I Am the Third-Generation Heir of a Conglomerate - Chapter 516



Only Noblemtl

## 516. Alliance Formation (1)

14 hour flight.

I spent more than half a day on a plane traveling from the Netherlands to Vietnam.

Since I traveled on a private plane, there were no major inconveniences, and I was able to arrive safely in Vietnam, where my grandfather was.

“I’ve been seeing you a lot lately. What did you come here to tell me this time?”

“Why would a grandson come to see his grandfather? He just wanted to see him.”

“Are you expecting me to believe that? I’d rather believe what a passing puppy says.”

There was some pretty harsh language exchanged.

Contrary to his cold words, his expression was extremely warm.

I got into a car with my grandfather who came to pick me up at the airport and headed to the Taewoo Group Vietnam branch.

“Now tell me. What are you planning to do in Vietnam?”

“I came not to do something new, but to keep my promise.”

“When you say promise, do you mean a promise to invest?”

“If you break a promise you made directly to Prime Minister Pook, wouldn’t it be quite difficult for your grandfather?”

“What’s the problem? Taewoo Group has already invested heavily in Vietnam and is actively entering the financial business, so can’t we say that half of the promise has already been kept?”

It could be seen as a promise kept.

But in order to make the Vietnamese government a perfect ally of the Taewoo Group, shouldn’t it keep its promises?

“If we are going to keep our promises, we want to keep them properly. We plan to build a large-scale semiconductor complex in Vietnam.”

“Haha, since you mentioned the word ‘large-scale’, I guess it’s bigger than I expected. I guess the Vietnamese government will welcome this news with open arms. But will semiconductor production be able to work properly in Vietnam?”

“Taewoo Semiconductor has already completed and is using an unmanned factory. Using that technology, it can be stabilized in a short period of time. And since it will be used as an old semiconductor production plant, yield issues can be resolved quickly.”

Grandfather’s eyes became sharp.

Although he always looked relaxed while he was in Vietnam.

When the story of the large-scale semiconductor complex came up, the grandfather recalled his past days as chairman.

“Building a semiconductor factory is not a problem, but will the equipment be properly secured? Even Chinese semiconductor companies are risking their lives on the production of old semiconductors, so securing the equipment will not be easy.”

“We have already signed a contract with ASML. Some of the old semiconductor equipment that is being transferred to Chinese companies will be brought to Taewoo Semiconductor.”

“ASML has made a difficult decision.”

It was clearly not an easy decision.

But it was possible because we had done the work in advance.

“It wasn’t difficult because Taewoo Semiconductor owns a large stake in ASML’s development. And wouldn’t it be better for ASML to sell to Taewoo Semiconductor as well rather than just selling old semiconductor equipment to Chinese companies, so that it could diversify its sales channels?”

“Do you plan to engage in a cutthroat competition with Chinese companies? Although labor costs in Vietnam are lower than in China, we cannot provide as much support as the Chinese government, so Taewoo Group will have to make up for the shortfall with its financial power.”

China’s labor costs have been rising sharply every year.

On the other hand, Vietnam was able to stay ahead in price competitiveness because it still maintained low labor costs.

But the problem was the semiconductor industry.

If the Chinese government had poured in a huge amount of subsidies, the difference in labor costs could have been reversed in an instant.

“I don’t intend to blindly engage in cutthroat competition with Chinese companies. There is information that the U.S. government is sanctioning Chinese semiconductor companies. If that happens, Chinese semiconductor companies will find their way to export semiconductors blocked.”

“It looks like Taewoo Semiconductor is going to eat up all the old semiconductor pie that Chinese companies have. Wasn’t it your management policy not to do businesses that don’t make money? Aren’t you the one who always talks about operating profits?”

When my grandfather was the chairman.

I used to emphasize operating profits so much that my ears were getting irritated.

We sold off all businesses that weren’t making money and focused only on businesses with high operating profits.

But the case of semiconductors was different.

Operating profit was important, but since semiconductors could be used as a strategic weapon, Taewoo Group had to hold on to them unconditionally.

“In order for Taewoo Group and South Korea to survive the trade war, they must monopolize the strategic weapon called semiconductors.”

“You’re saying that we need to secure even the old semiconductor pie for survival. I understand that to some extent, but if we fail, we’ll be taking on too much risk.”

“Taewoo Group is strong enough to take on that level of risk again and again.”

I showed confidence.

It wasn’t just a remark to reassure his grandfather, but Taewoo Group really had the ability to do that.

“I won’t worry if you say so. So what can I do to help you?”

“I haven’t asked for help yet.”

“Do you really have to tell me? I can tell just by looking at your face.”

“In fact, we are seeking to secure grain and farmland from Vietnam as compensation for the construction of the semiconductor complex. This contract is also absolutely necessary for Korea’s food security.”

My grandfather touched my face.

He stroked her face several times as if kneading dough before opening his mouth.

“You’re my grandson. Hehe, I never expected you to talk about Korea’s food security. Since when have you been calling yourself a patriot?”

“Food security is really just an excuse. Based on the current international situation, we have concluded that the food business is profitable.”

“This is a completely different conclusion from what the experts I know are saying. How can you make money when grain prices are falling sharply due to the US-China trade war?”

My grandfather’s information power was by no means negligible.

Because you were getting a lot of information not only through Taewoo Group, but also through personal lines.

“This is the lowest point. Stocks, oil, grains. If you want to make a big profit, you have to buy at the lowest point and sell at the highest point.”

“Are you okay?”

“There is absolutely no harm in it. It is a highly profitable business, and it is a grain business that can provide additional benefits. And now is the only opportunity to stand shoulder to shoulder with the grain majors.”

Grandfather’s eyes squinted.

