We have finished moving.
At X-Cop, they sent a new security and protection officer to take care of home security.
“Nice to see you again.”
“I will be responsible for your security from now on, Mr. Lee Cheol-jin, or I should say Team Leader now. I’ll do my best.”
“Weren’t you supposed to not do personal security?”
I later found out that his skills and experience were well known at X-Cop. Many sought him out, but he turned down all requests for personal security.
He didn’t want to cater to high-ranking individuals just to please them.
Team Leader Lee Cheol-jin smiled.
“I volunteered this time. I thought it would be fun to work with both of you.”
It seems he left a good impression while resolving the Woosung Company case.
For us, it’s more comfortable to have someone we know rather than a stranger.
“That’s great. We look forward to working with you.”
As we entered the house, security guards and housekeepers were waiting. Since they would be the ones helping us from now on, we greeted each of them individually.
I poured myself a cup of coffee and went into the living room. Sitting on the couch, I gazed out at the garden.
“A new beginning now,” Taekgyu asked.
“What are your plans for this year?”
I chuckled and replied, “To be honest, I didn’t have any specific plans last year either.”
I didn’t know if Brexit would happen or if Ronald would be elected. We just ended up here by chance.
I wonder how this year will turn out?
***
At the beginning of the new year, we started restructuring our greetings.
First, I called in Michael Lee, the head of HR, for a discussion.
I reviewed the documents.
Security team, facilities management team, HR team, finance team, general affairs team, legal team, public relations team, M&A team, planning and coordination team, and so on.
“The security and facilities management issues have been resolved by acquiring X-Cop. I am in charge of the HR team, and I have organized the finance and general affairs teams. We need to recruit more tax accountants and accountants.”
“What about the legal team?”
“We are currently outsourcing, but I recommend internal operations.”
I nodded.
Should we even acquire a law firm?
“As for the M&A team, as Seo Sangwon, who was in the Eunsung Group, finishes up his work there, he will bring his team members here.”
“That’s good news.”
OTK Company and K Company plan to continue acquiring and merging domestic and foreign companies. The shortage of M&A manpower will improve with Seo Sangwon’s arrival.
“We also need a public relations team. As you know, almost everyone is familiar with OTK Company.”
Startup companies go to great lengths to make their names known. However, we didn’t need to do that because we were already globally recognized due to past incidents.
“While our brand recognition is high, the majority of opinions are negative.”
“Considering that our country’s perception of financial capital is not particularly positive.”
Korea has grown around industrial capital. On the other hand, during the IMF era, foreign financial capital flooded in, swallowing and dominating Korean companies.
One of the notable incidents was the Lone Star evasion case.
Furthermore, we don’t have a good relationship with mainstream media. The reason being my disagreements with the government.
Right-wing groups criticize OTK Company as a traitorous entity and treat me as a target. Yet, even left-wing groups don’t particularly favor us.
We’re in a position not welcomed by either side of the political spectrum.
“The media are pointing out that OTK Company has been established in a tax haven and has attacked domestic and international financial markets several times.”
“Well, they’re not wrong.”
“Since OTK Company is not engaged in B2C business, there is currently no issue, but in the long term, they will need a public relations team.”
“Who do you think would be a good team leader?”
Michael handed me the documents he had prepared. I looked at the familiar faces of the three recommendations and smiled.
We then discussed the Planning and Coordination Team.
The planning team plays a control tower role in managing the organization within the company. Most conglomerates have a planning office under the group.
As it is a core organization within the company, usually the most trustworthy person is appointed.
Michael asked me, “Do you have someone in mind?”
I nodded.
“Yes.”
After finishing our business discussion, we chatted.
“How’s life in Korea?”
“Both I and my wife are enjoying it.”
Since Michael arrived, greetings and organizational structure quickly stabilized. If it weren’t for him, we would have faced significant challenges.
“How about work at the company?”
“It’s fun right now. But I have a restless nature and may become bored by the end of the contract period. That’s why I traveled with my wife after leaving the previous company.”
If I decide to leave, it will be tough to hold on even with a salary of over a million dollars.
“Don’t worry, I’ll make it more enjoyable in the future.”
Michael smiled at my words.
“I will look forward to it.”
***
After Michael Lee left, I called in another employee.
Shortly after, Senior Manager Gi-Hong entered the CEO’s office.
“I am Team Leader Jung Gi-Hong.”
“Please have a seat.”
Gi-Hong sat down, and the secretary brought in coffee.
He seemed quite nervous, as if worried he was called in for something he did wrong.
“Currently, you are conducting training for new employees, right?”
“Yes, that’s correct.”
I got straight to the point.
“We are going to establish a promotions team, how about you take charge? The primary responsibilities will include promoting OTK Company and K Company and engaging in community service activities.”
Gi-Hong is cheerful by nature and enjoys meeting people. He would probably be well suited for this role.
“As you know, the promotions team is a crucial organization. So, I prefer someone reliable to handle it, and it seems there’s no one better than you for the role.”
Gi-Hong’s face brightened at my words.
“I will do my best.”
“Choose team members who you think will fit well in the role. Once you have a list, I will review it.”
“Understood.”
I then called in another employee. A young man with blonde hair and blue eyes walked in, looking like a Hollywood actor.
It is said that he is extremely popular among female employees within the company.
Since coming to Korea, Henry has been using the alias Henry Smith. As the name Goldman is not common, someone might catch on.
Henry is expected to succeed James and lead Golden Gate after him.
Sending his son to OTK Company instead of Goldman Gate might be to let him gain varied experiences.
So, I decided to let him have his way.
“Please take on the role of team leader for the promotions team.”
Henry was slightly taken aback.
