Taekgyu patted my shoulder and said,
“Hey, hey, get a grip.”
Before I knew it, the hologram before me had disappeared.
Vice Chairman Im Jinyong watched my expression and asked,
“Are you okay?”
“Oh, I was just lost in thought for a moment.”
Taekgyu must have sensed something was off, but spoke as if it were no big deal.
“This guy tends to get lost in his thoughts while talking.”
I thought I had only glanced away briefly, but it seems I appeared to be zoning out for a while.
In any case, once I gathered my thoughts, I asked Vice Chairman Im,
“What were you just talking about?”
“We were discussing cooperation.”
I recalled my earlier thoughts and asked,
“Are you talking about battery supply?”
Vice Chairman Im nodded.
“I’m referring not just to batteries but to the entire automotive business. Currently, Seosung Electronics is preparing for the mass production of the vehicle AP Exalrus Auto.”
Taekgyu looked surprised.
“Really? Didn’t they originally use a modified version of the mobile AP Exalrus?”
“Well, smartphones and cars have differences in operating conditions, longevity, and safety.”
“I’ve heard a lot of talk saying the Exalrus8 performs better than the Dragoon 5.4.”
He sure knows his stuff in this area.
AP (Application Processor) is like the brain of electronic devices such as smartphones; it’s an essential component.
With the increasing number of electronic devices in cars, the role of APs has become crucial. Especially for achieving autonomous driving, a high-performance AP is essential.
The ability to design APs directly is held by only a few companies, such as NXP, Qualcomm, and Seosung Electronics.
I thought about it coolly.
To properly utilize an operating system, hardware performance needs to support it. This also requires various advanced electronic components, such as cameras, sensors, and communication devices.
Seosung Electronics is the world’s largest IT manufacturer.
Their semiconductor technology is unparalleled, and their other components have already demonstrated technical prowess through smartphones.
In short, partnering with the Seosung Group would allow for comprehensive collaboration across fields like AP, electronics, and batteries.
For batteries, other suppliers can be found besides Seosung SDI. However, it’s hard to find a partner in electronics that surpasses Seosung Electronics.
For instance, just NXP alone purchases components from Seosung Electronics worth billions of dollars each year.
“Now that I think about it, there’s Harman too,” I said.
At my words, Vice Chairman Im Jin-yong adjusted his glasses and replied.
“In the past, the Seosung Group and the Eunsung Group were competitors vying for the top spot in the business world.”
When the Eunsung Group established Eunsung Electronics to enter the electronics industry, the Seosung Group also launched Seosung Motors to enter the automotive sector, deepening the rivalry between the two conglomerates.
However, after the Eunsung Group faced fragmentation due to the ‘Battle for the Throne,’ Eunsung Electronics went bankrupt and was sold to creditors. The Seosung Group also experienced difficulties during the IMF crisis and withdrew from the automotive industry after selling most of its shares in Seosung Motors.
Since then, they maintained a close relationship, but in recent years, tensions have begun to arise.
While one reason was the departure of Chairman Im Il-kwon, who had a strong friendship with Chairman Han Min-goo…
“The decisive moment was Seosung Electronics’ acquisition of Harman.”
Harman is a powerhouse in automotive electronic equipment, including car audio, and has relationships with major automobile manufacturers.
Last year, Seosung Electronics invested $8 billion to acquire Harman entirely.
When this information became known, Chairman Han Min-goo reportedly was deeply shocked, as Harman was a partner to competitors of Eunsung Motors.
“Oh! Was that why Eunsung Motors tried to acquire Excap?”
At Taek-gyu’s question, I nodded.
“That’s right.”
Originally, Eunsung Group had entrusted security and protection to DS, a subsidiary of Seosung Group. However, due to that incident, they severed ties with DS and tried to grow a security firm by acquiring X-Cop.
Unfortunately, they lost it right before their eyes for a mere $100,000 difference.
Having made a mistake once, this time they would surely be determined to acquire it. From what I’ve heard, it seems like they had been preparing for quite a while.
Taek-gyu asked Vice Chairman Im Jin-yong, “But can’t you buy it yourself? You have plenty of money.”