It was the expression that came out when he recalled bad old times.

“During the military regime, there was a time when major grain companies played around. The whole of Korea was really played around.”

“Have you ever done that?”

“They were foreign grain companies that were making huge profits targeting Korea. Can you really put a stop to their bullshit?”

“Even if things don’t go well, I am confident that I won’t suffer any losses, and if things go well, I can really put a stop to the pressure on major grain companies.”

“Okay. Then I’ll make sure to set up a place for you and the Prime Minister.”

It’s sturdy.

In Vietnam, I didn’t have to take the lead; I just followed my grandfather’s lead.

But after signing the contract with Vietnam, I had to sign a contract with the Indian government, and from then on, I had to take the lead again.

So for now, let’s leave it to Grandpa.

Wouldn’t it be okay for me to step back once in a while and take it easy on my business?

* * *

I returned to Korea after two weeks.

It took three days in the Netherlands, three days for negotiations with the Vietnamese government, four days for negotiations with the Indian government, and including travel time, it took a full fortnight.

I really wanted to go straight to work at headquarters.

Because it was so late, I went to Captain Kang’s office instead of the company, and Vice President Han was already waiting with ramen noodles cooked.

“Thank you for your hard work over the past two weeks.”

“Ramen smells good. I don’t know why I crave ramen so much when I live in a foreign country.”

“We also prepared kimchi by type.”

Hororok!

I emptied a bowl of ramen in an instant.

After slurping down the refreshing soup, I finally felt like my vision was clearing up.

“Thank you for your hard work. I should have stepped forward in this matter, but I’m sorry I couldn’t.”

“What could be harder? What could be more fun than traveling abroad? Do you know what the fun of traveling abroad is?”

“Huh? Oh, isn’t it about experiencing a new environment?”

“No. It’s fun to spend money that you couldn’t spend in Korea while you’re abroad.”

I really spent a lot of money on this trip.

In the Netherlands, more than 10 trillion won was spent on a five-year long-term contract with ASML.

In Vietnam and India, I was never bored as I was running around throwing around amounts several times larger.

“The chairman’s excessive spending has been brought up as an issue in the media. And articles on SNS and portals that take issue with Taewoo Group’s excessive investment have been continuously posted.”

“Someone is trying to set the mood. Why are you making such a fuss about it?”

“Although Taewoo Group’s sales are high, there has been criticism that the operating profit is not high when looking at the entire group, and that its financial soundness is deteriorating due to excessive expansion.”

These were words I had heard a lot.

It was the same thing I told my grandfather every day during the IMF crisis.

But this was not the IMF era, and Taewoo Group’s financial soundness was not a problem.

“You are such wonderful people who worry about Taewoo Group. Well, it’s a useless worry, though.”

“Honestly, it is a reasonable criticism, but I think it is a criticism that comes from not knowing the inside story. If they had only brought up the chairman’s hidden assets, such a remark would never have been made.”

“Who would misunderstand if they heard this? It’s not a hidden asset, it’s an asset that hasn’t been made public yet. And it’s an asset that will never be made public.”

It was just a pun.

Because hidden assets and undisclosed assets had the same meaning.

From fintech banks to Citigroup and various paper companies spread across Wall Street.

If all were combined, Taewoo Group could have become the world’s number one group right now.

But that wasn’t the case.

Because hidden power is valuable only when it remains hidden.

From the moment it was revealed, Taewoo Group was no different from going into battle naked.

“The criticism was stronger than I expected, so I brought up unnecessary things.”

“Ignore the media fuss. More importantly, did anything happen while I was there?”

“Taewoo Telecom will begin commercializing 5G this year. However, the installation cost is much higher than that of existing facilities.”

As far as I remember, the 5G business was close to failure.

5G, which was not properly commercialized until just before its return.

Even if I went to a slightly remote place, the signal would often not work, and the expensive rates would put a strain on my wallet.

I don’t even know how much my phone bill is these days.

I remember it clearly because before I returned, there was a time when I didn’t even have money to buy a pack of ramen.

“It looks like 5G has a lot of problems.”

“5G uses two types of frequency bands. In order to increase the maximum speed, the 28GHz band must be used, but there is a problem that the base stations must be installed densely because of the high straightness. So we are focusing on the 3.5GHz band, which is relatively less expensive.”

The cost of installing base stations was ultimately borne by telecommunications companies.

What management would like to run a business that costs a lot of money?

Especially, no one wanted to pay expensive feed for fish that had already been caught.

“How much does it take to fully commercialize it?”

“Taewoo Telecom planned to spend 18 trillion won over 6 years, 3 trillion won per year. However, the cost increased significantly because it could not use cheap Chinese equipment. In addition, various variables arose, requiring an additional investment of at least 10 trillion won to fully commercialize 5G.”

Taewoo Telecom’s operating profit has easily surpassed 1 trillion won.

However, if an additional 10 trillion won is invested in 5G, it will not be enough even if all operating profits are used.

Of course, since we had accumulated surplus money up until now, there was nothing we couldn’t do.

“28GHz costs a lot of money? Let’s discuss that with Musk and resolve it.”

“Is there a way? I heard that the frequency band that Starlink mainly uses is 28GHz. So let’s promote a cooperative project and install a large number of 28GHz base stations. Of course, Taewoo Group will provide financial support.”

To be honest, I knew it wasn’t a profitable business.

However, in order to maintain the reliability of Taewoo Telecom, it was necessary to differentiate itself from other telecommunication companies.

We decided that it would be more beneficial in the long run if we had the only proper 5G network in Korea.

If there is another reason.

I didn’t want to repeat what I had gone through before returning.

How much did I get mad about 5G not working? I didn’t want to do that in this life.