I instructed the executives of the subsidiary to move the headquarters and the research center.
Naturally, there was fierce opposition.
“Our key personnel might leave.”
The Silicon Valley area is notorious for high housing prices and a high cost of living, even within California.
Still, companies establish themselves there because numerous IT firms, startups, and the world’s top talents are already gathered.
There’s no place that can replace Silicon Valley in terms of connections and collaboration with other companies or the supply of high-level talent. Moreover, those working in Silicon Valley do not wish to leave for other regions. This is why CarOS left its headquarters in Detroit while keeping the research center.
“What on earth is the reason?”
I shared Professor Mohan’s argument and did my best to persuade them, while also applying pressure.
I’m merely the largest shareholder of the subsidiaries, not a manager. However, I have the authority to convene a shareholder meeting and dismiss them if they refuse to listen to me.
“The relocation must be completed within a month.”
Everyone reacted as if I were crazy, but they had no choice but to comply.
Fortunately, these companies started as startups and focus primarily on IT and services, making the relocation far easier than moving a factory.
We finalized a new site and arranged for vibration-free vehicles to transport essential equipment.
Once the relocation plan was confirmed, some employees submitted their resignations. Among them were several key personnel, such as coding specialists, programmers, and engineers.
Instead of letting those who resigned leave immediately, we decided to give them three months of vacation.
During that time, if they changed their minds, they could return anytime. If they didn’t change their minds, we promised to calculate their three months of pay as paid leave, and then accept their resignation.
While handling these matters, I met Peter Katsuyo, the CEO of ArcIT.
He was a Japanese-British national but wasn’t proficient in Japanese. Instead, he spoke with a perfect British accent.
“It’s been a while.”
“Nice to see you. It really has been a long time.”
ArcIT is based in the UK and operates primarily in Europe. Unlike the US, there aren’t many opportunities to go that way.
I mentioned the San Francisco earthquake and told him,
“I don’t know how likely it is, but the recovery efforts will lead to a complete redesign of the city. I hope you can prepare the related work in advance.”
Considering the scale of the recovery, it would be a massive project involving construction companies from around the world.
In architecture, everything is determined at the design stage, from materials to construction methods. The construction company that wins the bid merely follows the design.
If ArcIT could outline the blueprint for urban reconstruction, it would give them the power to influence all the participating construction companies in the recovery.
Peter looked troubled.
“We are already short-staffed with the current projects. Moreover, urban design is usually a big task, and it’s unreasonable to allocate time and manpower to such work based merely on a possibility.”
I said to him,
“As the representative of OTK Company, I’m not giving orders; I’m making a request as a client. If the plan is scrapped or halted, OTK Company will cover the costs. This is a very significant and necessary undertaking. ArcIT won’t suffer any losses either way.”
***
Near Gangnam Station, four high-rise buildings adorned with blue glass form a complex known as Seosung Town.
The office of Chairman Im Jin-yong is located in Building D of Seosung Town, where key subsidiaries of the Seosung Group, including Seosung Electronics, are gathered.
As I got out of the car, an employee who had been waiting showed me to the chairman’s office. The elevator stopped at the 45th floor.
Upon entering with the secretary’s guidance, Chairman Im Jin-yong rose from his seat in front of the desk.
“Thank you for making the trip.”
“Well, it’s just nearby.”
It took less than five minutes by car.
Although I had met Chairman Im Jin-yong several times, this was my first visit to this place. The interior was neat and without any clutter. Only the necessary furniture was placed in the spacious room.
Through the window, Seosung Town was visible in its entirety.
Seosung Town was created by the late Chairman Im Il-kwon, and he conducted his business here.
Thinking about it made me feel strangely intrigued.
Despite various issues like political connections, union suppression, and tax evasion, no one can deny that the late Chairman Im Il-kwon was an outstanding manager.
Thus, when he collapsed and the regime of Chairman Im Jin-yong began, shareholders expressed concern.
Although he had undergone long-term successor training, his management abilities had yet to be proven.
However, contrary to public concerns, many now see his leadership as a success. The stock price is steadily rising.
Of course, this isn’t solely due to Chairman Im Jin-yong’s abilities but rather thanks to timely investments made by his predecessor. The task of pioneering new industries is one given to the third-generation managers.
Fortunately, the ambitious advancement in the electric vehicle sector is beginning to show results, supported by Warren Buffett. Berkshire Hathaway has continued purchasing shares of Seosung Electronics and Seosung SB even after block deals.
“Is coffee alright for you?”
“Yes.”
We sat down, and the secretary brought in the coffee.
“Did you check on the request I made back then?”
“Yes. But why are you curious about the release date of the Nphone Z?”
I casually made an excuse.
“There are subsidiary companies developing related apps. We are also planning an event aligned with the Nphone Z release date.”
Chairman Im Jin-yong had no suspicions about my words.
“The release date for the first launch countries, including the U.S., has been set for September 28. Korea is included in the second launch group, scheduled for mid-October, but the exact date hasn’t been determined yet.”
“I see.”
If it’s the 28th, that buys us some time. Given the current situation, even a few days are precious.
A moment of awkward silence passed while we sipped our coffee.
After a while, Chairman Im Jin-yong broke the silence.
“I heard you’re sponsoring the research of Professor Mohan from Caltech.”
“Yes.”
“And I also heard that OTK Company is buying raw materials and disaster supplies, and moving its subsidiaries from Silicon Valley.”
“That’s correct.”
While gold and oil have a high trading volume and wouldn’t greatly affect markets, copper and aluminum, among other non-ferrous metals, have seen significant price increases since we started purchasing them.
Of all the non-ferrous metals, we’re focusing most on copper. The reason is its high conductivity, making it essential for electrical wiring. A tremendous amount of copper will be needed to rebuild the power grid in the future.
