Chapter 205: Investment and Ambition

“We’re not just investing; it’s about technology transfer. If an acquisition is feasible, we’ll review its viability before deciding whether to proceed.”

“Acquiring a company just to pilfer its technology… it’s not unheard of, but… to think on such a grand scale.”

In 1994, Germany’s BMW Group acquired the Mini, Rover, and Land Rover brands from Britain’s Rover Group. In 1998, they also acquired the British luxury brand Rolls-Royce. However, in 2000, they sold Rover and Land Rover to the US’s Ford, currently maintaining only three brands: BMW, Mini, and Rolls-Royce.

BMW held onto the Land Rover brand for a mere six years.

In Britain, where Rover Group was based, protests erupted daily in fierce opposition. This was because BMW acquired Land Rover to utilize its SUV technology to create the BMW X5, only to sell it off once its value had been extracted.

Of course, Ford’s acquisition was driven by the same motive. Once they’ve taken all the technology, they’ll likely resell it.

“Isn’t it a shortcut? Chairman Song Hyun-chang thought the same way I do. There’s no significant difference.”

“If there’s no significant difference, you shouldn’t even start. All of Chairman Song’s bold investments ended in failure.”

“There is a difference. The thinking might be the same, but the people are different.”

“Because it’s you? The investment prodigy?”

I shook my head. This isn’t an investment issue; it’s a management one.

“No. The mainstream is different, isn’t it? The core isn’t the Ajin people, but the Soonyang people.”

“Is that so?”

He looked pleased. No one, child or adult, dislikes praise.

“Even if Soonyang Automobile is ranked third or fourth, its performance has been good. It was the last entrant among automobile companies, yet it achieved those results while enduring pressure from the likes of Daehyun. The people are different.”

“You’re putting a lot of pressure on me. Haha.”

President Jo Dae-ho, who had been chuckling, asked seriously again.

“Whether it’s investment or acquisition… do you have the funds?”

“I’m not just saying this offhand. I’ve been thinking about it constantly. To rise another level, we need a significant stimulus. That stimulus would be collaboration with a foreign automobile company with outstanding technology. Please scout out suitable companies. Don’t worry about the money. I’ll find a way to secure it.”

I answered earnestly.

“Oh, and please don’t misunderstand. It’s not because I’m a car enthusiast trying to waste money. You know I have a ‘paper license.’ I still have a driver.”

“It’s not the hobby of a third-generation chaebol, I know. Good. I’ll start looking into it now. Not supercar manufacturers, though. We don’t produce full-power, high-performance cars. We’ll investigate companies that possess the technology we desperately need.”

“Yes. I’ll leave that entirely to you, President.”

There’s no need to interfere in an expert’s area. He’s spent a significant amount of time with my grandfather.

He’ll have learned how to spend money efficiently.

* * *

Daewoo Motors was exactly three days ahead.

They plastered their compact car on every possible advertising medium: newspapers, TV, magazines, the internet, and more.

This might be the first time they’ve even touched bus advertisements.

“They’ll be taking a big loss, won’t they?”

CEO Oh Se-hyun chuckled while watching the TV commercial.

“We have to crush the seedlings while we can. They’re trying to block the craze.”

“They’re emphasizing the price and the four-seater aspect too much.”

“They’re following the textbook. Accurate targeting.”

“What do you think? Is it manageable?”

“It’s a concern, but our positioning is different from the start. Our goal is to create a new market.”

Oh Se-hyun snorted with laughter.

“Keke, I’ve heard that line a lot. Ah, right. Venture companies desperate for investment use those words a lot during their presentations. Positioning, targeting, new market development. But you know it too, right?”

“They were all empty promises. But I’m not a venture CEO desperate for investment. So, I don’t need to say flattering things.”

“Is that so? We’ll see. Hehe.”

“Hey, Uncle. No, Mr. Oh Se-hyun, CEO of the investment firm that’s the largest shareholder of HW Automobile. Are you just going to watch the fire burn?”

“Look here, real shareholder. I’m just your loyal proxy.”

We exchanged meaningless jokes like that before focusing on the TV again.

“Alright, let’s see how our first commercial comes out.”

“It’s news. It cost quite a bit, though. Hehe.”

The first segment of the 9 o’clock main news covered a unique event.

“Today, HW Automobile, along with Coach Guus Hiddink and player Park Ji-sung, the heroes of the World Cup semi-finals, recreated the roar of the Red Devils.”

Following the anchor’s opening, an aerial shot of the factory’s massive storage yard appeared on the TV screen.

About a thousand red cars were lined up, and about a thousand people wearing Red Devils t-shirts were captured on screen.

“All the supporters who won during the World Cup period stood in front of their respective cars. Notably, HW Automobile fully prepaid the 22% in taxes and public charges that the winners would have had to bear and even completed the registration process perfectly. The winners can literally just receive their car keys and drive away like in a movie.”

The camera panned across the long line of about a thousand people and Coach Hiddink and player Park Ji-sung.

“Ah, it looks like they’re starting to depart now. The Red Devils, who gathered from all over the country, including Seoul, Busan, Daegu, Incheon, and Daejeon, are leaving the factory in their red .”

Oh Se-hyun, who was listening to the anchor’s commentary, chuckled.

“Wow, how much did you bribe them to get even more coverage than an ad? They’re really singing your praises.”

“It’s marketing expenditure. We booked some generous TV ad slots and slipped some envelopes to the news bureau. They’re doing this because it’s newsworthy. Do you think Daehyun didn’t slip envelopes to the news bureau? It’s just that they don’t have any buzz, so there’s no way for them to appear on the news.”

