The Trap in the Generous Offer
Lee Yong-tae's proposal, which had seemed as if he would generously share everything like a rich grandfather with a money tree, contained traps. And not just one—two of them.
The first was about the money. He spoke as if simply accepting the proposal would easily generate around 500 million won in sales. Yet he hadn't provided any concrete details on how that money would actually be paid. Would it be deposited neatly into the account, or would it come in the form of a promissory note with payment deferred for six months or longer? No one knew.
The second trap was a play on words. Lee Yong-tae had said the Keyboard Warrior series. That meant he intended to take not only version 1.0, which had been demonstrated here, but every future upgrade as well. There was no need to even ponder it—this was unacceptable.
“Don’t be so hasty. Think it through carefully. There are more than a few partner companies that have grown significantly through business with our Sambo Computer. In particular, our prompt and honest settlements have earned us quite a reputation in this industry.”
So at least the money would be paid quickly? Still, the conclusion remained the same.
“Exclusive supply would certainly be stable, but doesn’t that mean I’d have to give up everything else?”
“Even so, I believe our portion alone would be quite substantial.”
“Is that so? My projections differ somewhat. I estimate the home computer market next year will reach approximately 150,000 units. Of that, Sambo Computer is expected to capture around 20 percent. That leaves 120,000 units. Giving all of those up would be a massive loss for us.”
The words “It would be better to abandon Sambo Computer and target the remaining 80 percent” rose in his throat, but Yoo Jae-won held them back.
Chairman Lee Yong-tae was inwardly quite surprised. The PC market forecast Yoo Jae-won had just described closely matched the internal projections currently underway at Sambo Computer.
The computer market had shown an explosive growth rate close to 100 percent. This astonishing growth had begun in 1980, and Sambo Computer had ridden that wave to expand at a nearly identical pace. Having sold roughly 10,000 units this year, their calculations suggested they could sell 20,000 next year. Of course, this wasn’t a rough guess—it was the result of complex analysis that factored in figures from nationwide direct stores and dealerships, along with next year’s projected economic growth rate.
Yet this young Yoo Jae-won, no one knew how, had arrived at a nearly identical prediction.
“So you’re saying you want to supply your typing tutor to other large corporations as well?”
“Why stop at large corporations? We’ll spread it across every computer retail stall in Yongsan, and we’ll bundle it into the computer distribution projects run by the Ministry of Communications and the Public Procurement Service.”
The same Yoo Jae-won who had astonished everyone with his market analysis now sounded like a child again.
“Heh heh, that won’t be easy. Perhaps because you haven’t yet run a large-scale business, you may not realize this, but substance matters more than appearance. Even if you secure large orders from major corporations and rack up impressive sales on paper, what good is it if you can’t collect the receivables? It’s not uncommon for new companies to go under because conglomerates toy with them. There are more than a few cases of that.”
Who wouldn’t want to do things that way? But the world rarely lets you do whatever you wish. Moreover, their abuse of power went far beyond imagination. There were plenty of problems besides unpaid receivables.
With considerable pride, they had worked tirelessly to distribute their domestically developed word processor, Bo-seok-geul. The results, however, had been disappointing. Aside from being bundled with Sambo Computers, it was used only in some military units and small government offices. They simply couldn’t break through the united front and sabotage tactics of the major computer companies.
The moment Bo-seok-geul showed any sign of gaining traction, the conglomerates immediately released their own word processors. Daeho Electronics had Papyrus, Mirae Information and Communications had HanaWord, and Ilsung Computer had Hunminjeongeum. And it wasn’t limited to word processors. Whenever something groundbreaking appeared, they quickly copied it, then pre-installed the copied program on their own computers. In the end, each program’s adoption rate simply mirrored the PC market share of its manufacturer.
The typing tutor Yoo Jae-won had released was following the exact same pattern. According to his younger brother’s report, the computer divisions of major corporations were already hard at work creating their own versions. Sambo Computer’s offer of exclusive supply stemmed from this very reality. If taken to the conglomerates, they would likely drag things out pretending to consider it, or simply use the demonstration as reference to create a copy. So they had offered exclusivity in advance to prevent wasted effort.
“The reason I established ID Technology is because I want to see the programs I create running not only in our country but across the entire world. If I accept your proposal, Chairman, they would only run on a fraction of those computers. Therefore, I cannot accept it.”
Yoo Jae-won was resolute. Besides, there was another critical reason he could not allow exclusivity. The Ribbon Interface!
Yoo Jae-won was truly painting on a grand scale—a picture so vast that it only came into focus after stepping back dozens, even hundreds of steps. In that grand picture, Keyboard Warrior 1.0 served as the vanguard. It would spread far and wide, introducing the name of ID Technology and offering a taste of the Ribbon Interface. That was why, even if it meant giving Keyboard Warrior 1.0 away for free, it had to achieve mass adoption.
