The Magician’s Memorial - Chapter 92



Only Krnovel

Episode 92. Big Deal (5)

Taewo Group’s department store and CL Group’s battery division.

If you look at the current value alone, the value of the department store was higher.

The battery division was not producing proper secondary batteries, and the division’s investment was being reduced due to the foreign exchange crisis.

That’s why I became greedy.

Of course, I took over the entire battery division owned by the Japanese TDK Group.

That alone was enough to produce secondary batteries, but I was also greedy for the technology possessed by CL Group’s battery division.

Especially greed for talent.

CL Group’s secondary battery technology became popular around the world thanks to its outstanding talent.

If we could steal such talent, it would not have been a loss to switch to Taewoo Department Store.

To do that, I had to persuade my grandfather.

We had to explain that there was no harm in exchanging the department store and battery division.

“As you can see from the report prepared by Advisor Fukuda, mobile phone sales increase exponentially every year. If that happens, the amount of secondary batteries used in mobile phones will naturally increase.”

“So you want to take over a secondary battery company? Taewoo Electronics’ battery division is running well, so is it really necessary?”

“We need the technology of CL Group’s battery division. In my view, it is a technology that has potential worth at least tens of trillions of won.”

It was never a lie.

Before the regression, sales of CL Group’s battery business exceeded 25 trillion won per year.

Although operating profit was a little over 1 trillion won, it was clear that it was in the tens of trillions of won.

“Your vision has never failed. Hmm, so what do we have to give to bring CL Group’s battery division?”

“I think we should give up Taewoo Department Store.”

“If you look at the current value alone, we are in a business that is losing a lot of money. “Wouldn’t CL Group also be suspicious?”

“So I’m going to take one more thing.

Grandfather rested his chin and showed interest.

I quickly moved my head to respond to the attention.

What is there to take away from CL Group?

I thought about the CL group before regression.

Electronics, batteries, cosmetics, beverages, etc.

“What more are you trying to get?”

“The telecommunications companies owned by CL Group look good.”

“Hehe, your greed is too much. CL Group will never exchange CL Communications with Taewoo Department Store.”

“Then we’ll have to give you one more. Since we already have a grudge against the current group because of semiconductors, how about handing over the credit card company to CL Group?”

“Handing over the credit card company! “Don’t you know that the credit card division at Taewoo Securities is called the cash cow?”

Of course I know.

I also knew that a few years later, many credit card companies would go bankrupt due to the credit card crisis.

“You can hand over the credit card company for just four years and get it back. “If you think of it as a four-year lease, it is definitely not a loss-making business.”

“I have no idea what you’re thinking. “Is there a reason you want to hand over the credit card company?”

“Card usage is increasing significantly. “Card companies are issuing cards without proper screening in order to distribute cash.”

“As card use increases, won’t sales also increase?”

I unconsciously answered my grandfather’s question with an evil smile.

“Sales will increase right now, but the number of people who cannot repay their credit card debt will increase. What would happen if that happens? “The same thing will happen as Korea experienced a foreign exchange crisis.”

“Do you think credit card companies will go out of business?”

“Within four years at the latest, there will be a series of bankruptcies among credit card companies.”

“Hmm, if it goes as you say, there’s nothing wrong with it.”

“This is an opportunity to acquire the telecommunications company that my grandfather wanted so desperately. Moreover, it meets the government’s big deal policy.”

Grandfather was troubled.

If it had been before the foreign exchange crisis broke out, you would have yelled at me not to talk nonsense.

He just sighed because his faith in me has become stronger now.

“Whew. I really don’t know. “You take care of it yourself.”

“Are you saying I should meet the president of Taewoo Securities and persuade him?”

“If Taewoo Securities also agrees, I will not oppose this big deal. However, there will be strong opposition from Taewoo Securities. “Would you try to change credit card companies and telecommunication companies that are cash cows?”

“I will try to persuade you. “If Taewoo Securities opposes it until the end, we will consider other measures.”

My grandfather said that it would be difficult to persuade Taewoo Securities.

It was clear that he was not thinking that way in his heart.

Because the person who took my side in the last sale of Taewoo Shipbuilding was Taewoo Securities CEO Park Man-deok.

* * *

Lines were important in company life.

Especially at the executive level, it was necessary to maintain a good line in order to renew contracts every year, and the best line for any company was the chairman’s line.

But there was someone who gave up on that good line.

It was Taewoo Securities CEO Park Man-deok, who was currently sweating in front of me.

“Are you saying we should sell the credit card company to CL Group? Is that also through a big deal with a telecommunications company? “Is this something that was led by the government?”

“no. However, if this big deal is successful, we will be able to campaign in front of the government that we have achieved a big deal.”

“Honestly, I am against it. Telecommunications companies are companies that must invest a lot of development costs every year. On the other hand, credit card companies are businesses that never lose money as long as they keep their existing customers.”

President Park Man-deok said carefully, wiping cold sweat with his sleeve.

There was a reason why he appeared in such a low manner.

This was because they chose me over my grandfather in the vote for or against the sale of Taewoo Shipbuilding.

