Third-Generation Chaebol

Three months into 1999

Time flew by.

With countless mergers and acquisitions, Grandpa and I were so swamped with work that we only saw each other when we finally returned home.

"Taewoo Telecom seems to be sponsoring something unusual. I thought we were just funding a sports team, but I didn't expect us to create an esports team."

"It's far more effective than sponsoring traditional sports teams. Thanks to that, Taewoo Telecom is now leading KS Telecom by about 5% in market share."

"Well, that's for you younger folks to handle."

Grandpa smiled and picked up the remote control.

As long as Taewoo Telecom remained the industry leader, he didn't seem to care whether we sponsored an esports team or gaming tournaments.

Clicking his tongue, he muttered, "TV commercials these days are just awful. Even famous celebrities are starring in loan company ads. What a disgrace."

"They can't refuse when offered a fortune in ad fees. They probably don't realize they're tarnishing their own image."

"…Well, at least this ad isn't as bad."

I turned my attention to the TV.

It was a commercial from a loan company owned by the Myeong-dong Trio.

Instead of blindly promoting loans, the ad warned about the dangers of private lending and even criticized Japanese loan companies' high interest rates.

"They might all be loan sharks, but at least this company offers relatively lower interest rates."

"They're still Myeong-dong loan sharks. You have no idea how much I had to grovel to borrow money from them back in the day."

Grandpa had a long history with the Myeong-dong Trio.

Now, he had no debt at all, but a few years ago, he was the most frequent borrower among Korea's top business leaders.

"Still, they're better than the Japanese lenders, aren't they?"

"The way you're defending them, I assume you helped them out somehow. I also heard you gave Gwanghwamun Bear some assistance. I don't know what you're up to, but don't get too involved."

"There's more than enough work to do just managing Taewoo Group. I have no intention of meddling in Myeong-dong or the loan business. I simply gave some advice—that's all."

As we spoke, the commercial ended.

Next, a new Taewoo Motors advertisement appeared on screen.

"Taewoo Motors' sales are skyrocketing these days."

"Haha, we're currently ranked second in the European market. Buying that Polish factory was the right move. By next year, we're aiming to surpass Volkswagen and take the number one spot in Europe."

"I heard the response in the U.S. has been great too."

"Indeed. A recent consumer survey in the U.S. ranked Taewoo Motors as the only Korean company in the top 10."

Taewoo Motors was making waves in the global market.

Unlike Taewoo Electronics or Taewoo Telecom, where I had direct involvement in product development, I hadn't even touched the automobile business.

Yet, Taewoo Motors' sales were skyrocketing every year, dominating not only China but also Europe and the U.S.

"There's even talk in the U.S. calling us 'the next Honda.'"

"No, not 'the next Honda.' We must become the first Taewoo Motors. You and I will make that happen."

"It's all thanks to your investments in Taewoo Motors, Grandpa. We're now on the verge of becoming the No.1 automaker in the domestic market."

The rivalry between Taewoo Motors and Kia Motors was proving to be a huge success.

With both companies engaged in fierce internal competition, the quality of their vehicles had drastically improved.

"The French CEO you brought in is doing an outstanding job. He's already resolved a significant portion of Kia Motors' debt."

"He may be a nightmare for the employees, but from the group's perspective, there's no better executive."

"I've seen it myself—his restructuring is brutal. He even micromanages schedules down to the minute."

Carlos Ghosn was a ruthless leader.

He regulated bathroom breaks, banned workplace conversations, and enforced a relentless work schedule.

Under normal circumstances, such extreme policies would have triggered mass backlash.

But in the wake of the financial crisis, with unemployment soaring, there was little room for resistance.

Besides, Kia Motors' employees were just as desperate to beat Taewoo Motors—so they endured it.

"Thanks to that, Kia Motors is quickly regaining its market share. Meanwhile, SS Motors, acquired by Hyundai Motors, continues to post losses."

"Looks like SS Motors has become a burden for Hyundai. They should have been more cautious about reckless acquisitions. Chairman Jang really miscalculated this time."

I was surprised to hear Grandpa say that.

Compared to him, Chairman Jang was far more conservative.

If anything, Grandpa's own aggressive acquisitions nearly bankrupted Taewoo Group, and it was I who had saved it.

"Hyundai may be gaining traction in the U.S. market, but SS Motors is bleeding too much money. They'll be stuck in stagnation for a while."

"Which means we need to push ahead even further."

Grandpa was, at the end of the day, a businessman.

He saw Hyundai's struggles as an opportunity—one that Taewoo should seize.

"But something's odd about Taewoo Electronics' stock prices. There's no new product launch, yet the stock is skyrocketing. I heard it's because of an IT division project, but even so, the surge seems excessive."

"It's the IT boom, Grandpa. Right now, any company with 'IT' in its name is seeing a stock surge. Plus, Taewoo Electronics' IT projects are generating strong revenue, so naturally, the stock is rising."

"Still, it's already doubled in just six months."

I understood his concern.

At its core, Taewoo Electronics was a home appliance company. Its stock value should have been tied to sales performance, not speculative IT hype.

"There are other IT companies whose stocks have quintupled, not just doubled."

