New Employees With an Annual Salary of 1 Trillion Won - Chapter 150

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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 150. Flocking Talents (4)

The World Cup season had begun in earnest.

Global IT company representatives started arriving in Korea one after another to coincide with the opening match.

“Branch Manager! Do I really have to go this far? Why do I have to provide entertainment in Korea that we don’t even do in the United States?”

“To persuade global IT company representatives, someone with appropriate name value must step forward directly. At Tiger Fund, no one else besides you, Chairman, can take on that role.”

Chairman Robertson’s face was already half-dead.

From personal meetings to banquets and even factory tours.

Since he was handling all schedules together with President Gelsinger, he didn’t have a moment to rest.

“This is really too much. Just today alone there are 2 official schedules, and if you include unofficial ones, it’s over 5. Meeting people from morning to evening until my feet are cramping!”

“You can’t imagine how fortunate it is that you’re here in Korea, Chairman. And the real schedule hasn’t even started yet. In a few days, the US matches will begin. IT company representatives are scheduled to enter the country in large numbers to coincide with that.”

“The schedule gets even busier? You’re really working me to the bone. I didn’t come all the way to Korea for this!”

The Chairman raised his voice.

In fact, this was also part of the plan I had devised.

By making him handle a murderous schedule, I ultimately planned to send the Chairman back to the United States.

But the Chairman’s presence was shining much brighter than expected.

Thanks to the Chairman, contracts with global IT companies began to be concluded one after another.

Daehyeon Semiconductor’s technological capabilities and production scale, plus President Gelsinger’s expertise.

When the Chairman’s reputation was added to this, Daehyeon Semiconductor gained tremendous trust and the situation flowed much more smoothly than my plan.

In this situation, it would be troublesome if the Chairman returned to the United States.

So I had to offer him a carrot that the Chairman wanted.

“Once this work is finished, I intend to execute a major investment.”

“That’s right! This is exactly the kind of work I want. But where and how much are you thinking of investing? And who is the target?”

As expected, the Chairman’s attitude completely changed.

To make him meet people non-stop during the World Cup period, I needed a plausible carrot.

The operation I had prepared had sufficient size and difficulty to shake the Chairman’s heart.

“I’m planning to acquire a bank.”

“A bank? Is there really a need for us to acquire one directly? Wall Street banks are already on our side. Besides, bank acquisitions have complex procedures, don’t they.”

“The Korean branch holds various industrial assets from semiconductors to distribution, so it cannot directly own a bank. Therefore, headquarters needs to step forward for this matter.”

Korea had financial-industrial separation laws.

Since it was a law that prevented simultaneous ownership of banks and corporations, the Korean branch could not acquire a bank.

“If you really want to acquire a bank, methods exist. You could establish a holding company or use a paper company.”

“I would like headquarters to step forward and proceed with the process.”

“It’s not difficult. But is there a reason to do so?”

The Chairman wasn’t showing much interest yet.

The benefits from acquiring a Korean bank didn’t seem particularly large.

Of course, if things went according to the plan I had established, this bank acquisition could yield at least several times the profit.

But when would I have time to explain everything in detail?

To capture the Chairman’s interest at once, there was a better method.

“The competitor is Lone Star Fund.”

“Oh! You’re going up against Lone Star? That sounds interesting.”

“It’s not among Wall Street’s top 5 funds, but I understand it’s still a fairly large fund.”

“It’s incomparable to our Tiger Fund. It’s just a private equity fund that deals in non-performing loans.”

Lone Star Fund, headquartered in Texas rather than Wall Street.

It was making a name for itself as a fund that profited from distressed asset investments in Asia, where financial engineering was relatively behind compared to the United States.

“Lone Star Fund is targeting a bank. We’re thinking of taking that bank.”

“Very interesting. Lone Star Fund is famous for never doing unprofitable business. If they’re targeting it, it must be a profitable bank for sure.”

“This time, we’ll move using Lone Star Fund’s methods.”

