God-Given Investment Genius - God-Given Investment Genius chapter 41

41- Yuwon Telecom (9)

#41. Yuwon Telecom (9)

Unlike Vice Chairman Lee Jae-seong’s reaction, Chief Choi Cheol-gyu had some doubts.

In the first place, the reason for opposing the single-tong law was not because of domestic circumstances, but because it could affect global sales.

When the government’s legislative notice is implemented, subsidy details of manufacturers and subsidies of telecommunication companies must be disclosed transparently according to the contents of the bill, which will inevitably expose bubbles in manufacturing costs and shipping prices.

The reason this is a problem is that not a single country has enacted such laws.

If it is revealed that the yarn factory price, which could be determined flexibly depending on the economic power or distribution situation of the region, is discriminated by country, the region that was selling at a slightly higher price could file a lawsuit for discrimination by country. Some may even be subject to export restrictions.

Vice Chairman Lee Jae-seong was also very concerned about this, and the current top priority of the Ilsung Group’s strategic planning office was to block the passage of the Dantong Act.

Cheol-gyu Choi shook his head, recalling the many members of the National Assembly and officials of the Korea Communications Commission he had met to block this bill.

No matter how much he thought about it, there was no way that this bill would not harm the interests of the Ilsung Group.

Ji-hyeok’s insight and analytical skills have already been acknowledged by Choi Cheol-gyu, but he cannot help but have doubts about his economic convictions.

‘Are you saying you’re thinking the same as idiots who reject the market economy system?’

What’s more, a situation where everything he’s been doing could be in vain with just one word from a man named Kang Ji-hyeok.

After organizing his thoughts, Chief Choi Cheol-kyu slowly opened his mouth.

“Vice President, for us, it is best for the single-tong law itself to be abolished. There is no reason to take the risk and pass it.”

Vice Chairman Lee Jae-seong said with a subtle smile.

“So isn’t it more interesting? I thought it was a problem with a fixed answer, but didn’t I have a choice? We need such creative people in our work. How are you, Jihyuk Kang? I will give you the position of Vice Chairman of Ilsung Group’s strategy.”

Ji-hyeok also answered with a slight curl of the corner of his mouth, as if he liked Vice Chairman Lee Jae-seong’s evaluation.

“Unfortunately, it is difficult to accommodate other owners. However, I would like to thank you for your generous offer.”

“I expected it, but it’s so disappointing. Then, shall we learn about the options Mr. Kang Ji-hyeok presents? Oh, before that, how much does this consulting cost?”

“In terms of value, it could be said to be trillions of won, but I’m not that tight-lipped. This time, I’ll tell you at no cost. Instead, will you listen to my request later?”

Vice Chairman Lee Jae-seong nodded and expressed his affirmation.

“I don’t think I’m the kind of person who would ask for a particularly difficult favor… I’ll do that.”

“hahahaha, you look cool. As the vice president said, it will never be an unreasonable request. If you feel that this is an unreasonable request, you can refuse it.”

“Then, let’s first hear why we have to pass the Dantong Act?”

Jihyuk said with a calm expression.

“Because it is a bill that has no choice but to pass anyway.”

“hahahaha, even though Chief Choi is blocking it with all his might?”

“Yes, this has no choice but to pass regardless of Chief Choi Cheol-gyu’s ability.”

“Why is that?”

“If this bill were introduced in the National Assembly, it would most likely be rejected.”

“Hmm… no matter who proposes it, it will be the members of the National Assembly who vote.”

“you’re right. By the way, the ruling party will not reject the bill of the administration headed by the president.”

Chief Choi Cheol-kyu, who had been listening quietly, stepped forward.

“Even if the ruling party agrees, it’s the same as not having a majority, Vice Chairman.”

Jihyeok said.

“The problem is that when you think about this bill ideologically, it is a bill that would have been initiated by the opposition party rather than the ruling party. Director Choi, do you know the ideological difference between the ruling party and the opposition party?”

“Aren’t they conservative and progressive?”

“you’re right. If so, how would you describe the difference between conservatives and liberals in one word?”

