I Am the Third-Generation Heir of a Conglomerate - Chapter 502



Only Noblemtl

502. Fierce Battle (2)

A leisurely afternoon.

After a long time, I enjoyed a cup of coffee with Vice Chairman Han and watched the news.

“We’re finally starting to hear news about Nicola.”

“David has moved the media. And several financial firms on Wall Street belonging to the financial tower are also moving, so the issue is growing bigger.”

At that moment, the news was showing the press release we had created.

A hydrogen truck leisurely going down a hill was compared in detail with a video that was manipulated to make it look like it was running on flat ground using power.

“If you’re going to manipulate, do it well. You’ve managed to attract investment with a trick that only kindergarteners would do.”

“There’s been a huge uproar. As a result, hydrogen-related stocks are plummeting, while electric vehicle-related stocks are rising.”

“Did you have some fun at the financial tower?”

“I made a small profit, not a lot.”

Should we say that we live in an era where manipulation is in vogue?

In particular, manipulation was rampant in the automobile industry.

From data manipulation by Japanese automakers to hydrogen truck manipulation.

“Musk must be feeling a lot better now. He didn’t seem too happy about the hydrogen trucks.”

“Wouldn’t they be cheering by now?”

He did not become a nobleman.

As soon as I brought up Musk, I got a call from him.

[Mr. Kim! Did you see the news about Nicola? Was it by any chance the news you broke?]

“I did make the request. But I had no idea that you would do something like this.”

[Do you know how refreshing it is to see the news? It feels like my heart is lighter than when I met Yugoslavia!]

It was Musk who sounded so good.

After talking about his feelings for a while, he finally expressed his gratitude again.

[If you ever come to America again, be sure to come visit me. I’ll treat you very well.]

“Just the heart is enough.”

[Or let me try to schedule a trip to Korea. I have to go to the site now, so I have to hang up the phone.]

Musk hung up the phone after chatting away like a storm.

It certainly seemed that the more certain a person was in his or her own world, the more he or she talked.

“Sir, Musk posted on social media.”

“You said you were going to the site, but I guess you’re on social media.”

Musk’s social media post was brief.

[Goodbye, scammer, I don’t have to eat Yugovin today.]

Musk posted his feelings in their entirety on SNS, and we could feel once again how happy he was.

“Tesla’s stock price fell a bit when Nikola came up. So I think there’s quite a bit of accumulation.”

“Isn’t he such an honest person? Sometimes I envy Musk’s personality.”

“He is popular because he is honest and emotional. However, he is also too risky to lead a company. Which shareholder would like a CEO who can make the stock price sway with a single word?”

It wasn’t really the style of a chairman of a large Korean corporation.

Korean conglomerates were always required to present a dignified appearance and avoid exposure to the media as much as possible.

“Korean corporate leaders prefer to move from behind rather than from the front. That’s also more effective.”

“Are you talking about Vice Chairman Oh Yong-jae of Samjin Electronics? I understand that Vice Chairman Oh Yong-jae has an appointment with you today.”

Oh Jae-yong, Vice Chairman of Samjin Electronics.

I got a call from him a few days ago, and we agreed to meet at Captain Kang’s restaurant today.

“The US and China are fighting fiercely, so Samjin Electronics must be anxious. And there is no one to consult with on these issues.”

“Are you willing to help Samjin Electronics?”

“It depends on how it turns out. I plan to meet him first and then decide.”

Taewoo Group and Samjin Group.

It was a relationship between the number 1 and number 2 businessmen in Korea.

Of course, a fierce rivalry was bound to form, but it was better to join hands to deal with the giant countries of the United States and China.

But I have no intention of holding hands just like that.

My top priority is the benefit of Taewoo Group. If it is going to be detrimental to the group, I will boldly let go.

***

Captain Kang’s restaurant annex.

At the annex building, which I visited after a long time, Vice Chairman Oh Yong-jae of Samjin Group had already arrived.

He greeted me with a worried face, and I could feel the cold sweat on his hands as he shook my hand.

“How have you been?”

“How can we get along in this day and age? Aren’t Korean companies suffering because of the fight between the US and China?”

Vice Chairman Oh Yong-jae begins to complain.

He couldn’t say these things to just anyone, so he confided in me.

“The Taewoo Group also has many concerns. Both the United States and China are important customers to the Taewoo Group. But if the war continues, won’t there be a situation where they have no choice but to make a choice between the two?”

“I can already feel it. The either-or atmosphere is getting stronger, and it’s coming from the United States in particular.”

It’s just pressure now though.

It was the United States and China that would sooner or later go beyond pressure and resort to threats.

“It’s a situation where you can’t stand in line on either side.”

“So, shouldn’t we join forces at times like this? Especially if semiconductor companies join hands, we can maintain a certain level of balance.”

Vice Chairman Oh Yong-jae is the first to make the proposal.

They were hoping to create a semiconductor alliance to deal with the US-China trade dispute.

“How would you like to join hands?”

“If we put our lips together and raise our voices, wouldn’t we be able to respond to some extent?”

“Would it be possible to respond by raising the same voice?”

It wasn’t a story that was completely without merit.

If you combine Samjin Electronics and Taewoo Semiconductor, they would account for 38% of the global memory market.

Before the regression, it was at the 25% level, but with my intervention, I was able to raise the share to 38%.

