Chapter 208: It’s Not a Request, It’s an Order

“Eva, I think it’s time for you to come back to Korea.”

— Boss, what about Hong Kong?

“Leave it to the representative of Peregrine. Eva, you need to come to Korea and carry out my orders.”

Eva was a talent par excellence when it came to hostile M&A and attacking companies.

— Got it. When you say so, I’ll head over. I’ll wrap things up here as quickly as I can.

“We’ll discuss the details once you’re back. Return as soon as possible.”

As she tucked her phone away, she turned to Ha Myung-hoon, who was in the passenger seat.

“When do we arrive?”

“About 10 minutes away.”

Hearing that they were almost there, she gazed outside the window, feeling uneasy. It wasn’t that she didn’t trust Manager Ma’s abilities, but her inability to deal with matters in China was distressing her.

“Have you heard from Manager Ma?”

“He called when you were asleep, Boss. Jang Dae-ho met with his family yesterday and is scheduled to meet Jang Seong-taek, who came from Pyongyang today. He’ll update us afterward.”

It seemed like the meeting was going smoothly without any issues. An image of Jang Dae-ho sobbing over family photos came to mind, and a faint smile crept onto her face.

Upon arriving at the restaurant, Ha Myung-hoon exited the car first, opening the door for her.

“Chairman Kim Byung-woo should be here already, right?”

“Yes, he called earlier to say he arrived.”

“Let’s head inside.”

Following the staff’s guidance, they entered the room where Chairman Kim Byung-woo was waiting.

“Welcome, Boss,” he said upon noticing her arrival.

Upon seeing her, Kim Byung-woo jumped up from his seat to greet her. It had been a while since their last encounter, which was at a bar with Han Gyeong-yeong.

“It’s been a long time.”

His face looked rejuvenated after such a long interval.

When she extended her hand, Kim Byung-woo grasped it with both of his. After a brief handshake, they sat facing each other.

“How have you been?”

The reason I chose Jungwoo Group was that it was the largest company crumbling under the foreign exchange crisis.

Using the resources I obtained from Jungwoo, I planned to swallow Il-seong whole.

“We’re focusing on Jungwoo Electronics as instructed by you, Boss. Thanks to the ample support, we’ve secured a lot of top-notch talent.”

“That’s good to hear. How close are we to catching up to Ilseong Electronics?”

Although Ilseong Electronics was a latecomer in the semiconductor sector, under Chairman Seo Yong-geon’s relentless push, they had seized control of the semiconductor market.

Despite being an adversary, Seo Yong-geon’s foresight was commendable. Had everyone resisted back then, believing it too challenging, Ilseong Group would have faded innto obscurity like any other chaebol.

However, by basing everything on Ilseong Electronics, Seo Yong-geon had crafted Ilseong Empire that manipulated the South Korean economy.

“Even with our sudden pivot to DDR, we can’t compare to Ilseong’s technological prowess.”

“Hmm… How long until we can overtake them?”

“Our research team estimates it could take as little as three years if we push hard.”

“Is the technological gap really that significant?”

I wasn’t well-versed in the semiconductor industry; I just knew the future hinged on semiconductors.

Since semiconductors were crucial to all industries, the market would continue to grow even two decades into the future.

“Ilseong’s technology is among the best in the world. To catch up, we’ll need considerable time.”

“What if we invested more capital? Money is no object.”

Kim Byung-woo glanced at her nervously, as if he wanted to voice something but was hesitant.

“Speak up. It’s okay.”

“Well… there is one way, but it’s going to be tough… no, it might just be impossible.”

“Impossible?”

The utterance of ‘impossible’ from Kim Byung-woo suggested that finances weren’t the issue at all.

“Yes, it’s something that’s unlikely to materialize.”

“What is it?”

His repeated insistence on it being impossible piqued her curiosity.

“It involves acquiring a semiconductor company in Japan. If we can obtain their technology and workforce, we could catch up to Ilseong.”

“A semiconductor company in Japan?”

“Yes, Boss.”

Thinking deeply while stroking her chin, she realized that money wasn’t the constraint in this situation.

‘To acquire a semiconductor company in Japan…’

Now she understood why Kim Byung-woo had deemed it impossible.

Even if a Japanese company were to decide to sell to a South Korean firm, the Japanese government would never allow that.

Japan had been the absolute leader in the global memory semiconductor sector from the 1980s to the early 90s.