“Are you talking to me?”
He is someone who will eventually leave for Golden Gate. It must be a question of whether such an important task can be entrusted to someone like himself.
“Your grandfather has not officially retired yet. We don’t know when that will be, but until then, please handle this team well.”
Henry nodded with a smile.
“Got it.”
***
I went outside with Taekgyu and Senior Sangyeop.
“Let’s have a cup of coffee,” Taekgyu suggested.
In the outdoor lounge area by the back door, there was a bench along with a coffee vending machine. In reality, it was the smoking area for the employees.
As it was just after the lunch hour, a few employees were smoking cigarettes and drinking coffee. They greeted us as we passed by.
Taekgyu said, “Let’s not worry about them and relax while we drink.”
Senior Sangyeop inserted a coin and got a coffee.
“What do you want to drink?”
“Coffee.”
“I’ll have hot chocolate.”
Usually, we drink Americano, so it had been a while since we had vending machine coffee.
“We used to have it often when we were in school.”
“Thinking about the old days while doing this.”
We sat side by side on the bench and sipped our coffee. It was still chilly, but the weather was gradually getting milder.
“I thought January would be better after the crazy busyness of December, but it’s even busier,” Sangyeop lamented.
“It might get better once the new recruits adapt to their tasks.”
Sangyeop let out a sigh at my words.
“It takes a few months to train them. Until then, it’s going to be another uphill battle.”
“That’s true.”
“When are you going to the U.S.?”
“Tomorrow.”
“So early?”
“I need to go ahead and handle some work.”
An international event will be held in the U.S. in January. It’s the presidential inauguration. Ronald, who was elected last November, will soon become the real president of the United States.
The inauguration is scheduled to take place at Capitol Hill in front of the Congress building, and we have naturally been invited.
Taekgyu casually said, “I’m feeling a bit unwell. Since I’ll be resting at home, can I not go alone?”
“No. You can’t.”
“Why?”
“I’ll feel lonely going alone.”
***
The next day.
We boarded a plane bound for Detroit. After taking a nap on the plane, we suddenly arrived at the airport.
Upon exiting the immigration hall, security guards and a vehicle were waiting.
We got into the car and headed to the CarOS headquarters. CarOS merged with Chrysler and relocated its headquarters to Detroit, turning the Silicon Valley headquarters into a research facility.
In the meeting room, the executives including Daryl were gathered.
Daryl warmly welcomed us.
“Long time no see. Thank you for coming.”
“Nice to meet you.”
We exchanged greetings and took our seats.
Currently, OTK Company holds a 96 percent stake in CarOS.
Even if we combine the stakes of all the other companies we own, it still doesn’t match up to CarOS, making it essentially our main business.
COO Ryan stood up.
“I will begin the management report.”
Although I already knew the contents from reviewing the materials, I listened attentively.
Chrysler was barely staying afloat before our acquisition.
During the 2008 financial crisis, the “Big Three” automakers in the U.S – GM, Ford, and Chrysler – barely survived thanks to bailout funds.
While some companies managed to improve their financial health, Chrysler was not among them.
As sales declined, funds became scarce, hindering engine development.
Their new models only had superficial changes with a few added features. It was like putting makeup on without changing the core.
Naturally, quality and fuel efficiency suffered, leading to growing consumer dissatisfaction.
If it were the 90s, they might have endured in this state somehow. But the future is approaching faster than anticipated. Autonomous driving technology is already in use, and spotting electric cars on the roads is becoming more common.
In situations like this, a company without technological expertise is essentially slowly dying. That must be the reason why the FCA Group hurried to sell off.
Up to this point, it is already a known fact. I have instructed to focus on quality improvement and new car development, even if sales decline.
However, another problem arose as a result.
Daryl said, “Complaints keep coming in from the dealerships.”
“What are they saying?”
“They are demanding an increase in incentives, citing a significant decrease in income due to declining sales. Some dealerships threaten to boycott sales if their demands are refused.”
The structure of the automotive industry is more complex than one might think.
First, you have to make the cars and then sell them to consumers. Selling is not the end; providing ongoing repairs and maintenance is also essential.
When consumers purchase a car for 30 million won, they might think all that money goes straight into the pockets of the car manufacturer, but that’s not the case.
A single car contains around 30,000 parts. No single company can produce all these parts, so they have to be supplied by various partner companies, which must be paid for.
While it would be ideal for the car manufacturer to sell the cars directly, dealerships are responsible for distribution. They actively market and sell cars on behalf of the manufacturers. In return, they take a commission. They also perform various roles such as repairs, maintenance, and financing.
In the end, the revenue from selling a car is divided among the car manufacturer, partner companies, and dealerships. Even if you sell a car for 30 million won, the actual money the car manufacturer receives is often less than half.
Most car manufacturers have contracts with multiple dealerships, including premium brands like BMW, Mercedes-Benz, and Porsche.
One might think cutting ties with dealerships and selling through the internet and company-owned stores would be a solution, but it’s not that simple. Cars require hands-on experience before purchase, making the sales network crucial.
In Korea, European car companies like Eunsung have company-owned stores and dealerships operating together. Depending on where you buy, whether at a company store or a dealership, different incentives are allocated. Eunsung prefers sales through company-owned stores.
Therefore, while the trend in the domestic market is to gradually increase company-owned stores, foreign sales have no choice but to rely solely on the country’s dealer network.
Taekgyu asked, “If we terminate the contract, won’t they suffer losses too?”
“That’s true.”
Since it’s unlikely for dealer networks to be fooled, I will make contracts with other complete car manufacturers and sell their cars instead.
I sighed inwardly. So now even the dealer is causing trouble.
