandfather.”

My grandfather enjoyed eating Jajangmyeon.

It wasn’t because there was any other reason, it was because working time was a waste.

My grandfather was the one who finished the jajangmyeon in 3 minutes and then returned to his desk.

There was one more reason why I chose Jajangmyeon as today’s menu.

We have to finish our meal quickly so we can have more time to talk about Taewoo Electronics fans.

“Let’s eat.”

“thank you for this food.”

Slurp!

We focused on Jajangmyeon without any conversation.

Even though my grandfather was old, he inhaled Jajangmyeon at a much faster rate than me.

“How dare you pretend to eat like that? “You are old, so please eat slowly.”

“You’re nagging me without even being a doctor. “I’m not yet at the point where I feel sick while eating Jajangmyeon.”

Do you really think so?

I put the empty Jajangmyeon bowl aside and placed debt-related information in its place.

“I looked into Taewoo Electronics’ debt situation. Too much money is being paid in interest. “This way, no matter how much you increase sales, it only doubles the money for banks and private loan sharks.”

“Beginner managers are always afraid of debt. “But only with debt can a company grow.”

These were words that reflected my grandfather’s management philosophy.

It was only when the economy was growing rapidly that it made sense to take on debt to do business.

The moment growth stagnates, debt becomes a disaster.

“But wouldn’t it be better to reduce it if we can? “It’s like changing the debt of Taewoo Motors’ Changwon factory to a low interest rate.”

“Are you planning to raise money from Wall Street again?”

“The interest paid to private lenders alone is 10% to 14%. If you borrow it from Wall Street, you can lower the interest rate by at least 3%. “You can save at least 10 billion won per year.”

“Is it me who doesn’t know that? “The banks wouldn’t give us additional loans, so we borrowed money from Myeongdong.”

“I’m going to try to solve that problem.”

It started with a positive story.

That way, we can naturally continue with the backstory.

“How much do you plan to borrow from Wall Street?”

“If it is a condition of repaying private debt, how can we borrow up to 1 trillion won?”

“Hehe, it was a good thing I sent you to America.”

“To see an operating profit of 10 billion won, you have to sell tens of thousands of home appliances, but you can make 10 billion won just by transferring private loan debt to Wall Street.”

I was planning to transfer Taewoo Electronics’ debt to SAVE Investment Company.

Only then can I completely control and dominate Taewoo Electronics.

“It would be a very good thing if possible. “Can you do it?”

“I have already roughly finished the story. “In particular, the sales performance of this Innophone was so good that it wasn’t that difficult.”

“Hehe, it’s all thanks to you.”

“grandfather. Still, it doesn’t change the fact that the debt is over 2 trillion won.”

I said something that broke the good mood.

Grandfather was coughing slightly, as if his stomach was already bloated.

“Since the principal is being repaid slowly, the interest paid each year will be reduced.”

“I want to repay the principal as quickly as possible.”

“Who would enjoy being in debt? But since there is no way to do that, I have to live with debt.”

“There is a way. “Just as Taewoo Heavy Industries sold its shipbuilding business, we can separate and sell the mobile phone division from Taewoo Electronics.”

Thump thump!

The grandfather must have been frustrated and hit his chest with his fist.

He seems to be getting angry at the idea of ​​handing over the company he created to someone else.