“that······.”

“As you well know, conservatism is freedom, progress is equality. Although the ideological boundaries are a bit blurry now, it will be difficult for each of us to escape from our own tendencies. So this bill has no choice but to pass in the end. No matter how much Chief Choi Cheol-gyu coaxes opposition figures, they will eventually agree due to ideological judgment.”

Vice Chairman Lee Jae-seong said with a slightly serious face.

“Are you saying it’s just a matter of time after all…?”

Choi Cheol-kyu strongly objected.

“No, Vice President. i can stop it I will definitely do that.”

“First, let’s listen to Kang Ji-hyeok’s story. Kang Ji-hyeok, is that the reason?”

Jihyeok said.

“There are other reasons, of course. Companies that benefit from the Dantong Act will do their best to pass the bill, and that is probably why politics is always more difficult to defend than to attack.”

“I don’t think it’s convincing enough that we should pass the bill.”

Vice Chairman Lee Jae-seong was generous in his evaluation of Ji-hyeok, but apart from that, the question was sharp.

“Ilsung Group had the wrong strategy in the first place. You should have thought of leading the bill, not just opposing it. All bills have loopholes, and if you dig into those loopholes, you can make up for the damage with just one or two sentences.”

“Ilseong’s strategy itself was wrong… hahahaha, this will make Chief Choi’s face burn.”

“From the standpoint of keeping it, I would have had no choice but to do so out of urgency. I was in a third person’s position, so I was able to look at the situation a little calmly. If I had made up my mind to use the political power of the Ilsung Group to change the content of the bill in a way that would benefit the group in the first place, I wouldn’t have been thinking about it like I am now.”

“So what are you going to do?”

“You have to fix the core. In fact, the core of this bill is the part that requires separate disclosure of subsidies from manufacturers and distributors. And the subsidy is capped at 15% of the factory price.”

Vice Chairman Lee Jae-seong nodded and said.

“That is what we are most concerned about.”

“If you change your thinking a little, the solution is surprisingly simple. Disclose the amount of the subsidy, but change the wording so that the manufacturer and distributor’s subsidies are aggregated and disclosed, and the upper limit of the subsidy can be changed to a flat rate rather than a percentage. Then, whether it is a low-end or premium phone, it will not be easy to infer the exact manufacturing cost. The amount I think is about 300,000 won would be appropriate.”

Lee Jae-seong looked back at Choi Cheol-gyu with twinkling eyes.

Choi Cheol-kyu was already running a simulation in his head, and he wasn’t even aware of Lee Jae-sung’s eyes.

Jihyeok continued.

“Within the amount of 300,000 won, there will be no sanctions in the global market unless you know how much subsidy the manufacturer gives and how much the telecommunications company gives. And… if this bill is decided like this, it will be rather beneficial for Ilsung Electronics.”

Vice Chairman Lee Jae-seong tilted his head and asked back.

“You know we have nothing to lose, but do you mean gain?”

“Of course, in the short term, sales will decrease as free phones such as ultra-low-priced phones and bus phones will disappear. Instead, the premium phone market will grow at an overwhelming rate.”

If you put a margin on a 100,000 won bill, it would be 10,000 to 20,000 won, but if you add 100,000 won to a 1 million won bill, it doesn’t seem to make a big difference.

This means that even if the number of units sold decreases, the net profit will increase.

But unexpectedly, Vice Chairman Lee Jae-seong’s expression slightly distorted.

“Are you worried about the Avon?”

Currently, the largest share of the global premium phone market is, of course, the A-phone.

The Korean market with reduced subsidies will eventually be reorganized into a market where premium phones become mainstream, and if the bill is passed and sold under the same conditions, it is difficult for Ilsung Electronics to guarantee victory.

No, it was clear that it would lose more than half of the premium phone market.

Jihyeok said.

“I don’t know about the global market, but there is a way to protect the Korean market.”

“If the bill is passed, the Korean market will be shaken first…”

“Aren’t there three telecommunications companies in Korea anyway? Among them, Yuwon Telecom dominates more than half, so shouldn’t Yuwon Telecom be on the leash?”

