[037] Let’s Not Be Greedy 1.
Miracle Investment in New York established a fully-funded Korean investment firm, and Oh Se-hyun was appointed as the CEO of both the American and Korean entities.
Now, as the major shareholder, my relationship with the professional manager, Oh Se-hyun, has become quite nuanced. His demeanor towards me hasn’t changed much, but he no longer opposes my opinions on the spot.
He listens more attentively, and when he disagrees, he always presents a well-reasoned argument backed by data.
For instance, when I proposed selling all our Dell Computer shares, he didn’t get flustered. Instead, he calmly showed me a stock price trend graph and said, “The stock was at $47 last week. It’s never dropped since it was listed—it’s practically diamond-grade. How about we reconsider if it goes over $60?”
“Do you think there’s no bubble?”
“Of course there is. But a bubble is part of the stock’s makeup. When I say $60, I mean that’s when the bubble will likely burst. That’s when people start questioning it. Exiting then won’t be too late.”
His ability to analyze stock trends is sharp.
I’m not someone who’s deeply involved in stock investments, so I wouldn’t know about bubbles or anything like that. My interest in Michael Dell as an individual led me to be familiar with Dell Computer’s stock prices.
I know well how the stock soared to $49, plummeted to $10, then climbed back up to $60 and maintained that level.
But Oh Se-hyun predicted the $60 mark. He’s quite remarkable.
“Uncle, we’ve made over a hundred times our investment. Isn’t that enough? There’s no need to be greedy.”
“If you don’t want to be greedy, as you say, sell Dell Computer and invest in something stable like Coca-Cola or Heinz. Right?”
“That’s too stable. That’s for individuals, not investment firms.”
My uncle has become quite balanced now. He takes a deep breath and steps back.
“You mentioned Japan, right? Have you found any prospects?”
“Could you look into it? See if there’s anything worthwhile?”
I wanted to see what Oh Se-hyun could find before I said anything. He might discover a company even better than I could.
“Then I’ll draw up a list, and we can discuss it again. If there’s nothing better than in the U.S., you’ll reconsider, right?”
“Of course. Investing in the best place is fundamental.”
I, too, pretended to take a step back. He’s an essential person, so I should accommodate him to this extent, shouldn’t I?
“Grandfather, may you live long and healthy.”
“Enough with the formalities. You seem more mature. How was it? Did you learn a lot?”
Chairman Jin, who refused Jin Young-jun’s deep bow upon his return from Germany after several years, didn’t soften his stern gaze.
He had been keeping tabs on Jin Young-jun’s life through weekly reports from the branch office. Although there were a few instances of heavy drinking, there were no major incidents.
“There was no need to go to Germany, Grandfather.”
“What?”
Chairman Jin’s eyebrows twitched, but Jin Young-jun maintained his composure.
“Our electronics are selling out. We can’t keep up with production. European distributors are even paying in advance to secure stock. But since it’s all thanks to you, I figured learning directly under you would be faster.”
“That’s because of me?”
“By stripping down to essential functions and offering them at a low price, we’ve captivated not just Eastern Europe but Western Europe as well. Isn’t this all part of your strategy, Grandfather?”
Jin Young-jun sat beside Chairman Jin and bowed his head.
“I’ve learned a lot. Thank you, Grandfather.”
“Staying away from women seems to have cleared your head a bit.”
“I haven’t been drinking either. Just a little wine occasionally.”
Jin Young-jun noticed a faint smile on his grandfather’s lips and felt relieved. It seemed he had managed to sway his grandfather’s distrust a little.
He wanted to end his exile. In Korea, the title of the eldest grandson of the Sunyang Group carried immense power, but in Germany, it meant nothing.
The name Sunyang was barely recognized, and even if it was, that was all. It only held sway within the Korean community.
He longed to return and live like a prince in his homeland.
But his grandfather’s words shattered that hope.
“Yes, the branch managers have been praising your disciplined lifestyle. Just keep it up until you’re thirty. Then come back and take a key position.”
He wanted to jump up and protest the unfairness, but the patience he learned in Europe allowed him to smile brightly.
“Yes, Grandfather. I’ll work hard. Please watch over me.”
With that, Jin Young-jun finished his New Year’s greeting and returned home. He didn’t forget to spit once in front of his grandfather’s house.
“They want me to stay in Europe until I’m thirty.”
“So? You didn’t lose your temper, did you?”
“Oh, Father. I’m not a child anymore. I said I’d work hard and left.”
“Well done.”
Vice Chairman Jin Young-ki patted his son’s shoulder. Then, looking around at his children sitting on the living room sofa, he spoke.
“Now that you’re all adults, remember this. Grandfather is surely watching your every move. If any unsavory rumors arise, it won’t just affect you; it’ll impact others as well.”
His eldest daughter, Hye-kyung, and youngest son, Kyung-jun, wore indifferent expressions.
They knew there was no reason for them, far down the line of succession, to catch their grandfather’s eye. They understood that their father’s words were a warning to the eldest, Jin Young-jun, not to cause trouble. After all, they were adults now.
“Hye-kyung, once you graduate next month, I’ll introduce you to a suitable match. Hurry up and get married, then you can study abroad or…”
“Dad! Who gets married right after graduation these days? I’ll wait a few more years…”
“Listen to me!”
At Jin Young-ki’s stern voice, his two children’s pouting lips snapped shut.
