New Employees With an Annual Salary of 1 Trillion Won - Chapter 102

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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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Chapter 102. Things Money Can’t Buy (2)

 

“The price is too high!”

 

“If an all-out war breaks out, not only Gucci’s stock price but also PPR’s stock price will rise not just 20% but even 30-40%. And you’ll have to buy those stocks at that price, so isn’t this better?”

 

It was closer to blackmail than negotiation.

 

Naturally, Chairman Francois raised his voice and vented his anger.

 

“Isn’t this going too far? This is extortion!”

 

“We need at least this much justification. Of course, we’re not unaware of PPR’s situation. So we’d like to add one more proposal.”

 

“What proposal?”

 

“Tiger Fund will lend you the funds for the Gucci acquisition. We’ll support you with interest rates close to zero, lower than bank interest.”

 

The frozen atmosphere in the meeting hall melted away in an instant.

 

Since Tiger Fund would provide the funds rather than company reserves, Chairman Francois continued with an awkward smile.

 

“Are you really saying Tiger Fund will support 100% of the acquisition funds?”

 

“Haven’t I been saying this all along? We really only needed justification.”

 

“Is there a reason you’re going this far?”

 

“There’s no need for us to become enemies with PPR. Of course, if you reject our proposal, that would be unavoidable.”

 

It was closer to a threat than a proposal.

 

But since it wasn’t a bad proposal from PPR’s perspective, they accepted it.

 

“We’ll accept the proposal.”

 

“Good. Then we’ll send you the funds to acquire a total of 22% equity – Tiger Fund’s 11% stake in Gucci plus LVMH’s 11%. That’s 1.6 billion dollars.”

 

“And I’d like one more promise. I hope this kind of thing never happens again.”

 

He meant not to attack PPR in the future.

 

I couldn’t make such a promise with just words, so I presented him with the fundamental condition behind this operation.

 

“Hmm, who would believe it if you just said you wouldn’t attack? So we need to become partners who share interests to build trust, don’t we?”

 

“Don’t we already have shared interests from the moment you borrow 1.6 billion dollars from Tiger Fund?”

 

“That’s a one-sided relationship. So we also need something that makes us dependent on PPR, don’t we?”

 

Chairman Francois tilted his head.

 

He seemed to think there was nothing they could provide to Tiger Fund, a financial company.

 

“Is there such a thing?”

 

“Tiger Fund Korea Branch recently acquired a department store. If PPR’s luxury brands enter the store, wouldn’t we become mutually dependent?”

 

“We can’t just put luxury brands in any department store.”

 

“We plan to create a luxury section superior to any department store in Korea. I promise this on Tiger Fund’s reputation.”

 

There couldn’t be better conditions than this.

 

It was a chance to gain Tiger Fund, a mega-ally, without spending a single penny.

 

“Understood. We’ll send a due diligence team to Korea immediately. And I’ll give instructions so that all luxury brands under PPR can enter if they pass the minimum qualifications.”

 

“As long as PPR’s brands are operating in the department store, Tiger Fund will never attack PPR. We might even help. Contact us anytime if you have funding shortages or M&A-related issues.”

 

The contract was concluded this way.

 

A strategy using Tiger Fund and Chairman Robertson’s reputation.

 

Tiger Fund actually spent almost no money and could even secure a profit of 200 million dollars.

 

***

 

After all negotiations ended, we returned to the hotel.

 

Chairman Robertson, perhaps feeling stuffy, threw off his tie first and spoke to me.

 

“We made 200 million dollars in less than a week.”

 

“It was possible thanks to you, Chairman. If I had proceeded alone, it would have taken months, not a week. And we would have had to actually move, not just pretend to move, to make negotiations possible.”

 

“That’s true now, but your reputation is starting to spread, so you’ll soon be able to conduct such negotiations on your own.”

 

That wasn’t something I particularly hoped for.

 

If it weren’t for the Midopa Department Store matter, I wouldn’t have had to come to Europe.

 

I didn’t want my workload to increase unnecessarily, and I hoped headquarters would handle such matters on their own.

 

“Won’t time solve that?”

 

“If you keep doing as you are now, it won’t take too long. But how expensive are you planning to sell the department store that you brought in both LVMH and PPR?”

 

“I have no plans to sell it for the time being. I’m thinking of developing the department store as Korea Branch’s cash cow.”

 

“Well, that’s not bad either. But to become a solid cash cow, shouldn’t it be called Korea’s best? To achieve that, you need to fill in the last piece.”

 

I knew well what the last piece the Chairman mentioned was.

 

There was still one brand remaining – the symbol and icon of luxury goods.

 

“You mean Chanel?”

 

“To properly develop a luxury section, you need Chanel, don’t you?”

 

“We’re making contact through various channels.”

