CH131 | Heir

SAVE Investment’s Conference Room.

All the key members were gathered, watching TV.

They were sipping cola and munching on popcorn, but this wasn’t a movie night.

In fact, what they were watching was far more exciting than any movie—the presidential election results broadcast.

"At this rate, Bush should win comfortably. He’s leading 54 to 3."

"We still need to wait and see. The early results are from the South, where the Republicans are strong. Things could change once Florida starts counting."

As the results continued to roll in, the situation became more interesting.

The comfortable 54-to-3 lead started to shrink, and by the time Texas was counted, the race had tightened to 119 to 121.

"New York’s results are coming in now. It’s a Democratic stronghold, so the gap might widen."

"We’ll probably fall behind a little."

But it wasn’t just a little.

The once-close race suddenly widened to 153 to 192.

If things continued this way, Bush’s chances of winning looked slim.

Then, as Ohio’s results came in, the tide started turning.

And when Florida flipped to a toss-up, the gap tightened dramatically.

"It’s now an even fight. The Republicans are winning the South and West, while the Democrats dominate the coastal states."

"246 to 249. We’re slightly behind, but depending on Florida, we can still take this."

We continued watching the broadcast.

Time passed, and as the sun set and the moon rose, people started dozing off at their desks.

Then—

"Florida flipped!"

"Finally! With Florida now in Bush’s column, there’s no way the results will reverse."

We could finally relax.

If my memory was correct, Bush was supposed to win by a razor-thin margin.

But perhaps because of my involvement, he had secured a much larger lead than expected in Florida.

Bzzzzt!

A call came through just after 4 AM.

I immediately knew it was from Bush’s campaign.

"Congratulations!"

[Thank you. It’s all thanks to you. I just received Gore’s concession call.]

Bush’s voice came through the phone.

His throat was hoarse from the long campaign, but his emotions were crystal clear.

"Did you call me first?"

[You were the first person that came to mind. I’ll be sending you an invitation to my inauguration—please make sure to attend.]

"Of course! If you call, I’ll drop everything and be there."

[Then I’ll see you there. I have other calls to make, so I’ll hang up now.]

"Once again, congratulations, Mr. President-elect."

Was I nervous?

I had been holding my phone with both hands, almost reverently, but now, I tossed it onto the desk and leaned back in my chair.

"Was that President-elect Bush?"

"Yes. Gore has conceded."

"Once again, your decision was right on the mark."

"Have I ever been wrong? Now, focus on securing more Qualcomm shares."

"We've already secured 35%. We should reach 50% by the end of this month."

"Once we reach 50%, start maneuvering behind the scenes to ensure Qualcomm signs a foundry contract with Taewoo Semiconductor."

"At 50%, we’ll have enough control to replace the CEO if needed. This will be easy."

I paused, deep in thought.

Would Apple and Qualcomm alone be enough?

Should I also acquire stakes in AMD and other IT companies?

That would allow us to secure even more foundry contracts.

I shook my head.

Hyundai Semiconductor wasn’t ready for that yet.

For now, the priority was supplying Apple with semiconductors smoothly.

After that, we could expand to other IT companies.

The IT bubble still hadn't burst.

IT stock prices would likely keep declining for at least another two years, so there was no rush to move just yet.

* * *

After wrapping up my schedule, I returned to Korea.

I had no time to rest—I headed straight to the office, where Taewoo Electronics CEO Woo Sung-il and the Chief Strategy Officer were waiting for me.

"What’s the current situation with Hyundai Semiconductor?"

"The creditors have all but given up. They’ve been in constant talks with foreign companies, but no one is stepping forward. On top of that, the government is pressuring them, leaving them with no choice but to go through the debt relief process."

As expected, time was on our side.

The longer we waited, the more the creditors started to collapse on their own.

But now, time was no longer our ally.

To align with the iPhone’s launch, we needed to acquire Hyundai Semiconductor as soon as possible.

"Call the creditors together. I need to speak with them directly."

"They’ve already requested multiple meetings with you."

"So they’ve been waiting for me."

"Since the Chairman delegated full authority to you, the creditors have had no choice but to wait."

Both sides needed this deal.

But since no one knew about our exclusive contract with Apple, it looked like the creditors were the only ones in a desperate position.

"I’ll meet them tomorrow."

"I’ll arrange the schedule."

The Chief Strategy Officer left the Vice Chairman’s office to set up the meeting.

I then turned to Woo Sung-il, now alone in the room with me.

"Once we acquire Hyundai Semiconductor, Taewoo Electronics will oversee its management. Will you be able to handle it?"

"I’ll do my best, but significantly reducing the losses won’t be easy."

It was beyond Woo Sung-il’s capabilities.

Turning a company losing 2 trillion won annually into a profitable business overnight was nearly impossible.

But I hadn’t asked to criticize him.

"Deficits are to be expected. In fact, our losses may even grow after the acquisition."

"To be honest, I was expecting that too. The semiconductor cycle is in a slump, and I anticipate that losses will remain at this level for the next two to three years."

