Third-Generation Chaebol

A month passed, and it was mid-June.

I had spent the entire month going over the employee roster.

Being the number one conglomerate, the number of employees was naturally enormous, and just creating a new organizational chart took up all my time.

While I was busy with this, Lee Jooyoung, president of Taewo Telecommunications, came to the vice chairman's office bringing good news.

"Vice Chairman! The recently released Diablo 2 from Blizzard was a massive hit."

"So Taewo Telecommunications' market share increased again."

"Since we have the Korean distribution rights for Diablo 2, our market share rose slightly."

Following StarCraft, now Diablo 2.

Blizzard hit a home run twice in a row, and thanks to that, Taewo Telecommunications and its gaming platform saw huge benefits.

"That's good news. I heard the StarCraft tournament also brought quite some profit; how is it going?"

"Among young people, hardly anyone doesn't know Taewo Telecommunications anymore. Especially the fan base of professional gamers from the Taewo Gaming Team has become very strong. The fan club numbers over 500,000."

The Taewo Gaming Team was a huge success.

Though it cost less than sponsoring ball sports, its promotional effect was several times greater.

"Now the gap with KS Telecom must have widened quite a bit."

"It's 15%. Other telecom companies are trying to copy us by launching internet TV and online lecture services, but since we already secured the market, they aren't seeing much effect."

Taewo Electronics had great success with internet TV.

Of course, other companies hurriedly launched internet TV as well, but since we had the weapon of OTT services, they couldn't close the gap.

The same went for online lectures.

We had brought all the top instructors on board, so latecomers found it hard to catch up.

"Just maintain it as it is now. Even if the market share drops a little, don't be impatient."

"Is that really okay? To perfectly defend the number one spot, shouldn't we be willing to endure more losses?"

I smiled and shook my head.

The iPhone was set to launch in a few months, so the market share would naturally rise on its own.

The real issue was protecting the stock price.

Due to the IT bubble, the stock prices of Taewoo Electronics and several other affiliates were plummeting.

On the other hand, it was also an opportunity.

A great chance to acquire Taewoo Group shares at the bottom.

Taewoo Group was divided into multiple subsidiaries.

But they operated in perfect unison according to the will of the group headquarters.

More precisely, they moved according to my grandfather's wishes, and he trusted Park Mandeok, president of Taewoo Securities, the most.

That was why I called President Park to the vice chairman's office.

His influence was needed to prevent Taewoo Group's stock prices from collapsing due to the IT bubble.

"Congratulations once again on your appointment as vice chairman. I wanted to greet you in the presidents' meeting room, but there were too many eyes watching, so I couldn't properly do so."

"Is there really a need for excessive formalities between us?"

"Thank you for saying that."

The corners of President Park's mouth lifted toward the ceiling.

Smiling while other Taewoo Group subsidiaries were struggling?

Unlike other subsidiaries, Taewoo Securities was experiencing no difficulties, so such a smile was possible.

"The first half of the year is almost over. How is the patriotic fund performing?"

"We survived thanks to you, Vice Chairman. We never expected the IT bubble to strike so quickly. Earlier this year, customers were furious that no one was investing in IT stocks, but now we're receiving calls of thanks."

Among many securities firms running funds,

Taewoo Securities was the only one that hadn't invested in IT stocks.

"The returns on IT stock funds must be terrible."

"Not a single fund launched by other securities firms posted positive returns."

"It seems everyone got tangled up in IT stocks."

"The smallest loss was -15%, and many lost more than half. The fund launched by Current Securities recorded a -70%. Meanwhile, our Taewoo Securities fund shows a +7% return, so the clients are very pleased."

Taewoo Securities' return was only 7%.

Compared to bank deposit interest rates, it wasn't much different.

But compared to other funds, it was at least 20% to more than 80% higher.

"Most of the customers who left earlier this year have returned, right?"

"One customer even came all the way to the securities firm and cried. He wept bitterly, apologizing for not trusting Taewoo Securities."

"This crisis must have boosted the loyalty of fund subscribers."

"The number of customers who say they will trust only Taewoo Securities has increased greatly. And even though the fund posted the lowest returns after its launch, the amount of money pouring into the fund is actually rising significantly."

No wonder President Park looked so pleased.

As more funds flowed into the fund, the commissions the securities firm could earn also increased, which boosted President Park's career.

"The IT bubble isn't over yet. Stock prices will continue to decline."

"Then we should continue to focus only on stable investments like bonds."

"The fund can proceed that way, but shouldn't we be defending Taewoo Group's stock price?"

"By defense, are you thinking about buying back company shares?"

"It's partly for shareholders, but isn't it also a good chance to buy back shares at a low price?"

"Though surplus funds vary by subsidiary, there should be enough to defend against the decline. But if we use surplus funds to buy back shares, we'll lack funds for new business investments."

Share buybacks were welcome news for shareholders.

Since the number of shares traded decreased, share prices naturally rose, increasing the value of shareholders' stock.

