The 3th Generation of the Chaebol Wants to Live Quietly - Chapter 241



Only Noblemtl

#241.

“On the surface, it may seem like they are spending money overseas, but in reality, it is because the size of their borrowings has increased rapidly. The problem is that companies are attracting foreign capital and making reckless investments.”

On one side of the conference room, a chart was clearly displayed showing the borrowings of the top 20 domestic companies. Most of them had borrowed short-term funds, and the amount was not trivial.

It was simply not something that Korea could afford with its foreign exchange reserves.

Director Jang Seung-il could not understand the situation at all.

“The government doesn’t know about that?”

“I know. According to my friend at the Ministry of Strategy and Finance, everyone is aware of this and is continuously reporting on the seriousness of the situation. However, as you know, it is not even being discussed because it is part of the globalization policy that the current administration is pushing. Civil servants who bring up this issue have been warned or even demoted.”

“under.”

As the person ultimately responsible for coordinating the division of labor across all affiliates of the KM Group, Director Jang Seung-il could not take the domestic foreign exchange flow lightly.

In extreme situations like the one we are in now, when problems arise, an alternative is needed.

If I hadn’t known the contents of Choi Min-hyeok’s report, I would have simply passed it over as something serious.

But when I thought about the worst-case scenario that could happen after that, I couldn’t just see it that way.

Moreover, I had to take it more seriously because I was keenly aware of Director Choi Min-hyeok’s capabilities due to the Geotech and Oculus projects.

Even Vice Minister Koo Gil-mo, who detests conspiracy theories, viewed this issue sensitively.

Director Jang Seung-il looked at Choi Min-hyeok’s report again and again with a stern expression. He recalled Director Choi Min-hyeok’s stern attitude that he had seen not long ago.

Even if Korea collapses, Choi Min-hyuk probably won’t even blink an eye.

So I had to figure this out on my own.

‘We weren’t the only ones who received such a reckless investment. Thanks to Director Choi, the project was stopped midway, so we were able to avoid the situation.’

Director Jang Seung-il also frowned when he confirmed that some of the phenomena predicted in Choi Min-hyeok’s report were similar to the present.

“Foreign exchange reserves are $36.5 billion, but the growth rate of total foreign debt is not good.”

“The more serious problem is our government’s response to the yen’s appreciation. In order to minimize the burden of exchange rate losses, we are trying to increase the proportion of strong currencies. If that happens, the proportion of the dollar will decrease rapidly. If the investment based on borrowings succeeds, that’s fine, but if it fails, the situation will rapidly worsen.”

“Are you talking about investing in Southeast Asia?”

“Yes. The rapid increase in companies importing yen from Japan and investing in Southeast Asia is also an extension of this.”

“What you’re saying is that if Southeast Asia is shaken at a time like this, the damage will come our way. Does that also match Director Choi’s report?”

“That’s the problem. How on earth did Director Choi predict this?”

Vice President Gu Gil-mo, who gets excited easily, was more excited than usual.

He honestly thought this matter was more serious than the conflict between Vice Chairman Choi Moon-kyung and Chairman Choi Yong-wook.

Watching the progress of the Oculus project, I realized once again the capabilities of Director Minhyuk Choi.

Vice President Koo Gil-mo also took the problems he found seriously.

“I also wondered why Director Jang took Director Choi so seriously, but now I think I understand.”

“Yeah, I’m glad I found out, even if it was late. And this was really well done.”

“No. I just reviewed it based on Director Choi Min-hyeok’s report. I was actually more surprised by this report.”

“Okay, I see. First, let’s review the financial status of the KM Group affiliates. Affiliates like TRS Geotech KM need to be reorganized in some way.”

“…All right.”

* * *

The KM Group Planning and Coordination Office, which sensed the abnormality in foreign exchange reserves, moved briskly. Fortunately, thanks to Choi Min-hyeok’s report, a significant portion of KM Group’s affiliates had already undergone restructuring.

