He is Already a Tycoon at a Young Age! - Chapter 39



Only Noblemtl

#039

[Yes, in the kimchi refrigerator market, Samjung Electronics’ kimchi refrigerators account for more than 80% of the market. The reason they are not raising prices is because they are pressuring GL Electronics to withdraw from the kimchi refrigerator business. Samjung Group and especially Samjung Electronics will probably do whatever it takes to win against GL Group and GL Electronics. Your father, the president of Samjung Electronics, may seem like a gentleman to others, but he changes 180 degrees when he makes up his mind.]

“That still won’t work.”

“You have to explain to me exactly why it won’t work, and it has to be justifiable.”

“My father is already excited because it’s GL Electronics, but do I have to explain the reason?”

“Ha, hahaha! Jisung, you certainly seem to have a knack for swaying people’s hearts, but you need to have a good reason to convince me.”

“I, not Pacific Investment Corporation, will form a consortium and enter the battle to acquire Korea Semiconductor. I intend to turn this war, not my father’s war, into a war against GL Electronics that I am waging. I think that in order to trample on the pride of GL Electronics, or rather, GL Group, the family of the owner of Samjung Group must lower their status.”

“You’re talking about revenge to me too.”

“Yes, GL Electronics will be led by the GL Electronics CEO in the acquisition of Korea Semiconductor. However, I will be in charge of Samjung Group. If the GL Electronics CEO loses to me, who is young, even though he is the eldest son of the GL Group, his position will inevitably be shaken. And I have already secured 250 billion won. If Samjung Group participates in the acquisition of Korea Semiconductor, the sale price of Korea Semiconductor will increase even more.”

“Even if it’s not Samsung Electronics, Daehyun Electronics will probably also try to acquire Korea Semiconductor.”

“But I can win. And now, my father should focus more on Samsung Electronics’ mobile phone business. When I analyze it, I think the key to explosively increasing semiconductor demand is mobile phones. My father will eventually overcome the semiconductor industry recession.”

My father looked at me intently at my words.

“Are you sure?”

“Yes, I have never been insecure.”

“Thinking like that would be your greatest weakness.”

My father never forgot his advice.

“We are trying to fix it.”

“Are you saying there is 250 billion won in acquisition funds?”

“Yes, father, and by the end of May, we will have secured about 100 billion more, and by the end of June, if my investment in derivatives related to the decline of the Japanese Nikkei index that I have invested in the future is successful, we will be able to secure an additional 500 billion or more.”

“Don’t be too confident.”

“Yes, father.”

“Samsung Electronics, please step back for now?”

“Yes, only then can Pacific Investment Corporation, which later has Korea Semiconductor as its subsidiary, be selected to privatize the mobile communications division of Korea Telecom, which Jin Kyung Group had no choice but to give up.”

“Jisung, are you telling me that you are going into the telecommunications business?”

For the first time, my father looked surprised.

“yes.”

“Okay, Samsung Electronics will not participate in this Korea Semiconductor takeover battle.”

If this happens, we can enter into a war with GL Electronics and the conglomerates again.

‘Samjeong Group through me.’

Lower your level.

GL Electronics has the highest probability of becoming the group’s successor, so its president is GL Electronics.

If the GL Electronics president fails to acquire Korea Semiconductor, his management ability will be questioned.

* * *

May 18, 1993, GL Electronics President’s Office.

“Samsung Electronics clearly stated its intention not to participate in the acquisition of Korea Semiconductor?”

The president of GL Electronics asked his close associate, Director Park, with a look of incomprehension.

“Yes, they are giving up on the acquisition of Korea Semiconductor and are focusing on the mobile phone business.”

“You’ve already purchased land for a semiconductor production plant in Pangyo, and now you’re giving up on entering the semiconductor business again?”

“That’s a bit strange.”

“Samsung Electronics needs to enter the semiconductor business in order to expand its mobile phone business?”

The president of GL Electronics was always suspicious.

“Sir, isn’t it possible that the president of Samsung Electronics is avoiding a confrontation with you?”

“Avoiding confrontation?”

“Yes, GL Electronics is competing for the top 1 or 2 spots in the non-memory semiconductor sector in Korea. So, it may be intentionally trying to avoid competition.”

“Is that really so?”

“If Samsung Electronics enters the semiconductor business, the president will likely return the favor to you, and it is highly likely that they will do the same to Samsung Electronics. In fact, the global semiconductor market is currently saturated, so it is time to grow bigger and enter the chicken game. In this situation, it would be unreasonable for Samsung Electronics to enter the semiconductor business.”

The reason GL Electronics jumped into the acquisition battle as soon as Korea Semiconductor, which produces memory semiconductors, was put up for sale due to worsening management was to increase its size and, as everyone expected, because the global semiconductor market was entering a recession.

“It’s a bit much, but you’re not my brother. When the president of Samsung Electronics entered the semiconductor market, I tried to punish him properly because I had a lot of trouble with him, but it’s too bad, hahaha!”

“Yes, now it seems that the only thing left is the takeover battle with Daehyun Electronics.”

“That’s what happened, too bad, hahaha!”

After acquiring Korea Semiconductor, GL Electronics plans to take over all small and medium-sized domestic semiconductor companies through a low-price, high-volume offensive.

“How much is the company’s reserve fund?”

“It’s 300 billion.”

