Omniscient Investment Point - Chapter 264



Only Noblemtl

264. We are fighting an economic war – 1

(1)

Mr. Hyun Ki-hyuk, are you seriously mistaken about something or are you obsessed with conspiracy theories these days?

What can a former Financial Supervisory Service governor who has no official position or involvement in politics do?

“You don’t believe me.”

“It’s hard to believe.”

“Okay, so, think about this. Who has the greatest influence in our country’s financial world?”

“Chairman Hyun Ki-hyuk.”

“Huh? Woohahaha!”

Hyun Ki-hyuk was momentarily taken aback by my straightforward answer, then burst into his signature laughter.

Then he shook his head from side to side and spoke to me.

“You still don’t know this place very well.”

“Well, I thought I knew enough, and I guess I do. Well, tell me. Who can exert the most influence?”

“It’s Oh Si-young.”

“is it so?”

“It’s a fact that everyone who knows knows.”

“That’s strange. I didn’t think that guy would have the power to do that.”

“Yes, enough.”

Hyun Ki-hyuk’s smile gradually disappears.

After taking a deep breath, he spoke in a serious voice.

“I don’t know about anything else, but that gentleman is definitely armed with theory.”

“Well, you also held a concurrent position as a university professor.”

“And whenever a new government was formed, their juniors and disciples would take up important positions. Not only in politics, but also in business, the noble lineage was entrenched. Above all, in the financial investment world of our country, if you have that noble network, the probability of failure is low.”

“I didn’t know it would go that far.”

To this extent, it is no exaggeration to say that they have a powerful influence that can influence the domestic economy.

“In the beginning, its influence was very positive. Thanks to that gentleman’s advice, we were able to overcome the foreign exchange crisis and contribute to the rapid growth of our country’s GDP.”

“yes······.”

“But if it’s always stagnant, it’ll rot. Do you know what that gentleman says the most?”

“What is it?”

“Government is not the solution to the problem. Government is the problem itself.”

“I’ve heard that somewhere.”

“That’s what Reagan said.”

“somehow······.”

The government is the problem.

It seemed to mean that the government should not intervene in the economy as much as possible.

In fact, Reagan was influenced by the British economist Friedrich Hayek, who said:

It is impossible to achieve political freedom without economic freedom. Since human reason is imperfect, artificially controlling the economy is a fatal arrogance in itself, and rather, it is a rational policy to leave it to its natural state. If artificial economic control is attempted, it will only result in market distortion.

There are some parts I can agree with.

However, there is no such thing as ‘absolute’ in this world, so if a country gives unlimited freedom to economic entities, the side effects are also considerable.

For example, the rich getting richer and the poor getting poorer were the biggest problems.

“So does that gentleman see government intervention in economic issues as the root of all evil?”

“That’s right. That’s why I don’t like any of the new government’s policies.”

“Because you interfere too much?”

“Yes. I don’t know about anything else, but I think we should do our best to block the revision of the Commercial Act.”

“nice······.”

If that’s the case, then he must have really hated me and Hyun Ki-hyuk.

It’s obvious as day that we’re bound to collide someday.

“But what did you mean earlier? Bringing the domestic semiconductor industry to us. Where······? And why?”

“It’s Japan.”

“omg······.”

“The reason is simple. Because America wants it.”

“hmm······.”

I quickly searched my memory.

Then one incident comes to mind.

“Are you talking about the merger between Digital West and Doshia Memory?”

“That’s it.”

The merger of Digital West and Doshia Memory, the world’s third or fourth largest NAND flash companies, has been a topic of interest in the semiconductor industry for several years.

If the merger is successful, it will be on par with industry leader Yoo Sung Electronics, while the industry’s second-largest semiconductor company Skynix will be pushed down to third place.

Originally, the memory semiconductor industry, including NAND flash, was a typical mass production industry of small varieties.

Naturally, the larger the scale, the more advantageous it was, and if it started to fall behind in market share, it could be eliminated in an instant.

“You know, Skynix owns roughly 20% of Doshia Memory.”

“I don’t know the percentage of shares, but I know he is a major shareholder.”

“Of course Skynix would not approve of the merger between Digital West and Doshia Memory.”

“That’s right. But the last time I looked, the amount of coverage in domestic economic newspapers was no joke. If Skynix wants to further strengthen its competitiveness, it needs to be selective and focused.”

“that’s right.”

Hyun Ki-hyuk nodded with a more serious expression than before.

“At that time, Skynics was running at a loss. That’s why economic experts said that Skynics should focus only on DRAMs and hand over NAND flash to the US and Japan.”

“If that happens, wouldn’t Yoo Sung Electronics have a strong competitor? And their merger will be a huge challenge, so Yoo Sung Electronics might have to pour more money into NAND flash for no reason.”

“My words!”

It was clear that the US-Japan joint venture would raise the banner of overthrowing number one Yooseong Electronics.

In particular, since the US and Japan have recently significantly increased subsidies to their own semiconductor companies, their financial leeway is likely no joke.

“Yoo Sung Electronics is also currently making large-scale investments in DRAM and foundry.”

“Yes, and isn’t there a sense of crisis that DRAM, which was running at number one in the world, might be pushed out by Skynix?”