However, preparations for large-scale disasters such as tsunamis were inadequate.

Therefore, affiliates with low profitability are bound to be subject to sale.

The problem is that none of the KM affiliates are very good companies in terms of profitability.

So, the KM Group headquarters is bound to be a mess.

Here, as the conflict between Vice Chairman Choi Moon-kyung and Chairman Choi Yong-wook overlapped, various rumors began to circulate.

Even Chairman Choi Yong-wook heard the news from inside the KM Group through Deacon Chae Yun-jip. He did not like the director Jang Seung-il who came to see him.

“What on earth is going on?”

“I’m sorry. I was in such a hurry that word got out.”

“Yes, Director Jang, I know you’re having a hard time. If I had listened to your advice from the beginning, things wouldn’t have gotten this serious with the big guy. But that’s already in the past. You need to be more careful in the future.”

“I was not careful because the chairman was so angry.”

“The more I rush, the more you need to be as cool as ice. The same goes for the foreign exchange reserves issue. Even if the worst happens, it’s something that will take two years to resolve.”

That’s right.

Jang Seung-il, the planning director, seemed a bit hasty in his actions. However, he was also human and lost his senses after being beaten up by Choi Min-hyeok.

Chairman Choi Yong-wook also looked at the calm Director Jang Seung-il with a complicated look. It was also difficult to avoid his own responsibility for all of this.

He never took the Oculus project seriously in the first place.

But the actual results were not like that at all.

Everyone was trying to get their hands on the Oculus project.

Chairman Choi Yong-wook was distraught, and when Vice Chairman Choi Moon-kyung showed a passive attitude, denying any involvement in the matter, he exploded with anger.

Of course, now I know that my actions were excessive.

The fact that KM Industries transferred its 5% stake to Choi Min-hyeok is in itself a declaration to Vice Chairman Choi Moon-kyung that the company will unilaterally reexamine the issue of management succession.

However, he now looked at his grandson Choi Min-hyeok’s actions with a cool head, and thought that for the future of KM Group, it would be good for Choi Min-hyeok to keep Vice Chairman Choi Moon-kyung in check.

However, it was regrettable that the result was extreme.

Chairman Choi Yong-wook looked over Director Jang Seung-il’s report, shaking his head.

“Look again. For things to get worse, the economies of Southeast Asia would have to falter. The current situation is not that bad. It’s not like Argentina or Mexico.”

“I personally see the Mexican financial crisis as an extension of the same pattern. I think the Japanese government’s policy changes in response to the strong yen affected the Mexican and Argentine economies.”

“Well, that’s a long story.”

However, Chairman Choi Yong-wook had already reread the Choi Min-hyeok report review several times. When I first saw the report, I thought it was written by a crazy person, but now I can’t believe it.

In particular, the surrounding changes due to KM Group’s borrowings were a problem.

‘If this report really goes as planned, the worst economic crisis could hit within two years.’

When Chairman Choi Yong-wook thought about his grandson Choi Min-hyeok’s actions, he could not take this Choi Min-hyeok report analysis lightly.

“Okay, how’s our group’s borrowing situation?”

“Fortunately, KM Construction and KM Industries have significantly reduced their debt ratios. In particular, they have canceled potentially problematic contracts and reorganized them to focus on profitability.”

“… That’s right. As expected, it’s Director Jang.”

Although the KM Group appeared unstable internally due to conflict over succession, the reality was not so bad.

As the conflict became more intense, everyone was forced to take precautions.

Although Chairman Choi Yong-wook’s instructions were part of the reason, Director Jang Seung-il’s meticulous management of the debt was also a factor.

The company that brought about the biggest change within the KM Group was none other than KM Electronics.

This is because the company’s sales this year were raised to a whopping 1 trillion won without any significant borrowing.

Director Jang Seung-il used KM Electronics’ performance to pressure KM Group affiliates.

Chairman Choi Yong-wook was also greatly impressed by Director Jang Seung-il’s handling of affairs.