When Yoo Jae-won finished speaking, a brief silence settled over the room.
“It won’t be easy, will it?”
The one who broke the silence was Vice President Lee Yong-kwon.
“Of course, I didn’t expect you to accept it easily. But give me just one month! In one month, the situation will change completely. Not only the other major computer companies, but even the Ministry of Communications will come looking for us, clamoring for Keyboard Warrior.”
Upon hearing Yoo Jae-won’s words, the Lee brothers momentarily felt their minds go blank. They couldn’t tell if they had heard correctly. He was saying he would make the conglomerates—and even the Ministry of Communications—come to him first?
Vice President Lee Yong-kwon suddenly wondered if this was really coming from the same young man who had spoken more coherently than most adults just moments ago. The claim sounded utterly boastful.
“Heh heh, what grand ambitions. A young man should certainly have aspirations like that.”
Chairman Lee Yong-tae, on the other hand, seemed to view it as nothing more than a child’s fancy.
“Sambo Computer’s doors will remain open.”
Even though his proposal for exclusivity had been rejected, the Chairman did not cancel the order itself. Not only that, he maintained the original order of 2,000 bundled copies and 300 full packages. He merely placed the volume intended for next year’s home PCs on hold. It seemed he was waiting for Yoo Jae-won to hit the wall of reality and come crawling back.
The contract was drawn up on the spot. Choi Kang-wook, who had been sitting quietly until now, drafted it in handwriting as neat as if typed. While drafting, they also discussed practical matters—how payment would be made, how the product would be delivered, and so on.
Naturally, it wasn’t the Lee brothers handling these details. A sharp-looking employee who had been present took over. He was the manager of Sambo Computer’s Management Support Department. As expected from someone in operations, he was precise and incisive. They established protocols for who would handle defective diskettes or printed materials and how, and who would manage customer complaints and feedback.
Yoo Jae-won boldly declared that Sambo Computer would handle customer support, while ID Technology would replace any defective products in their entirety. As a one-man operation, if Yoo Jae-won took on QA responsibilities himself, he would have no time left for critical program development or technical work. Therefore, replacing entire packages was the smarter business decision. The production cost per package was truly negligible, so the loss was minimal.
Sambo Computer also showed goodwill. They set the down payment at one-tenth of the total—5.1 million won—and deposited it immediately. Choi Kang-wook prepared the receipt on the spot. The remaining balance would be paid as soon as the packaged products were delivered.
Yoo Jae-won was satisfied that they had shown consideration on the most important matter of payment. It would have been complicated if they had issued promissory notes. With the final contract stamped firmly, Yoo Jae-won shook hands with the Chairman and received warm words of encouragement.
“Although the bigger deal has been postponed, we are now partners. I hope we can grow together through mutual prosperity.”
“I feel the same way! Please call on me anytime—I will come running immediately.”
A photographer who had been summoned took several formal pictures. They would be used for the company’s promotional materials and press releases. Thanks to that, in addition to photos of them exchanging the contract, they also took others—including one of them holding up the full-package box prepared as a sample.
On the package’s exterior, they had written and signed: “To Chairman Lee Yong-tae – Yoo Jae-won, ID Technology, 88.10.22.” Originally, the sample had simply been brought for the operations team to review, but the Chairman had displayed a subtle desire to own it. In response, Yoo Jae-won added a stylish signature, which clearly pleased him.
“Whew, I’m completely drained.”
“Tell me about it. I didn’t even say a word, yet I’m exhausted too.”
As they left Sambo Computer under Vice President Lee Yong-kwon’s escort, Choi Kang-wook readily agreed with Yoo Jae-won’s complaint.
No matter how many simulations one ran in their head, reality could never be matched 100 percent. Imagination and reality were clearly different. Moreover, the other party wasn’t a vague figure from Yoo Jae-won’s imagination but living people with their own thoughts and desires.
“The Seoul schedule isn’t over yet, is it? Shall we head to Yongsan or the patent office?”
“It’s already lunchtime. Aren’t you hungry? Let’s fill our stomachs first.”
Unfortunately, they hadn’t managed to get a free lunch from Sambo. If he had accepted the exclusive contract, they probably would have received lavish hospitality. But since he had firmly refused, the offer had vanished. He wasn’t particularly disappointed. Securing 50 million won in sales was more than enough. Besides, as the one in the weaker position, it was Yoo Jae-won who should have been treating them, not the other way around.
“Where’s a good Chinese restaurant around here?”
“Come on, we came all the way to Seoul and you want Chinese food? We just landed a huge deal—let’s go get some meat!”
Meat? Choi Kang-wook assumed the lawyer meant going to a Western-style restaurant for pork cutlet, but Yoo Jae-won’s scale was on another level entirely.
Since Sambo Computer’s headquarters was in Yeouido, there were plenty of fine hotels nearby. Among them, Yoo Jae-won led Attorney Choi to the authentic restaurant inside the historic Manhattan Hotel.