Of the top 10 semiconductor companies in the world, the first three were all Japanese firms.

However, the U.S. would not sit idly by.

When American semiconductor companies, including Intel, started suing Japanese semiconductor firms for dumping, it quickly escalated into corporate disputes, prompting both the U.S. and Japanese governments to intervene.

Eventually, the U.S. government sided with its own companies. An asymmetrical agreement forged during that time became a lasting shackle on Japan’s semiconductor firms.

This led to America seizing the dominance of the semiconductor industry by the mid-90s.

Around that time, although Japan’s semiconductor companies had superior technology, they were forced to sell off their businesses one by one due to competitive pricing pressures.

“Which semiconductor companies are currently up for sale?”

“Nihon Denki and Toshiba’s memory semiconductor division are on the market. I believe they’re negotiating with Taiwan right now.”

“Taiwan?”

She tried to remember the sector she hadn’t paid attention to previously.

Taiwan had fostered a thriving IT sector, giving rise to various computer component manufacturing companies, particularly excelling in mainboard production.

“Yes. The Taiwanese government is actively engaging in negotiations. We tried reaching out, but were immediately rejected. Ilseong, to some extent, had the edge because Chairman Seo Yong-geon enjoys a good rapport with the Japanese government, but being a South Korean company is likely holding them back.”

As they exchanged thoughts, the door opened, and the food was served. It was a simple yet elegantly arranged traditional Korean meal.

“This place is known for its delicious food. Let’s eat first and talk afterward.”

“Sure, Boss.”

She needed time to gather her thoughts, but there was no time to spare now.

While eating, she opted to sort through her thoughts in silence instead of engaging in conversation. After taking a few bites, she set her spoon down.

Seeing her, Kim Byung-woo followed suit with his spoon, seemingly lost in thought and unable to enjoy his meal.

She pressed the call button beside her to summon the staff. As they cleaned up the main dishes, they brought out sujeonggwa and coffee for dessert.

Holding the sujeonggwa cup, she turned to Kim Byung-woo to ask,

“Currently, Jungwoo only handles memory products, right?”

“Yes, that’s correct.”

“What about the non-memory sector?”

As he lifted his coffee cup, Kim Byung-woo replied, his expression somber as if he wouldn’t be offering good news.

“That area is mostly dominated by U.S. firms… It’s challenging for latecomers like us to penetrate that market.”

“What if we were to acquire Qualcomm?”

“Qualcomm?”

Kim Byung-woo’s eyes widened. His surprise was understandable, and she smirked lightly.

“If we acquire Qualcomm, we’d gain competitiveness in the non-memory sector as well. But that’s assuming we can successfully acquire them.”

“What would happen if we managed to pull it off?”

Setting down his coffee cup, Kim Byung-woo sank into deep thought. After contemplating for a while, he began to speak seriously.

“The non-memory sector is significantly more profitable than the memory sector. If we can secure demand sources, we wouldn’t be as vulnerable to market fluctuations. If we could somehow acquire Qualcomm, there’s a chance Jungwoo could lead in the non-memory sector.”

“Really?”

He nodded, adding further details.

“Yes, unlike the memory sector, the design technology is paramount in the non-memory sector. Intel is currently the frontrunner, but I hold Qualcomm’s technological capabilities in higher regard.”

While Kim Byung-woo may not know the future, I did. A deeper thought struck me as I recalled the smartphone market.

“Intel abandoning memory semiconductors to focus on system semiconductors was primarily because it was more profitable.”

Qualcomm and ARM… In hindsight, focusing on that industry would bring considerable benefits.

I needed to discuss matters with Han Gyeong-yeong.

“Understood. I’ll initiate negotiations with Japan. I’ll also contact you later regarding Qualcomm and ARM.”

She placed the sujeonggwa cup down. It was time to get to the point.

“Chairman, I’ll be handing Jungwoo Construction over to Geukseong Construction.”

“Huh?”

“I’m planning to merge Jungwoo Construction into Geukseong Construction. Geukseong will be acquiring Jungwoo.”

Caught off guard by her unexpected words, Kim Byung-woo blinked rapidly.

“You said Geukseong will acquire Jungwoo? That’s… unusual, isn’t it?”

“Yes, all of Jungwoo Group’s construction and civil engineering affiliates will be transferred to Geuksung Group.”

