The Magician’s Memorial - Chapter 95



Only Krnovel

Episode 95. WIN-WIN (3)

David came to Korea.

He didn’t just come, he brought a Starbucks executive with him.

It was sorted out neatly by David Sun without any need for me to persuade or negotiate.

They won exclusive rights in Korea by splitting 50% of the shares in Starbucks Korea.

When the contract ended, David went on a tour of Korea with a Starbucks executive.

I returned to the planning office with the contract and received a report from the planning director.

“We have begun the process of acquiring shares of Shinsegae Telecommunications, but the negotiations are not going well because the price is high.”

“After hearing the news that we acquired CL Communications, it looks like they are planning to secure a share of their share.”

“I think we need help from the government. “Kolon is a private company, but Pohang Steel is still under the influence of the government.”

“Chairman, are you at the company now? “Let me tell you now.”

I took the Starbucks contract and went up to the chairman’s office.

My grandfather kept calling somewhere.

“Are you busy? “The secretaries said the chairman has been calling for several hours.”

“Hmm, since I changed my number, shouldn’t I call back? “Normally, entrepreneurs do not change their number once they have chosen it, but since we acquired CL Communications, we changed our number to 019.”

“Do you like it that much? “It’s a good thing they acquired a telecommunications company.”

“Hmm, it’s good, but a little stuffy. “I didn’t know this when I didn’t have a telecommunications company, but now that I have a telecommunications company, I feel like I’m just dreaming of catching up with KS Telecom.”

My grandfather opened the door on his own.

As soon as my grandfather finished speaking, I brought up the story of Shinsegae Telecommunications.

“That’s why we want to acquire Shinsegae Telecommunications. To beat KS Telecom, CL Communications alone will need too much time. But wouldn’t it be possible to dramatically shorten the time by acquiring and merging with Shinsegae Telecommunications?”

“Hehe, you said I was too greedy, but now I see that you are more greedy than me. “Are you targeting Shinsegae Telecommunications just because it’s been a few days since you took over CL Communications?”

“Because if you don’t do it now, there is no chance. “If KS Telecom eats up Shinsegae Telecom, the chance to catch up will disappear forever.”

The foreign exchange crisis was both a crisis and an opportunity.

A golden opportunity like this will never come again.

Of course, there were a few economic crises, but they were not as large-scale as a national bankruptcy.

“Does KS Telecom have to eat Shinsegae again? “I got sick while eating and spit it out.”

“At that time, I had to pay attention to the government, but now that the government has changed, I won’t pay attention anymore.”

“Hmm, it would be right for us to eat it rather than hand it over to KS Group. So what can I do to help? “If you had been able to resolve it within your means, wouldn’t you have taken action first and then reported it?”

After all, he was the person who knew me best in the world.

I took out the Shinsegae Telecommunications share structure data prepared by the planning office.

“The first largest shareholder is Kolon, and the second largest shareholder is Pohang Steel. However, both companies are trying to sell their shares at exorbitantly high prices, as if their money has risen.”

“Tsk, tsk, you look at us like pushovers.”

“That’s why we need government help. “Particularly in the case of Pohang Steel, wouldn’t there be no choice but to follow once the government says something?”

Pohang Steel was a state-owned company.

However, due to the foreign exchange crisis, an attempt was made to transform into a private company. However, the government still had a significant stake.

“I guess we need the government’s input.”

“And only by acquiring Shinsegae Telecommunications can there be a justification for acquiring CL Communications. “Isn’t the government’s policy for companies with higher industry rankings to take over companies with lower rankings?”

This was true even in the case of semiconductors.

Current Semiconductor’s ranking was 3rd, and CL Semiconductor’s ranking was 5th.

Therefore, the government semi-forcibly merged CL Semiconductor with Hyunjae Semiconductor using the ranking as an excuse.

“It’s been a while since I had to go to the Blue House.”

“But what is the material you are holding in your left hand? “It looks like you brought this material to show me, but please don’t hesitate and tell me.”

“Nothing different, we are carrying out a project to grow our distribution business. “I would like to report that one project was successful.”

I presented the Starbucks Korea exclusive rights agreement and Coca-Cola distribution rights plan.

My grandfather quickly looked at the data, then tilted his face at a 45-degree angle and looked at me.

“Are you planning to expand into the beverage business? “The government is telling us not to let large corporations expand like octopuses, but you are going in the opposite direction.”

“Honestly, it’s a business that is sure to make money, so how can you just sit still?”

“You are right. If there is money, we should proceed no matter what the government says. But is it true that coffee and cola make money?”

In fact, it was a business that was not making money right now.

But for the sake of the future, I had to somehow convince my grandfather by wrapping it up nicely.

“One adult in Korea drinks over 350 cups of coffee a year. That means drinking one cup of coffee a day. However, as the number of secretaries decreased due to the foreign exchange crisis, the era came when people had to brew their own coffee or buy it.”

“So you’re saying coffee shops will become popular?”

“This is a business that will definitely work. “You can generate sales ranging from at least hundreds of billions of won to as much as trillions of won per year.”

My grandfather didn’t let his suspicions go away.

However, since the contract had already been signed, there was no further action.

“Let’s say that’s the case with coffee. But why are you trying to secure the distribution rights for Coke?”

“Do you know Warren Buffett?”

