IWSF – Ch 291

Seosung Electronics holds shares in CarOS, and Seosung SB holds shares in TS Company, which produces OTK batteries. Therefore, buying these two stocks was essentially an indirect investment in CarOS and TS Company.

When CarOS announced its plan to launch unmanned trucks, Seosung Electronics’ stock price once again hit a new high. Naturally, most of the various electronic equipment installed in the trucks were supplied by Seosung Electronics. Concerns about a semiconductor market peak faded as the adoption of autonomous vehicles increased much faster than expected.

Seosung Electronics’ market capitalization continued to grow, and Seosung SB also surpassed CL Chemical to rank within the top 5.

Investors who had bought these two stocks early on rejoiced, while those who hadn’t sighed in regret.

The value of publicly listed companies is determined by market participants (though it’s not necessarily always correct). On the other hand, the value of unlisted companies can only be estimated by analyzing various conditions.

Usually, the most recent investment amount serves as the benchmark. If an investor bought 5 percent of the shares for $100,000, the market capitalization is considered to be $2 million.

However, CarOS does not receive any external investment except for its parent company, OTK Company. The only external investment it received was a share swap with Seosung Electronics.

Fund managers analyzed CarOS’s value through Seosung Electronics’ stock price.

At the beginning of the year, CarOS’s estimated market capitalization was around $150 billion. But now, it has been raised to $300 billion.

This is a higher amount than the combined market capitalization of Toyota, Nikola, GM, Ford, and Daimler AG. Although there were talks of overvaluation or a bubble, most reactions were that even this was cheap.

AD1 and AD2 were major successes, unmanned logistics trucks were entering the commercialization stage, and new electric vehicles were scheduled to be released at the end of the year.

Unlike other companies, CarOS has vertical integration capabilities through its own factories and affiliates, covering autonomous driving software, electric vehicles, and batteries. Experts predicted CarOS’s sales volume to exceed 4 million units next year.

Automobiles are a key industry in every country, responsible for massive employment. Therefore, everyone was moving quickly to avoid falling behind.

Germany, Japan, China, and others, despite opposition from their transportation industries, granted temporary operating permits for unmanned vehicles to their domestic automakers.

However, there were no clear competitors to CarOS. Zhou Auto postponed all new car launches after a technology theft incident, and some companies abandoned the first-mover strategy altogether, opting for a fast-follower strategy.

As CarOS’s value was re-evaluated, OTK Company CEO Kang Jin-hoo’s wealth also greatly increased. His estimated wealth was approximately $300 billion, which was more than three times that of AMZ CEO Jake Byron, and comparable to historical tycoons like John Rockefeller and Andrew Carnegie.

– Crazy. Is it okay for one person to have that much wealth?

– At this point, shouldn’t the US step in and naturalize him?

– Why bother? Kang Jin-hoo’s assets are practically all in the US anyway.

– We should just consider him an American in all but name.

– But he did serve in the military, didn’t he?

– At this rate, Kang Jin-hoo will single-handedly support Korea.

News of CarOS’s commercialization of unmanned logistics trucks shocked the global transportation industry.

The Korean taxi industry, in particular, was thrown into chaos.

Ride-sharing, initiated by Iber, was a global trend. In addition to Iber, numerous companies like Left, Didi Chuxing, and Grab were fiercely competing in various countries.

There had been various attempts in Korea as well. Iber had once entered the Korean market, but was forced out due to taxi driver opposition and legal controversies.

But that wasn’t the end of it. Startups jumped into the ride-sharing service market by utilizing exceptions in the Transportation Business Act.

Data exploited the fact that driver brokerage is permitted for chartered vehicles with 11 or more seats, launching services with 11-seater vans. Laxxi and TwoPlus created carpool services by leveraging the exemption for paid transportation during commuting hours.

These services were legal, but taxi drivers still strongly protested. When NextK tried to enter the carpool business, a taxi driver even made the extreme choice of self-immolation.

The government attempted to mediate several times, but the taxi industry refused to even participate in discussions. They were absolutely unwilling to accept ride-sharing services, carpool or anything else.

Ultimately, pressured by strong opposition, NextK decided to postpone its business for now.

At least the New Politics Party pretended to try to discuss it, but lawmakers from the Liberty National Party vehemently criticized the government and sided with taxi drivers. Furthermore, they proposed a bill to completely delete Article 34, Paragraph 2 of the Transportation Business Act, which allows carpooling, gaining support from taxi drivers.