Vice Chairman Lee Jae-seong said with a twinkle in his eyes.

From noble mtl dot com.

“It would be perfect if I could do that, but…”

Lee Jae-seong calculated that if Yuwon Telecom could be put under appropriate pressure, it would be possible to prevent consumers from leaving just by discriminating against mobile phone subsidies from Aphone and Ilsung Electronics.

The problem is that he lost his means of pressure as the head of the semiconductor division because of the man in front of him.

Lee Jae-sung said with a faint smile.

“It looks like Yoowon Group Chairman Jin made a big mistake with Kang Ji-hyeok. I’m surprised. Chairman Jin is not the kind of person who would forget Eun-won that much.”

Jihyuk smiled and said.

“You haven’t made any major mistakes. However, from my point of view, I approached with good intentions, but should I say that I am a little disappointed because I was hit in the back of the head? He probably doesn’t even know what he did.”

“You have a surprisingly calm side.”

“well. I just don’t want to appear complacent. Anyway, I will do the work of putting the leash on the Yuwon group. Instead, Ilsung Group should pass the bill as soon as possible.”

Vice Chairman Lee Jae-seong turned his head and asked Choi Cheol-gyu.

“How long will it take?”

“Assuming that the bill is amended and an extraordinary National Assembly is held to pass it, it will take about a month.”

Vice Chairman Lee Jae-seong said with a grin.

“I guess so.”

Jihyeok replied with a wide smile.

“great. The leash to be put on Yuwon Telecom will soon be confirmed through the media.”

“Is there anything we can do to help?”

“Ah… if possible, could you prevent the pension fund from exercising its voting rights?”

Vice Chairman Lee Jae-seong was surprised and asked back.

“Could it be… Yuwon Telecom?”

Jihyuk said with a sly smile.

“Not to that extent, just to raise some awareness. Would that be possible?”

“It’s not that I’m asking you to be on the other side, it might be possible if it’s neutral. hahahaha, I have a feeling this is going to be an interesting spectacle. ha ha ha.”

“I have finished what I have to say to Kang Ji-hyeok. Would you like to meet the Master of Cheongdam?”

Vice Chairman Lee Jae-seong waved his hand and said.

“I am not interested in the four weeks. If it is a fate that cannot be changed with my money and power, it will be useless to know, and if it is something that can be changed, there is no need to worry about it.”

It was a really crazy answer, but it was not easy for Ji-hyeok to refute because it was Vice Chairman Lee Jae-seong’s words.

“All right. If you have any questions at any time, you can call me here.”

After accepting the business card containing Jihyeok’s personal number, Vice Chairman Lee Jae-seong stood up and asked the last question.

“By the way, Mr. Kang Ji-hyeok. What were you going to do if I continued to crush the bill after listening to Kang Ji-hyuk’s advice?”

Jihyuk replied with a smile.

“The most common alternative would be to visit the SG group. Ilsung Group is not the only mobile phone manufacturer in Korea. In particular, doesn’t SG Group have both carriers and manufacturers? It would have been easier to move.”

“hahahaha, is that how you talk?”

“Critically, I never thought that the vice president would reject my proposal.”

“What if I refused even one thing?”

“If you refuse, the ‘Report on Global Smartphone Market Share Inventory’ that I am writing now will never see the light of day.”

Vice Chairman Lee Jae-seong and Chief Choi Cheol-kyu looked like they had been hit in the head with a hammer, while Ji-hyeok smiled with a calm expression.

It wouldn’t have happened if they had just stood up, but now that they heard Ji-hyeok’s last words, the Ilsung group had no choice but to move according to Ji-hyeok’s intention.

***

A week later, in the office of the vice president of Ilsung Group.

Director Choi Cheol-gyu mobilized all the staff of the Strategy Office and came to Vice Chairman Lee Jae-seong with a hastily revised ‘Dantong Act’ bill.

Vice Chairman Lee Jae-seong spoke first.