“I was just about to bring that up. The labs of the subsidiaries of the Seosung Group, including Seosung Electronics, are gathered in the San Jose area of Silicon Valley. I recommend relocating as soon as possible. While the data is backed up on servers, make sure to move important equipment in advance and expedite the selection of alternative sites. Once other companies start relocating, prices will skyrocket.”
Chairman Im Jin-yong, hesitating for a moment, spoke cautiously.
“I think you may be falling into excessive fear. I’d suggest taking a break and listening to the opinions of those around you.”
This is probably what common sense is all about.
“Who would think I have foresight just because I’m preparing for an earthquake? They’d probably just think I’m overreacting and gripped by fear alone.”
Chairman Im Jin-yong said with a worried expression.
“How about getting some counseling? I don’t mean this in a bad way. I regularly consult a psychiatrist for psychological therapy myself, and other CEOs do the same.”
Being a chairman of a large corporation may make people envious, but in reality, the mental stress is considerable.
There’s worry over declining sales, falling stock prices, and public opinion. Additionally, one has to consider investigations by the Fair Trade Commission, tax audits, and in South Korea, occasionally the worry of going to prison.
In many ways, it’s a high-stress job.
“My junior fell during the San Francisco earthquake last time and couldn’t wake up for a while. It’s perfectly normal to develop a fear after experiencing an earthquake. It’s important to accept that fact as it is.”
It’s not just me; the public feels the same way.
Like those who experience PTSD from war or disasters, I am also trapped by trauma from the earthquake.
Well, if they see it this way, it’s easier for me.
Chairman Im Jin-yong said apologetically, “I’m sorry if this sounded too intrusive.”
“No, thank you for your concern.”
OTK Company and Seosung Group are collaborators, not competitors. So, perhaps that’s why they worry too.
“More importantly, I’d like to talk about work today.”
“What’s on your mind?”
“I want to buy some batteries.”
The foundation of modern civilization is electricity.
By September, I won’t have to worry much about the cold, but losing electricity at the shelter is a major issue. I need to charge my phone and electronic devices, and I need lighting at night.
The government will prioritize restoring power, but we need electricity until then.
Seosung SB has been excluded from the Chinese government’s battery subsidy program, and its current factory utilization rate remains below 70%. We should be able to manage the order volume.
“I will also order GPS and wireless communication equipment. There’s not much time, so I hope production can start as soon as possible. Please send the produced quantity directly to California by air.”
Hearing this, Chairman Im Jin-yong sighed softly with a lonely expression.
“Are you truly convinced by that professor’s words?”
It’s not so much the professor Mohan’s words I trust, but the vision I’ve seen…
“Well, what do you think, senior?”
“I know that the San Francisco area has a high probability of earthquakes. However, your concerns seem excessive. If we act on a seismology professor’s single statement and nothing happens, OTK Company will become a laughingstock.”
To be precise, it’s already on its way to becoming a laughingstock.
Depending on the CEO’s judgment, a thriving company can collapse, or a failing company can be revived.
But what happens to a company if the CEO cannot make sound decisions due to PTSD?
“Whether you believe me or not is irrelevant. I don’t intend to convince you of my perspective here. The important thing is the contract. What will you do?”
“What if I refuse?”
“Then I’ll have to approach CL Electronics and CL Chemicals. There are many companies that produce batteries and electronic products.”
Despite saying this, there’s no other company as suitable for mass production in such a short period as Seosung Electronics. It’s the most vertically integrated among global IT manufacturers.
Anfl handles only the design of hardware products, while outsourcing parts production and assembly. Seosung Electronics manages design, parts production, and assembly all in-house. Thus, it can process orders swiftly.
Chairman Im Jin-yong seemed to be deep in thought, leaning back on the sofa.
A manager must prioritize the company’s profits. When someone offers to pay for products, how could one judge if they are sane or not?
After a long pause, Im Jin-yong spoke with a bitter expression.
“How much quantity is needed?”
I answered briefly.
“Quite a lot.”
***
The reputation of Kang Jin-hoo has risen day by day due to advancements in autonomous driving technology and the development of new battery materials. However, recently, he displayed some puzzling behaviors.
He has been sponsoring research at Caltech’s seismology department, investing in raw materials, and purchasing disaster relief supplies, among other things.
As subsidiaries in Silicon Valley began relocating, people started to understand what Kang Jin-hoo was thinking.
It was preparation for earthquakes!
Once this fact became known, “The Big One is Coming” quickly sold out at both online and offline bookstores. Attempts to secure additional copies were futile, as the publisher had already gone bankrupt. Unfortunately, there was no electronic version available, and once stock ran out, there was no way to obtain the book.
Professor Mohan’s research lab had around 300 copies in stock. Local bookstore employees drove pickup trucks to collect boxes filled with the books. They sold out as soon as they were displayed.
The largest online bookstore in the U.S., AMZ, contacted Professor Mohan to explore the possibility of an e-book publication. Upon receiving the manuscript, they finished editing and started selling the e-book within three days.
Once released as an e-book, “The Big One is Coming” soared to first place, surpassing various bestsellers.
Media outlets even dug up Professor Mohan’s past papers, inundating the press with articles.
[Professor Kiran Mohan claims a major earthquake will occur in the San Francisco area within months!]
[Warning of a disaster worse than the Alaska earthquake and the Great East Japan earthquake!]
[Will San Francisco relive the nightmares of 1906 and 1989?]
[Is the Big One really coming?]
[Is this excessive concern or reasonable skepticism?]
The San Francisco Bay Area, along with the whole state of California, began to buzz with fear of a massive earthquake.
nice