Chapter 29: Lee Hak-jae Became Even More Cautious

Lee Hak-jae grew even more cautious.

“Yes. They say he gave him four billion won.”

“Four billion? Good heavens!”

“Right now, rumors are spreading like wildfire in Chungmuro that Soonyang Group has jumped into the movie business. The initial capital is quite substantial.”

“Idle rumors end as just that. Don’t pay it any mind.”

Chairman Jin began to rub his throbbing forehead.

“Shall I take care of it?”

“Can you?”

“Production companies are like developers in construction. Without construction companies, you can’t make movies. You need to gather a lot of staff for each department.”

“You’re saying you’ll cut off the hands and feet they need to work together…?”

“Yes.”

“Hmm…”

The hand rubbing his forehead stopped.

“Leave it alone.”

“Excuse me?”

“He needs to learn the hard way that you shouldn’t spend money out of sentimentality.”

This was shocking for Lee Hak-jae. The chairman’s worry wasn’t his son. He was only thinking about his grandson.

“Are you talking about Do-jun?”

“Of course. Even if it’s his own father, he’ll learn a painful lesson that you don’t spend money on someone without potential. If four billion won makes him realize not to waver from his ruthless path due to sentimentality, then it’s a cheap tuition fee.”

“But what if the movie succeeds…?”

“He’s lived his whole life as an unemployed bum. Is business something anyone can just do? If making movies were that easy, why would there be so many failures? Even renowned producers and directors stumble and make flops. What chance does he have of succeeding?”

Unlike Chairman Jin, who was certain of failure, Lee Hak-jae had different thoughts.

There are countless cases where unknown rookie directors achieve box office success.

What if he succeeds?

Rather than being angry that his unsatisfactory son was getting out of control, he would love and have expectations for his grandson, Jin Do-jun, even more, recognizing the worth of the person he had discarded, Jin Yun-ki.

If the movie failed, it would be a lesson, and if it succeeded, it would confirm his eye for talent.

Regardless of the outcome, Chairman Jin seemed like he would burst into laughter.

“By the way, Hak-jae.”

“Yes, Chairman.”

“Young-joon graduates next year, right?”

Lee Hak-jae hesitated at the sudden question about the eldest grandson. How old was he again?

“Send him to Germany when he graduates.”

“Germany? The situation there is quite unsettling. Would it be alright?”

In September 1989, the Monday demonstrations that began in Leipzig became the catalyst for pro-democracy protests spreading throughout East Germany.

To appease the demonstrators, Günter Schabowski, the East Berlin party boss, announced the liberalization of travel policies at a press conference.

But this is where something huge happened.

At the press conference, an Italian reporter asked, “When will the border crossing be implemented?” The party boss, mistaking the border opening for the liberalization of travel, made a fatal mistake by answering, “Immediately, without delay.”

The Italian reporter, whose German wasn’t fluent, mistook the travel liberalization measures for the demolition of the Berlin Wall immediately after the conference and sent an urgent report to his home country.

This news crossed the Atlantic and spread to West German television that night, and Germans flocked to the Berlin Wall in an instant.

They had tools in their hands and began to break down the Berlin Wall. Not only Berlin but all of Germany is falling into a quagmire of chaos.

“The collapse of the Berlin Wall is a symbol of the changes in Eastern Europe. He needs to see it firsthand and feel those changes in his bones. Discovering opportunities within that is his job.”

“Wouldn’t he be too inexperienced? Wouldn’t it be better to gain some experience domestically…?”

“He can gain experience in Germany. If he’s rolling around in a place where the world is changing rapidly, wouldn’t he gain more experience in a short amount of time?”

Was that his real intention?

Lee Hak-jae couldn’t shake this doubt. He wondered if the purpose was to gain experience or to expose Jin Young-jun’s incompetence.

“Understood. I will prepare a position at the Frankfurt branch.”

Chairman Jin, who had a satisfied expression, opened his mouth somewhat cautiously.

“And… I’m thinking of building a home appliance factory in East Germany. What do you think?”

Chairman Jin, certain that East Germany would collapse, was quick to act. Once West German money flowed into East Germany, it would be no different from creating another huge market.

Lee Hak-jae knew what Chairman Jin wanted.

Building a white goods factory was something he could order done with a snap of his fingers. If it were just that, he would have called the president of Soonyang Electronics and given the instructions.

There was another meaning hidden.

“I will meet with Assemblyman Park and discuss it.”

“Yes. Grant them what they want and then squeeze them for more.”

He was planning to build a home appliance factory in East Germany with government funds.

There were countless justifications he could come up with. Supporting underdeveloped East Germany was the most plausible, and the best way to do that was through a manufacturing plant that could create jobs.

Not all, but he would use government funds as much as possible to build the factory and later absorb it as Soonyang’s assets. It was something they had done countless times.

Those who manage government affairs don’t hesitate to spend government money to line their own pockets. And the ones who are best at filling their pockets without any repercussions are chaebols like Soonyang Group.

* * *

“This is the investment contract. Take a look. Let’s see your English skills.”

Oh Se-hyun was smiling with curious eyes, but I had no intention of playing along.

“I can’t read these kinds of technical details. Just explain it to me.”

A hint of disappointment flashed in his eyes, but I didn’t care. In my past life, I also only reported the essentials to my superiors. Receiving only the key points is the privilege of the boss.

“Really? Is it a bit difficult?”

Oh Se-hyun picked up the contract again.

“First, the total investment amount is nine million dollars. He was firm that any more was impossible. This amount is the limit allowed by the investors who invested earlier.”

“What’s the price per share?”

“Forty cents.”

