New Employees With an Annual Salary of 1 Trillion Won - Chapter 134

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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 134. Spoils of War (3)

The major US banks moved at an unbelievably fast pace.

They secured all the IT company stocks we wanted, and particularly transferred Philips’ 15% stake in ASML plus their own 5% stake through a block deal format.

With this, Tiger Fund rose to become ASML’s largest single shareholder.

Moreover, by securing participation rights in the EUV consortium, we could continue negotiations with ASML not as mere investors but as strategic partners.

“We sincerely welcome Tiger Fund joining the EUV consortium. I’m Doug Dunn, CEO of ASML.”

“It’s an honor to meet you. I’m Lee Jung-hoo, in charge of Tiger Fund Korea Branch.”

“I heard that the Korea Branch acquired Daehyun Semiconductor. That was a very difficult decision.”

The semiconductor industry was still enduring a tough cycle.

Since ASML was selling semiconductor equipment, they knew the market difficulties better than anyone, so his voice carried genuine sincerity.

“Spring always comes after winter passes. So we plan to quietly plow the fields until that day arrives.”

“The EUV consortium will be of great help to Daehyun Semiconductor’s growth. You’ll now receive all semiconductor equipment roadmaps.”

This was possible because we had become partners.

Among Korean semiconductor companies, we became the only one able to receive roadmaps provided by ASML.

“Daehyun Semiconductor cannot grow by simply receiving roadmaps. As a latecomer, we must run more fiercely. So I’d like to make one proposal, if that’s alright?”

“Of course. If it were another semiconductor company, I would have considered carefully, but Tiger Fund is a partner guaranteed by the US government, isn’t it? As such, we can discuss various proposals.”

The semiconductor industry was a field where the US government’s influence worked strongly.

Without US government approval, neither exports nor cooperation were possible. However, since we had the White House’s full support behind us, ASML could also listen to our proposals without hesitation.

“I heard that EUV technology development requires enormous funding.”

“Although various companies are joining forces for development, there are many obstacles since it’s dream technology. Moreover, with the poor semiconductor market conditions, investment funds are severely insufficient.”

“Since we’ve joined the consortium this time, Tiger Fund also wants to step forward with development funding support.”

“Investment from Tiger Fund would always be welcome. However, may I ask what scale of investment you’re planning?”

CEO Dun’s face brightened.

We had appeared as saviors in a situation where they were struggling with insufficient development funds.

Of course, to become true saviors, we needed to invest funds at a scale that would satisfy ASML.

“First, we plan to invest 1 billion dollars initially.”

“1 billion dollars? That scale would be tremendously helpful. We could immediately resume various experiments that were halted due to lack of funds.”

“Instead of investing, we’d like to receive 5% equity shares. Would that be acceptable?”

Naturally, it wasn’t free.

There were no cases of investing such a large sum of 1 billion dollars without any compensation, and CEO Dun also seemed to have already expected this fact, maintaining a calm expression.

“1 billion dollars for 5% equity shares is a reasonable condition.”

“We’re not simply making an equity investment. We plan to further expand Daehyun Semiconductor’s scale going forward. We plan to introduce 2 billion dollars worth of new equipment within this year. Would that be possible?”

“We should naturally prioritize the requests of partner companies first. We’ll supply as much equipment as you want.”

CEO Dun’s face was brightening.

A 2 billion dollar scale equipment introduction was a scale only possible for Samjin Electronics.

Especially during times like now when the semiconductor cycle wasn’t good, there was bound to be an atmosphere of reluctance toward equipment introduction, so he smiled even more.

“We’re not just introducing equipment this year. We plan to introduce tens of billions of dollars worth of equipment every year going forward.”

“I’ll always be waiting for Daehyun Semiconductor’s calls. Rather than that, I’ll visit Korea with working staff as quickly as possible.”

“So we’d like to receive priority supply of new equipment going forward.”

“That’s naturally how it should be. Just tell us the required equipment quantities in advance, and we’ll accommodate as much as possible.”

ASML’s supply capacity had limits.

Since each piece of equipment cost up to 100 million dollars, they couldn’t mass-produce them.

The number of equipment units they could produce in a year was only about 50 at most.

We wanted Daehyun Semiconductor to monopolize half of those.

This was a possible demand because we had joined the consortium and added large-scale equity acquisition and investment.

