223. automotive industry
Hoyoung went on a short trip to the US in just one day, and within a few days, he heard the news that submarine cable work had begun.
With such good news, Hoyoung was able to focus more on domestic business.
Fortunately, the acquisition of Hanbo Group and Sammi Group went smoothly.
And each affiliate of Hanbo and Sammi also entered their place under Hermes and Myungsung Group.
If I had to choose a place that had the greatest success while working on this project, of course it could be called Myungsung Group.
The growth rate and prospects of Hermes Group can be said to be superior to that of any other company in Korea.
And the main business is also in the telecommunications field, which is one of the few business areas where most of the profits can be directly obtained as cash profits.
However, there was something Hermes lacked in fame.
Hermes is something you can’t have even if you want to have it right now.
It was the experienced legal team with long-term experience and personal connections accumulated while doing business in Korea for a long time.
Of course, Hoyeong also collects talented people in every way, but unfortunately, there are only a few members of the legal team with long experience and ability.
Most of them are promising prospects.
I wouldn’t know if I worked for 10 or 20 years and accumulated know-how, but right now I couldn’t help but feel that the name of fame was fading.
So, Hoyoung actively used his reputation.
And, of course, the Myungsung Group wasn’t just outstanding with its legal team.
There were people of wide reputation regardless of the political and financial worlds, and thanks to them, Hoyeong’s business went smoothly and smoothly.
Today, too, Hoyoung and Jo Jungsik were talking about companies to be acquired.
“Chairman Yoon. Even though you are taking over two steel companies, Hanbo and Sammi, are you saying that you want to take over at least one more steel company?”
“yes. If there is a good sale, I think we should keep an eye on it and increase the scale.”
Jo Jung-sik has never objected to what Ho-young has done so far.
He even had the idea that he should never oppose Ho-young’s miraculous steps, even if Ho-yeong went on a eccentric trip.
However, Jo Jung-sik couldn’t understand Ho-young’s choice.
“I’m sorry···. Can I ask for an explanation? I think the scale of Hanbo and Sammi combined is already huge enough. Even if we specialize in producing materials to be used in our Myungsung Heavy Industries, the current amount of orders will exceed the production volume.”
“Yes. Steel can be used to build ships or make heavy equipment, but that’s too much for now.”
“But I don’t know why you want to scale up even more. Hanbo and Sammi are companies that eventually collapsed because they barely made a profit in the steel industry. However, it seems that you do not intend to enter the steel industry now.”
Hoyoung smiled.
Jo Jung-sik suddenly realized that sometimes Ho-yeong smiled like this.
If you think about it, it was the smile he showed when he objected to Hoyoung’s opinion or presented a new opinion.
‘It’s almost as if a teacher smiles happily when he sees a student who has a good passion for learning.’
Jo Jung-sik had the silly idea that Ho-young, who was 15 years younger, seemed like a teacher for some reason.
“Chairman Joe is right to think so. It is also true that I am taking over the steel business by force. But if you think about it the other way around, it will be easier.”
“On the contrary?”
“yes. What if the next business I’m going to do is a business that requires a lot of steel?”
Jo Jung-sik’s eyes widened slightly.
“The next business, and that also requires a lot of steel… Are you planning to make a large-scale investment in our Myungsung Heavy Industries?”
“Unfortunately not. Myungsung Heavy Industries is actually a business with a high possibility of returning if it is invested, but even in the next 10 years, the heavy industry will have a cold wind blowing.”
“It is different from the direction we are looking at. In our heavy industry, we expected that we would be able to grow further as the demand for large ships worldwide is increasing in the future.”
Hoyoung nodded.
“you’re right. The global demand for large ships is increasing. Trade between countries will also increase, and the amount of crude oil exports and imports will rise dramatically.”
“But why…”
“It is China. Even in the next 10 years, the Chinese shipbuilding industry will receive large shipbuilding orders at a bargain price, as if it were collusion.”
“China? China is still technologically…”
“Recently, the Chinese shipbuilding industry is hijacking Korean and Japanese engineers en masse. They are attracting technicians with money and rapidly raising their technology. It is very likely that the Chinese government is behind all of this.”
“The Chinese government…”
Jo Jung-sik nodded as if he understood everything Ho-young said.
Jo Jung-sik was not a person with bad hair in the first place.
Although he is among the smart people, he was unluckily seen as a culprit between Hoyeong and Jo Namshik.
If Hoyoung explained this much, he was someone who would understand.
“Then what is it if not heavy industry? Speaking of a business that requires so much steel, in Korea, unless it’s heavy industry… it’s an automobile… by any chance an automobile?!”
Instead of answering, Hoyoung nodded with a satisfied smile.
“Are you saying you are trying to enter the finished car market?”
“yes. That’s it.”
Jo Jung-sik smiled dejectedly without realizing it.
Hoyoung said that he would enter the finished car market too easily, as if he were going to visit the house next door.
In fact, the automobile industry has been Chairman Hee-Chang Cho’s long-cherished wish.
Unfortunately, however, reputation has not yet been able to create a proper automobile company.
It was a few years later to try to cooperate with Nissan and to make a Renault prestige car in cooperation with Renault.
“Of course, everyone has their own thoughts, but… the finished car market is really difficult to enter. Aside from the fact that there are not one or two technologies you must have, the scale is different from other processes. It has the advantage of being able to use it over and over once you make it once, but making it is a great adventure in itself.”
