Episode 149. What Lone Super can’t give.
Lone Super Korea CEO Yuhan-min answered the question of Chairman Acre.
“All necessary data have been passed on to the Financial Supervisory Service, so the BIS ratio has officially dropped to 6.4%. A report of an additional 2.5% drop has also been submitted to the Financial Supervisory Service, so the sale will be approved at a plenary meeting soon.”
“haha. I like it. CEO Yoo disappointed me with the Eunha Tower Gun last time, but it is worthwhile to believe in him once more.”
“It will never happen like this. I will quietly snatch it before other funds that sniffed it jump into the race to take over Yuhwan Bank.”
“yes. Make sure you control all the variables and make sure you don’t make any mistakes until the takeover process is complete.”
Gathering Center, Tablet Division Conference Room.
I was talking with my brother about the development of D-Tab4.
“Did you come up with any plans for how D-Tab4 should go?”
“I got together with the development team and talked about it, and a slightly groundbreaking plan came up.”
“Until now, only HDD (Hard Disk Drive) has been used as a storage device for D-Tab.”
“However, although HDD has a large capacity, the speed of reading and writing data is slow, so there was an opinion that we should replace it with flash memory.”
“Flash memory? It has much better performance than HDD, but the capacity is small.”
Giant companies such as Hwansung Electronics and Wontel had not yet finished developing 2GB flash memory.
Kowon Electronics, which uses the 3D NAND flash method that I proposed, was producing 4GB of high-capacity flash memory.
However, the HDD capacity we applied to the D-Tab3 was 15GB, which was only a quarter of that, so there was a problem in terms of capacity.
“right. However, since the new flash memory model from Kowon Electronics is 4GB, I think if you connect three of them in parallel, you will get some usable capacity. Once the speed is greatly increased, wouldn’t consumers like it more?”
I continued to think for a moment.
“Daewon hyung. It’s a good idea, but even with 3 flash memory attached, the capacity is not enough compared to HDD, and I think consumers will be negative especially because the cost is too high. Still, our D-Tab prices aren’t on the low side.”
“It’s true, but until now, the price has been constantly increasing with the release of the D-Tab series every year. Aren’t you going to do that this time?”
“Of course, as new technologies are applied, the price will have no choice but to increase this time as well. However, it is better to minimize the level as much as possible. If you attach three flash memories, that alone would increase 700-800,000 won, but if you raise the price to that extent, the sales volume will drop sharply.”
Daewon hyung listened to me, and after a while he nodded.
“..I see. I didn’t pay much attention to the price as I only thought about raising the performance. I think you’re right. I’ll think of another option.”
“haha. Still, it wasn’t an entirely useless idea. If you change it a little, it will become a pretty attractive item, right?”
“yes. We introduce flash memory, but let’s use only one 2GB size.”
“2GB? Isn’t the capacity too small? With that, you install the operating system, install a few essential programs, and you’re done…”
“It’s too small. So I’m going to use the HDD as a secondary storage device. Programs that run all the time, such as the operating system, are stored in flash memory, and the rest of the programs are stored in the HDD.”
In the future, storage devices based on flash memory, SSDs (Solid State Drives) will be developed.
It was so expensive that the price reached three times that of HDD.
However, users who could not give up on the advantage of very fast data processing speed use a relatively inexpensive, low-capacity SSD for booting and use the HDD as the main storage device.
I was thinking of applying this method to D-Tab4.
Daewon hyung hit the opposite palm with his right fist.
“Wow! Good idea. Then the speed of the experience will be much faster without raising the price.”
“yes. D-Tab4 storage devices are configured that way.”
“okay. I wish that After all, if Jae-Woon talks with you, things will go smoothly.”
“haha. Hyung, the idea was good, so please keep thinking about it like that.”
Daewon hyung scratched the back of his nose with a humble face.
“I think the idea is good… Talking with you made it clear what I lacked, what?”
“And that’s how it develops. If you come up with an idea, let me know. I’ll take good care of it. haha.”
Na Woong-jin, president of Yuhwan Bank, received a call.
“Chairman Kang. The Financial Supervisory Service has received approval to sell Yuhwan Bank to Lone Super.”
“okay? Okay. You have to move slowly.”
“..what do you plan to do from now on..?”
“First you have to talk to the person selling the product. The president of the bank, please make an appointment with the German bank Komatsubank, the largest shareholder of Yuhwan Bank.”
“It is not difficult to make an appointment. By the way, he must have already finished talking to Lone Super, did you have any ideas on how to do it?”
“Of course it is. Don’t worry, I prepared something Lone Super couldn’t give.”
“..All right. Then we will contact you again as soon as we have an appointment.”
Cheongwol, an upscale Korean restaurant in Seoul.