If the bill passes, related startups will have to shut down their businesses entirely.

It would be less of a problem if the whole world didn’t allow ride-sharing services. But almost every country has allowed them, and some have grown into large corporations, leveraging their accumulated data and capital to jump into the future car competition.

In this situation, can only Korea remain a Galapagos?

Aligini and Wechant-invested Didi Chuxing has already declared its intention to expand, focusing on regions with Chinese communities. They also stated their position to request permission to operate Didi Chuxing in Korea, targeting Chinese tourists.

Their intention is to enter the Korean market through Chinese tourists. Initially, they will target their own tourists, but then expand services to other foreign tourists and foreigners living in Korea, and eventually gradually expand their reach to locals.

According to the current Transportation Business Act, driver brokerage for foreigners is legal. Therefore, there is no legal basis to stop them.

One might think of simply deleting the relevant clause, but what if the Chinese government bans group tours to Korea in retaliation? Would they still be able to continue opposing it?

Amidst the escalating conflict surrounding ride-sharing services, now unmanned vehicles have appeared. For taxis, ride-sharing services are competitors, but unmanned vehicles are executioners.

Compared to logistics trucks that follow fixed routes and mainly run on highways, taxis must consider passenger pick-up and drop-off, primarily operate in congested urban areas, and navigate narrow alleyways.

However, this isn’t a major problem. Even if there are initial issues, they will be resolved before long, and people will quickly adapt.

Above all, unmanned taxis can drastically lower taxi fares by eliminating driver labor costs. If unmanned taxis are half the price of existing taxis, who would ride existing taxis?

This meant the collapse of the taxi industry.

No, it’s not just a problem for taxis. It’s something that will happen in all fields where driving is a profession: trucks, buses, delivery. Even subways and high-speed railways cannot be complacent.

The taxi industry resolved to go on a general strike and declared they would continue their struggle against the government to oppose ride-sharing services and unmanned vehicles.

Taek-gyu asked, “Unmanned vehicles have been undergoing test driving by various companies for a while now, not just CarOS. Why is everyone suddenly in an uproar?”

“Until now, they thought they could prevent or avoid the change.”

It’s like everyone knew the kettle was on the stove, but they didn’t prepare for anything, and now they’re panicking as the water starts to boil.

In a way, the taxi industry’s backlash was a sign that the era of unmanned vehicles had already arrived.

In Korea, there is no problem as difficult to solve as taxis.

Over-supply, low taxi fares, taxi companies, “sana-geum” (company levy), aging taxi drivers, and the development of public transportation as a substitute for taxis, and so on.

Online, opinions on the taxi strike were divided.

– Other countries are doing ride-sharing, and autonomous and unmanned vehicles are running, but is it reasonable for only Korea to prohibit them?

– So, are taxi drivers supposed to just die?

– So, are we supposed to stop technology development?

– Protecting existing businesses is the priority.

– Then, to protect Nokia, should we have banned NPL’s NPhone from being released? Feature phones went completely bankrupt after smartphones came out.

Korea’s taxi industry is large relative to its population and economic size. Considering taxi drivers and their families’ votes, it’s 1 million votes.

Politicians, conscious of votes, intervened, making problem-solving even more difficult.

Taxi drivers went on a general strike as announced and held nationwide protests. Liberty National Party lawmakers quickly rushed to the protest sites.

“Our party will definitely abolish the exception clause allowing carpooling!”

“Our party will stand with taxi drivers to the end!”

“The Liberty National Party condemns the Heo Chang-min regime for destroying the taxi industry! The ruling party must stop killing the common people!”

Lawmaker Lee Jung-hye enthusiastically shouted into the microphone.

“Unmanned vehicles are always at risk of hacking and malfunctions! How can we trust a car driven by a machine? If unmanned vehicles run on the roads, they will threaten the precious lives and safety of your children and families!”

Taxi drivers cheered, but most people’s reaction was one of disbelief.

– Wait, didn’t he say he would build an unmanned tram in her constituency?

– How can we trust a tram driven by a machine?

– Wouldn’t building an unmanned tram threaten the precious lives and safety of her constituents’ children and families?

– Didn’t he say during the presidential election that the government would invest 1 trillion won to develop autonomous driving technology?