I was a little surprised. My expected price was sixty cents. Knowing that it would be listed on NASDAQ next year at a face value of thirty cents, I thought he would ask for at least double.

“Is that a good price?”

Pretending not to know, I checked, and Oh Se-hyun changed his posture to that of someone giving an accurate report.

“Dell Computer is scheduled to be listed next year at a face value of thirty cents. The expected price at the time of listing is double that, and it will fluctuate over time. But the average price is definitely above forty cents.”

“Then it’s a good deal.”

Michael Dell had no choice but to offer good terms.

Because the shares I secured will eventually end up in Michael Dell’s hands. The more shares he secures, the more solidified his management control becomes.

The only thing Michael Dell missed was that the stock price would rise much more steeply than he anticipated. Because of that, I will make a huge amount of money.

“So, the negotiation ended easily. What was difficult was this.”

Oh Se-hyun took out another thick stack of English documents.

“I’ve selected potential candidates for where to invest the remaining six million dollars.”

Oh Se-hyun briefly explained the companies on the investment candidate list and then stopped.

To explain the reasons for investment, he would have to keep using technical terms like PER, PBR, PSR, WACC, net asset value assessment, expected future net cash flow, and the discounted cash flow method, so he shook his head, looking embarrassed.

“Um, I’ll explain it simply. Safe investments and slightly more adventurous investments.”

“Where are the safe investments?”

“The medical field, like Pfizer, Johnson & Johnson, and Boston Scientific. They consistently generate profits, so their stock prices are stable and their dividends are good. Especially in the medical field, it’s hard for developing countries to catch up, so it’s considered solid.”

In the fiercely competitive manufacturing sector, a single flagship product can cause stock prices to fluctuate.

However, the medical field shows an impregnable fortress where stock prices jump whenever a new drug is released but rarely fall. That’s how difficult it is for latecomers to catch up. If you only consider stability, it’s the best choice.

“A bit risky, but worth trying is Microsoft.”

Microsoft is risky? With the great Bill Gates?

Hadn’t they already achieved success with DOS in partnership with IBM?

He must have misunderstood my surprised expression.

“You’re not familiar with it, are you? Actually, I don’t know much about this computer stuff either.”

“What’s the reason it’s risky?”

“They keep releasing new computer operating systems, but the market reaction isn’t very favorable. According to the information, the third version is coming out next year, and if that fails too, it’s hard to predict what will happen. Plus, there are rumors that IBM is also developing its own operating system and will part ways with Microsoft.”

Was Windows 3.0 or 3.1 coming out next year? It’s hazy.

Well, it doesn’t matter. Either way, it’s only a difference of a year or two.

Windows 3.0 significantly enhanced multitasking capabilities by fully introducing virtual memory and provides a more beautiful and colorful interface due to the improved performance of graphics cards.

Starting with 3.0, IBM PC compatibles, whose strengths are their relatively low price and expandability, will rapidly emerge as powerful competitors to the expensive Apple Macintosh, and Microsoft is the company that will dominate the global PC market. Enough to push the powerful Macintosh to the periphery.

For me, who lived in an era where Apple became the absolute powerhouse again with the iPod and iPhone, it’s truly fascinating. There are no eternal winners.

“Uncle, who recommended Microsoft?”

“Rachel. You saw her, right? At the New York office?”

“Ah, that old lady?”

“What? Old lady? Haha. She’s only thirty? If Rachel heard that, she’d be furious.”

I’ll have to see more, but it seemed like the best talent at Miracle Investment was Rachel.

“So, what should we do?”

“What do you think, Uncle?”

“I’m drawn to Rachel’s opinion.”

Oh, unexpected. He clearly said he didn’t know the field well. Nevertheless, he’s considering the investment.

“It might sound strange, but I have a gut feeling. I have a feeling that Rachel’s conviction is right. I keep being drawn to it.”

He chuckled when he saw me staring at him with curiosity.

“Hehe. Of course, the backup data was also good. The numbers make it worth the risk. And… since your luck isn’t ordinary, I thought, why not bet on it?”

“Then, let’s do that. I bring good luck, so it’ll work out well. Hehe.”

We laughed together, but there was anticipation in Oh Se-hyun’s eyes. I would give him hundreds of times that expectation. Doesn’t he own 2% of the shares?

Now I need to start the next stage.

“Uncle, I have a favor to ask.”

“Yes, tell me.”

“The land in Bundang, right? The remaining….”

“Huh? That land? Its value keeps going up, you know?”

“Really? I’m not sure… Anyway, please sell it for me.”

He waved his hand in surprise. The land price was soaring day by day.

“Huh? Why sell it? Just hold onto it. Sell it when it hits the peak.”

It’s not that I don’t know. I can’t miss something more important to earn just a few billion more won.

“Then is the company in New York just going to sit around?”

“What? Ah…!”

Oh Se-hyun slapped his knee.

The huge sum of fifteen million dollars would be poured into just two companies. And there’s no telling when we’ll recover it. We need to hold it for at least a few years.

Can’t the four talents in the company just stare blankly at stock charts?

“So that money will become Miracle’s operating funds.”

“Yes. But only use half and keep the other half.”

Strictly speaking, I don’t know anything. I’m just using fragmented knowledge of the future. If I didn’t know the future, would I have invested in Dell Computer and Microsoft?

My current knowledge and skills don’t even reach the heels of a woman like Rachel.

Half of the money from selling the remaining land will be my tuition fee. Every action they take in the process of making investment decisions will be my textbook, and Oh Se-hyun, a talented individual from the enormous company PowerShares, will be my tutor.

I will experience and learn about the world-class real economy with them. Even if I lose all that money, it won’t be a waste.