According to reports, Vice Chairman Im Jin-yong’s wealth is about 16 trillion won, making him the second richest person in South Korea, following his father, Im Il-kwon. (He was pushed to third place due to some nouveau riche.)
“It would be nice, but I don’t have much cash available right now.
Conglomerates have a lot of assets.
But that doesn’t mean they have a lot of cash. (This is why they resort to various illegal means to siphon company funds and create slush funds.) Most of his wealth is tied up in stocks of subsidiaries of Seosung Group for maintaining management rights.
Seosung Electronics has internal reserves amounting to 70 trillion, but if this money were used for private purposes in a management dispute among siblings, shareholders and even the government (the largest shareholder of Seosung Electronics is the National Pension Service) would not stand idly by.
“Don’t you have any slush funds inherited? I read in an article that Chairman Im Il-kwon had 1,300 name-only accounts.”
At Taek-gyu’s question, Vice Chairman Im Jin-yong gave a wry smile.
“I don’t know about that.”
It’s likely the slush fund is in the trillions, but the sources of the funds would be a problem, so it would be hard to mobilize them for such purposes.
This time, I asked, “Have you ever restricted cross-trading shares between group companies?”
“No, we haven’t. There’s no guarantee of loyalty.”
In front of money, there are no parents, siblings, or friends. It’s solely about profit and loss. Behind President Im Seung-yon is Eunsung Group, and behind them is President Park Si-hyeong and the ruling party.
As soon as the tides change even slightly, they will switch sides for victory.
“Then why do you believe me?”
He answered my question simply.
“Aren’t you on bad terms with Eunsung Motors?”
Taek-gyu nodded.
“That’s true.”
I would rather remain a bystander than align myself with Eunsung Motors.
I recalculated again.
Director Yeon So-hyun, CEO Im Seung-yong, and the National Pension’s shares total 26.6 percent. Meanwhile, Vice Chairman Im Jin-yong, Seosung Electronics, and Seosung SB’s treasury shares combine for 23 percent.
And on top of that…
“How much does Golden Gate hold?”
Vice Chairman Im Jin-yong seemed to have considered this as he answered immediately.
“1.8 percent.”
That’s about 40 billion won, right?
It’s not as much as I expected.
Vice Chairman Im Jin-yong looked at me and asked,
“When can I expect an answer?”
My thoughts didn’t linger.
In fact, from the moment I saw Oracle, the answer was almost set.
It truly is a remarkable ability. Just getting a slight hint about the future allows you to determine the path you need to take.
I replied to him,
“I’ll gladly help you, senior.”
At that, Vice Chairman Im Jin-yong smiled with satisfaction.
“That’s a relief. We must act as discreetly as possible.”
If it were to be known that I was teaming up with Seosung Group to buy shares, Eunsung Motors and the government wouldn’t just sit back.
“Of course, they’ll also start buying, and then the available shares will disappear, causing the stock price to skyrocket.
I understand now why you came here to avoid people’s attention.
‘I’m counting on you, junior.'”
***
Leaving the Stamper Hotel, Im Jin-yong got into the waiting car. Inside sat a man in his mid-sixties.
It was Kim Myung-soo, the head of the Future Strategy Office, the core organization of the Seosung Group.
“What do you think after meeting in person?”
At his question, Im Jin-yong slightly shook his head.
“Well, I’m not sure yet.
Reactions to Kang Jin-hoo in the business world have been mixed.
Some regard him as a great investor, while others dismiss him as just a lucky financial speculator.
It seems that the latter opinion is much more prevalent.
The conglomerates that grew alongside the Korean economy have built their own fortresses over generations. Within them, they lived in the illusion that they were somehow different.
He once thought the same way. But the IT industry experiences success and decline much faster compared to distribution or manufacturing.
He had witnessed top-tier companies like Nokia and Sony fall, and he had also seen emerging companies like Google, AMZ, Facebook Note, and Alijini grow into global firms in less than a generation.
Silicon Valley was overflowing with startups and young entrepreneurs. Among them were those who had created greater wealth than he had inherited.
In comparison, the Korean business community felt stagnant. Therefore, everyone was wary of the suddenly emerging figure of Kang Jin-hoo.
“From your expression, it seems things are going well.”
“That’s right.”