“The meaning of ‘going forward’ includes EUV equipment as well. It’s still only in the development stage, but once developed, it will be equipment that changes the market landscape, so we want to secure it in advance.”

“We naturally plan to supply consortium member companies first. And the more investment funds, the more equity shares, the higher the priority. By current standards, Tiger Fund is first priority.”

We had no choice but to be first priority.

There weren’t many global semiconductor companies interested in EUV equipment yet.

There weren’t many companies willing to invest large sums in technology that would take at least 20 years to complete, but I was confident of success.

Because I had confirmed the cogwheel of EUV equipment.

The largest and fastest-rotating gear was EUV, which is why we were trying to secure EUV equipment even while investing large sums.

“Of course, I understand it will take nearly 20 years to commercialize. Until then, we won’t spare steady annual investment support.”

“Just hearing those words is reassuring. We’ve been suffering from insufficient development funds every year.”

“Going forward, we’ll actively support you at the Tiger Fund level so you don’t face development difficulties due to lack of funds.”

We weren’t providing funds because we had money to spare.

If development funds ran out, ASML would eventually have no choice but to extend their hands to more companies.

That would increase competitors and shake EUV equipment’s monopolistic position.

We promised funding support because we wanted to prevent such situations in advance.

“You can’t imagine how reassuring it is to have such a reliable partner as Tiger Fund. I hope this kind of relationship continues going forward.”

“We didn’t acquire Daehyun Semiconductor with divestiture in mind. So you don’t need to worry about that point.”

As the conversation wrapped up, I pulled out a contract.

Since nothing was guaranteed with verbal contracts, it was necessary to document everything.

CEO Dun signed the contract that included all content from investment funding support to priority equipment supply.

The moment he signed the contract.

ASML became Tiger Fund’s partner beyond a simple equipment supplier.

They also became co-designers who would draw the roadmap of the future semiconductor industry together.

There might not be noticeable changes right now.

But if the technology trajectory continues as I predicted, today’s single signature line will become reliable wings for Daehyun Semiconductor.

***

Real estate derivative products literally sold like hotcakes.

As banks competed to buy the products we created, landlords wanting loans flocked to Everbed.

As a result, we could achieve the feat of catching not two but three rabbits at once.

“The derivative products are so popular. Since they’re well-designed products, banks are buying them up as fast as we release them.”

“There are no better real estate products than these. And we’ve also been able to receive quite substantial fees.”

“There’s no business as profitable as the fee business.”

The General Manager was grinning from ear to ear.

Through the war with short sellers, Tiger Fund’s operating capital increased by more than double in an instant.

As operating funds increased, we had to find new investment destinations.

But thanks to the real estate derivative products I created, we were relieved of such concerns.

It was a structure that could generate stable returns even with hundreds of billions of dollars invested.

“We receive 2% just in issuance fees, plus 0.5% in service fees. And we also receive 5% per transaction in Everbed fees, so money comes in automatically even if we just sit still.”

“And since we’re holding the lower-grade products, we can also receive 20% just in loan interest.”

Banks prioritized stability above all.

So they only bought high-grade AAA-rated derivative products.

For BBB grades, hedge funds or investment banks with strong speculative tendencies bought them.

And Tiger Fund held the lowest-grade BB and below ratings.

These could be seen as a type of junk bond, high-return but high-risk bonds.

“Right now we can see interest returns of over 20%, but if the real estate market shakes, it could turn into enormous losses.”

“We just need to clear everything out before such a situation comes. Real estate prices are expected to rise for the next several years.”

“If that happens, it won’t be junk bonds but geese laying golden eggs.”

Golden eggs or waste paper.

Their value fluctuated dramatically according to real estate market trends.

But there was no reason for us to bear that anxiety.

We had started the real estate business with divestiture in mind from the beginning.

“Through Everbed, we can find out real estate market conditions faster than anyone. When we think it’s the peak, we’ll immediately proceed with divestiture procedures.”

“Then until we divest, we can see stable returns of 20% annual interest income plus over 7% fee income every year.”

“Not only that, but if real estate prices also rise, total returns could exceed 50%.”

Real estate values had the possibility of jumping more than double.

Due to the real estate derivative products I created increasing interest in real estate, rises of more than double were possible.

However, since we didn’t hold much of the volume directly, we had to calculate total profits conservatively.

Nevertheless, the return rate was 50%.

