I Am the Third-Generation Heir of a Conglomerate - Chapter 514



Only Noblemtl

## 514. Food Cartel (4)

The meeting on overseas expansion of semiconductor factories lasted for about two hours.

Even for older semiconductors, such as those for automobiles, home appliances, and the military, there were cases where their uses were fixed.

Long meetings had to be held to decide which semiconductors would be produced in which country’s factory.

So the meeting ended.

He quietly called only the vice president into the chairman’s office.

“The promise with Vietnam will be kept through the semiconductor factory.”

“Is this a promise made conditional on easing regulations on rare earth mining?”

“It’s a promise made directly to the number two person in Vietnam, so we have to keep it unconditionally. Only then can we continue to mine rare earth elements, right?”

“If you are planning to build a semiconductor factory because of that problem, you don’t have to. Taewoo Securities’ entry into Vietnam alone is enough to meet the promised scale. And the expansion of small and medium-sized home appliance production plants is also underway.”

Taewoo Group was serious about advancing into Vietnam.

Although many Korean companies are entering the Vietnamese market.

In the case of Taewoo Group, it was no match for him because his grandfather, the former chairman, resided there.

“In order to make the relationship between Vietnam and Taewoo Group closer than it is now, wouldn’t we need to build a semiconductor factory so that they can understand our sincerity? Only then will my grandfather be able to walk around Vietnam with his shoulders held high.”

“Still, it is clear that it is an investment with greater losses than benefits.”

“So we have to get something in return for the semiconductor factory.”

“As expected of the Chairman. If it’s a semiconductor factory, the Vietnamese government will grant any request.”

It was a vice president whose complexion brightened.

But will this situation continue even if they find out what I’m asking for?

“We will sign a grain contract with Vietnam. And we plan to demand the use of large-scale agricultural lands.”

“Are you saying that you will give us a semiconductor factory in exchange for grain? Even though semiconductors are called the rice of industry, it is not fair to exchange them for real rice.”

It wasn’t over yet.

The semiconductor plant is planned to be built not only in Vietnam but also in India, so it was natural that the same compensation would be received.

“We will offer the same conditions to India.”

“Are you saying that we should ask Vietnam for rice and India for wheat?”

“We will also make contracts for other grains, but since our main grains are rice and wheat, that will probably happen.”

“If that is the case, there is no reason for the Vietnamese and Indian governments to refuse, but it seems like it would be a condition that would unilaterally harm Taewoo Group.”

It was natural for it to look that way now.

But the moment the Russian-Ukrainian war broke out, the grain piled up in warehouses turned into gold.

“Taewoo Group has entered the grain market in earnest, so it cannot act passively. It needs to make large-scale grain producing countries such as the United States, India, and Vietnam its allies, so that even major grain companies will not be able to ignore Taewoo Group.”

“But if it’s about entering the grain market, wouldn’t it be better to sign a contract with Ukraine, which is called the bread factory of Europe? Although India is the world’s second largest wheat producer after China, its exports are not that large.”

There should have been no contract with Ukraine.

Because the moment we start a war with Russia, Ukraine, the bread factory of Europe, will be closed for a long time.

“If you were to build a semiconductor factory in the Ukraine region near Russia, would the United States just sit back and do nothing? Also, major grain companies already dominate the Ukrainian grain market. So it would be better to target countries like Vietnam and India, where the government can actively help.”

“But is that really okay? I’m not doubting the chairman at all, but if the news spreads that Taewoo Group is receiving grain in return for building a semiconductor plant, it could also affect the stock price.”

Taewoo Group’s stock price has always been on an upward trend in the long term.

However, if you look at it by quarter, it has repeated ups and downs.

Even if the stock price falls due to this incident, if it can rise higher than it fell, public opinion against it will be reversed.

“Don’t worry about public opinion. If Taewoo Group takes a big step forward to ensure food security in Korea, it won’t be criticized that much.”

“Public opinion may not criticize, but it seems difficult to avoid criticism from shareholders.”

“As always, I take full responsibility. So, Vice President Han, please just provide some support so that things can go smoothly.”

“I will do that.”

Vice President Han nodded, exhaling inwardly.

But he had a much brighter complexion than I expected.

The fact that the company is looking bright despite the fact that it is expected to incur huge losses means that the financial tower is generating enough profits to make up for the losses.

“It looks like the financial tower is having a lot of fun.”

“The crops that have been planted for years are finally starting to bear fruit, especially with UK stocks down more than 10% in six months.”

It was a financial tower that bet on a stock price decline due to Brexit in the UK.

There was a huge amount of money flowing into Britain, and even a 10% drop in stock prices could generate huge profits.

“This is just the beginning. The UK has not yet fully left the EU.”

“So, rather, the short selling volume is increasing.”

“How much further do you predict UK stocks will fall in the financial tower?”

“There are significant differences in the expected figures for each financial institution. Some expect no significant impact, while others expect a decline of more than 20%.”

Only 20%?

If there were no variable called COVID-19, the maximum figure would be a 20% drop.