"That means we need to be even more aggressive. I plan to use Taewoo Electronics’ entire retained earnings to revive Hyundai Semiconductor."

"Even that might not be enough."

Taewoo Electronics had multiple revenue streams.

But whether those were enough was a different question entirely.

Starting with home appliances, Taewoo Group had expanded into the IT sector, generating huge amounts of cash every year.

Yet, even with those profits, reviving Hyundai Semiconductor would require more funds.

"That’s why I plan to use Taewoo Telecom’s funds as well. Think of it as a joint venture—Taewoo Electronics and Telecom will co-manage Hyundai Semiconductor."

"If we can tap into Taewoo Telecom’s retained earnings as well, we might be able to sustain the losses. But if this fails, both Taewoo Electronics and Telecom could collapse together."

Woo Sung-il was being overly cautious.

If worst came to worst, I could always leverage SAVE Investment’s financial power.

"Don’t worry. I’ll take full responsibility."

"Then I’ll begin securing funds for the acquisition, along with Taewoo Telecom."

"Just don’t make it too obvious. If the creditors catch on, the price will only go up."

"Understood. We’ll proceed discreetly."

* * *

The next day

The creditors of Hyundai Semiconductor arrived at Taewoo Group’s headquarters.

The situation was serious enough that even bank presidents and vice presidents had come in person.

"Welcome. I’m Kim Min-jae, Vice Chairman of Taewoo Group. Thank you for taking the time to visit."

"We should be the ones thanking you for the opportunity to see Taewoo Group up close."

After some polite exchanges, the mood was cordial.

But the moment we got to business, the atmosphere turned tense.

"The creditors cannot accept Taewoo Group’s terms. We are willing to absorb some debt relief, but a 75% reduction is out of the question. Banks are businesses, after all. What company would willingly take a 75% loss?"

"So, it seems you don’t mind if Taewoo Group takes a loss instead."

I leaned forward slightly.

"Let me ask you one thing. Why should we acquire Hyundai Semiconductor while still taking on 25% of its debt? We’d be buying a company that loses 2 trillion won annually."

The creditors fell silent.

They knew better than anyone just how dire Hyundai Semiconductor’s situation was.

And they understood that this acquisition could shake Taewoo Group as a whole.

Still, the creditors needed to sell at the highest price possible.

The president of Foreign Exchange Bank stepped in to speak on their behalf.

"Semiconductors move in cycles. If you wait a few years, the business will turn profitable."

"And in those few years, the total deficit will exceed 6 trillion won. Even if it becomes profitable, can those losses ever be fully recovered?"

"Taewoo Group has the strength to do it. Besides, for the sake of South Korea’s economic growth, wouldn’t it be better for a domestic company like Taewoo Group to acquire Hyundai Semiconductor rather than a foreign firm?"

The bank president played the patriotism card in the negotiation.

That only confirmed how unattractive Hyundai Semiconductor was as an asset.

If the company had world-class technology, they wouldn’t need to resort to emotional appeals.

The moment they brought up patriotism, I knew the negotiation was shifting in my favor.

"Thank you for your kind words. Just as you said, Taewoo Group is willing to endure significant losses for the sake of South Korea’s development. But if that’s the case, why isn’t the creditors' consortium doing the same? For the good of the country, we ask you to make a major concession as well."

"Of course, we’re willing to make a concession. We’ll agree to a 50% debt reduction."

Are they joking?

For non-performing loans, even recovering 10% is considered a good deal.

Yet they wanted to take back 50%? What a bunch of thieves.

"If that’s your position, then Taewoo Group has no choice but to stick to our original terms. It’s the only way to save both Taewoo Electronics and Hyundai Semiconductor."

"So you’re saying you won’t proceed unless we agree to a 75% debt reduction?"

"That’s correct."

"Can we have a moment to discuss this privately?"

"Of course. I’ll step out for 30 minutes."

I exited the conference room, knowing they’d struggle with the decision.

Would they take the 25% repayment or try to revive Hyundai Semiconductor themselves?

Foreign Exchange Bank, the largest creditor, would want to recover as much as possible.

But the outcome was already set.

Of the six banks in the creditor consortium, three bank presidents had already met with David.

At the end of the day, bank presidents were just contract employees.

Once their contracts ended, they’d have to secure their own futures—and that was something I could easily help with.

30 minutes later.

My chief strategy officer came to find me.

"Vice Chairman, the creditor meeting has concluded."

I had dozed off in my chair while waiting.

Now fully refreshed, I headed back into the conference room.

"The creditors have reached a final decision. We’re willing to agree to a 65% debt reduction. That’s our absolute limit."

"Let me take a moment to consider it."

It wasn’t ideal.

Given another year or two, I was confident I could push for a 70%+ reduction.

But with the iPhone’s launch schedule, I had to acquire Hyundai Semiconductor immediately.

In reality, I was the one pressed for time.

But I couldn’t let that show.

So I let out a deep sigh first.

"Phew... What a shame. But if this is the only way to save the creditors, Hyundai Semiconductor, and Taewoo Group, then I suppose I have no choice but to accept."