“With 300 billion, we can easily survive in the semiconductor chicken game. We can conquer everything this time and become the number one semiconductor company in Korea. Even if the semiconductor market enters a recession, that recession will end in 2~3 years.”

The president of GL Electronics judged that the global semiconductor market was entering a recession and predicted that the recession would last for two to three years. This was GL Electronics’ first and most fatal misjudgment.

“Yes, three years will be enough to dominate the domestic semiconductor market.”

The president of GL Electronics laughed at Director Park’s words.

* * *

May 19, 1993, Pacific Investment Corporation office.

“Jisung, in the end, you gave up on your brother.”

CEO Park Sun-geun told me.

“Yes, my father is always a reasonable man.”

“That’s true, but if Samsung Electronics wants to become the number one electronics company in Korea, it must enter the semiconductor industry.”

“That’s why I’m thinking of advancing.”

“Are you saying that Pacific Investment Corporation is entering the electronics business? Not just acquiring Korea Semiconductor?”

“Yes, GL Electronics must be feeling sorry by now. Samsung Electronics has officially announced that it will not participate in the acquisition of Korea Semiconductor.”

“That would be true. But it would be another matter for Pacific Investment Corporation to establish an electronics company.”

“If my uncle takes office as the president of Taean Electronics, the president of GL Electronics will be surprised, and if he announces that he is participating in the takeover of Korea Semiconductor, he will be even more surprised.”

Director Park Sun tilted his head at my words.

“Jisung-ah, do you think you’re acting too grandiose as if you’re trying to impress others?”

“Do you see it that way?”

“It seems to me like this.”

As expected, my great-uncle is different.

“Then what do you think I should do, uncle?”

“You by any chance?”

It seems that my great-uncle has now come up with the plan I’m thinking of.

“Establishing an electronics company is a serious undertaking.”

“The rest aren’t like that?”

“I plan to only increase the acquisition funds to the maximum.”

I say this because it’s just me and my great-uncle here.

“I told my uncle that a long-term semiconductor recession is about to begin, beyond imagination.”

“Ji-sung, you told your father, the president of Samjung Electronics, and also the chairman that you would personally jump into the acquisition of Korea Semiconductor.”

“Yes, that’s right, but how do you fool the enemy without fooling your own?”

“Ha, um, the acquisition team for the acquisition of Korea Semiconductor is waiting for you in the living room right now.”

“So, uncle, you should manage your expression well. The selling price of Korean semiconductors should be raised by more than 300 billion won. That itself will eventually hold back GL Electronics. And American and European semiconductor companies will soon be selling semiconductors at ridiculous prices. They are entering a game of chicken.”

“Based on the information I have, it looks like GL Electronics will also join the chicken game. Otherwise, there would be no need to acquire Korea Semiconductor.”

“It would be a mistake to think that they could endure it. GL Electronics probably thought that the semiconductor recession would end in 3-4 years and secured funds to endure it in advance. However, in my opinion, the semiconductor market recession will last more than 5 years. They will endure it and then collapse.”

Five years later, the IMF foreign exchange crisis will hit South Korea.

‘At that time, the government led the exchange between companies.’

At that time, GL Electronics had to give up its semiconductor division.

The semiconductor division was taken over by Daehyun Electronics. Then Daehyun Electronics went bankrupt.

“Then why establish an electronics company?”

Samjung Group already has a semiconductor company. That’s why my uncle, who is the general manager, is asking me.

“If I tell you the reason, will you be surprised?”

“Jisung, you’ve surprised me more than once or twice.”

“To compete with Apple.”

“With Apple?”

“Yes, I will stop there for now. I need to meet the Korea Semiconductor acquisition team that is waiting for me.”

I got up from the chair and went out into the living room.

“Hello. My name is George Sung, the largest shareholder of Pacific Investment Corporation.”

When the Korea Semiconductor acquisition team came to see me, they all looked surprised at the fact that I was young.

* * *

Samjeong Group Chairman’s Office.

The chairman of Samjung Group had his eyes tightly closed.

‘Isn’t that guy Ji-seong the type of guy who wouldn’t fight a losing battle?’

When his grandson Ji-seong came to him and said that he would enter the semiconductor business himself, he was surprised, but as the days passed, the chairman of Samjeong Group became increasingly suspicious of Ji-seong’s intentions.

“What is the overseas atmosphere related to memory semiconductors?”

The Chairman of Samjung Group, who had been keeping his eyes tightly shut, opened them and looked at the head of Samjung Group’s strategic planning office who had been waiting.

“Semiconductor production is said to be saturated, and the memory semiconductor sector is particularly severe. Accordingly, the prevailing analysis is that large overseas semiconductor companies are entering a chicken game.”

“okay?”

“Yes, in fact, I think it is no exaggeration to say that the semiconductor chicken game has already begun. That is why Korea Semiconductor, which was focusing on the memory semiconductor business, is going through the sale process due to worsening management.”

“Doesn’t GL Electronics or Daehyun Electronics know about this situation?”

“I think it’s a survival strategy.”

“Acquisition for survival?”

“Yes, if the major semiconductor companies in the US or Europe launch a low-price offensive, they will have to jump into the low-price offensive in order to not lose their market share. In order to do so, they will have to increase their production scale. It seems that GL Electronics is thinking of acquiring Korea Semiconductor and entering a chicken game. This is probably a strategy to destroy and absorb domestic memory semiconductor companies.”

“why?”

Episode 40