Investment opportunities that could yield such profits while investing hundreds of billions of dollars were hard to find anywhere in the world.

“We’ve exceeded this year’s targets. So now we should talk about compensation, shouldn’t we?”

“By compensation, do you mean performance bonuses?”

When performance bonuses were mentioned, the General Manager seemed to show a slightly tense expression.

Since he hadn’t easily shown such expressions before, I also tensed up and watched the General Manager’s mouth.

“The short selling before the terror attack and the war with short selling forces afterward generated profits close to 25 billion dollars. And it’s clear that the Branch Manager designed this operation.”

“I did the design, but without the General Manager’s and Chairman’s power, it would have been impossible to execute.”

“That’s why it was difficult to set the performance bonus. So we created a compromise.”

Fund performance bonuses were generally around 20%.

Then, with 25 billion dollars in profits generated, my performance bonus would amount to a whopping 5 billion dollars.

However, since this operation wasn’t carried out by my power alone, expecting 5 billion dollars was unreasonable.

“I’ll accept it as positively as possible.”

“Thank you for saying that. Here’s the compromise: 500 million dollars in performance bonus, 10% equity in Tiger Fund. Plus participation rights in the investment committee and an increase in Korean Branch operating funds.”

“How much do you plan to increase the Korean Branch operating funds?”

“We’ll increase it to 20 billion dollars. You’ll be able to invest 20 billion dollars based solely on the Branch Manager’s decision, without needing anyone’s permission.”

20 billion dollars was equivalent to 26 trillion won in Korean currency.

It was also an amount corresponding to 40% of Tiger Fund’s total operating funds.

“The amount is too large.”

“Think of it as the Branch Manager directly utilizing the profits earned this time, so there’s no need to feel burdened.”

“Are you saying it’s okay even if I invest all 20 billion dollars in the semiconductor business?”

“Whether it’s the semiconductor business or not, even if you record all 20 billion dollars as losses, it doesn’t matter. The Branch Manager has already brought Tiger Fund profits exceeding that amount.”

Burden and excitement came simultaneously.

The authority to use 20 billion dollars in operating funds resonated with me more than receiving a 5 billion dollar performance bonus.

With 20 billion dollars, I could accelerate my plans.

However, I was also anxious because I couldn’t guarantee short-term profits.

“The things I’m planning require at least 10 years or more. In the short term, large losses might actually occur.”

“I know. We’re not entrusting 20 billion dollars to the Branch Manager simply because of this operation’s success, but considering Tiger Fund’s future.”

I understood the General Manager’s words.

But I couldn’t accept them at face value.

I thought I should at least earn back as much as I spent.

“I’ll try to operate without losses.”

“I’m telling you it’s okay even if you lose all 20 billion dollars. Of course, since the Branch Manager is operating it, that won’t happen. And please value the 10% Tiger Fund equity importantly. If you keep increasing your shares, the Branch Manager could become Tiger Fund’s owner.”

Owner of Tiger Fund, not just representative.

If I keep increasing shares like this, I could become Tiger Fund’s largest shareholder.

But I didn’t particularly want that. Becoming Tiger Fund’s owner would increase my workload by hundreds of times.

“I hope the General Manager continues to lead Tiger Fund. I have no intention of coveting that position.”

“Well, time will tell. Oh! And you know that Nexpin employee account funds were also invested in this operation, right?”

“I understand 200 billion won was used.”

The war with short selling forces even mobilized funds from Nexpin employees’ accounts.

My share of 100 billion won and the employees’ funds of 100 billion won, totaling 200 billion won, were invested in purchasing airline stocks.

“We need to settle that part too. 30 billion won for the Branch Manager’s share, and each employee will receive 3 billion won in investment profits.”

“The employees will be very happy.”

“Even if they receive that, won’t the Branch Manager end up taking it all to use anyway?”

“I’d be grateful if you could tell them I’m handling investments on the employees’ behalf.”

Having too much money in bank accounts tends to make people lazy.

So I periodically used employees’ funds for corporate acquisitions or equity purchases, and I planned to use this profit in the same way.

“You’ve worked hard all this time. Now let’s return to Korea.”

“I hope there won’t be any overseas business trips for a while.”

I could finally return to my routine.

And I had secured the funds to execute what I planned in Korea.

Just that thought made my heart race, and my head filled with the desire to return to Korea quickly.

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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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