“But we need to be more thorough in managing our debt. How much can we reduce it?”

“Currently, we will lower it to 50% or less as reported by Director Choi Min-hyeok.”

However, Chairman Choi Yong-wook, who is well aware of the characteristics of the KM industry, frowned.

“I don’t think things will be that easy for the KM industry or construction sector?”

“You can drastically reduce or postpone your investments in the second half of the year or next year.”

Chairman Choi Yong-wook also realized the problems of TRS Geotech KM too late. In the context of the larger global economy, investing in TRS was truly crazy.

“If that’s true, then Geotech is the problem right now.”

“… Yes. If things go as Director Choi Min-hyeok predicted, Geotech will only suffer huge losses. Furthermore, in the worst case scenario, there will be no company to acquire.”

“Ah, that’s it. Stop worrying about something that won’t happen. But if that happens, won’t Oculus Corporation also be in trouble?”

“Actually, I’m worried about that too.”

Chairman Choi Yong-wook also suspected that his grandson Choi Min-hyeok might have another ulterior motive. However, he could not even guess what the problem was.

“… Let’s look into this issue more thoroughly. If it’s really difficult, ask Minhyuk for help.”

“All right.”

“And outsource the financial structure of KM affiliates to an external evaluator and comprehensively review it. Compare the internal evaluation with their evaluation, and consider reorganizing any companies that you really think are not good.”

“…yes.”

Director Jang Seung-il was surprised to hear Chairman Choi Yong-wook say the words ‘affiliate reorganization’ with his own mouth, and was surprised again.

‘It’s fortunate that the chairman managed the risk well.’

* * *

Choi Min-hyeok also closely observed the situation of Napst while observing the chaotic atmosphere of KM Group. As he predicted, Napst’s popularity was no joke.

Napst also spread quickly to surrounding states surrounding Lincoln High School.

The trend gradually spread throughout the United States through local colleges.

The only downside was the slow internet speed.

‘This is good enough.’

Choi Min-hyeok eventually began to think about the next step in marketing MP3s. He was concerned that the public was not familiar with MP3s. He thought that if things continued as they were, the public, accustomed to cassette players, would not be able to easily overcome the barrier of MP3s.

‘Things will change as time goes by. But I can’t just end it by saying that I released the world’s first MP3.’

Impact was needed.

The public should be excited to see the MP3.

Word of mouth must spread widely, especially among enthusiasts.

So that people can know the strengths of MP3 and get excited about it.

Minhyuk Choi called in Team Leader Seongdon Jo and Marketing Team Leader Jooho Choi to discuss the matter.

Marketing Team Leader Choi Joo-ho was also somewhat pessimistic about this part.

“It’s true that MP3 is a groundbreaking product, but it will take time for people to get used to it. It will take at least a year, and it will take at least two or three years.”

“Isn’t there any marketing that can extend that period?”

However, unlike Minhyuk Choi, Marketing Team Leader Jooho Choi was cool-headed.

“I also understand how you feel, sir. Perhaps you might expect that this will be easy because of Collins’ popularity, but that is not the case. Just looking at Collins, it is taking a lot of time.”

“Yes.”

Choi Min-hyeok also admitted it without hesitation. If not, there would have been no reason to call the marketing team leader to discuss his opinion.

Team leader Jo Seong-don listened to the two people’s opinions quietly with his mouth shut.

“I agree with Team Leader Choi’s opinion. Shouldn’t we take a little longer? I don’t think there’s any need to rush the 64MB NAND memory since it’s still in the development stage.”

We received a prototype with 64MB of memory and completed testing successfully, but the supply of parts was still a problem.

Although Oseong Electronics and Toshiba are conducting joint research, it takes time.

Choi Min-hyuk also readily admitted that point. What he suddenly remembered was the memory of the superstar who shook the world.

Especially the achievements of Michael Jackson, who created a new world called music videos.

‘Is it really impossible?’