The Chaebol Who Flies From Space - Chapter 29



Only Noblemtl

29. If Yongwon tells me to invest, I should do it.

I told him the real reason I visited the investment firm.

“We plan to gather investors and create a China investment fund.”

“It’s not a bad judgment. The Chinese economy is not doing well these days. I heard that since joining the WTO, the trade surplus with the United States has been huge.”

The rapidly growing Chinese market, with its low wages and abundant labor force, was attractive as an investment target.

“The only problem is which company to invest in. There are many companies that are flashy on the outside but are trash. Even in Zhongguancun, where venture companies are gathered, there are over ten thousand venture companies. It is not easy to choose a good company among them.”

“I guess you’ve been interested in it for a long time. You seem to know a lot about the Chinese market.”

Chief Kim smiled bitterly.

“I was very interested. After I left the company, I had some free time, so I visited China a few times. A friend recommended a company worth investing in, called Baidu. It’s like Daum in Korea, and although the competition in the Chinese search market is fierce, it’s standing out. There are competitors like Jangbaek, but Baidu has the brightest future. The character of the owner is important for venture companies, and Baidu’s Li Yanhong is the best among them.”

Chief Kim In-young recommended information and communication companies that he had been actively watching while taking an interest in China.

“The company I want to invest in is Guizhou Maotai.”

Chief Kim tilted his head as if he had not thought about it at all.

“Isn’t that a liquor company? Even if the president owns a liquor company, I don’t think there’s a need to invest in a liquor company.”

Chief Kim didn’t seem to know why I wanted to invest. China had just emerged from its position as one of the poorest countries since reform and opening up and was entering a period of growth.

The argument was that it would still be a long time before high-end liquors like Maotai gained popularity.

But IT was different.

If you are going to make investments, it is obvious that investing in IT will be much more efficient in the short term. Not all of the companies you invest in will succeed, but even if just one succeeds, it will more than offset the failures.

“Rather, why don’t we leave the investment in the Maotai company to our food company?”

“Is it our food? It’s a long-term investment of 10 years?”

“If it’s a long-term investment, we at Foods will welcome it. Given the nature of food companies, it’s best if we can generate steady profits over the long term rather than making explosive profits in the short term.”

I pondered Chief Kim’s opinion for a long time.

“Then let’s do this. Let’s split the Chinese investment fund in two. One will invest in information and communication companies as Mr. Kim wants, and the other will buy Chinese stocks that I want.”

“What will you do, sir?”

“Let’s invest in both.”

So we agreed to create two China investment funds.

“Hey, how about crude oil? Are oil prices still sluggish?”

[Texas Intermediate (WTI) crude oil is rising gradually from $27.]

“They say that even if war breaks out, it won’t rise much for a while.”

[Basically, it is expected to show a long-term upward trend.]

“Why? The experts all predicted that it would be the same.”

[The biggest reason is that oil production facilities are outdated and have production limits. Since the 1970s, we have not invested in production facilities due to low oil prices. As the Chinese market and other third world markets grow, oil demand will increase. Since production is limited and demand increases, oil prices will naturally rise. However, there will be a short-term fluctuation. I think there will be talk of increasing production at the OPEC meeting in Abu Dhabi next month.]

“It will be adjusted in the short term.”

[If oil prices fluctuate before OPEC opens, I will make a short-term investment]

“Wouldn’t it be dangerous? There are enemies.”

[We have a rough idea of ​​who the other person is. Harry Siegel, Goldman’s Hong Kong branch manager, is the author who is after the Master.]

“How did you figure out who you were?”

[Who am I? They check the investment positions of Iriel Investment periodically. It seems like the master needs to go to Chicago.]

“It’s a hassle to take a plane, so why can’t you just invest like you are doing now?”

It’s a long way to get to Chicago, but there are no direct flights yet, so you’ll have to change planes in between.

[Master, this is a very big investment. You have to trade quickly while being conscious of your opponent, so you have to use a dedicated line.]

“Damn. Traveling to Chicago in the winter is crazy.”

Even though I grumbled, I had to go to Chicago because of the line speed problem. The Chicago market for commodity futures such as crude oil was larger and more active than the New York market.

After a long time, I gathered with my family at the Yangpyeong villa.

Since we are both busy, it is not easy to coordinate our schedules, but I told him that I had something to discuss, so he invited me to his aunt’s house and his small house at the same time.

“You can just watch it at home during the Lunar New Year holidays. Why are you gathering in the countryside like this? It’s fortunate that the snow has melted.”

As soon as we arrived at the villa, my aunt started grumbling that I was bothering her.

“You need to break that grumbling habit. You’ve been doing it since you were little, and you’re still doing it now that you’re older.”

“Uncle, Mom will never get over her grumbling problem until she dies. It’s a chronic disease.”

My youngest cousin Hye-ri, who came with me, took my father’s side. My aunt’s family consists of one son and four daughters, and except for the youngest, Hye-ri, the rest of my siblings live in the United States for work and study.

“Whose daughter are you, that you always take your uncle’s side?”

“Mom, you’re my daughter.”

It was fortunate that my cousin Hye-ri took after her gentle father rather than her blunt mother.

Even though she spoke bluntly and didn’t express herself well, my aunt was actually quite deep-hearted.

“Why isn’t Mr. Park coming with you?”

“You’re busy today too. I don’t know if you’ll be able to come late in the evening. It seems like you’re the kind of person who does all the government work on your own.”

“I see you’ve been called to another meeting. How are you?”

“I need to get promoted this time, but I don’t think there’s a spot open.”

“If a civil servant goes up the ladder, he will only get wind of things. Mr. Park is behaving well.”

My grandfather, who adheres to the principle of no return to the government, responded politely.