– Didn’t he say Korea should lead the future car sector?

– It’s like saying “Enemy Lee Jung.” Lee Jung-hye’s own enemy is Lee Jung-hye herself.

– He’s even criticizing and trying to block unmanned vehicles now.

TV broadcasted live footage of the protest site. Over 100,000 taxi drivers gathered and chanted slogans. Everyone looked desperate, as their livelihoods were at stake.

“One-room apartment owners’ livelihoods were also at stake.”

“It’s a bit different with them.”

Those people still have assets in the form of buildings. And since dormitories aren’t built to accommodate all students, even if there’s some rent decline, it’s a level they can sufficiently withstand.

However, taxi drivers’ income is already low. If ride-sharing or unmanned vehicles are allowed, their income will drastically worsen.

The fear that technological advancement will take away human jobs and the resulting backlash from workers has been around for a long time.

“The Luddite movement, the ballad of John Henry, and so on.”

“Hmm, it’s been a while since I heard about the Luddite movement. But who is John Henry? Is he related to my brother-in-law?”

“…Would he be?”

This guy’s surname is Henry, and Henry is his given name?

“He’s a black laborer from the 1870s who competed against a machine.”

John Henry was working with other laborers digging a tunnel. When the employer tried to introduce a newly developed drilling machine to the site, the workers strongly protested.

The workers argued that humans could work faster and more perfectly than the drilling machine, and decided to compete against the machine to prove it.

The competition was to start digging a tunnel from the same point and the side that broke through first would win, and John Henry represented the workers.

People waited on the opposite side, cheering them on. After a half-day battle, John Henry broke through the mountain before the drilling machine.

The workers who saw this cheered and applauded. But that was his last moment. John Henry, having used all his strength, died on the spot.

Taek-gyu blinked and asked, “Is that a true story?”

“Considering there are multiple versions, it’s more likely a folk tale.”

It’s such a famous story that it comes up inevitably when discussing job issues caused by technological development.

Whether it’s a folk tale or a true story, back then, humans and machines could at least compete. But now, even that is impossible. No one challenges to dig faster than a backhoe or calculate faster than a computer.

However, it was believed that there were unique areas only humans could do. But due to technological advancements, machines are now starting to advance into these areas.

Driving, medicine, law, finance, creation, translation, and so on.

Then, should we block artificial intelligence from providing medical care to protect doctors’ jobs? Even though their diagnostic and analytical accuracy is much higher than that of specialists?

As unmanned vehicles increase, the traffic environment will greatly improve, and the probability of accidents will decrease further. Deaths and injuries from traffic accidents will also drastically decrease.

Even so, should we not introduce unmanned vehicles?

No matter how much they oppose and block it, someone will definitely do it.

England invented the steam engine and the automobile, but created the Red Flag Act (a law preventing automobiles from traveling faster than horse-drawn carriages) to protect the carriage business.

The result? Automobile developers and investors all left for foreign countries, and thanks to that, the automobile industries in Germany and the United States grew rapidly.

England belatedly abolished this law, but the leadership in the automobile industry had already passed to other countries. British car brands were all sold to foreign companies, and England became the largest automobile importer in Europe.

Of course, the carriage industry they tried so hard to protect collapsed, and carriage drivers all lost their jobs.

Taek-gyu crossed his arms and nodded.

“It’s a difficult problem. So, what’s the solution?”

“I don’t know either.”

When I shook my head, Taek-gyu was surprised.

“What? Didn’t you have a solution all figured out?”

“……”

“Hey, what do you want me to do?”

There is a limit to what a single company can do, so the government and companies must cooperate to solve the problem together.

Fortunately, the US was continuously preparing for this problem. CarOS announced a plan to create a fund to support truck drivers who would lose their jobs, as well as a priority hiring plan for the unemployed. And Ronald directed federal-level job measures.

But Korea had no measures at all. Because the political circles had been playing a vote-counting game, watching for reactions, all along.

After the rally ended, taxi drivers marched towards Seogang Bridge. To accommodate this, one lane was completely blocked.

But suddenly, an unexpected situation occurred.

Some taxi drivers, without any safety equipment, climbed onto the arch of the bridge, unfurled banners, and shouted.

“Bring Kang Jin-hoo! Or we’ll jump off the bridge!”

[Probably the last update on moonlight novels]