He is Already a Tycoon at a Young Age! - Chapter 57



Only Noblemtl

#057

“Mr. Major Shareholder, it is true that the valuation has been overvalued. And I don’t think there is a need to find a way to dispel such anxiety. Stock prices rise from expectations, and Taean Communications is sufficiently providing expectations. And Taean Communications is producing a new model of wireless pager along with the production of cassette players, so I think it will be able to calm the anxiety a little. However, I think this state of anxiety is not bad.”

“Isn’t this state of anxiety not a bad thing?”

“Yes, the public sale of the mobile communications division has been finalized for April 6th of next year. Until then, Taean Telecom’s stock price will continue to rise. As long as the largest shareholder does not sell when Taean Telecom’s stock price reaches its peak, there will be no crash. Largest shareholder.”

This is Kang Cheol-jung, the president of Taean Communications, whose eyes change drastically.

“Yes, sir.”

“If you judge that Taean Telecom’s stock price has reached its peak, do you plan to sell a certain amount of shares on the stock market?”

It has already gone up 50 times.

‘I own 71% of the shares.’

That’s why I ask this question.

“I will not grow up to be an immoral adult. Taean Telecom’s goal is to transform into the largest telecommunications company in South Korea.”

“If that’s the case, then I’m very glad. And since that’s the case, I have something new to report to you.”

“What is it?”

As for general management, he left all matters to Kang Cheol-jung, the president of Taean Communications. He also said that he had to inform me of any special matters.

So now is the special time.

“I would like to request the withdrawal of the plan to increase the number of new subscribers to Taean Telecom’s wireless pager.”

“You’re giving up market share?”

“yes.”

This is Kang Cheol-jung, the president of Taean Communications, who speaks decisively.

‘This is why I appointed Kang Cheol-joong as the president of Taean Communications.’

He had accurate judgment and predictive power.

‘Are you passing the secret test?’

In fact, I also thought that the number of new subscribers to Taean Telecom’s wireless pager should not be increased any further. However, in order to test President Kang Cheol-jung’s judgment and foresight, I instructed him to do so as soon as he was appointed.

“What is the reason?”

“The number of mobile phone subscribers has been increasing since the beginning of this year. When the mobile communications business is privatized next year, we will provide consumers with a service to sell mobile phone prices in installments in partnership with mobile phone manufacturers. For example, if you sign a three-year contract with a telecommunications company, you can get a free mobile phone.”

A service given away for free?

That means it’s not free.

‘That’s right. There’s no such thing as a free lunch.’

This is a way to incorporate the cost of a mobile phone into your telecommunications bill. Of course, consumers will feel like it’s free.

“Such affiliate services will emerge.”

“That’s why, if that happens, the mobile phone penetration rate will skyrocket. Since you can get a mobile phone worth over 1 million won for free when you open a mobile phone contract with a telecommunications company, young consumers who are sensitive to trends will rush to Taean Telecom stores to open a mobile phone contract.”

“I guess so.”

“If that happens, the pager business will become a dying business. And it will be eliminated. Even if you try to close the pager communication business later, you won’t be able to. You have to keep it if your existing customers don’t cancel. That’s my analysis. So the market share of pagers is meaningless.”

“That may be true.”

“Yes, so I think we should stop making pagers. It will eventually become a really painful business unit. When cell phones become common, no one will use pagers. They will probably be used only by hospitals and special workers for paging.”

“Your analytical skills are amazing and accurate.”

“I’m sorry, our largest shareholder asked me to find a way to increase our market share in pagers, but I gave him the opposite report.”

Another strength of President Kang Cheol-joong is his humility.

‘Of course, everyone stands before capital.’

Be humble.

“No, you are right. I will pass it on right away.”

“Yes, in that case, I will first decide on a management policy of maintaining the status quo. And I have one more thing to report to you.”

“What is it?”

“What does the largest shareholder think about the Internet phone business?”

“Internet phone business?”

“Yes, it would be great to develop and commercialize a phone that makes free calls using the Internet.”

What if Taean Telecom develops an Internet phone?

It will surpass Samsung Electronics’ market capitalization within a year.

‘and.’

You’re doomed.

When I think back to early 2003, the biggest stock manipulation case was the stock manipulation case of an Internet phone manufacturing company.

It was probably a new technology.

‘I’m going to do this?’

Should I do it?

Should I stop?

‘And on top of that, we’re bringing it forward by 10 years.’

The important thing here is that there is no technical ability.

‘Saerom Technology developed a dial pad.’

Even international calls were free. So the stock price, which was about 1,000 won, went up to 150,000 won if I remember correctly, so it went up 150 times, and if you invested only 1 million won, you could make 150 million won. Just two months after reaching its peak, it was reported that international calls were not perfect, and the fraudulent accounting scandal also occurred, causing the stock price to plummet to 1/10.

‘The stock price that was 150,000 won became 50,000 won.’

Everyone except the initial investors failed. Since individual investors often get on the stock market when it is skyrocketing, those who fail are individual investors and are therefore called ants.