 

“Actually, with LVMH and PPR, entry was possible because of the special situation of an acquisition war, but Chanel isn’t a brand you can persuade with money.”

 

“Do you think it can’t be bought with money?”

 

The Chairman nodded.

 

Then he even frowned as he continued speaking.

 

“They have very strong pride. Money is important, of course, but that alone isn’t enough. Korea’s traditional large distribution companies’ department stores were able to get them to enter because they courted them for a long time, but our case is different, isn’t it?”

 

“In the end, the only thing we have over them is financial power. So I’ll try to solve it with money as much as possible.”

 

“Haha, where did my words go? It’s not a place you can buy with money alone.”

 

What can’t be solved with money?

 

It’s just a matter of where and how you use the money.

 

“I’m thinking of using money in various ways. So I want to use 100 million dollars out of this 200 million dollar profit for Midopa Department Store.”

 

“Since the Deputy Branch Manager designed the investment, use the profits however you want. But do you need my help with Chanel negotiations too?”

 

The Chairman spoke with expectant eyes.

 

I couldn’t bring myself to say I didn’t need help, so I deflected slightly.

 

“How could I ask for your help, Chairman? If the situation really becomes difficult, I’ll earnestly ask for your assistance then.”

 

“What’s so special about me that you’d go that far? Just ask for help and I’ll step in anytime, so contact me comfortably. Are you going back to Korea now?”

 

“I have business to do in the United States.”

 

“Really? Then we can go together.”

 

Since I was already on an overseas business trip.

 

It was better to finish everything at once, so I chose to go to the United States instead of Korea.

 

***

 

We arrived at Wall Street.

 

On the plane, I worked my brain non-stop to concrete the design for the next phase.

 

Of course, I had already completed most of the planning in Korea, and the General Manager was supporting me from behind.

 

“Are you going to the hotel now? Since we came all the way to headquarters, why don’t you at least greet the staff?”

 

“I have an appointment.”

 

“Where are you going?”

 

“It’s not far from here. It’s a place we can reach in 20 minutes by car.”

 

“Really? It’s not personal business, is it?”

 

“That’s right.”

 

The Chairman kept prying.

 

I had a hunch, and my hunch proved right.

 

“Then let’s go together. Twenty minutes is the perfect distance for a drive.”

 

“You must be tired, so wouldn’t it be better to go in and rest first?”

 

“I’ll rest forever when I die anyway, so why rest already? Is this old man bothering you?”

 

“That’s absolutely not the case.”

 

It wasn’t bothersome.

 

Just burdensome.

 

And since he was someone I couldn’t control, I wanted to keep as much distance as possible.

 

“Let’s go straight in my car.”

 

“Understood.”

 

Eventually, I moved to the appointment location with the Chairman.

 

Due to traffic congestion incomparable to Seoul, it took over 30 minutes to arrive.

 

“This is why you need a good car to live in Manhattan. You spend so much time in the car.”

 

“I’ll keep that in mind.”

 

Since I wouldn’t be living in Manhattan, I just let Chairman’s advice go in one ear and out the other as I got out of the car.

 

“Hmm, an architecture studio? We decided to hold the meeting here?”

 

“That’s right. Please come inside.”

 

It was more like an art space than an office.

 

Of course, to my eyes which had no artistic sense whatsoever, it was just an inefficient layout, but the Chairman looked around quite carefully.

 

“It’s strange to say this after coming all the way here. But what’s the reason we came here?”

 

“We’re going to buy the architect that Chanel loves with money.”

 

If we can’t buy Chanel with money,

 

then we can buy someone close to Chanel with money.

 

Artists are difficult to move with money, but architects are a slightly different story.

 

“You’re from Tiger Fund, right? What brings you to see me?”

 

Peter Marino.

 

The architect that Chanel loves had appeared.

 

Wearing a black leather jacket, he seemed to have quite a macho temperament.

 

“Nice to meet you. I’m Lee Jung-hoo, Deputy Branch Manager of Tiger Fund’s Korea Branch. And this is Chairman Robertson.”

 

“Nice to meet you. This is truly a space that pleases the eyes.”

 

“Thank you for the compliment. But what brings you here?”

 

He was someone who wasn’t impressed by Chairman Robertson’s reputation.

 

Being an architect, he seemed unaware of Wall Street rumors, which was why I hadn’t specifically asked the Chairman for help.

 

Of course, it was better than having nothing.

 

Even if he didn’t know the Chairman’s name, there was credibility that came with the title of Tiger Fund Chairman.

 

“Tiger Fund recently acquired a department store in Korea. We came to request a remodeling project.”

 

“Korea? That’s the country next to Japan, right?”

 

“That’s right. Japan and Korea are less than two hours apart by airplane.”

