A Time of Rapid Change, Part 1
Daehyun Motors, the undisputed leader with over half of the domestic market share, stood tall as the absolute powerhouse.
Meanwhile, Ajin Motors, which had long languished in fourth place, launched the compact and robust “Proud” model, catapulting itself to second place overnight.
Woseong Motors, which slipped from second to third by a narrow margin, was biding its time, backed by its partner, the American giant GM, to reclaim its lost position.
Sunyang Motors, barely clinging to third place, found itself at the bottom of the industry.
Chairman Jin Yang-cheol, known for his pride, showed remarkable restraint by only dismissing the company president in response to this humiliation. Had he acted on his temper, a dozen executives might have been shown the door, but it was too early in the year for such drastic measures. After all, employee morale had to be considered.
When his eldest son, Jin Young-gi, hesitated, Chairman Jin wiggled his finger teasingly.
“Have you decided? Twenty or one, which will it be?”
“I’ll take on the cars!”
He emphasized the word “cars” with particular force.
“But Chairman, realistically, two years is impossible. The new model we’re developing won’t be out until the end of next year. Even if I put all my effort into it, and even if the new car becomes a massive hit, the results won’t show until the year after.”
“Vice Chairman.”
”…Yes.”
“You should head to the car factory right away.”
”…?”
“Every day, hundreds of cars roll off that line. If you sell them all, won’t you be second?”
Who doesn’t know that? If it were that easy, would he be making these excuses? But he had to keep his mouth shut. It was the word of the absolute authority, after all.
“Are you planning to sell only the new cars and not the ones already being produced? Is that your plan?”
“No, that’s not it…”
Vice Chairman Jin Young-gi tried to add a few words to find a way out, but Chairman Jin had already raised his hand, pointing to the study door.
“Go quickly. Seeing it for yourself might give you some ideas. Go on.”
He wasn’t one to speak without purpose. When he said go, you went.
If you argued?
Even as the chairman’s son, you couldn’t escape the fate of being sent to the packaging plant.
Vice Chairman Jin Young-gi stood up abruptly, bowed slightly, and left the study at a brisk pace.
As soon as the door closed, Chairman Jin looked around at the others and spoke in a gentle voice.
“That’s enough for today. You’ve worked hard listening to my nagging at the start of the year. Go on, get back to work.”
Everyone left the study with noticeably brighter expressions.
Their faces showed relief at not being ousted from their precarious positions as heads of subsidiaries, akin to mayflies.
“How’s the situation with the Soviet Union? Is there no hope?”
Chairman Jin asked Lee Hak-jae, who remained in the study as if it were the most natural thing.
“Yes, they politely declined, saying it’s difficult to concentrate energy on a single company.”
“Roh Tae-woo, he’s an ordinary man, but not really, right?”
“They’ve set the regime’s greatest achievement as northern diplomacy and are proceeding with as little noise as possible… They ask for understanding.”
“So? What can they offer instead of gas?”
“They mentioned the East German aid you spoke of. They’ve decided to entrust the aid channel to the private sector.”
“Private sector…?”
“Our Sunyang, of course. It’s a plan to support electronics and food.”
“Food? What use is that?”
“That’s why we’re persuading them to go 100% with electronics. We’ll divert the entire aid budget to building a local factory for Sunyang Electronics.”
“That budget will only be available once the Berlin Wall completely falls, right?”
“Yes.”
“When’s that expected?”
“Based on our information and the intelligence from the National Security Planning Agency, it should be around September or October.”
“Then make sure we’re ready to start construction in the fall.”
“Our construction staff are already surveying the area around Berlin. We’re securing a factory site in a promising location and planning to move the Hungarian factory facilities to East Germany.”
“That’s why you’re Lee Hak-jae. You’re killing two birds with one stone.”
The electronics factory in Hungary was barely surviving. Closing it and expanding into Germany without spending a dime was the plan.
“No, it’s just the beginning.”
“Japan?”