“A one-minute commercial on a show with a 25% viewership rating. Worth the money.”

“What do you think of the car?”

“It’s pretty. That’s all the praise you’ll get from me. It’s not my style.”

I also checked with people whose tastes differed to see if it could appeal to them.

“Please put up a notice tomorrow.”

“A notice?”

“Yes. If a Miracle employee purchases an , they get an automatic 15% discount. The free A/S period is also extended by one year. What do you think?”

“That might sell a few. There are quite a few support staff here who don’t earn a high salary.”

“Then the high-income earners won’t even look at it?”

“Hey! The guys here will never buy it if their golf bags don’t fit in the trunk.”

“Even if they can put it on the passenger seat? Wouldn’t they buy it as a second car?”

“They buy German-made cars as second cars. Don’t get your hopes up.”

* * *

I wasn’t dreaming of a mega-hit, but it would be a lie to say I had no expectations. But reality was harsh.

“The frontline sales staff are going crazy. There are a lot of inquiries, but not many people are actually signing contracts. At this rate, we might not even meet our goal of 7,000 units.”

President Jo Dae-ho’s expression was grim.

“Nearly ten million won isn’t a small amount. This might end up being a toy for the well-off.”

Oh Se-hyun tossed a printed list.

“My prediction was wrong. Miracle employees are reacting explosively. To them, it’s ‘a car that doesn’t even cost ten million won.'”

A list of nearly a hundred names.

“Our company’s salaries are a bit high, you know. All the general staff, especially the unmarried ones, have applied. Many managers have applied too. They’re saying they’ll get rid of the domestic 2,000cc sedan their wives drive and buy this. Executives are buying them as gifts for their children.”

“So, the conclusion is that they want it, but the price is a burden. Should we have offered installments up to 48 months?”

President Jo quickly waved his hand.

“No way. 36 months is the limit. Aren’t you considering the financing costs?”

It felt like a single spark could change everything, and suddenly, I knew what that spark was.

“So, it’s a matter of a little extra money. It’s a burden to buy our car with that ambiguous price gap, is that right?”

“Yes.”

President Jo stared at me as if trying to get a promise, speaking clearly.

“We can’t lower the price any further. We’re selling it with almost no profit. We can’t take a loss.”

I misread the situation. I wasn’t suggesting selling it cheaper.

“What about credit card installments?”

“What?”

“What? Credit cards?”

The two men exclaimed simultaneously.

“Soonyang and Daehyun. Aren’t these card companies being very aggressive right now? Both of their owners have recently changed. Instead of swiping a few hundred thousand won with a credit card, it’s ten million won at once. Wouldn’t that be tempting?”

This time, neither of them answered.

If we can negotiate with the card companies, I expect things to open up, but from the card companies’ perspective, the risk is somewhat significant. But isn’t this a moment of fierce competition? When the competition heats up, there’s no better opportunity. It’s a matter that can secure customers instantly.

It will be common to buy cars with credit cards later, but not yet. Currently, it’s only possible through installment programs offered by automobile companies and capital firms.

Slyly incorporating a combined card finance option at this opportunity wouldn’t be bad either.

“Shall we try it?”

President Jo was the first to speak. His positive reaction meant Oh Se-hyun also accepted the idea.

The reason Oh Se-hyun didn’t speak first was probably because President Jo Dae-ho was responsible for management.

“Then, please create a financial program that the card companies would accept. I’ll start by having preliminary meetings with the two card company owners.”

Fortunately, I know both of them.

Aren’t they the people I call Uncle and Uncle?

What’s even more interesting is that the credit card companies will be devastated next year.

I’m adding a few more big bombs for them. Enough to make it even harder to escape.

* * *

“Cars with credit cards?”

“Yes. It’s not really anything special. Isn’t buying things on installments the same thing? The amount is larger, but… setting that limit is up to the card company. How is it different from buying a three-million-won luxury bag?”

Joo Kwang-shik, the chairman of Daehyun Finance, listened to me with interest.

“Our in-house installments are only up to 36 months. With credit cards, isn’t 48 or 60 months possible without any issues?”

“Hmm… plausible.”

“Let’s create a product with carefully considered interest rates. Try it out with our first, and if it goes well, we can expand it to other car models….”

“My nephew seems to have a deep connection with Soonyang Automobile. Coming to me first to promote it like this.”

His sharp gaze pierced my face.

“I’m a bit involved with Miracle, and Soonyang belongs to my grandfather, doesn’t it? I can’t just ignore it.”

“Is that all?”

“We can talk about the backstory later; let’s focus on the immediate business.”

“It’s quite entertaining to watch my eager nephew? I’ve heard stories here and there too. They say you’re struggling?”

“That’s all thanks to your older brother, the chairman of the automobile company. The dumping is unreal. They’ll lose money the more they sell, won’t they?”

“The losses from selling compact cars are offset by selling a few flagship models. Daewoo Motors has a wide spectrum. Hehe.”

“So, wouldn’t it be interesting to make them lose money and drastically damage their image?”

Chairman Joo Kwang-shik was speechless for a moment before bursting into laughter.

“Hahaha, I’ll get to see my brother’s distorted face.”

“As soon as the credit card installment product comes out, it’ll be an immediate turnaround. That’s our company’s analysis.”

Just as Joo Kwang-shik’s laughter subsided, he presented a new condition.

“Soonyang Capital takes the profitable first 36 months, and I take the drawn-out 48 months? That won’t work… I’ll consider it if you stop the Soonyang Capital program.”

“Deal.”

His eyes widened as he watched me answer without a second thought.