The Superhighway Home
The car sped along the Information Super-Highway from the airport toward the Seoul office. "How was your first long business trip?" Choi Kang-wook asked. Just as Yoo Jae-won had been curious about domestic affairs, Choi Kang-wook looked equally eager to hear about the situation in America. The question, however, was directed at Kim Dae-seok rather than Yoo Jae-won. As Chief of Staff, Choi Kang-wook was naturally curious whether his direct subordinate, the executive secretary, had performed well.
"Ugh, I thought I was going to die since I couldn't speak a single word of English." Though the trip had lasted only about a week, Kim Dae-seok seemed to have a lot pent up. When Choi Kang-wook prodded him, a flood of words poured out. Half were praise and awe for Yoo Jae-won, while the other half were laments about his own abilities. He especially complained that his English wasn't just poor—it was nonexistent—and that aside from handling personal errands, there had been nothing he could do to help.
"As expected. I figured as much, so I've already arranged for one-on-one English tutoring with a native speaker. From now on, you'll be studying with me whenever we have spare time."
"Tutoring? Don't tell me the instructor is Team Leader Robert?" Robert Halley, the legal team leader with his thick Gyeongsang dialect, was already a famous figure at ID Technology. His striking impression made him unforgettable at first sight. Still, learning English from someone who already felt like a Korean seemed a little odd.
"Of course not. He's an excellent teacher who can get even complete beginners like us speaking fluently."
While the two secretaries steeled their resolve, Yoo Jae-won began flipping through the scrapbook Choi Kang-wook had given him. Once they reached the office, Choi Kang-wook would provide a detailed briefing, but for now, the scrapbook of important articles from the past week was the perfect way to catch up on what was happening in Korea.
-ID Technology Secures First-Instance Victory Against Microsoft!
-U.S. Federal District Court Awards $200 Million in Damages—Largest Amount in History!
-Nationally Recognized Genius Showcases the Potential of the Software Industry!
-A Single Lawsuit Generates Profits Equivalent to Ten Years of Automobile Exports!
The very first article was, as expected, about the victory in the Microsoft trial. The domestic newspapers had clearly been deeply shocked. Every article was packed with exclamation marks.
"As always, media exaggeration is a time-honored tradition."
One line in particular caught his eye: the claim about profits equivalent to ten years of automobile exports. If Chairman Jeon Myeong-heon of the Mirae Group had seen it, he would have jumped up in protest, accusing them of belittling Mirae Motors. After all, Mirae Motors was currently the only Korean automaker exporting vehicles overseas. But this was still the market-development phase. Mirae Motors was pouring enormous marketing expenses into raising its brand recognition abroad, and export revenues were almost nonexistent. Because the actual profits from exports were so small, the newspapers could get away with claiming that a mere $200 million was equivalent to ten years of Mirae Motors' export earnings.
"I'll have to offer him some consolation when we meet later."
Thanks to Mirae Motors' persistent efforts to knock on overseas market doors, the company would survive as the final victor in the automobile industry amid the massive tectonic shifts of the twenty-first century. It was something Chairman Jeon had never lived to see, yet it was undeniably a remarkable achievement. In any case, what mattered was that the current atmosphere in Korea placed ID Technology on par with—or even above—Mirae Motors. At the same time, attention on Yoo Jae-won himself had exploded. It was on an entirely different level from when he had received the Presidential Award for ID Office. Choi Kang-wook assured him that if yesterday's arrival had been reported by the media, reporters would have swarmed like clouds. It had happened the day before, but the meeting with the Heritage Foundation chairman had allowed them to narrowly avoid it by delaying the return by one day.
Yoo Jae-won searched for other articles besides those about himself. Fortunately, there were a few more.
-Political Circles Move to Conclude the Liquidation of the Fifth Republic.
-Peace Democratic Party Explores Grand Coalition with the Democratic Justice Party.
-President Roh Activates Northern Policy, Accelerating Substantive Trade with Communist Bloc.
Three articles stood out at first glance. On December 31 of the previous year, former President Chun Doo-hwan had appeared before the National Assembly, given only the prearranged answers to prearranged questions, and slipped away. That had been the final scene of the Fifth Republic hearings. His evasive behavior—slipping away like an octopus—had cemented his nickname "Octopus Head." A lawmaker, enraged by Chun's lack of sincerity or remorse, had dramatically thrown his nameplate, and the moment had briefly become a television sensation.
The Peace Democratic Party's pursuit of a grand coalition was also a significant political event. Such moves would later lead to the three-party merger that would exert lasting influence on Korean political history. Yoo Jae-won had no intention of putting the brakes on this flow. He believed that a nation's level of political consciousness had to change from the bottom up, not from the top down. The saying that democracy feeds on blood was not uttered lightly. When blood must flow, his role was to minimize it and help those who had shed it.
