The Magician’s Memorial - Chapter 64



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Taewoo Electronics’ mobile phone division.

It was a department of little importance until I got involved.

The mobile phone division, which was virtually on the verge of being discarded, made a dramatic revival with InnoPhone, and has now become Taewoo Electronics’ best-selling product.

“If we just separate the mobile phone division from Taewoo Electronics and sell it, we can dramatically reduce Taewoo Electronics’ debt.”

“Are you talking about selling the company again in front of me? “I’m already burning up inside because Joseon was taken over by hyenas!”

“Didn’t your grandfather view the mobile phone business negatively? So he tried to withdraw the mobile phone business from Taewoo Electronics.”

“It was you who convinced me. “But why are you suddenly changing your words?”

It was a mobile phone business that started with this intention from the beginning.

Because my grandfather didn’t know how I felt, he was angry as if he had been betrayed.

“After working in the mobile phone business, I came to understand my grandfather’s feelings. “There are too many competitors in the mobile phone market, and if you fall behind even a little, you will be abandoned.”

“I received a report that Innophone was a success and that the next new product was also very beautiful. “Why are you asking me to sell the mobile phone division that you built with your own abilities?”

“Because what happens after that is the problem. “With my ability, I am confident that InnoPhone and the next product will succeed, but that’s it.”

The story was half right and half wrong.

Using the information and technology I know, Taewoo Electronics was able to develop excellent mobile phones every year.

However, it was difficult to reach first place in the industry.

It had no choice but to remain a company that produces decent mobile phones.

It took at least 10 years of effort to shed Taewoo Electronics’ old-fashioned image.

However, if everything went according to my plan, that time could be dramatically reduced.

Collaboration with Apple.

Improve Taewoo Electronics’ image by using Apple’s sensibility.

“You haven’t even failed yet, so why are you so scared? “I didn’t raise you to be that weak.”

“It’s not that we’re afraid of failure, it’s that we’re trying to sell our mobile phone division for greater success. And I’m not trying to completely hand over the cell phone division. “We planned to operate jointly with a concept similar to a joint venture.”

When I heard about the joint venture, my grandfather’s expression improved.

Still, he still didn’t look good, so I continued talking.

“It is also a way for Taewoo Electronics to increase its image and sales beyond Samjin Electronics. Rather, it can be several times larger in scale and significantly increase sales and operating profit margins.”

“Tell me in detail what you are thinking.”

You have finally calmed down enough to have a conversation.

I told my grandfather the story that I had kept in my mind for a while.

“Not only InnoPhone but also new products were made possible thanks to the people at Apple. And those people went back to Apple.”

“You mean Steve? “He didn’t create the Innophone alone.”

“It was possible because of Steve’s philosophy and sensibility. “It is difficult for Taewoo Electronics alone to expect the same success as Innophone again.”

“I don’t think this is something a person sitting in the position of president of Taewoo Electronics would say.”

Words disparaging Taewoo Electronics were coming out of my mouth.

It was something a president reporting to the chairman should never say, but since I was the person who would become the next chairman of Taewo Group, I was able to state the reality without adding or subtracting anything.

“I can say this because I am the president of Taewoo Electronics. Taewoo Electronics, which I saw in person, was even more miserable. “If things continue like this, rather than catching up with Samjin Electronics, the gap will widen further.”

“I cannot agree with what you say. Taewoo Electronics’ domestic home appliance market share is increasing every year.”

“The skills gap is getting worse. In the end, you can never surpass Samjin Electronics. “If we stick to the current method.”

When the story of Samjin Electronics came up, my grandfather frowned and even raised his voice.

“So you’re saying that we can surpass Samjin Electronics just by selling the mobile phone division to Apple?”

“That’s right. As a condition of selling the mobile phone division to Apple, Taewoo Electronics must acquire a portion of Apple’s shares. If that happens, Apple and Taewoo Electronics will enter into a perfect partnership, and Taewoo Electronics will be able to increase not only its domestic market share but also its global market share.”

“It means that a partnership with Apple is essential for globalization. “Why not just sign a partnership agreement without selling the mobile phone division?”

Why would someone who knows so well do this?

A verbal contract was not effective, and even if a contract was written, it would be overturned if the other party did not hold the leash.

“The partnership agreement so concluded has no effect. “We can only change the image of Taewoo Electronics by exchanging something important with each other.”

“Still, I cannot allow it. An image is an illusion without any form. “You handed over the mobile phone division to gain such an illusion!”

“You don’t get paid! If the mobile phone division is sold, Apple’s shares can be taken, and some of Taewoo Electronics’ huge debt can be repaid with the sale proceeds. Plus, you get the benefit of an image that your grandfather thinks is illusory.”

It was more of a benefit than a loss.

However, it was difficult to persuade my grandfather because he did not want the company to shrink.