“This is the new law. Is the discussion with the Korea Communications Commission over?”

“Yes, Vice President.”

“Did you obey meekly at the Korea Communications Commission?”

“That’s… It was a little embarrassing because he listened to our conditions so meekly.”

“is it so?”

“Anyway… it seems that Mr. Kang Ji-hyeok was right. The will to carry out this bill in the KCC was great. In the words of the second vice minister who had a direct interview, it is an issue that the Blue House is directly concerned with…”

Vice Chairman Lee Jae-seong suddenly burst into laughter.

“hahahaha, isn’t it really magical?”

“I had a gut feeling that he wasn’t an ordinary person, but I didn’t expect it to be to this extent. It wouldn’t have been particularly tied to the government.”

“Ah… He is the person I want so much. If I said I would share my share, could I bring it?”

Cheol-gyu Choi exclaimed in surprise.

“Vice… Vice President, that’s not okay. The succession structure has not yet been completed, but to share the stake. It is absurd.”

“It’s because I think it would be easy for him to sort out my succession structure.”

It was said with a smile, but it was a rebuke to Chief Choi Cheol-gyu, who had not yet been able to properly come up with a solution.

“I’m sorry, Vice President.”

“Anyway, I am very curious. Kang Ji-hyeok How much of Yuwon Telecom’s stake did that friend have? Wouldn’t it be necessary to secure at least 4-5% to get a seat in the medical board?”

“Given Mr. Kang Ji-hyeok’s financial power, he seems to have secured more than 3% even if 5% is unreasonable. If we used 200 billion won from us and leveraged it, it is expected that up to 4% is possible.

At that time, Cheol-gyu Choi’s subordinate, who was waiting outside the vice-president’s office, knocked urgently on the door of the vice-president’s office.

– Smart smart! smart!

The eyes of the Strategy Office employee who jumped in even before Vice Chairman Lee Jae-seong’s permission was given were filled with absurdity.

“Vice President, Manager. I’ll turn on the TV for a while.”

Choi Cheol-kyu frowned and said.

“What is it that makes you so excited?”

“I received a text message from the securities company… Ah, the news is coming out now.”

Lee Jae-seong and Choi Cheol-gyu turned their heads to the TV screen at the same time.

– Breaking news.

– This morning, an investment company called ‘Vertical Movement’ announced that it had acquired a 6.7% stake in ‘Yoowon Telecom’, the largest telecommunications company in Korea.

– In addition, ‘Vertical Movement’ CEO Jeong Yu-jin officially requested the convocation of a shareholders’ meeting, revealing that he had acquired 4.7% of the voting rights acquired by ‘More Value’, a well-known activist fund.

– CEO Jeong Yoo-jin participated in the board of directors of Yu-One Telecom, whose shareholder dividends compared to profits were remarkably low due to meaningless treasury stock purchases, and announced that he would do his best to represent the interests of shareholders, and said that he was considering hostile M&A if necessary.

– Along with the announcement of Vertical Movement, Yuwon Telecom’s share price skyrocketed to the upper limit, exceeding the market cap of 13 trillion…

Chief Choi Cheol-gyu, who was watching the news, couldn’t close his gaping mouth.

Lee Jae-seong was also surprised.

“Chief Choi, I was foolish.”

“yes? What do you mean?”

“Isn’t the bowl different to serve as a farmhand in the first place? Ha ha ha ha ha.”

Chief Choi Cheol-kyu had no choice but to admit it.

The ability to mobilize funds close to trillions of dollars and personal connections that can influence super-large funds such as More Value.

In the first place, he was a person who deviated from Choi Cheol-kyu’s common sense.

Vice Chairman Lee Jae-seong said.

“Chief Choi, let’s help out. Kang Ji-hyeok Ask that friend and send it from an overseas account if you need funds.”

“How much is the amount…”

“Please lend him as much as he wants, as much as he says he needs.”

“Is that so?”

Vice Chairman Lee Jae-seong said with a smile.

“This is a friend who will soon become a typhoon in the business world. Shouldn’t we get to know each other in advance?”