“Isn’t he the most famous investor on Wall Street?”

“His favorite brand is Coca-Cola.”

“So you’re saying Coca-Cola will sell well in Korea too?”

In fact, Coca-Cola was not very popular in Korea right now.

Companies with Coca-Cola distribution rights were seeing billions of dollars in losses every year.

“Coca-Cola is essential for Taewoo Group’s expansion into the distribution market. And now is the time when you can purchase distribution rights at the cheapest price.”

“Is the company with the distribution rights shaken?”

“That’s right. “Three companies own shares, and if we combine them and acquire them, we can make a big profit.”

“Hmm, well, I don’t think it will cost a lot of money, so do it yourself.”

As expected, my grandfather was extremely generous when it came to corporate acquisitions.

From Starbucks to Coca-Cola.

At this rate, sales will increase day by day just by maintaining Taewoo Distribution.

* * *

I was having a busy day with corporate acquisitions.

Today was one of those days, but the moment I saw the report the planning director brought, I put the acquisition of the company on the back burner for a moment.

“Carlos Kai, the CEO of Automobile, is making bold moves. Kai Motors restructured 8,000 employees and canceled contracts with more than half of its subcontractors. And half of the executives were kicked out of the company.”

“It’s definitely a wild move.”

It wasn’t called the devil from France for nothing.

As soon as he took office as CEO of Kai Motors, he implemented a large-scale restructuring.

As the government was encouraging the restructuring of large corporations in accordance with the IMF’s demands, Carlos was able to take bold action.

“It is impossible that the contract with the subcontractor was simply canceled, and was there really a kickback between the executive and the subcontractor?”

“They say it was just a customary exchange. “Most of the executives who were kicked out were related to subcontractors.”

“I came from France, so I guess I didn’t understand Korean customs.”

“There is a lot of dissatisfaction among Kai Car employees. “It wouldn’t be surprising if something exploded at any time.”

Even though there was a strike, it was not unusual.

Due to restructuring, 8,000 people lost their jobs, and even executives who had guarded the company for decades were kicked out.

“There will be no strike. Nowadays, we live in a world where people are satisfied with just not getting fired from their company. “In fact, if we go on strike, there will be an overwhelming number of employees who will oppose it.”

“Maybe that’s why the Kai Automobile union is active, but nothing much is happening.”

“I need to take this opportunity to completely change the union at Kai Motors.”

“You can’t get rid of unions.”

A union was a legally guaranteed worker’s right.

Of course, legal rights had to be protected, and there was no intention to eliminate the union.

I just wanted to prevent the union’s power from being concentrated in one place.

“Let’s increase the number of unions. “If there are more than 10 unions within Kai Motors, won’t voices be dispersed?”

“Are you saying we should increase the union?”

“Nowadays, the union only makes voices that suit the tastes of union officials. “Let’s create a new employee union that only employees with less than 10 years of experience can join, and also create a union centered on workers who are currently opposed to the union.”

When power comes together, it tends to disperse outward.

Historically speaking, at the end of the Warring States Period, people looked for external enemies and started a fight.

Since the external enemy at Kai Motors is likely to be the Taewoo Group, it was necessary to disperse its power by creating the Spring and Autumn Warring States Period of the union.

“We will create a plan to revitalize the union.”

“Make it easy to join like a club, and plan to provide subsidies at the group level.”

I really liked Carlos Ghosn’s actions.

Although Taewoo Motors was confident against Kai Motors.

Kai Motors, which has completed restructuring and management innovation, will not be an easy opponent.

The more Taewoo Motors and Kai Motors competed internally, the more beneficial it was for the group.

“ah! Also, accurately identify and announce the productivity of Taewoo Motors and Kai Motors. Wouldn’t that stimulate each other?”

“That’s a good idea. “No matter what you do, you have to have competitors to work harder.”

It’s not for nothing that marathon runners run with a running mate.

Your skills will only improve if you have someone working hard next to you, and this is the same for companies.

* * *

Half of 1998 has already passed.

My grandfather called a CEO meeting to settle accounts for the first half of the year.

The presidents of each affiliate were sitting in the conference room, and President Taewoo Electronics began reporting the first half of the year.

“Taewoo Electronics’ sales increased by more than 20% compared to the previous year. Even though the mobile phone division was withdrawn, sales actually increased.”

“What are the factors that increase sales?”

“It is also thanks to the fact that iPod, an MP3 player made by Apple, can only be purchased at Taewoo Electronics stores. “Customers looking for iPods often visited Taewoo Electronics stores and purchased other home appliances as well.”

“Are you saying that sales increased only because of Apple?”

“It’s not like that. “All of Taewoo Electronics’ home appliances have had changes in design, and their functionality is never inferior to that of other companies, so we were able to receive customers’ choice.”

President Woo Seong-il reported in a loud voice.

It was not easy to raise his voice in front of his grandfather, but President Woo Seong-il was full of confidence because sales and operating profits had increased significantly.

Especially the domestic market share.

As the overseas market share was also rising, the voice was full of power.

“Next, I will listen to the report from Taewoo Engineering & Construction.”

The problem was Taewoo Construction.

Although the sales of various affiliates such as Taewo Electronics and Taewo Motors increased significantly.

As the construction industry shrank in the aftermath of the foreign exchange crisis, Taewoo Engineering & Construction’s situation was not very good.