But from the company's perspective, it was different.

Unless buying back shares was for defending management control, companies disliked using surplus funds for buying back shares just to defend stock prices.

"Isn't this the perfect timing to promote Taewoo Group as a company that cares for its shareholders? If we buy back only enough shares to defend the stock price, it won't cost that much."

"I'll need to consult with securities executives and economic research institutes, but buying back shares seems like a good strategy."

President Park had clearly become an ally.

Taewoo Securities' fund surviving the IT bubble had deepened his loyalty to me.

Perhaps for that reason, he nodded readily to any proposal I made.

"Ah! Also, may I recommend one stock? Apple's new product looks exceptional."

"I'll add Apple to the patriotic fund's portfolio. I'll think about ways to invest indirectly to avoid any issues."

President Park was truly a capable man.

Taewoo Group was one of Apple's major shareholders, and naturally, buying shares after knowing about new products in advance could cause insider trading issues.

That was why President Park said he would invest through indirect means.

"It could be complicated. Are you sure it's possible?"

"Apple's stock price was halved by the IT bubble. I know a few methods that can only be used in situations like this."

"As expected of President Park. And under no circumstances should Taewoo Securities sell Apple shares; we must hold onto them."

"How could I possibly sell the stocks you recommended, Vice Chairman? If anything like that happens, I'll report to you immediately."

Taewoo Securities had maintained the industry's number one position for several years.

And thanks to the IT bubble, it was able to widen the gap with its second-place competitor even further.

***

The season of heat had already arrived.

On days like this, I just wanted to stay in an office with cool air conditioning.

However, Jang Kyungjun, chairman of Hyundai Motors, had urgently requested a meeting, so I had to go outdoors.

"Congratulations are overdue. I sincerely congratulate you on becoming vice chairman."

"Thank you. Receiving congratulations from you, Chairman, is especially gratifying."

At first, it was just friendly words.

But as soon as a few words passed between us, Chairman Jang started to sound distressed.

"Have you heard the news? That guy Youngjun is said to be herding cattle north."

"That just shows how desperate the situation is. He claims to be carrying on Chairman Jang Youngju's will, but in the end, it's just wagging a tail for the government."

"There aren't many months left this year. You haven't forgotten the promise we made, have you?"

People with such a hurried personality.

It's not that only a few months remain; you should think you still have several months left.

"Of course, I remember. And there isn't much time left. You know very well how bad Hyundai Construction's situation is, don't you?"

"I've heard they're desperately juggling funds."

"They won't have much left to juggle now. The fund launched by Hyundai Securities posted a -77% return. If Hyundai Securities falters, where will they get money from?"

Usually, even if fund returns worsened, securities firms didn't suffer great losses.

Only the customers who invested in the fund would lose money.

But this time, it was different.

Taewoo Securities struck gold by launching a principal-guaranteed fund product.

The latecomer, Hyundai Securities, tried to catch up by launching a similar principal-guaranteed fund.

Then—boom!

The IT bubble burst, and Hyundai Securities suffered massive losses as well.

"Hearing your words as vice chairman brings me some relief."

"Hyundai Construction is very likely to default on its first bill payment."

"The next bill payment... that will be mid-October."

He was now chairman of Hyundai Motors, but just a year ago, he was co-chairman of Hyundai Group.

So Jang Kyungjun memorized the bill payment dates perfectly.

"I don't think Hyundai Construction has the funds to cover the bills due in October."

"As far as I know, the bill is only 20 billion won. Can't they raise that amount?"

"If it were only Hyundai Construction struggling, yes, they could cover it. But with Hyundai Securities and Hyundai Electronics also tottering, I think raising money will be very difficult."

Actually, there was another reason.

Though not yet revealed to the media, Hyundai Construction was hiding huge overdue receivables.

They had over 1 trillion won in unpaid receivables from Iraq, and in total, including others, they were hiding losses exceeding 2 trillion won.

"So now there really isn't much time left."

"You just need to steadily prepare for acquiring Hyundai Construction. I am already prepared to support you, Chairman."

"That's very reassuring! If I can acquire Hyundai Construction, I will fully support Taewoo Group acquiring Hyundai Semiconductor!"

Only then did Jang Kyungjun show a smile.

I also smiled naturally.

The time was nearing for acquiring the semiconductor company my grandfather had long wanted.

TL/n -

In June 1998, Hyundai Group founder Chung Ju-yung personally led a convoy of 500 cattle across the Demilitarized Zone (DMZ) into North Korea. Later that year, he sent an additional 501 cattle, making it 1,001 in total.

This act was highly symbolic: when Chung's family fled from his hometown in present-day North Korea during the Korean War, they had taken a cow without permission. By returning cattle decades later, he wanted to "repay his debt" to his homeland.

The event also paved the way for economic cooperation projects between Hyundai and North Korea, including the Mount Kumgang tourism program and other inter-Korean exchanges.