Finally, President Roh's Northern Policy was also important. The Soviet Union and the Eastern Bloc were significant markets, and entry into those markets was beginning now. This would eventually lead to diplomatic relations with China, and thanks to geographic proximity, Korea would be among the first to enter, creating synergy during China's explosive economic growth. Of course, later on, China's unrestrained hegemonic ambitions after rising to G2 status would become a headache, but it was undeniable that the policy served as a major catalyst for Korea's entry into the ranks of advanced nations.
By the time he finished reading the scrapbook, the car had finally arrived at the Seoul office.
"ID Investment has received approval to operate as an investment bank. You can now invest freely in stocks, real estate, or anything else."
Choi Kang-wook began the briefing in the office with the good news. Korea had no concept of an investment firm like Goldman Sachs. At best, there were securities companies that brokered stocks and invested in them themselves. That level was far from satisfactory for Yoo Jae-won. He needed an entity that could handle not only securities like Goldman Sachs but also various financial products such as futures, and even physical commodities and real estate. He had submitted the business plan through Choi Kang-wook around April of the previous year, and it seemed the approval had finally come through.
"The Financial Services Commission chairman strongly opposed it, citing violations of the separation of industrial and financial capital, but the President exerted considerable influence to push it through. There's also a request from the Blue House to visit as soon as possible. They want to hear ID Investment's investment plans directly from you."
It was clear that President Roh remained a major supporter of Yoo Jae-won. However, Yoo Jae-won had no intention of giving President Roh even a single won directly. Investing in Kim Young-sam, who was likely to become the next president, would be far more cost-effective. Still, if the Blue House wanted to take credit, he was willing to accept their smiling faces.
For reference, if the investment bank license had not been granted, Yoo Jae-won had planned to simply split ID Investment into a securities company and a venture investment firm. If that had also failed, he could have established it as an investment bank in the United States instead.
"By the way, how exactly was the separation of industrial and financial capital relaxed?"
Still, the investment bank approval could become a double-edged sword for Yoo Jae-won. Conglomerates like Ilseong, Mirae, or Geumseong could also establish investment companies and use public funds to line their own pockets. If that happened, the backlash during a future economic crisis could be on an entirely different scale from his previous life.
"Ah, the separation policy itself wasn't relaxed. The requirements for establishing an investment bank have actually become extremely stringent."
According to Choi Kang-wook's explanation, the separation policy remained intact. The requirements for establishing an investment bank were extraordinarily strict. Corporate groups with capital exceeding 10 trillion won were prohibited from establishing one. Additionally, if any of the top 100 companies by corporate ranking created new circular shareholdings among affiliates, they were required to report it unconditionally to the financial authorities, and the scale was strictly limited. Investment banks were also required to disclose any loans or investments made to their own affiliates.
"All of these measures make sense."
As Yoo Jae-won nodded while listening to the explanation, he thought that Chairman Choi Hyun-hee of the Ilseong Group must be grinding his teeth at him. After all, every policy that had emerged because of the fuss Yoo Jae-won had made about creating an investment bank was aimed squarely at the Ilseong Group. Ilseong Group controlled its entire empire through circular shareholdings with a mere 5% stake. Now that new subsidiaries were being created, or existing subsidiaries' management conditions or shareholding changes created vulnerabilities in the circular structure, they would have to reinforce it—and the new rules made that far more difficult.
'Come to think of it, the backlash is no small matter.'
If mishandled, these policies could cause massive disruption to Chairman Choi Hyun-hee's group management. Moreover, many domestic conglomerates maintained control through circular shareholdings. The Roto Group, which had come from Japan, had an even more complex structure than Ilseong. At the same time, Yoo Jae-won was once again impressed by the President's formidable authority. The financial law revision containing these measures had passed the December extraordinary session of the National Assembly without any difficulty. In the twenty-first century, the media would have stirred up fears that companies would collapse, and many opportunistic lawmakers would have joined in, but now it was merely something Choi Kang-wook reported in passing.
"Were there no objections from the companies?"
"Objections? There seemed to be some at first, but not anymore. Their ambition to grow investment banks into global companies is tremendous. Especially after you won the dispute against Microsoft, everyone got properly fired up."
Yoo Jae-won nodded at Choi Kang-wook's answer. It was clear that power still resided firmly in the Blue House. The fact that a law detrimental to companies ranked tenth or higher in the business world had passed so easily, and that there had been no significant turmoil in political circles, proved that corporate influence had not yet reached the level it would display in the twenty-first century.
"I see. So what's my schedule going forward?"
At Yoo Jae-won's question, Choi Kang-wook promptly handed him a sheet of paper.
"Haha. Quite a lot. The items marked with stars are confirmed and must be attended. The circled ones are considered important but not yet finalized. Please give them top priority. The unmarked items are also quite significant, though they carry slightly less weight."
Stars? There were as many as four. Attendance at a Blue House luncheon, a meeting with Oh Myung, Chairman of the Expo Organizing Committee, a meeting with Jeon Myeong-heon, Chairman of the Mirae Group. And a meeting with the Chairman of the Ilseong Group. Huh? Ilseong?