“Oh my, really, it’s so frustrating to think of both Father and Mr. Park as the same. I’ll have to go up when it’s time to go up.”

My aunt beat her chest with a frustrated expression. My classmates who had passed the civil service exam were all holding their own and becoming ministers or vice ministers, but it seemed like my husband still didn’t feel like staying as vice minister.

“Oh my, with that temper. It’s brave of Mr. Park to live with that temper.”

“Huh, I’ll take that human and live with him.”

“It seems like my sister is misunderstanding something, but since she is a good-natured brother-in-law, she tolerates my temper and lives with me.”

“It’s been a while since I’ve done this, so I’m going to try it out to reminisce about old times.”

To avoid his older sister’s clenched fist, his uncle quickly hid behind his father.

“They’re doing well. It’s something they do well in front of their children as they get older.”

The grandfather who was watching clicked his tongue.

“So what? They’re all grown up now. Soon, I’ll be hearing the word “grandma” too.”

“Grandma? Junki has a child?”

“Yes, I got a call from my daughter-in-law. In the summer, I become a grandmother too.”

Somehow, my aunt, who is usually like a bear, seemed to be in a good mood. She must have been in a good mood after hearing the news that a grandchild was born, because she was talking a lot today.

“Congratulations, Miss.”

“Sister, do you really like hearing Grandma’s voice?”

My mother and aunt congratulated my aunt.

“This place is getting really old now. Now that Jun-ki is a father, I think we need to fix things up a bit if we’re going to bring our young grandchildren here in the future.”

“It’s been half a century since it was built, so of course it would be like that. It’s dangerous to bring children here, so should we build a new one instead?”

My uncle opposed my father’s proposal to build a new house.

“Building a new one. Let’s leave this place alone and build another one somewhere else. I’m against fixing it, but I’m against destroying it. We should leave the place that holds our childhood memories as it is.”

“Well, it would be better to fix it up a bit. This guy can build it anew.”

My father pointed to me.

“Yongwon is a good earner. I heard that he hit the jackpot. I am also benefiting greatly from you. People around me envy my aunt so much.”

It was an empty boast that the stock price of the toad that invested spare money at my recommendation grew wings.

Moreover, the stock price of the food stock we inherited also rose significantly, so we couldn’t help but feel good.

“So you’re saying you’re going to have a great-grandchild? Not bad. Now all I have to do is take care of Yongwon.”

I felt like arrows were pointed at me. At times like this, a quick change of subject was essential.

“Okay, now that everyone is here, let’s start the family meeting. Let’s start the meeting quickly and finish it so we can have dinner and play.”

Everyone looked at me with anticipation. I had laid the groundwork in advance by promising to tell them about a great investment, so their expectations were high.

“Okay, I can trust the information Yongwon gives me. Where should I invest?”

“The investment target is Chinese stocks.”

“Are you saying we should invest in China?”

Everyone tilted their heads as if what I said was different from what they expected.

“Yes, isn’t the Chinese economy growing rapidly? I think this trend will continue in the future. Think back to Korea in the 80s.”

“What company are you going to invest in?”

“It’s a Chinese local state-owned enterprise called Guizhou Maotai. It’s listed on the Shanghai Stock Exchange. Up until now, foreign investment in the Shanghai market has been restricted, but I found out that it will be possible starting this year. It’s possible if the government approves.”

I put the money away and use it in times like this. I asked in advance if I could invest and was told that it was possible.

“You’re talking about a company that makes Maotai. So, it’s a liquor company. Is it capable of long-term growth?”

“China has been a beggar so far, so there is no great merit, but look at the Chinese economy growing. As the number of wealthy people increases, the demand for high-end liquor will also increase significantly. The growth potential of Guizhou-Maotai is limitless in the future.”

“A company that makes Maotai is worth investing in. I heard that Maotai is called the national liquor in China. It is always served as a banquet drink when foreign dignitaries visit, and it is said that the late Chairman Mao enjoyed drinking it.”

Grandfather’s reaction was, of course, positive.

“As the Chinese market grows, the popularity of Maotai will also increase. We need to invest with a long-term perspective. It seems like it would be okay for us to invest with our own profits and hold on to it for the long term.”

“If it’s long-term, how long do you have to look at it?”

“We need to wait at least 10 or 20 years.”

“It’s a public enterprise, so it won’t go bankrupt. They say it’ll definitely make a profit, right? You can’t trust the financial statements of Chinese companies.”

“The market size of high-end baijiu is not yet large, but the profit margin compared to sales is 51%.”

“The company’s profit margin is high. Perhaps they have taken steps to lower the profit margin relative to sales?”

“Yes, I think so. Even if the profits are too high, the Chinese government will not leave it alone.”

Father thought about it for a moment.

Although our food’s Seolleongtang product was a hit and gained great popularity, the risk of relying on one product was too great.

The company needed a new long-term source of energy. As the funds piled up, they looked around for a place to invest, but no suitable investment target caught their eye.

Even my father could see that the Maotai company I recommended had the potential for long-term growth and high investment returns.

China’s economic growth has been the subject of much talk in business circles.

Labor costs were cheap and there were a lot of Chinese people. It was trendy for everyone to build factories in China.

“How much do you plan to invest in total? What is the current stock price of that company?”

“Among the shares issued by the company, about 30% are in circulation on the market. The stock price traded on the Shanghai Stock Exchange yesterday was 11 yuan.”

“The volume traded on the stock market is too small. Is it possible to secure the volume?”

If you try to buy the desired quantity in the stock market, the stock price will rise too much.

“If you want to secure some quantity, you can do it by negotiating with the company to increase capital through a three-party paid-in capital increase. You can do it half-and-half by increasing capital and half by purchasing it on the stock market.”