“And even if we sell the mobile phone division, Taewoo Electronics’ mobile phone division does not disappear completely. “Mobile phones produced in the future will still use the Taewoo Electronics mark, only with the Apple logo engraved next to it.”

“I have a fundamental question. Is your plan feasible? “Have you received a call from Apple offering to buy the mobile phone division?”

“There are no specific details yet, but I can do it.”

I expressed confidence and spoke strongly.

Since no grandfather can beat his grandson, his expression softened somewhat.

“I know what you’re thinking. But it’s not up to me to decide alone. “I will talk to the chief secretary and the president of Taewoo Securities and tell you the answer.”

“Please also look at the data produced by the Economic Research Institute. “It explains in detail why I am making this choice.”

What choice will you make?

No matter what choice Grandfather makes, the outcome of disposing of the mobile phone division does not change.

Because I was already the largest shareholder of Taewoo Electronics.

I just prayed that my grandfather would make a good choice, as my relationship with my grandfather would become very strained in the future if I sold the business without his permission.

* * *

Park Man-deok, president of Taewoo Securities, has been visiting the economic research institute quite often these days.

If the technology research institute belonged to Taewoo Electronics, the economic research institute was no different from Taewoo Securities.

That said, the Economic Research Institute was closer to a private institution.

The Economic Research Institute and Taewoo Securities did not communicate frequently with each other.

However, when the report came out of Chairman Kim’s mouth, the situation changed.

A report that suggests the future direction of Taewoo Securities.

After reading the report written by Advisor Fukuda, President Park Man-deok learned a lot and often visited the economic research institute to get more teachings.

“What do you think? “It seems like President Kim is trying to sell the mobile phone division to Apple.”

“It can be seen as a very good choice. This is the only opportunity for Taewoo Electronics to rise to the top right away. To be honest, there are limits to growth with our current technology and image.”

Advisor Fukuda was a person with a mindset more similar to Kim Min-jae than anyone else.

Even before Kim Min-jae joined Taewoo Group, he was the one who argued that the debt ratio should be reduced and unnecessary affiliates should be sold.

“To be honest, the gain from selling the company seems small. “Apple and Taewoo Electronics will likely sign a contract to share stock with each other and receive a portion of the money as sale proceeds.”

“The sale price is not important. “Won’t we end up passing on some of Taewoo Electronics’ huge debt to Apple?”

“But considering the value of InnoPhone, it is not enough. As you know, I don’t have an Innophone so I can’t sell it.”

“How many years will Innophone’s popularity last? Taewoo Electronics has already developed its next model, and Samjin Electronics and foreign companies are not far away from launching new products. “You can make a little more profit by selling it now, when it is most expensive.”

Without realizing it, President Park Man-deok gradually fell in love with Advisor Fukuda’s words.

And we came to the conclusion that Taewoo Electronics’ mobile phone division must be sold unconditionally.

“I will report that to the Chairman. “Selling the mobile phone division will definitely bring more benefits than losses.”

“Please tell them that this is the only way to ensure that Taewoo Electronics lasts 100 years.”

President Park Man-deok left to meet Chairman Kim Tae-joong with a determined look on his face.

Advisor Fukuda looked at this with a happy face.

He felt proud that the things he had been insisting on were coming true one by one.

* * *

While waiting for my grandfather’s choice, I visited Captain Kang’s office.

Dimon was struggling to come up with a reform plan for Taewo Shipbuilding.

“It looks like there is more to do than I thought.”

“We have begun restructuring. “We have decided to transfer production workers as is, but we plan to cut about 20% of management and office workers.”

“That much?”

“And we signed a contract with a professional corporate audit firm in the United States. We will thoroughly check all contracts signed by Taewo Shipbuilding, down to the 1 won unit. Only then can we filter out all subcontractors who are gaining unfair profits.”

There was no stopping Dimon in his actions.

As an expert, I knew very well what to do to increase the value of the company.

And he was anticipating what kind of repercussions his actions would bring.

“Do you know what will happen if there is restructuring and an external audit?”

“They will probably try to neutralize it with a strike. “CEO Kang-cheol Oh will struggle to maintain his position.”

“Captain Kang, how is the atmosphere at the shipyard?”

Captain Kang’s employees had already been dispatched to the shipyard.

Not only was Oh Kang-cheol monitored 24 hours a day, but even subcontractors were being monitored.

“I think there will be a strike sooner or later. “The union executives meet frequently, and CEO Oh Kang-cheol was caught having drinks with the company president.”

“Please collect as much evidence as possible. That way, you can blow it away with a single sword.”

“Are you planning to resolve it legally?”

“I’m no longer part of the Taewo Group, so I have no hesitation. If it shows signs of resistance, just feed it soybean rice and that’s it. Since it is not a strike with a just cause, it will be difficult for the media to take the union’s side.”

Humans are truly greedy animals.

Even though I have received a lot so far, I am not satisfied and struggle to receive more.

Without even knowing that it was an action that would lead him to jail.