“…”

He seemed anxious, gnawing at his lip.

“Is there a problem?”

“If I may be so bold, may I ask why? Jungwoo Construction is the second-largest construction company in the nation. Why turn it over to Geuksung? The employees won’t understand.”

“Why should I have to explain myself to them?”

After acquiring Jungwoo Group, I converted it to a non-listed company and dismantled the labor union.

As such, Jungwoo had effectively become a company directed by my will.

“I am perfectly entitled to handle my company as I see fit. Why should I worry about what the employees think?”

“But… employees in the construction sector are not easily swayed by logic. If they suddenly see the name change from Jungwoo Construction to Geuksung, they will have great difficulty accepting that transformation.”

Having experienced the fallout of the IMF crisis, the collapse of major corporations, and subsequent layoffs of many workers had led to a massive surge in irregular employment, which caused unions to wane.

Although unions were dismantled, construction workers were notoriously known for being unruly.

“We’ve guaranteed higher wages and benefits compared to elsewhere. If complaints still arise, let them resign. If they dislike the temple, they should leave the monk; they can’t bring down the temple themselves, right?”

“…”

Kim Byung-woo didn’t respond immediately. It seemed he grasped what had been said at the bar that night.

“Chairman Kim, listen carefully. I’m not making a request; I’m giving you an order. I understand your care for the employees, which is why you hold your position. I also know that you take pride in the Jungwoo name.”

My voice sent chills down my spine. Noticing the tension, Kim Byung-woo stiffened.

“However, if you oppose my orders, I may have to place someone else in your position.”

I had allowed him ample autonomy.

I hadn’t meddled in how he managed the company, and he’d done well up until this point.

“The reason I placed you in that position wasn’t for you to second-guess my orders. It was to execute them to the best of your ability. Do you understand?”

But if he defied my orders, I could easily replace him with someone more obedient.

Kim Byung-woo swallowed nervously at the sudden shift in atmosphere.

“Understand this and prepare everything accordingly. If the employees resist, feel free to fire them. Strikes? Sit-ins? Let them do as they wish; it doesn’t concern me.”

“…I understand. I’m sorry.”

Quickly bowing his head, Kim Byung-woo responded. He stared vacantly ahead, then spoke up again.

“And Jungwoo Group will expand into all sectors where Ilseong Group operates. We’ll entter the finance sector via Taesan Financial, while Geukseong will manage construction. The remainder will be handled by Jungwoo Group. We will play a chicken game until Ilseong falls.”

“Will the government allow that?”

Kim Byung-woo raised his head and asked, anxiety lacing his voice.

Given how Kim Hak-gwon’s government had restrained reckless competition among conglomerates through regulations since the foreign exchange crisis, his anxiety was not unfounded.

“Don’t worry about it; we’ve already wrapped up talks with the government.”

“Although there had been overlaps in most sectors before, after you acquired Jungwoo Group, we’ve streamlined the underperforming affiliates.”

As I contemplated consuming Ilseong Group, it was amusing to observe how I’d previously arranged the affiliates.

“Acquire suitable companies. I will handle negotiations concerning automobiles with Daehyeon.”

“Understood.”

A chicken game.

It meant both parties had to be prepared to suffer substantial losses until one emerged victorious.

Jungwoo would never succumb to Ilseong in terms of financial strength.

For any legitimate enterprise, opting for coexistence over cutthroat competition would be the norm; however, I was determined to erase the name Ilseong from South Korea.

I planned to externally prompt fierce competition to devastate Ilseong while internally sowing discord among shareholders to foster distrust toward executives—two-pronged strategy.

“Start with Ilseong Electronics. Though lacking in technological prowess, we’ll offer non-memory products at prices cheaper than Ilseong’s.”

“Boss, that wouldn’t yield any profits at all.”

Even if profits were entirely absent, it wouldn’t be a problem.

In a chicken game, the key question is who can endure the longest.

“That’s fine. Ultimately, if we lower our prices, Ilseong and other semiconductor companies will have to follow suit. At that point, it’ll be a battle of endurance.”

That’d been Ilseong’s strategy for monopolizing the memory semiconductor market.

Back then, thanks to group-wide backing, Ilseong Electronics had triumphed, but this time, things would be different.

Imagining Ilseong falling prey to a strategy that I had devised made me grin involuntarily.

“Don’t stop until Ilseong collapses.”