Securing a Position 3
“There’s no need to think about it since it’s not something to worry about.”
“Giving up Sunyang Capital’s financial program and selling the car? Isn’t it something worth considering if you’re sacrificing your company’s profits to help someone else?”
Chairman Joo Kwang-sik seemed perplexed, questioning the logic.
“As I mentioned, it’s not really ‘someone else.’ President Oh Se-hyun is like a mentor who taught me everything about finance, and Sunyang Motors… well, it’s my grandfather’s legacy.”
I feigned a bit of reluctance, gauging his reaction.
“Making money isn’t easy… Selling products is really not my thing.”
“This is a big deal.”
“What do you mean?”
I blinked in confusion, and Chairman Joo gave a sly smile.
“Thinking of my nephew as a competitor who takes financial business so lightly makes me feel uneasy.”
“Competitor? I’m actively cooperating with you.”
“Alright, I’ll trust you for now since you say it’s cooperation. Besides, I owe you one, and I don’t ignore my debts.”
He was referring to the time he used me for a dual strategy when acquiring a card company.
“But before that, I need to run a simulation on the card installment program. If there’s no profit and only risk, we’ll pretend this never happened.”
“That won’t be the case. How many cars do you think Daehyun Motors has sold on installment so far?”
“Well, that’s true. I’m just being cautious. You’d run a simulation too if it came down to it, wouldn’t you?”
Card fees and installment interest—it’s not a losing business unless there’s a credit card crisis.
I sealed the deal before he could hesitate.
“Of course, you should. But remember one thing.”
“What is it?”
“The interest income Daehyun Motors earns from installment sales. If we play our cards right, we can pull all of that into the card company.”
The idea of siphoning off the profits from the car installment program managed by Chairman Joo Tae-sik was a tempting proposition for Chairman Joo Kwang-sik, who was in competition with him.
“This is quite a predicament.”
“What is it now?”
“My nephew knows my weaknesses too well. Haha.”
“I’m just scratching where it itches.”
“What should I do if I like Jin’s nephew more than my own?”
“If we continue to maintain this cooperative relationship, wouldn’t I be like a real nephew to you?”
We exchanged insincere pleasantries and laughed heartily.
“That’s how it always is. As soon as you discard something as unnecessary, you find a use for it. Haha.”
Vice Chairman Jin Dong-ki burst into laughter as if he had witnessed something truly amusing.
“Indeed. If I had known, I would have held onto it. I never thought of linking the car installment program with credit cards.”
He scratched his head regretfully.
“Whose idea was it? Was it yours?”
“No, it was President Oh Se-hyun’s idea. He seems to have judged that the biggest reason for Sunyang Motors’ sluggish sales is the financial burden on consumers.”
I used the name Sunyang instead of HW to make it feel more personal.
“What about Sunyang Capital? Aren’t they already running an installment program?”
“The maximum is 36 months. We considered raising the interest rate and extending the period, but the executives at Capital strongly opposed it, saying it would give the impression of unnecessarily high rates compared to other companies.”
“That’s true. Consumers don’t scrutinize everything. They just see the highest interest rate and complain about it being expensive, without considering that the rate increases with the installment period.”
Watching Vice Chairman Jin Dong-ki’s mind working busily, I spoke.
“Daehyun Card is considering it positively. Especially since Sunyang Capital hinted at suspending the installment program for the new car.”
“What? Why give that up? Automotive finance is the core of Capital’s profits.”
He seemed more shocked by the abandonment of Sunyang Capital’s profits than by approaching Daehyun first. His eyes widened as he raised his voice.
“What can we do? We have to help each other in times like this. President Oh is quite special to me, isn’t he? Besides, we should avoid the appearance of keeping only the profitable parts and passing the burden to the card company.”
Realizing that it was beneficial for him too, his voice calmed down.
“Do you think the card purchase program can handle higher installment interest?”
He was already thinking of ways to increase profits.
“Even with the current interest rates, it’s higher. So we can offer promotions that discount the interest rate for periods within 36 months. As you said, consumers only see the results.”
“Hmm…”
Seeing my uncle deep in complex calculations, I knew my part was done. Now it was time for him to review the specific numbers and make a final decision.
“Anyway, Sunyang Motors will send a proposal. Review it and make your decision.”
The path was set.
Now it was up to the HW Motors and card company teams to negotiate. I had selected talented individuals from Sunyang Capital to send to HW Motors.
If they could create the best combination, we might just turn the tables.
Signs were already appearing everywhere. Anyone who looked closely could see that it was only a matter of time before things erupted, but it was hard to stop.
Users juggling cash advances and card companies unable to give up the fees from new customers swiping their cards were in the same boat.
And they couldn’t resist the fees and installment interest that would come the moment someone swiped a card for a car worth millions.
“We’ve signed the contract. The card fees are a bit burdensome, but we can more than make up for it with increased sales.”