“There are rumors that the United States will soon take measures to prevent Chinese companies from purchasing semiconductors. If that happens, we will also not be able to export semiconductors to China.”

“I guess that’s how it’s going to be, because we can’t produce semiconductors without American technology.”

Semiconductors were something that could only be made with American technology.

That is why, when the US requested a ban on the export of semiconductors containing American technology to China, we had no choice but to accept it.

“If both Samjin Electronics and Taewoo Semiconductor lose the Chinese market, their sales will be cut in half.”

“So, are you saying that we should create a Korean semiconductor industry association to defend ourselves?”

“Shouldn’t we do something like that?”

It was empty.

However, I could feel Vice Chairman Oh Yong-jae’s desperation and earnestness.

There was absolutely no way to overcome the current crisis that way.

As a large Korean company that was only concerned with survival among the major powers, its thoughts were limited to defense.

“First, it would be good for the U.S. and China to clarify what they want from this trade war. In particular, when it comes to semiconductors, both sides clearly want what they want.”

“The U.S. would want to block China’s semiconductor expansion, while China’s goal would be to succeed in its semiconductor expansion, right?”

Semiconductors are a strategic weapon.

Naturally, both the United States and China could not help but react sensitively to semiconductor technology.

“The US wants China to just do manufacturing. But China wants to do everything from design to manufacturing.”

“Although China’s semiconductor technology is still at least five years behind, it is catching up at a rapid pace, which is enough to make the U.S. feel a sense of crisis.”

“We are in the same situation.”

China’s semiconductor boom is more dangerous for Korea than for the United States.

If the semiconductor boom is successful, the Korean semiconductor market will decline.

A situation arises where both Samjin Electronics and Taewoo Semiconductor experience a huge decline in sales.

“China’s semiconductor rise is threatening, but we are also putting in the effort, so wouldn’t we be able to maintain the gap in high-end semiconductors?”

“I don’t want that. I want Korean companies to monopolize not only high-end semiconductors but also low-end semiconductors.”

Defense is a pain.

The best defense is ultimately an offense, and that requires a change in mindset.

“Is there a way to monopolize even low-spec semiconductors? Are you thinking of joining hands with the United States and completely leaving the Chinese market?”

“That would be one way. I don’t want to be swayed by either the US or China. To do that, I think we need a large-scale semiconductor alliance, not just a federation of Korean semiconductor companies.”

In the end, it’s all about sales.

The reason why Korean semiconductor companies cannot give up the Chinese market is also because of sales.

The country that imported the most semiconductors was China, and not only Taewoo Semiconductor but also Samjin Electronics were building large-scale semiconductor factories in China and increasing sales.

This is why I can’t help but take a passive stance.

Since we had a weak point in sales, we ended up having to watch China’s reaction.

But if there is a place that can take responsibility for semiconductor sales instead of China, there is no need to be concerned.

“Are you considering forming an alliance with a Taiwanese or Japanese semiconductor company?”

“That alone is not enough. We want to form alliances with companies that can generate real sales.”

“Can you tell me more about which company it is?”

“Wouldn’t Qualcomm, Nvidia, Apple, Samjin Electronics, and Taewoo Group be enough?”

The Semiconductor Alliance targeted all companies that use semiconductors.

In particular, it was possible to secure sales through alliances with companies that use foundries rather than manufacturing plants.

“It’s not a bad idea, but most of them are American companies. Even if they join hands with us, would they be able to go against the will of the American government? The possibility of them joining hands with us is very low in the first place.”

“Shouldn’t we try? We need to create an alliance before the U.S. government pressures the semiconductor industry to take the initiative.”

“Is it possible?”

It might seem impossible from Vice Chairman Oh Yong-jae’s perspective.

But the reason I bring this up is because I have some faith in it.

It was a possible strategy because I was the largest shareholder in companies such as Qualcomm, Nvidia, and Apple.

“Would you like to join if possible? And we need to create not only a semiconductor alliance, but also an electronics alliance and a display alliance. How long are you going to stand by and watch technology being stolen?”

“In the case of home appliances, sales in China have decreased significantly. And a lot of display manufacturing has moved to China. But we are still holding on to OLED technology. It’s all thanks to Chairman Kim.”

It was Samjin Electronics that worked together with Taewoo Group on OLED development.

Thanks to this, they were able to monopolize the OLED market, but they were in a situation where they lost a lot of the display pie they already had to China.

“Now we need to take the initiative and move. Shouldn’t we secure protection for semiconductors from the US and for home appliances and displays from China?”

“Is it possible to do this against the US and China?”

“What can’t Korea do?”

Of course, it might have been difficult with only Korea’s power.

But if it were Taewoo Group, not Korea, they could have done it.

In the process, Samjin Electronics was able to serve as a great ally.

“The chairman has great confidence. I can’t even guess how he will move. Even if I wanted to hold his hand, I would have to know something before I could take it.”

“First of all, let me say one thing. Maximize semiconductor production.”

“Are you suggesting we start a chicken fight?”

“I’m not talking about a cutthroat race to kill competitors. We’re going to need a huge inventory of semiconductors to survive.”

Semiconductor shortage.

The US-China trade dispute and the COVID-19 outbreak are causing a semiconductor shortage.

So, if Korean semiconductor companies increase production and secure inventory from now on, they can occupy an advantageous position.