I was meeting with Komatsubank executive Franz Muller with Na Woong-jin, the bank president.
Franz asked in fluent English.
“Do you have anything to say about the sale of Yuhwan Bank?”
“yes. Let’s get straight to the point. I am very interested in Yuhwan Bank. If you’re going to sell it anyway, hand it over to me. We will pay better than Lone Super.”
Franz looked at Na Woong-jin, the bank president, and my face alternately, as if he knew now.
“Somehow…the president of the bank has been strangely cooperating recently…but he did it for Mr. Kang here, not for Lone Super.”
My bank manager nodded.
“yes. In fact, I had no intention of cooperating if the only candidates for the acquisition were people like Lone Super. As a result of our conversation, I felt that he truly cares for Yuhwan Bank. I decided to cooperate with him because I thought he was a suitable person as a shareholder.”
Franz opened his mouth as he touched the teacup in front of him with a worried face.
“It’s good for us to see more candidates for acquisitions, but there is one thing that bothers me.”
At that I asked.
“What is it that takes you so much?”
“It is said that we have already signed a provisional contract with Lone Super. It’s not easy to break it unilaterally.”
It’s not easy.
Anyway, are you saying it’s possible?
“Of course it will not be easy. I have a proposal I have prepared to ask you to do such a difficult task.”
Franz asked with a look of interest in my words.
“What kind of proposal?”
“If you cancel the provisional contract with Lone Super, we will designate your company as the main bank for all businesses related to Damoye affiliates in Germany.”
Franz’s eyes widened at my words.
“..any business?”
“yes. We will trade all sales proceeds from D-Tab and MP3 players, as well as German sales from D App Store and P Store, through your company.”
Hearing my words, Franz fell into trouble again.
It is much smaller than the US.
Germany is the largest market in Europe.
Since the transaction amount alone exceeded KRW 5 trillion per year, we will have no choice but to worry.
“..a great condition.”
“yes. And rather than signing a contract with one candidate like that, it would be beneficial to your company in many ways to make a competitive bid for two candidates, right?”
The amount suggested by Lone Super was probably about 2 trillion won.
Now, Franz thinks it’s a good thing to get past that level.
In fact, the value of Yuhwan Bank’s stake soared to more than 6 trillion won in just four years, so it was like being scammed by Lone Super.
It was said that even if I paid more than 2 trillion to buy it, I could make enough profit.
Moreover, the benefit was not only in the value of the stake.
The total capital of Yuhwan Bank is more than 50 trillion won.
The acquisition was definitely worth it considering I could use that capital to expand my business.
Franz nodded his head sternly.
“Mr. Lecture is correct. Now that I think about it, it seems that our view is too narrow because of our financial situation. We will cancel the contract with Lone Super and switch to competitive bidding.”
“It’s an excellent choice. haha.”
Two days after #Jaewoon and Franz met.
Ron Super Korea CEO Yuhan Min Yu received a call from Franz Muller, an executive in charge of Komatsubank in Germany.
“Mr. Yoo, I am sorry to have to say this, but I think the provisional acquisition contract with you must be canceled.”
Yuhan-min was greatly surprised by the words like lightning in the dry sky.
“No, Mr. Muller! What do you mean? Are you going to break the contract?”
The provisional contract with Komatsubank was a provisional contract, and it was concluded through proper procedures to the extent that it should be regarded as a part of the main contract.
The cancellation procedure is complicated, and in particular, the party who broke the contract has to bear the entire cost of signing the contract, which would result in monetary loss.
I couldn’t help but be surprised when it came out that they were going to destroy it.
“In the head office, opinions were gathered in the direction of selling at a good price, even if it takes some time.”
At those words, Yuhan-min lost his absurdity.
“..Mr. Muller. What do you mean? You’ve been waiting for over a year and you haven’t found any acquirers. Do you think there will be a buyer who can come and give you a better price than us?”
Franz replied softly.
“There are a lot of rich companies in Korea, so there may be companies that can understand the value of Yuhwan Bank better than your company. Anyway, the board of directors has decided to hand over the stake in Yuhwan Bank through competitive bidding, so if you want the stake, please prepare for a competitive bidding.”
“Mr. Muller. Again, this is pointless. You will only be paying the contract fee.”
“You have to know the results. If we make a mistake, we are responsible. Mr. Yu doesn’t seem to need to worry about that. Then I will stop.”
Yuhan-min looked at the hung phone with a blank expression on her face, and as soon as she put the phone down, the phone rang again.
This time, it was Do Min-jae, head of the Financial Policy Bureau of the Financial Supervisory Service.
“CEO Yoo. It’s a big deal!”
Yuhan-min frowned at the deep ominous feeling that came from Director Do’s voice.
“..what’s going on? Chief.”
“A company has appeared that wants to take over Yuhwan Bank.”