“Yes. We need to surpass the Eastern Bloc’s affection for Japanese electronics. Especially Hitachi and Sony, they’re untouchable, aren’t they?”
At the mention of Japan, Chairman Jin bit his lip.
Korean products, known for their reasonable performance at a low price, were the cold assessment of the global market.
In trying to catch up with Japanese technology, they had come this far. But there were no consumers clamoring to own Sunyang products. Despite their efforts to overcome this gap, the wall seemed higher than the Berlin Wall. At least for now!
Thinking of Japan filled Chairman Jin with a sense of inferiority and made his insides churn. Sensing his mood, Lee Hak-jae subtly changed the subject.
“By the way, what should we do about the land I mentioned earlier?”
“Land? Oh, Do-jun’s land, right?”
“Yes. According to President Oh of PowerShares, Do-jun wants to sell the land, but I suspect President Oh might have suggested overseas investment.”
“What? Didn’t you say that guy was trustworthy?”
“Yes, I’ve confirmed it again. He’s a decent guy. He probably judged it to be better than the land value increase…”
Chairman Jin waved his hand as if he’d heard enough.
“Alright. Just buy it.”
“Are you sure?”
“You said you confirmed it again, right? That this Oh-whatever guy isn’t a con artist?”
“Yes.”
“How much could the land value increase anyway? Let’s trust him. Besides… it’s commendable, isn’t it? Taking initiative instead of just waiting.”
“Understood. Should we purchase it at market value?”
“Of course. Otherwise, there’ll be talk of tax evasion or whatnot. Pay exactly the market price.”
“Got it.”
“And review PowerShares’ performance.”
“Why all of a sudden?”
“I was thinking of entrusting the scattered funds in commercial banks to them. Wouldn’t it be better to move the money to where Do-jun invested?”
“Hmm…”
The funds in commercial banks referred to Chairman Jin’s personal slush fund hidden in borrowed-name accounts.
“Should we liquidate the bonds too?”
“Check the performance, and if it seems appropriate, all of it.”
“Yes, I’ll take care of it right away.”
Moving it abroad would indeed be safer, and they could track Do-jun’s money. It was a way to ensure both safety and oversight. Not a bad idea.
Feeling a bit better after the conversation about Japan, Chairman Jin began a real meeting with Lee Hak-jae. A meeting just between the two of them.
“What do you think?”
“Sorry, what are you referring to…?”
“The cars. And Young-gi.”
“The Vice Chairman is doing well in his own way, isn’t he?”
“I didn’t keep you by my side just to hear what I want to hear.”
“No, honestly, it’s impossible to bring it up to second place by next year. It was a bit… harsh.”
“Hak-jae.”
When he used that gentle voice and playful expression, it was the most nerve-wracking.
Chairman Jin was a man who hid sincerity in his jokes.
“Yes.”
“Are you taking sides?”
When a vassal speaks on behalf of the crown prince, the king is most wary, isn’t he?
Lee Hak-jae didn’t panic and laughed it off as a joke.
“Haha, no, I’m sincere.”
“Sincere? So you’re saying it’s that difficult? Fine. Then answer me. Do you really think there’s no way to climb to second place in the automotive industry within two years?”
Chairman Jin Yang-cheol spoke with a smile.
But Lee Hak-jae couldn’t muster the same smile.
“The public opinion won’t be good. There might be significant losses too.”
“What’s the likelihood?”
“If the government steps in, 50%. If not… less than 30%.”
Both men fell silent, lost in thought for a while.
“Arrange a day for me to have a meal at the Blue House.”
“Will you meet them directly?”
“A business dinner would be appropriate.”
“Yes, I’ll prepare it.”
It seemed he was really going to start, but Lee Hak-jae didn’t voice any objections. Wasn’t a bold venture the right of the founder?
From today, Sunyang Group’s brain trust would have to be fully mobilized.
They needed to calculate down to the last hundred thousand won how much stake they needed to secure to swallow Ajin Motors, whose governance structure was the weakest, and how much it would cost to acquire the necessary shares. They also had to prepare for a public opinion campaign.