He may have made the decision based solely on the benefit of the Taewoo Group rather than thinking about changing the line, but others could not help but see that he had moved from the chairman’s line to the successor’s line.

“Just four years. I will bring the credit card company back there. “For less than half of what we sold it for.”

“However, if the credit card company is sold, Taewoo Securities’ sales will plummet.”

“Let us help you secure sales in other ways.”

“Is there any business that can generate as much sales as a credit card company?”

Cards aren’t the only cash cow.

Since Korea had not yet developed financial engineering, there were more cash cows available.

“Card companies are ultimately a commission business. Then, all you have to do is create a product that can earn more commissions than a card.”

“What product are you talking about?”

“fund. In Korea, the concept of a fund is not yet properly understood. Just looking at Wall Street, the amount of money managed through funds amounts to tens of trillions. And the fund’s commission can be at least 0.5% to 4%.”

It was a year or two before funds became popular in Korea.

If we can start this one year early and dominate the fund industry, we will have a bigger cash cow than credit card companies.

“Due to the foreign exchange crisis, people are very reluctant to invest in financial products. “Even banks that we thought would never fail are collapsing, so we are filled with fear about financial products.”

“Isn’t it ultimately hope that overcomes fear? And what kind of country is Korea? “Isn’t this a country where the people step up when the country is in trouble?”

“But is it possible to instill hope in the people under the current circumstances?”

“It is possible through patriotic marketing.”

Is there any country with more patriotism than the people of the Republic of Korea?

Because it was a country with a history of being attacked from all directions due to its geographical characteristics, the people of the Republic of Korea had a strong patriotic spirit to protect their country.

“You mean like a gold-raising campaign?”

“It’s similar, but a little different. “There is little actual benefit to the people in the gold collecting movement, but the fund can be patriotic and make money.”

“Fund investments are not always successful.”

“In your opinion, do you think there is room for Korean stock prices to fall further? “The country is bankrupt. How much further will it fall?”

The current KOSPI index was 277.

Before the regression, the KOSPI index reached 3,000, so there was a 10-fold difference.

So, just by investing in Korean stocks and holding them still, you could make a 10-fold profit.

“I also believe that the KOSPI index is at its lowest point right now. But aren’t the people experts like us? “People who invest based on emotion and sell based on emotion are ants.”

“It’s very easy to change the minds of ants. “All you have to do is promise to guarantee the principal.”

“Well, that’s too risky!”

“Of course, the principal is not guaranteed for all products. “For products with guaranteed principal, we charge a commission of 5% or more, and for products that don’t, we charge the same amount as the existing commission.”

President Park Man-deok swallowed his saliva.

It was not an easy decision to make because I was well aware of the fear of principal guarantee.

“Are you trying to create a principal guarantee fund as some kind of bait product?”

“Yes. They focus the public’s attention by running large-scale TV advertisements focusing on bait products. The name of the fund should also be named in a way that stimulates patriotism.”

“If it’s a name that stimulates patriotism, do you mean something like ‘Korea Revival Fund’?

“That’s too blatant. A WIN-WIN fund or BUY Korea fund would be appropriate. “We just need to emphasize that the Korean economy will definitely recover.”

In fact, such a fund will appear next year.

It was launched by Current Securities under the name of Buy Korea Fund.

In a short period of time, more than 5 trillion won was raised.

“If we focus on patriotic marketing, it seems like many people will participate, but will that be enough to replace credit card companies?”

“Then let’s do it like this. The plan is to launch a patriotic fund first and sell the credit card company once more than 3 trillion won is raised. “About 3 trillion won is more than enough to replace the sales of credit card companies.”

“But no matter how much I think about it, the guarantee of principal bothers me.”

“If you’re that worried, I’ll make up for the loss with my own money. So, don’t worry and just proceed.”

“All right. Then, we will plan to launch the fund within this month.”

* * *

After 15 days.

I was watching TV in the conference room at Taewoo Securities.

Next to me were Taewoo Securities CEO Park Man-deok and other executives from Taewoo Securities.

So we were staring at the TV, and the Patriot Fund commercial finally started.

[Is Korea’s economy worse than one Japanese company?]

From the first word, it was a strong advertisement for a patriotic fund.

The best subject to stimulate patriotism was Japan.

And it wasn’t just to stimulate patriotism.

In fact, the Korean economy was evaluated worse than a single Japanese company, and it was necessary to make it known that the Korean economy was undervalued.

“The ad came out very well.”

The 30-second commercial was created just the way I wanted.

It was filled with content about the Republic of Korea and all its people living well together, and elements that would stimulate patriotism were incorporated here and there.

“Advertisements have already been published in newspapers and radio.”

“Now that the TV commercial has been released, we are starting to get a response. “How about the number of subscribers?”

“Today is the first day, so the number of subscribers is still small.”

It was President Park Man-deok with a gloomy expression.

At that moment, all executives’ cell phones started ringing at the same time.

“Signups are flooding in! “People are flocking to Taewoo Securities branches across the country!”

As expected, there was no marketing more effective than patriotism.

It was especially effective in the current situation when the country went bankrupt.