“Lone Star’s methods – you mean non-performing loans?”

“About 2-3 trillion won should be sufficient.”

It was just the right amount to have some fun.

Considering Tiger Fund’s scale, 2-3 trillion won was certainly not big money.

Since we could set up a game against Lone Star Fund with that amount of capital, the Chairman also showed great interest.

“But what are you planning to do with those non-performing loans?”

“If we buy bank shares directly now, we’ll have to pay an expensive price. But non-performing loans can be acquired at bargain prices. By receiving convertible bonds in exchange for cleaning up that debt, we can ultimately secure large amounts of shares at low prices.”

This was Lone Star’s method of frequently dealing in non-performing loans.

We had also had fun several times by normalizing non-performing loans, so we had already accumulated sufficient experience.

“Well, non-performing loans do have high discount rates.”

“The target bank is Korea Exchange Bank. Currently, the scale of non-performing loans has grown to over 5 trillion won.”

“Did the non-performing loans suddenly increase drastically?”

“Due to the card crisis, mergers with card companies resulted in banks taking on all the non-performing loans.”

This happened because of the card crisis.

Korea Exchange Bank was one of the domestic top 5 banks and naturally possessed decent liquidity.

But due to sudden mergers with card companies, the scale of non-performing loans suddenly increased dramatically.

“But can you acquire a bank of that scale for 2 trillion won? Even a quick look suggests it has a value of at least 5 trillion or more.”

“If the situation aligns well, it’s fully possible.”

“Are you thinking of reselling it? Or continuing to operate it?”

“I’d like to continue operating it. It’s time for us to own a bank too.”

Chairman Robertson slightly frowned.

Fund and bank management were completely different domains, so he seemed worried.

“What are you planning to do by owning a bank?”

“Korea Exchange Bank is a fairly global bank with branches in the United States too. If we own such a bank, we won’t have to share real estate derivative fees with American banks anymore.”

Fees were scarier than taxes.

Even just the real estate derivatives I designed were paying enormous amounts in monthly fees to banks.

“Fees are regrettable, but if you think of it as the cost of staying friendly with Wall Street banks, it’s not that regrettable.”

“We’re paying enough costs. So I’d like us to take all the derivative fees we issue going forward.”

“Just by taking all the fees from newly issued derivatives, we could quickly recover the bank acquisition costs.”

The popularity of real estate derivatives was growing day by day.

So there was a need to quickly redesign the structure so Tiger Fund could take all profits, and a bank was essential for that.

“I understand your plan. Acquire a bank at bargain prices and use it properly later, or resell it for profit – there’s no reason not to do it.”

“For that, we need to do preliminary work step by step from now.”

“Very interesting. I’ll control headquarters, so you arrange to meet Korea Exchange Bank officials to acquire the non-performing loans.”

The Chairman was eager to move quickly.

But work had priorities, and contracts with global IT companies came first.

“As soon as the World Cup period ends, I’ll meet with the Korea Exchange Bank representative. To start the bank acquisition plan as quickly as possible, we must first finish the foundry business.”

“Understood. To have fun games, you need to finish homework first.”

The Chairman’s face looked much better.

With an interesting operation waiting, his passion seemed to be reigniting.

***

World Cup fever swept across all of Korea.

The Korean national team’s unexpected performance was paralyzing roads everywhere.

The US national team was also creating a sensation.

They upset Portugal, a championship favorite, 3-2, causing a major surprise.

Thanks to this, smiles spread daily across the faces of global IT company representatives who visited Korea.

Moreover, the match between Korea and the US ended in a 1-1 draw.

Since Korea dramatically defeated Portugal, allowing both the US and Korea to advance to the round of 16, the atmosphere couldn’t help but be even better.

“Congratulations on advancing to the round of 16.”

“It’s not something I should be congratulated for. Still, I feel good. Thanks to Korea, the US was able to reach the round of 16.”

The banquet hall where all IT company representatives were present.

It was a party held in Chairman Robertson’s name, with people who would be hard to gather even in the United States all in attendance.