Jo Jung-sik calmly told Ho-yeong about Jo Hee-chang’s failure.
I’m trying to tell you through experience that no matter how much money you have, it’s a tough business.
“Everything is true. But there are ways to make that difficult process a little easier.”
“What method?”
“It’s about taking over a car company that is already on track.”
“I know that’s the best way. But… there is absolutely nothing for sale. Is there any finished car company that would sell the company in this situation?”
Hoyoung smiled and replied.
“Not now.”
“Now is?”
“Wait a little and you’ll see what I mean.”
Jo Jung-sik couldn’t immediately understand what Ho-young meant, but there was nothing he could do but wait.
I just thought that I just had to prepare to move the legal team according to Hoyoung’s instructions.
“Then would this be enough explanation? We need more steel companies than we do now to keep car companies running.”
“yes. I know what you mean by going this way. I will do as you say.”
Jo Jung-sik thought that Ho-yeong’s success was the way to a good reputation, and he decided to follow Ho-yeong’s choice.
Because Hoyoung was always the one who showed the right direction in situations where the road was not visible.
.
.
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October 1997.
Korea was heading towards chaos.
Out of the 30 largest conglomerates, about 10 conglomerates and their affiliates had already been ousted, the unemployment rate was increasing accordingly, and funds from foreigners were being withdrawn.
The government continued to use up foreign exchange reserves to defend the exchange rate, and short-term foreign debts borrowed so far to preserve the current account were approaching day by day.
[Kia Motors went bankrupt due to the worst management deterioration!]
And there was another news that shook Korea.
Right now, Kia Motors, one of the largest automobile companies in Korea, went bankrupt.
This incident gave a different shock than the collapse of previous companies.
At the same time as entering in 1997, many large corporations collapsed in Korea.
However, it did not shock the public that much.
Although it is said to be one of the 30 largest companies, the collapsed companies such as Hanbo, Sammi, Samrim, and Daenong were vaguely perceived by the public as conglomerates.
However, the bankruptcy of Kia Motors came to the public greatly.
It became an opportunity for everyone to have the seeds of anxiety in their hearts that if things continued like this, big things would happen to the Korean economy.
– President! Did you hear the news?
“Are you talking about the bankruptcy of Kia Motors?”
– Yes, that’s right!
Shortly after this news hit South Korea, Ho-yeong received a phone call from Jo Jung-sik, who was very excited.
– Did you foresee this and said you were taking over the car company? Well, Kia Motors is a company that has enough merit in terms of scale and technology. I never thought that a company like this would go bankrupt. Looking to buy a Kia car?
“yes. I have an idea. But not now.”
– yes? Like the acquisition of Sammi, shouldn’t we start the acquisition process before the court receivership proceeds?
Hoyoung waited for Jo Jeongshik to calm down before explaining to him.
“Unfortunately, Kia cars don’t have that easy going.”
– Why?
“First of all, Kia Motors is way too big compared to the companies that have gone bankrupt. The number of employees alone is close to 100,000, so it would be difficult to handle it like roasting beans in a flash of lightning.”
– For some reason, I don’t think that’s all.
“yes. Exactly. In fact, there is another decisive reason.”
– What is?
Cho Jung-sik was a really curious voice.
“There is a high possibility that Daehyun Group is also targeting Kia Motors.”
– In the Daehyun group?!
Jo Jeong-sik really surprised me.
Daehyun Group was already the number one company in Korea as an automobile company.
Even Daehyun Group’s market capitalization is currently slightly ahead of Myungsung Group, and it is also a company that proudly holds the No. 1 position in the business world.
“Of course, we are close with the government, but Daehyeon must have connections with the government as much as we do. You probably don’t want to deal with the resentment you get after selling it to us when you know that Daehyun is targeting a Kia car.”
– So, is Kiacha giving up?
“Please. The government just wants to get out of a messy situation. So, we will do a short court receivership, at least as a formality, and try to deal with Kiacha through international open economic bidding next year or so.”
– ah! At that time, if Daehyun Motor writes down the largest amount and takes over, the situation will end like that, and if another company takes over, it will be the responsibility of Daehyun.
Ho-young would not be able to see through the receiver, but nodded.
“Exactly.”
– So you’re starting the car business in earnest next year?
“haha. that’s not it either. Right before I called Chairman Cho, I got a reply from the owner of a company asking me to meet him. next Saturday evening. Do you have a good time?”
– yes. It’s possible. Even if you have an appointment or schedule, you have to postpone it. What company are you meeting with? I will instruct our Strategy Office and Secretariat to gather as much information as possible.
“It would be nice if you would. The company we will meet next week is ‘Samryong Motor’.”
– You mean the Samryong car?!
Jo Jung-sik’s voice grew slightly.
Because the name of the company came up unexpectedly.
Samryong Motors was a company that actively cooperated with Germany’s Mercedes-Benz to produce unique and high-performance cars such as Musso and Korando.
It even launched a high-end car called ‘Chairman’ a while ago and entered the high-end market and was getting a good response.
“yes. Even if the Samryong car looks slick on the outside, in fact, the Samryong group is going through a headache because of the Samryong car.”
Unlike Jo Jung-sik, who had a questionable voice, Ho-young’s voice was full of composure.