Now, two card companies would launch major advertising campaigns. As a result, our
“That’s great. Did you meet with him directly?”
“Yes. He’s not a stranger, and since we’re the ones in need, I paid a courtesy visit.”
“Did he have anything to say?”
President Jo Dae-ho smiled wryly.
“He talked as if HW Motors was his own. Throughout the meeting, it was Sunyang Motors this, Sunyang Motors that… It was a bit uncomfortable.”
“He didn’t give you any orders, did he? Like the chairman? Haha.”
Seeing President Jo’s sudden frown, I couldn’t help but chuckle.
“What? Did the unthinkable happen?”
“Honestly, it was absurd. He went on about how the concept was flawed, how the car shouldn’t even be released if we consider overseas competitiveness… He even explained the next project, saying we need to strengthen the compact lineup…”
From President Jo Dae-ho’s seemingly angry demeanor, I realized that once a wild beast breaks free, it’s hard to cage it again.
After the merger of Sunyang and Ajin, he led the company without taking orders from anyone. He might be the first CEO of a major corporation to experience the separation of ownership and management.
He probably reported the company’s status to his grandfather occasionally, but he didn’t receive any specific instructions. He ran the company according to his own will and didn’t follow any shady orders from the owner family trying to siphon off company funds.
From his time at Sunyang to now as the CEO of HW Motors, he likely never felt as much pride as a manager.
“So what did you say?”
“If it weren’t for the card installment program contract, I would have told him to mind his own business. But what can I do? I’m the one in need, so I just nodded along.”
Indeed, when doing business, you have to leave your pride at home. Whether you’re a frontline salesperson or the CEO, you have to bow your head, no matter how dirty or unpleasant it is.
But the results were worth the patience and endurance.
On the surface, it seemed like all three companies had achieved significant success in the deal.
Young people who found it a bit burdensome to purchase a two-seater coupe were familiar with using cards. Plus, the temptation of earning points swayed their hearts.
The first-ever car installment purchase program using credit cards ignited a surge in new customers for Sunyang and Daehyun card companies.
Moreover, the inquiries that had flooded the car showrooms now poured into the card companies. Once people checked the monthly payments, they rushed to the showrooms with cards in hand.
“This is working. We might need to raise our target from 7,000 units.”
“What are the projections?”
“At least over 10,000. Internally, we’re aiming for up to 12,000.”
“Won’t the card fees hurt the profits a bit?”
“The overall profit will be similar to the initial target of 7,000 units. But since production has increased, we’ll save more on costs. The most important thing is something else.”
Even if it’s not ordinary or conventional, if it touches the consumer’s emotions, it sparks a desire to buy. HW Motors doesn’t produce the same old cars like Daehyun.
Most importantly, the first car for the young new customer base is an HW car. As long as we don’t betray their trust, we’ve secured a solid consumer base.
“Can you identify where the increased customer base is coming from?”
“Mostly from Daehyun. Interestingly, it’s not people who were planning to buy Daehyun’s compact
President Jo Dae-ho suddenly smiled and said,
“I can almost hear Chairman Joo Tae-sik of Daehyun shouting.
“When our ads start rolling out, he’ll be even more upset.”
“With the two most expensive sports stars exclusively contracted with us, he’ll go crazy. I guarantee, Daehyun Motors will see a complete overhaul of its executives. Haha.”
“Is there anyone you have your eye on? Excluding personal connections.”
President Jo immediately caught the meaning behind my words and pondered for a moment.
“There’s just one person. He’s from marketing, but ever since Chairman Joo Tae-sik took over as the automotive chairman, he’s been sidelined. He’s the top candidate for restructuring.”
“If he’s from marketing, there must be something special about him to catch your interest.”
“He was the one who first planned for Daehyun to participate in major international rallies, and there’s no one in our country who knows more about rallies than he does. Since Daehyun hasn’t been performing well, Chairman Joo Taesik has lost interest in him.”
President Jo looked at me again to confirm.
“If we acquire a European sports car company, shouldn’t we enter the rallies? We need to see results once we secure the technology.”
“So, Daehyun, who is first on the list to be let go, will become our top recruit.”
The year 2002 was truly fascinating.
In the past, the World Cup and elections were events that had nothing to do with me—I was just one of the many spectators.
But now, I was deeply involved in significant national affairs. Even though the outcomes didn’t change…
The night before the presidential election, the ruling party’s candidate unification fell apart, and breaking news continued to pour in until dawn.
Perhaps supporters, sensing the urgency, rallied together, or maybe it was the candidate’s strength all along, but on December 19th, the protagonist of a tumultuous life was elected as the 16th president.
The perfectly interlocked gears that had governed our country began to creak.
Conglomerates and the media, media and politics.
Into this well-oiled machine, an unexpected element—the ‘people’—had inserted itself.
This was the moment when Korea’s new millennium truly began.