Why ants?

Ants die when stepped on.

“We currently do not have the technical skills. I would like to develop it through the Taean Communications Research Department.”

“So you’re saying you’re going to develop a technology that doesn’t exist and apply it to your business?”

“Yes, that’s right. Companies grow only when they invest in the future.”

I nodded to President Kang Cheol-jung’s words.

“My grandfather, the chairman of Samjeong Group, said that I was a contradiction when he defined me.”

“yes?”

When I suddenly mentioned the word contradiction, he asked back with a look of incomprehension.

“He said I could be the strongest spear or the strongest shield. But he also said that if the spear pierced the shield, it could lead to a situation where we would be in a desperate situation, and he warned me to be careful.”

“ah!”

“Taean Telecom needs to transform itself into a mobile telecommunications company. If it becomes the first in the country to launch an Internet phone business, that itself is a contradiction.”

“Did you know that this is the first in the country?”

President Kang Cheol-jung is surprised by my words.

“Yes, because you said that there is no technical capability. So it has to be the first in the country. I think it is a new business division that President Kang Cheol-joong is thinking hard about establishing, but I think it is not possible.”

What happened in 2003 shouldn’t have happened in 1993.

Of course, it will take at least 5~6 years to develop the technology. So, if Taean Telecom starts preparing for its Internet phone business now, it will be almost the perfect time.

‘Taean Communications is becoming a new technology.’

If that happens, it will become my dark history.

Of course, there will be no creative accounting, and if we develop an Internet phone, we will spend a lot of money on research to achieve perfect call performance.

‘Even so.’

Who uses the home phone?

As mobile phones become widely popular, the number of home phone subscribers is decreasing. In such a situation, why buy an Internet phone, which is bound to be expensive?

Consumers never buy.

“If you think of it as a business for the future, things might be different. Consumers will feel the burden of telecommunications costs in the future.”

“I guess so.”

“There is a saying that if it is free, even lye is drunk. If you install an Internet phone on your home phone, the communication fee will be free. Furthermore, if Taean Telecom achieves the number one position in the telecommunications business market share, it will become invincible in the telecommunications business sector.”

“That could be true. But Mr. Kang Cheol-jung.”

“Yes, our largest shareholder.”

“Rather than innovating by turning your home phone into an Internet phone, why not start developing software that can provide free text messaging service on your mobile phone?”

“yes?”

“Wouldn’t it be great if you could access the Internet on your mobile phone?”

At my words, President Kang Cheol-jung looked at me for a moment as if time had stopped.

“You can use the Internet on your mobile phone?”

President Kang Cheol-joong asked me back with a look of disbelief.

‘Not necessarily a cell phone, though.’

Portable Internet access devices have already been created, although they are still used more by the military than by civilians.

“Samsung Electronics’ goal is to succeed in development and commercialization within 10 years.”

Ten years later, it will be 2003.

Smartphones became a global success in 2008.

‘Still, Samsung Electronics is ahead by 5 years.’

Now, Samsung Electronics is half-assed, without a semiconductor division.

If we move forward five years, we will become a first-class electronics company.

‘I’m true.’

When I first heard about the Internet phone business from CEO Kang Cheol-jung, the first thing that came to mind was free messenger.

‘In the Republic of Korea.’

There is a breakup.

China has QQ, America has Facebook.

‘We don’t have the technology to make them right now, though.’

If I stay still, someone else will make history just like it was. But if I prepare now, it will be mine.

‘Investing in Tencent, starting with QQ.’

I will also invest in Alibaba.com’s Jack Ma. In fact, if a reincarnated person who knows the future does not invest in Tencent, Alibaba.com, and Amazon.com, he would be a fool.

‘And there are Tesla cars, too.’

Of course, it’s not something that can be started right away.

“Mr. Kang Cheol-joong, how about giving up the Internet phone business and starting to develop software that can provide free text messaging services?”

“Free text service?”

“You told me that within 10 years, cell phones with Internet access would be developed.”

“It won’t be easy. It’s difficult considering the size of the mobile device.”

“Science advances, you know. Anyway, people like free stuff, and as you said, they will feel the burden of communication costs, so let’s develop a program that allows free messaging, not phone calls.”

“Are you really going to embark on that development project?”

“Yes, the US will take the lead in building and controlling the Internet industry. It would not be an exaggeration to say that local US industries, except for finance and weapons, have been taken over by Japan. Japan produces expensive products, and South Korea is closely following Japan. China will produce and sell low-priced industrial products. That is why the US must build a new world, and that will be the Internet world. Along with that, copyright will be strengthened.”

“The Internet world?”

Starting in the United States in 1995, the IT boom began.

‘I’ve already instructed you to analyze it.’

I plan to invest in the IT boom and the dot-com bubble.

‘Then you get to eat it twice. Hahaha!’

I looked at Kang Cheol-jung, the president of Taean Telecom, with that thought in mind.

“If you want to seize the future, securing new technologies comes first. That’s how you lead the future.”

Episode 58