They had to start investigating the management of Ajin Motors and at least ensure that the chairman and president of Ajin Motors were brought to the prosecutor’s office for questioning.
Even if they were released without charges.
Just as his mind was getting tangled, Chairman Jin interrupted his thoughts.
“But why can’t that Young-gi think of something like this? Selling products is the president’s job. He doesn’t realize what position he’s in.”
“That’s because you’re still in good health, Chairman.”
Chairman Jin shook his head.
“No. If he were a lord fighting for dominance, he’d know he needs to start wars, expand territories, and build fortresses. A lord should expand the land for his workers to farm, but… all he does is push the workers to increase the yield. He’s small-minded.”
“Isn’t it the era of defense now? Didn’t you train the Vice Chairman that way?”
“The instinct for war should be stirring! Just because I told him to defend, does that mean he should just sit there?”
Lee Hak-jae knew it was time to keep his mouth shut. Lately, Chairman Jin had been increasingly vocal about his dissatisfaction with the Vice Chairman.
Could it be because of Jin Do-jun’s influence?
For a long time after, Chairman Jin vented his frustrations about his children.
Lee Hak-jae, like a husband listening to a nagging wife, occasionally chimed in with agreement.
The 1980s had passed, and the 1990s had arrived.
The new decade was a crucial period for preparing for the 2000s. Chairman Jin Yang-cheol was full of enthusiasm from the start of the year, but it wasn’t long before he had to revise everything.
The political scene was already in turmoil at the start of 1990, and on the 22nd of the same month, President Roh Tae-woo, leader of the Democratic Justice Party, made a sudden agreement at a Blue House meeting with Kim Young-sam of the Unification Democratic Party and Kim Jong-pil of the New Democratic Republican Party. They decided to dissolve their parties and form a new conservative coalition party.
This was the so-called “Three-Party Merger,” a major political deal. The opposition-dominated parliament was instantly transformed into a massive ruling party.
On January 30th of the same year, at 9 a.m., nearly nine hundred delegates and party officials packed the Unification Democratic Party headquarters in Mapo, leaving no room to move.
During the convention that day, Kim Young-sam expressed his inner turmoil, saying, “You have no idea how much I’ve agonized over this,” and described the decision to dismantle the ruling party as a “great decision made for the salvation of the nation.”
The convention, which lasted 35 minutes, swiftly concluded in favor of the merger, ignoring the objections of a few dissenting members who insisted, “I object. We need a debate.”
Thus, on February 9th, the giant ruling party, the Democratic Liberal Party, was born.
Now, the business world had one more person to keep an eye on.
The man leading the massive ruling party and a strong contender for the next presidency.
Chairman Jin Yang-cheol tossed the newspaper aside.
Damn it, just when I thought I had tamed a sly old fox, here comes a stubborn old man wielding a club. His frustration was written all over his face.
I picked up the newspaper.
“This is the guy, right? The perpetual runner-up…”
I pointed to Kim Young-sam, the white-haired man in one of the three photos with raised hands.
“Yeah, that runner-up is about to team up with the class president and take over the next presidency.”
The look in my grandfather’s eyes, filled with a sense of helplessness, was a bit overwhelming.
“So, let’s hear what our clever Do-jun thinks.”
Ah, he’s enjoying this, isn’t he?
“Sorry? What do you mean?”
“What would you do? That white-haired man is as stubborn as they come.”
He wanted a fresh perspective and a unique word, but this time, I spoke like a child.
“Um… wouldn’t it be best to just get along with him?”
“That’s it?”
“Yes.”
Chairman Jin’s disappointment was evident on his face.
There’s nothing I can do about it.
Is there anyone who has caused as much shock as President Kim Young-sam?
His shocking policies are something only I should know. By the end of Kim Young-sam’s five-year presidency, I need to secure a part of the Sunyang Group. A very lucrative subsidiary, to be precise.