Choi Kang-wook was once again astonished by the spending habits of twelve-year-old Yoo Jae-won. The suit he had bought him at the department store, or dining at a hotel restaurant like this—if it were his own money, he could never have done it. Yet Yoo Jae-won showed no hesitation. And since it was his own money rather than company funds, it was even more shocking. Moreover, he carried himself so naturally that he seemed like a child from a truly wealthy family. It reminded Choi of the rich classmates he had seen during his time at the Judicial Research and Training Institute.
However, at this moment he was not a guardian but—albeit temporarily—clearly employed by Yoo Jae-won. So Attorney Choi Kang-wook simply followed obediently wherever Yoo Jae-won led.
Though it was 1988, the fact that it was a five-star hotel meant the interior was superb. Most importantly, the restaurant’s food was excellent. The steak, cooked to the perfect texture, had superb meat quality, and the sauce carried a taste that showed genuine care. Even Choi Kang-wook, who was somewhat unfamiliar with steak, seemed to enjoy it and quickly emptied his plate.
Yoo Jae-won had only one regret: because of his age, he couldn’t enjoy it with a glass of wine. Moreover, since Attorney Choi was on duty and refused to drink, he couldn’t even watch someone else enjoy it.
“There’s something I’m curious about.”
While Yoo Jae-won was busy cutting his steak, Attorney Choi suddenly spoke up.
“Aigoo! The official business is over now, so please speak comfortably.”
“Understood. Ah, I mean—got it. Anyway, what you said to the Sambo Chairman earlier… was that actually realistic?”
Even though it had only been a short time, the formal speech had become so familiar to Choi Kang-wook that he stumbled a few times before returning to his usual casual tone.
But Yoo Jae-won had spoken so much with the Chairman that he wasn’t sure which part lacked realism.
“That thing you said. That not only the conglomerates but even the Ministry of Communications would come looking for you first?”
Yoo Jae-won’s expression now showed he finally understood. If anyone else had said those words, Choi Kang-wook would have immediately declared it impossible. His profession was law. He was someone who viewed reality with the greatest objectivity. After graduating from the training institute, he had been appointed as a judge, but he had only been used for the regime’s dirty work. Whenever he tried to rule according to his convictions, he would be called in by chief judges and lectured that “a protruding nail gets hammered down.” Disgusted by it, he had immediately quit and switched to practicing law. At least there was no superior to order him around, so it was bearable—though the work itself wasn’t particularly enjoyable.
In any case, while working as a lawyer, he had come to understand just how overwhelming the power of the established elite—especially the government and chaebols—truly was. At the same time, their arrogance knew no bounds. If Yoo Jae-won went to a chaebol computer company with his typing tutor, the odds of being turned away at the door were extremely high.
Nevertheless, Choi Kang-wook never saw Yoo Jae-won as merely a twelve-year-old child. Watching him negotiate face-to-face with the Chairman and Vice President of Sambo Computer, he looked like a business executive in his twenties or thirties. His abilities were outstanding as well. He hadn’t sold to some corner shop but to one of the nation’s leading computer companies—and moved 50 million won worth of his own software. Had he accepted exclusivity, it would have been ten times that—500 million won. He was nothing short of a prodigy!
Surely he must have some plan. But no matter how much Choi thought about it, he couldn’t see any way to make authoritarian government ministries or arrogant chaebols come seeking him first. The curiosity was unbearable.
“Ah, that part. Wouldn’t it be enough if we win the title of number one in the American educational software category with Keyboard Warrior?”
Yoo Jae-won said it casually while wiping his lips with a napkin.
No! What part of that was casual? Number one—not in just any country, but in America.
“With that title, it would be only natural for both the Ministry of Communications and computer company presidents to rush forward to buy Keyboard Warrior, wouldn’t it?”
There was no question about it. Whether in politics or business, the ultimate authority that carried the most weight was America. Even the president would fawn over anything American. If it was number one in America, the game was already over.
But the real question was exactly how he planned to obtain certification as America’s number one. Attorney Choi had asked out of curiosity, but now his questions had only multiplied.
Looking at Attorney Choi, Yoo Jae-won pondered how much he should reveal. The deliberation didn’t last long. Choi Kang-wook was a talent he needed to bring into the fold anyway, and a legal expert would be essential for work in America. So he decided to explain in detail and began.
“Although it hasn’t been introduced in our country yet, PC communication services are already popular in America and Europe. The leading service providers are CompuServe in the United States and Minitel in France, both dominating their respective markets.”
Attorney Choi had no idea what PC communication or CompuServe even were.
“Our target is CompuServe. We’re going to seize the educational section of their data library with Keyboard Warrior in one fell swoop!”
The American bumpkins had better brace themselves. They were about to be overwhelmed by the carpet bombing of cutting-edge internet marketing and wouldn’t know what hit them.