“The only thing you’ve done is be born into Grandfather’s bloodline. Thanks to that, you’ve lived enjoying everything you wanted. If Grandfather disowns you, you won’t even enjoy half of what you have now.”
“Father, why are you saying this all of a sudden…?”
“Don’t you see how Grandfather has changed since last year? As people age, their thoughts change. When they think of food, they think of their eldest, and when they have something to give, they want to give it to the youngest. That’s the heart of an aging parent. Right now, Grandfather’s affection is directed towards your youngest uncle and Do-jun’s family.”
They all had some inkling of the atmosphere. They’d even heard that Chairman Jin, despite his busy schedule, made time to watch the movies their youngest uncle produced.
“Think about Grandfather’s age. How long do you think he’ll live? Until then, don’t cause trouble and visit him often. Once Sunyang Group is in my hands, you can live however you want. Understand?”
“What does staying out of trouble have to do with getting married?”
When Hye-kyung protested, Jin Young-ki’s frustration erupted.
“Who in our family has had a love marriage? Look at Uncle Yoon-ki! He’s been treated like an outcast for over ten years. That’s the price of the marriage he wanted. If you want to marry on your terms, pack your bags and leave now!”
Jin Hye-kyung was rendered speechless by her father’s outburst.
Seeing his children lower their heads and watch their step, Jin Young-ki calmed himself.
Lately, he was so anxious that he couldn’t even sleep.
Since the failed acquisition of Ajin Motors last year, his father, Chairman Jin, had changed. Major group matters often proceeded without his knowledge, and even the issues he used to handle required the chairman’s final approval.
Rumors of a shift in the succession structure within the group began to spread, and it became common for division heads to bypass him and report directly to the chairman.
His father had undoubtedly changed, and he had a vague idea why.
A nephew he had never considered a threat, whose presence was barely noticeable, was shaking the entire family.
Jin Young-ki had already decided that if he couldn’t become the owner of Sunyang Group because of his children, he would rather disown them.
“I’ve found a hidden gem, but it’s not going to be easy.”
The list Oh Se-hyun handed me had only one company on it.
“Last year’s sales were a trillion yen, nearly eight trillion won in our currency.”
“Isn’t that already a fully grown goose?”
“This company is aligned with the IT industry. As the IT industry grows, so will this company. It’s going to get even bigger.”
In 1992, Microsoft’s release of Windows 3.1 dominated the Japanese computer market. Software like MS Office also sold like hotcakes. The Japanese software market is about twenty times the size of Korea’s. Although the population is just over twice as large, the awareness of copyright is clear. SoftBank, which held the exclusive sales rights for Microsoft, quickly grew into a major corporation.
I didn’t mention that I was also thinking of SoftBank. Since our thoughts aligned, there was no need to bring it up.
Isn’t it the true virtue of a leader to shoulder the burdens and give credit to the subordinates?
“What do you mean by ‘not going to be easy’?”
“Now that the company is on track, they probably don’t see the need for investment. The founder of this company… Oh, by the way, he’s a third-generation Korean-Japanese.”
“I know. I read about him in a newspaper once. It was a special feature on successful Koreans abroad. They said he’s a bit of an eccentric.”
“Really? Anyway, since he’s writing a success story in Japan, many investors have flocked to him. But since he doesn’t need them, he’s turned them all down.”
“Just like Dell Computer.”
In successful companies, people come with money in hand, while in struggling ones, everyone comes demanding repayment.
“No, this one’s even more high-handed. The CEO is brimming with confidence.”
“Are they planning to go public?”
I only caught snippets of it from an online article, so I have no idea about the exact timing. But I distinctly remember that when it went public, it easily surpassed a hundredfold increase.
“Well, I didn’t hear anything like that.”
“Then there’s still a chance.”
“The problem is convincing them… and that seems unlikely.”
The people who’ve failed at investing so far are different from me. They can’t even imagine that a software distributor, no matter how successful, could cause stock prices to skyrocket.
If you know this, you can invest as much as you want.
“Uncle.”
“Yes?”
“Grandfather once said, ‘Everything in the world has a price. But everyone values it differently.’”
“Doesn’t sound all that profound. Even water is sold everywhere.”
The first official sale of bottled water in our country was during the 1988 Seoul Olympics. The government allowed it for the foreign athletes during the games, but banned it afterward.
The government was concerned that selling bottled water might create a divide between those who could afford it and those who couldn’t, forcing the latter to drink tap water. They also cited potential issues like groundwater depletion and environmental pollution as reasons for the ban.
However, bottled water companies have been persistently demanding the right to sell and have currently taken the matter to the Constitutional Court.
“Exactly. SoftBank’s stock is a product too. They’ll definitely sell it if the price is right.”
At my words, Oh Se-hyun looked at me with eyes full of curiosity.
“So, how much do you think you can offer?”
“What do you think, Uncle?”
He pondered for a moment before holding out his hand.
“Five times. With that, you could probably make a 30% profit from the initial surge after it goes public.”
“I doubt they’d be interested in just five times.”
“That’s why it’s a stretch. There are probably many investors offering five times. Conversely, it means anything beyond that might not be worth the investment.”
“So, if someone offers more than five times, the SoftBank president might sell? Because everyone thinks that way?”
Oh Se-hyun chuckled at my suggestion.
“Maybe. How many times are you thinking?”
“Let’s ask the SoftBank president how many times he’d sell for. Offer to meet his terms. I want to see just how eccentric he is.”
No need to be overly greedy. Let’s just aim to double our investment.