For over an hour, we only talked about the World Cup.

As the party reached its peak, Chairman Robertson stepped up to the podium and got to the main point.

“It’s truly an honor to meet such busy people like this. I feel a bit sorry for using the World Cup as an excuse to promote Daehyeon Semiconductor.”

The Chairman spoke with his characteristic charm.

The atmosphere was so good that even these words drew laughter from various corners, allowing the Chairman to continue smoothly.

“Tiger Fund is serious about the semiconductor business. As you’ve seen from the scale, facilities, and equipment of our new factory, we’re investing more aggressively than any other company. And at the center of that investment is Lee Jung-hoo, the Branch Manager of our Korean Branch.”

The Chairman naturally introduced me.

Everyone’s attention focused on me, and this time I stepped up to the podium.

“It’s truly an honor to greet you all like this. When we announced we would start the semiconductor business, many voiced concerns. However, I’m confident about the future of the semiconductor industry, especially the foundry market.”

The banquet hall became quiet.

There were still many who lacked confidence in foundries.

“Memory is currently at the center, but times will change soon. In the future, who can produce customized semiconductors and chips faster and more flexibly will determine competitiveness.”

“I understand the foundry market size is very small. Haven’t you invested too much to capture that market?”

Qualcomm’s representative spoke up.

Several others who shared the same thoughts nodded their heads.

“It’s currently a small market worth less than 10 billion dollars, but it will grow explosively in the future. However, it’s impossible alone. The companies here must join together.”

“There’s no guarantee we’ll sign foundry contracts just because we grow, is there?”

“There are various semiconductor companies like Intel and Samjin Electronics, but they prioritize their own products first. However, Daehyeon Semiconductor can change lines or modify designs according to customer demands.”

This was the core of the foundry market.

Customer-centered operations, not in-house products.

“Are you saying you can accommodate everything if we just bring the designs?”

“That’s correct. We can meet customer demands for quality, yield, and delivery schedules. And there’s one most important aspect. Daehyeon Semiconductor doesn’t compete with its customers.”

Not competing.

In some ways, it might seem cowardly.

But for the IT company representatives gathered here, it was a very sensitive issue.

For IT companies where technology equals competitiveness.

Technology leaks were fatal for IT companies.

They absolutely had to avoid situations where competitors used the same technology after outsourcing.

“Should we understand this to mean Daehyeon Semiconductor doesn’t produce electronics?”

“That’s correct. We only produce semiconductors and chips that customers want. Daehyeon Semiconductor is a company that can be a partner, not a competitor.”

Now reactions were slowly starting to emerge.

Several IT company representatives nodded at the words about not being competitors.

“But we question whether Daehyeon Semiconductor possesses the technical capabilities to meet our demands. Isn’t Daehyeon Semiconductor still evaluated as technically lacking?”

“We’ve introduced the latest equipment and built new lines. And most importantly, it’s about talent. We’ve recruited the world’s top experts.”

Now it was time to pass the baton.

I passed the baton I received from the Chairman to President Gelsinger and stepped down from the podium.

“I’ll speak about the technical capabilities. I’m Gelsinger, who has taken on the role of Daehyeon Semiconductor’s president. Regarding the foundry market, Daehyeon Semiconductor will possess superior technical capabilities compared to any semiconductor company. I guarantee it!”

“If it’s President Gelsinger, he’s certainly trustworthy.”

President Gelsinger’s reputation worked.

None of the IT company representatives were unaware of Gelsinger’s achievements, and his name alone increased credibility.

Now we had reached the stage where only the final seal was needed.

To give confidence to the IT company representatives, the Chairman raised his champagne glass and spoke loudly.

“The most reliable partner in the new market is here! Let’s open a new era together with Daehyeon Semiconductor and Tiger Fund!”

Thunderous applause filled the banquet hall.

Riding that momentum, we signed foundry contracts with several IT companies on the spot, and received positive responses from the remaining companies as well.

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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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