“Yes. It’s because of HBM.”

HBM, which stands for High Bandwidth Memory, is a stacked memory standard first developed and mass-produced by Skynics.

This memory was receiving acclaim from the market right around the time AI became a hot topic.

Because HBM was the core memory used in AI semiconductors, even Skynix, which was on the verge of collapse due to deficit, was able to recover.

However, as Yoo Sung Electronics fell behind in the battle for leadership in AI semiconductors, it immediately increased its investment in HBM.

Semiconductor experts say:

It is said that depending on the HBM developed by Yoo Sung Electronics in the future, there could be a tectonic shift between the 1st and 2nd place in the DRAM industry.

“One way or another, Yoo Sung Electronics is in a predicament. Its foundry is inferior to Taiwanese companies, its DRAM is being chased by Skynix, and what if something happens that makes it a concern for NAND flash?”

“Future strategies will be messed up. There will be a lot of worry about where to put more emphasis.”

“yes.”

It’s finally sorted out.

Goals and desires arose at the same time.

First, the merger between Digital West and Dosia Memory, the world’s third or fourth largest NAND flash companies, should never happen for national interest reasons.

Second, for this to happen, Skynix, which owns 20% of Doshia Memory, must vote against it.

Third, Skynix’s financial soundness was also important in casting a dissenting vote.

Fourth, fortunately, HBM has won the battle for leadership and is on the verge of a profit turnaround, so the government and the market just need to wait.

Fifth, the problem is that the United States and Japan both want the merger of the world’s top 3 and 4 NAND flash companies, so there was no need for our country’s experts to chime in.

Sixth, I still couldn’t understand why they were pressuring Skynix. I also really didn’t like the fact that Oh Si-young was behind it.

“I have no choice but to be wary of Seunghoon Oh. That’s why I will accept investments, but I absolutely do not want him to interfere with management.”

“yes······.”

In fact, it is difficult to predict that Seunghoon Oh will harm us later on with some intention, that is, in accordance with his father Siyoung Oh’s wishes.

The guy said it had been a long time since he had contacted his father.

It didn’t seem like he was lying.

‘Just in case.’

We should accept investments, but we should not interfere in the management of the company in the slightest.

However, I still wanted to take him to Japan, so after I broke up with Hyun Ki-hyuk.

– Seunghoon? I told Chairman Hyun to let me go with you to sign the Magnetic contract next week. I also told him about the investment.

The answer came right away.

– Oh, thank you! Thank you~

Because it is so transparent, the scene of people cheering is vivid.

‘By the way, it’s Oh Si-young······.’

I have a feeling I’m going to have a huge clash with him someday.

(2)

Meanwhile, Seung-Hoon Oh, whose trip to Japan had been decided, felt thrilled.

“good!”

He was talking to himself loudly in the representative office.

‘Oh, right. Should I do magnetic investing too?’

O2 Partners is also doing well, although not as well as JTS.

Of course, there were cash assets, but the question then became which ones to convert into cash.

So, after discussing with the employees, I sold stocks and bonds, and also set aside some that I had invested in yen.

This was the day before I went to Japan, but······.

“huh?”

My smartphone rang, and it was my mother’s call for the first time in a long time.

I didn’t keep in touch with my father, but my mother would often contact me like this to mediate between the two.

I picked up the phone today, thinking it would be the same.

“hello?”

– Seunghoon, stop by my house sometime.

“yes?”

– I spoke to your wife. Bring me some pickled turnips.

“No, well, that’s······.”

If you talked to your wife, she should have taken it.

‘You’re calling me again with this excuse.’

Of course I didn’t want to go.

To be exact, he had planned to show his face at home someday when his father acknowledged him.

Just as I was about to say I wasn’t going.

– Dad, he went on a golf trip. It’s okay, so stop by today.

“Okay, okay, I got it.”

Well then, I guess there’s nothing I can do.

Finally, after work that day, I went to my parents’ house for the first time in a long time.

He didn’t expect to meet his father here again, and frowned at the thought that his mother had deceived him.

But, it seems like it wasn’t always like that.

“He said he came early because he wasn’t feeling well······.”

His mother looked at him with apologetic eyes.

On the other hand, Oh Si-young looked at himself with snake eyes,

“Since you’re here, take a seat.”

You unexpectedly think of having a conversation.

Is this the moment of reconciliation between the rich and the poor?

“I’ve heard your story here and there. I heard that Jang Su-myeong is still hanging out with that guy these days?”

No, there was a bone in the words.

I hardened my expression and didn’t open my mouth, but then he went even further.

“Think about it carefully. Everything is temporary. Do you think he’ll still be doing well in five years?”

“yes.”

“what?”

“I think it will do well. That’s why our company is also planning to invest in following JTS.”

“······.”

Oh Si-young stares blankly at Oh Seung-hoon, seemingly speechless.

But the son’s words did not end there.

“And the days when fathers used to exert their power are no longer here. The theory that the state’s intervention is the problem is also outdated. Look at the broader picture. Which country doesn’t intervene in its economy these days? The United States? Japan? Europe? They all do!”

“You, you······.”