“It’s still too early to relax. Even if Representative Kang buys as many shares as possible, they could secure even more friendly stakes on the other side.”
Im Jin-yong sighed as he spoke.
“I wish my mother and Seung-yong would stop now.”
Kim Myung-soo shook his head.
“Money and power are like drugs. The chairman has experienced it all already.”
He had served Im Il-Kwon for a long time and knew well the circumstances surrounding the transition of the group’s chairmanship.
Unlike his older brother, Im Jin-yong, Im Il-Kwon was the third son. When he was designated as the heir to the group, he faced strong resistance from his brothers. Im Il-Kwon resorted to all means necessary to cut off those who aimed for his position.
Though there was no bloodshed, it was akin to a brutal struggle among kin.
“I thought having both heavy industry and engineering would be enough.”
If he had instead wanted securities or cards, there might have been room for negotiation. However, Seosung SB is deeply connected to the former, and batteries are a core industry of the future.
All electrically powered devices, including smartphones, tablets, laptops, drones, and electric vehicles, rely on batteries. Therefore, he could not afford to hand over management control under any circumstances.
“When you give one, people will expect two. You must be resolute.”
Im Jin-yong nodded.
“I understand.”
If he could not even protect the throne he inherited, he would have no right to occupy it in the first place.
***
After Vice Chairman Im Jin-yong left,
Taek-gyu quickly asked me,
“What did you see earlier?”
I told him straight away,
“Seosung SB is going to be equipped with Carlos batteries.”
“Really? It’s been a while since Oracle made a move.”
For that to happen, Seosung SB must not be allowed to fall into the hands of Eunsung Motors.
“But can we really partner with a chaebol?”
“What’s wrong with that?”
“You don’t like chaebols, do you?”
“Me? Not really.”
It’s not that I particularly dislike them.
In fact, one of the main reasons the chaebol system continues to exist is due to the rationale of owner-centric responsible management. If it weren’t for that, they would have collapsed long ago.
Unlike contract CEOs who obsess over short-term results while watching shareholders, chaebols can manage their businesses with a long-term perspective.
If Im Yong-cheol and Im Il-Kwon were not part of the founder’s family, could they have invested in semiconductors despite shareholder backlash? (Similarly, Seosung Motors, which ignored shareholder resistance, ended up failing miserably.)
“I’m not going to dismantle chaebols or reform the economic system.”
I don’t have the ability to do that, and even without it, the Korean economy keeps running smoothly.
“Do you know what the problem with chaebol groups is?”
“There are many issues; where do I even start?”
“……”
Well, that’s true.
I gave the expected answer.
“They try to do everything on their own.”
Originally separate from Eunsung Group, Eunsung Motors has become a major corporation again. First, Eunsung Motors manufactures finished cars. Glomas handles transportation, while Linotion takes care of advertising and marketing.
Eunsung Steel directly produces and supplies steel and plates, and Eunsung MD is responsible for parts development, manufacturing, and running service centers.
They cover everything from smelting iron in the furnace to distribution, sales, and after-sales service.
While they source parts from first, second, and third-tier vendors, this is merely subcontracting, not collaboration.
If Eunsung Motors had proposed a partnership, Seosung SB would have gladly accepted. However, Chairman Han Min-goo chose the acquisition route.
This might have worked in the past, but times have changed. The world is different now, and even conglomerates cannot do everything alone.
Eunsung Motors plans to acquire Seosung SB to seriously enter the electric vehicle market. But what will happen if the acquisition fails?
“Can’t you just find another company?”
“There are only a few firms worldwide with the technological and production capabilities of Seosung SB. And unless the equipment is idle, increasing battery production suddenly is challenging.”
Ultimately, various business plans will face hurdles.
I decided to call my senior, Sang-yeop.
[I saw the inauguration ceremony. Your face was on screen too.]
“More importantly, something came up.”
[What is it?]
“Immediately buy shares of Seosung SB. Do it quietly, without drawing attention. And use a brokerage firm other than Golden Gate.”
Everyone knows about the relationship between OTK Company and Golden Gate. Thus, ordering through Golden Gate might reveal our identity.
[What’s going on?]
“I’ll explain when we meet back.”
[Got it.]
Sang-yeop didn’t ask further and hung up the phone.