If Brexit were combined with COVID-19, a decline of up to 30% was entirely possible.

“How are Taewoo Securities’ predictions coming out?”

“The Taewoo Economic Research Institute is predicting a 20% decline. Taewoo Securities conducted an analysis based on that data, but we are expecting a 15% decline as the maximum.”

“Let’s re-plan by increasing the decline by 30%.”

“30% is twice the expected figure.”

“The US-China trade dispute appears likely to be prolonged, and various variables will arise as a result.”

The most important variable, COVID-19, could not be excluded.

So, he used the US-China trade dispute as an excuse to persuade Vice Chairman Han.

“If UK stocks don’t fall to our target, we could see huge losses.”

“If you deal with the situation flexibly, you will at least not suffer losses. But wouldn’t it be better to prepare now to seize the opportunity? It is better to invest even at a loss than to watch someone else get rich.”

“I will prepare myself so that I can even take the rice cake that is in someone else’s mouth.”

The financial tower has now poured in a huge amount of money.

They were conducting the largest-scale short selling targeting countries that form huge markets such as the US, China, and the UK, and were touching not only stocks but also currencies.

High risk, high return.

In order to maximize the return value, we had to increase the risk.

It was a risk that could have caused not only the Taewoo Group but also the financial tower to collapse at once.

That could happen if COVID-19 doesn’t break out.

But the course of history has never changed, and it was clear that the disaster known as COVID-19 would make its appearance next year.

* * *

The new year 2019 has arrived.

In the meantime, we signed an additional contract with a major grain company.

We were also able to make some progress in semiconductor factory negotiations with India and Vietnam.

I have so much work to do that I don’t even have time to get up from my desk.

Where else would you find an owner who works this hard? But that wasn’t the case from an outside perspective.

“Mr. Chairman, most of the media, editorials, and financial reports published at the beginning of the year have been negatively evaluating the Taewoo Group.”

“Even if the media is like that, are financial companies reporting like that too?”

A newspaper and a financial report in the hands of a vice president.

He only showed the parts related to Taewoo Group.

[Taewoo Group heading towards the end]

[Is excessive investment an owner risk?]

[Taewoo Group enters the grain market, increasing its size excessively]

[The government must step in to stop the arbitrary Chairman Kim Min-jae.]

[Taewoo Group shows its growth limits. It is time for a professional manager.]

Why are you suddenly talking about owner risk?

I was the owner who raised Taewoo Group beyond being number one in Korea to one of the top companies in the world.

But the fact that these kinds of editorials and reports are coming out means that my current actions seem crazy enough to ignore my previous achievements.

“I see you are very keen on entering the grain market.”

“A leaflet was circulated in the media and financial circles. It was a leaflet that said Taewoo Group was using $100 billion to enter the grain market.”

It was a flyer with considerable accuracy.

Of course, the amount invested in the grain market last year and this year is less than half of the $100 billion.

It was not a false rumor, as the amount invested starting next year could be more than $100 billion.

“It looks like the information was leaked internally or from someone we do business with.”

“Since we are simultaneously conducting contracts with multiple places, it is inevitable that information will leak out.”

“But isn’t that too much? To be so critical about investing in the grain market?”

“Not only in Korea, but also in foreign financial institutions, they are evaluating it negatively. There is even a report that Taewoo Group is putting its own foot in the fire of hell as grain prices continue to fall.”

The grain market is hellfire?

For some, the water of a hot spring may be as hot as hellfire.

To Taewoo Group, even the fires of hell felt as warm as hot spring water.

“Could it be that the work came from China? It doesn’t make sense unless it’s an attempt to block the construction of semiconductor factories in India and Vietnam.”

“I also have some suspicions. However, I cannot take any active action because I have not yet secured any evidence.”

“Well, it doesn’t matter. We just have to keep going our way, no matter who’s behind it.”

Whoever was behind it, I felt relieved.

Playing the media meant not being able to take any direct action.

There was absolutely no reason to fear a coward who could not come forward himself and instead used flyers to play the media.

“The overseas expansion project for the semiconductor factory is proceeding without any problems. However, it seems that we need to negotiate a little more with ASML.”

“I guess they are worried about whether they can abandon Chinese companies and sign contracts with us for older semiconductor equipment.”

Dutch company ASML.

ASML’s semiconductor equipment was essential for producing semiconductors.

ASML was literally the perfect company for the Super Eul.

“Let me negotiate directly.”

“No. It’s too inefficient for the Chairman to go to the Netherlands himself. Wouldn’t it be better to go through David or send President Lisa or President Wei?”

“I can save time by going out myself. And on the way back, I have to stop by Vietnam and India to get the stamps on the semiconductor factory and grain contracts.”

There really isn’t much time left now.

Since it was a time when every second counted, even if it meant suffering a little, I could gain a big advantage in the long run by shortening the time.

In particular, targeting ASML was quite important.

If only Taewoo Group could intercept the equipment being transferred to China.

The moment the semiconductor crisis comes, Taewoo Group’s influence will easily surpass that of the national level.