 

“Quite close. But you mentioned department store remodeling – what kind of approach are you looking for?”

 

Peter Marino already seemed to be losing interest.

 

To capture his heart in one go, I needed provocative words.

 

“We’re thinking of investing 30 million dollars for the remodeling cost.”

 

“Oh! The scale is bigger than I thought.”

 

“And we want to remodel focusing on the luxury goods section. All luxury brands from LVMH and PPR have already confirmed their entry.”

 

“Is that so? Now I understand why you came to see me.”

 

The wariness disappeared from Peter Marino’s face.

 

The amount of 30 billion won was important, but he showed more interest in the fact that several luxury brands had already confirmed their entry.

 

“It’s fine if it costs more than 50 million dollars instead of 30 million. You can remodel it however you want.”

 

“As you know, our studio is quite expensive. If the construction cost is 30 million dollars, you’ll need to pay 6 million dollars as our fee.”

 

“If you just sign the contract, we can pay the fee in advance today.”

 

Architects were people full of desire to create their own works.

 

But unlike other arts, architecture requires enormous costs, so they can’t freely engage in artistic activities.

 

That’s why I said architects can be bought with money.

 

Architects were people who would stop at nothing if they could just engage in the artistic activities they wanted.

 

“Can I really create it the way I want?”

 

“We won’t interfere at all. You can do anything as long as it doesn’t cause legal problems. However, I hope the design won’t diminish the value of luxury brands.”

 

“That’s natural. But what kind of luxury section do you want to create that you set 30 million dollars as the minimum cost?”

 

30 billion won was too excessive for luxury section remodeling costs.

 

But I was planning to turn the luxury section into a museum, with a scale completely different from ordinary luxury sections.

 

“We want to structure the luxury section on two floors total. The second floor will house LVMH and PPR brands, and the first floor will be used exclusively by Chanel along with cultural space.”

 

“Has this been discussed with Chanel?”

 

“Not at all. If we create the space first, won’t Chanel recognize our sincerity?”

 

There were those who valued pride more than money.

 

Luxury brands had strong tendencies in this regard, and exclusive space was about building Chanel’s pride.

 

The first floor, which could be called the face of the department store, and exclusive dedicated space was tantamount to saying Chanel was the protagonist of the department store.

 

“Then I should do a Chanel-customized design for the first floor.”

 

“I understand you’ve collaborated with Chanel many times. I’d be grateful if you could design thinking of it as dedicating the space to Chanel.”

 

“I’ll design it so they’ll have no choice but to enter. I was about to start construction on a Chanel exclusive pavilion in Japan anyway, so I can proceed with both simultaneously.”

 

This was another reason I sought out Peter Marino.

 

It would be difficult to call him to Asia just for the Korea construction.

 

But since Japan construction was already planned, I could also entrust him with Midopa Department Store remodeling while he was at it.

 

“And you can remodel other spaces besides the luxury section as much as you want.”

 

“You’re quite open-minded. Does the Chairman agree with this too?”

 

“If the Deputy Branch Manager says he’ll do it, what can I do? More than that, when this construction is finished, I’d like to entrust Tiger Fund building to you too – would that be okay?”

 

“If you entrust it to me, I’d be grateful. Since the studio is close by, just call me whenever you want and I’ll give you a quote right away.”

 

Meanwhile, I took out the contract I had prepared in advance.

 

Peter Marino signed it boldly like a true man.

 

“I’ll go to Korea next week. No matter how much I look at photos, I can’t give a proper estimate.”

 

“Tiger Fund Korea Branch will provide support so you won’t be uncomfortable during your stay in Korea.”

 

“Then, let’s meet in Korea next week.”

 

With the contract concluded like this,

 

the Chairman and I got back in the car.

 

“The idea of buying an architect with money to create space to entice Chanel isn’t bad. But wouldn’t the risk be too great if it fails?”

 

“Although over 40 million dollars might be invested in the remodeling construction, it still won’t be bad. Even if Chanel doesn’t come in, the department store can have a luxury image just from Peter Marino’s name value.”

 

The Chairman smiled contentedly.

 

It was a smile that could emerge since I had made over 200 million dollars profit in France.

 

“If you’re going to spend the money you earned, what can I say? And your method isn’t bad either. Even if you change the order in reverse, as long as the results are good, that’s enough.”

 

“Once Peter Marino completes the preliminary design, I want to start direct contact with Chanel then.”

 

“Send the design to me as soon as it comes out. I’ll meet with Chanel management. You don’t need to come. I’ll handle it myself.”

 

This was welcome news to hear.

 

Once this matter was finished, I had no plans to go on overseas business trips for a while.

 

Of course, the United States schedule wasn’t over yet.

 

Rather, the truly important work still remained.

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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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