"But Taewoo Electronics isn't an IT company—it's a home appliance manufacturer."

"That's exactly why our stock has only doubled. If we had spun off the IT division as a separate subsidiary, the stock could have surged tenfold."

"Is that so? Then perhaps we should consider spinning off the IT division now."

I had originally planned to establish an independent IT division, just as Grandpa suggested.

The idea was to start as a department under Taewoo Electronics and later spin it off as a separate subsidiary.

However, as time passed, I decided to put that plan on hold—at least for now.

The IT bubble was on the verge of bursting.

Keeping the IT division under Taewoo Electronics would provide a stock price buffer when the crash inevitably hit.

Sure, the division's stock value wasn't soaring as high as standalone IT firms, but in the event of a market collapse, this structure would actually work in our favor.

"I haven't ruled out the idea of a spinoff, Grandpa. But if we add another subsidiary now, people will accuse us of reckless expansion."

"Are you going to stop making kimchi because you're afraid of a few maggots?"

"Taewoo Electronics' shareholders will also be unhappy. Right now, the IT division is driving the stock up, but if we spin it off, Taewoo Electronics' stock could take a hit."

"In business, you can't be afraid of criticism."

"I'm not afraid of criticism, of course. But the IT division isn't fully prepared for independence yet."

Since I was the one who created it, I understood that better than anyone.

Grandpa nodded, accepting my reasoning.

"Very well. I'll leave the IT division in your hands. But let's talk about something more important—when are you going to start dating? You can't just bury yourself in work all the time."

"I hear other chaebol heirs get told to stop chasing women all the time. You're the opposite."

"You're not causing any scandals, so why would I stop you? But I'm getting old, so hurry up and get married. I won't even demand a prestigious family background or care about her age—just find someone you love and bring her home soon."

It's not that I never thought about marriage.

But how could I even find the time?

I was buried in paperwork from 7 AM to sunset. When was I supposed to meet someone?

I tried to steer the conversation away, but Grandpa was adamant about marriage, and the topic kept circling back.

Just then, something on TV caught Grandpa's attention.

A breaking news report flashed across the screen:

[The truth behind Chairman Lee Sun-il's shocking death in the Myeong-dong loan shark market has finally been revealed. His cousin, Lee Joon-soo, has been arrested.]

It was news about Chairman Lee in Gwanghwamun.

Using the police, prosecutors, and even the National Tax Service, I had orchestrated a full-fledged investigation into Lee Joon-soo, and he had finally been arrested.

While they couldn't pin him as the mastermind behind Lee Sun-il's death, the evidence of his other crimes was overwhelming.

He was going to be locked away in detention for a long time.

"So, Executive Director Lee finally got arrested. I thought the political circles were protecting him—I'm surprised they managed to take him down."

"The evidence was too strong. Even the politicians couldn't shield him this time."

"I can't believe someone like him was part of Taewoo Group. It's absolutely infuriating. Chairman Lee was truly unfortunate... taking care of such a man just because he was his cousin."

Grandpa genuinely lamented Chairman Lee's death.

He was more furious than usual, cursing Executive Director Lee as he watched the news unfold.

"Just thinking about him still being at Taewoo Motors is horrifying."

"You did well to cut him off at the right time. Looking back, it seems like everything you do leads to good results."

"I was just lucky."

"Luck is a kind of skill too, isn't it? So, what's your next move?"

I had achieved my first major goal—saving Taewoo Group from the aftermath of the financial crisis.

Now, it was time to move on to Phase Two.

"I'm planning to further expand Taewoo Electronics."

"Even after the growth from the IT division, you still want to expand it further?"

"For Taewoo Electronics to reach the next level, we must aggressively enter the semiconductor industry."

"But CL Group already lost its semiconductor division to Hyundai Group. What exactly do you plan to do?"

"Simple—we take the semiconductor business away from Hyundai Group."

"I did hear that Hyundai is in turmoil over a succession battle. So… you think the time has come?"

"The war for control hasn't officially begun yet. But at the earliest, this time next year, it will.

That means now is the time to prepare—so when the dust settles, we take the semiconductor business for ourselves."

The Hyundai Group power struggle was inevitable.

No matter how hard Chairman Jang tried to prevent it, even he couldn't control his own children.

"Even if we manage to take the semiconductor business, do you really think it will be profitable? I heard the market is on a downtrend lately."

"There's no doubt that semiconductors require long-term investments. Any company without enough capital will collapse. But Taewoo Electronics has the financial strength to endure. That's exactly why I plan to keep the IT division under Taewoo Electronics for now."

Even if the IT bubble bursts, IT itself is still a highly profitable industry.

That meant Taewoo Electronics would have the time it needed for the semiconductor business to recover.

"Haha! If everything goes according to plan, Taewoo Electronics could end up contributing more than 50% of the entire group's revenue!"

"Not just that—I also plan to scale up the battery business several times over. It will require massive investments, but at the very least, I'm confident we won't see losses."

Several industries required both time and money to flourish—

Semiconductors, batteries, LCDs, and more.

Among them, I had chosen semiconductors and batteries as Taewoo's next big bets—

The cash cows that would drive the group's success a decade from now.