Reckless Challenge, Overwhelming Retribution
February 14th. “Here, take this.” Yoo Jae-won, having enjoyed a hearty breakfast, was about to head to work when Tiffany held something out to him. It was a neatly wrapped box of chocolates. No wonder a sweet aroma had lingered at the table during the meal. Checking the date, he realized today was Valentine’s Day.
“Thanks. I didn’t prepare anything, though……” He accepted the chocolates with the message card tucked inside, feeling a twinge of guilt. Tiffany tilted her head at his reaction.
“Huh? Isn’t this the day women give gifts to men?”
Maybe so. Still, Yoo Jae-won resolved to prepare a gift for Tiffany after work. Thanks to that, the heavy steps of his first commute after the holidays felt lighter.
“Well then, I’m off.”
“Okay! See you later.”
After a light kiss eased the parting, Yoo Jae-won left the living room and stepped into the elevator. From the outside, their commute looked long, but it ended the moment they descended in the private elevator connected to their home. Their Seoul residence was the penthouse of the ID Global Headquarters building. Directly below were the offices of headquarters employees, and though Yoo Jae-won visited only three or four times a year, the chairman’s office had been properly prepared. The route from the penthouse to the chairman’s office was short and simple. That was why, even on Valentine’s Day, the only chocolates in his hands were the ones Tiffany had given him. He never encountered other employees on the way, and the security and secretarial staff he passed were all sturdy men.
“Come to think of it, our company’s gender ratio is said to be worse than most engineering schools.”
Yoo Jae-won’s thoughts had jumped from chocolates to gender balance. It wasn’t intentional. The essential majors for joining ID Group were electrical and electronic engineering, computer engineering, and programming—fields already heavily skewed by gender, and that imbalance carried straight into the company. The same held true for its American subsidiaries. Only general administrative departments or specialized units like packaging plants maintained ratios comparable to other firms. Because of this skewed balance, among the many nicknames for ID Group on the internet, “ID Engineering School” enjoyed the strongest support.
“That said, we can’t give extra points based on gender alone.”
ID Group’s hiring process evaluated only practical ability. The reason the group could triumph in countless competitions lay not only in Yoo Jae-won’s vision but in the outstanding work and development skills of its employees. Though his thoughts had drifted from Valentine’s Day to the company’s gender ratio, he had no intention of changing the current system. Instead, he decided that if any in-house couple succeeded in marriage—a feat with truly slim odds—they deserved proper support. Ideas such as special leave and low-interest loans immediately came to mind.
“Chairman, you’ve arrived.”
At the end of the short commute, Choi Kang-wook, Vice Chairman, was already waiting in the chairman’s office.
“Did you enjoy the Lunar New Year holidays?”
“Yes. Thanks to you, Chairman, I rested well.”
Three days later, Choi Kang-wook looked unchanged. Though now in his early forties, he still brimmed with youthful energy. With age had come a mature polish, erasing the somewhat awkward impression he had made at their first meeting. After all, the tasks entrusted to him—managing ID Group’s East Asia operations and serving as CEO of the White Tiger Fund—had given the former legal professional ample time to transform into a seasoned executive.
“How are things at the company?”
“We were concerned about the home appliance division of ID Electronics, but thanks to the direction you provided, Chairman, the situation has stabilized. Shall we begin the report right away?”
Thud! Choi Kang-wook answered lightly and set down the thick stack of documents he had been carrying under his arm.
“Don’t tell me this is all a kill list.”
“Of course it is, though it does take up the largest portion by volume.”
“Hmm. Then let’s save the heavy kill list for last and hear the good news first.”
“Yes, Chairman. I’ll begin with ID Electronics.”
He reported on the state of ID Electronics. After meeting Yoo Jae-won the previous year, the president and executives of the home appliance division had completely reorganized it. They had begun analyzing the design blueprints for various appliances that Yoo Jae-won had transferred via cloud servers and were preparing for mass production. Producing millions of units per month was an entirely different matter from making a single prototype in a lab. Fortunately, the engineers at ID High Tech had minimized the use of custom parts in favor of Korean-made components in anticipation of mass production, so there were no major issues. They were also preparing a global advertising campaign to launch the Bordeaux and Classe brands. To strengthen capabilities, the massive home appliance division had been subdivided into the TV & Monitor Business Unit, the White Goods Business Unit, and the C/S Center. Both Jindori and the robot vacuum cleaner had received positive internal feedback. Unfortunately, neither product could claim the title of world’s first. Sony had already released a robotic dog, and the Swedish appliance company Electrolux had launched its Trilobite robot vacuum. However, both existing products had failed to meet consumer expectations due to mediocre performance. Sony’s robotic dog suffered from critical flaws in durability and AI capability, while Electrolux’s Trilobite was criticized for poor mobility and cleaning performance. In contrast, Jindori and the robot vacuum had addressed these shortcomings as much as current technology allowed. The power of the MAP3 processor, the customized Android mobile operating system, and the AI programs integrated with various sensors installed in Jindori was remarkable. It could remember up to one hundred voice-activated commands. When its battery ran low, it would return to its doghouse-like dock and charge itself. Linked with an Android Phone, it also allowed users to check on their home at any time—utility far beyond that of previous robotic dogs. The only problem was its exorbitant price.
“The production cost is five million won?”
“I also thought it was too expensive and inquired directly, but they said even this price was achieved after cutting costs as much as possible.”
Even when manufactured as cheaply as possible for mass production, each unit approached five million won. At that price, most people would choose to adopt a pedigreed real dog rather than buy one—except for enthusiasts like Yoo Jae-won who were unusually fond of electronic devices. It seemed destined to become a showcase product for ID Electronics’ technology rather than a mass-market item. The robot vacuum, on the other hand, came in at a relatively affordable eight hundred thousand won, raising its chances of popularization above Jindori’s. Not in Korea, however. The average monthly salary for new college graduates was one million four hundred thousand won, making eight hundred thousand won quite expensive.
“The semiconductor division always looks reassuring.”
In just a few months, it would be one year since the Android Phone entered the market. Yet no smartphone had surpassed its performance. That was only natural—the MAP3, fabricated on the 120-nanometer process, remained the most powerful chip available. Similarly, new CPUs and GPUs leveraging the full potential of the 120-nanometer process were nearly ready for launch. The day Intel and AMD would release products using the 120-nanometer process—March 1—was not far off. The performance gains were substantial. Floating-point operations had become significantly faster, resulting in outstanding improvements in gaming performance. What had once struggled even at 720p HD resolution could now handle 1080p Full HD. While few display devices currently supported 1080p properly, that issue would soon be resolved. ID Display had already begun mass-producing 720p panels and was producing limited quantities of 1080p panels for premium models. Next-generation memory tailored to this CPU and GPU generational shift was also ready. The world was being signaled to replace its computers. One notable point was the divergence in memory technology: ID Electronics had gone all-in on DDR, while American memory companies such as Infineon and Micron had chosen RDRAM. The outcome of this divergent choice would become clear by year-end.
“The 2002-model iWorks and NewEgg have also been solidly prepared.”
Choi Kang-wook displayed photographs of the two computers. Yoo Jae-won had not been heavily involved in this iWorks and NewEgg series. Nevertheless, the prototypes had turned out excellently. With ID Group’s systematic organization and a firmly established corporate identity built over the years, the company could produce reliable products without Yoo Jae-won’s personal oversight. The new iWorks proudly featured an aluminum alloy chassis, liquid cooling, and LED lighting, delivering both outstanding design and superior performance. The components used in assembly were the highest-yield parts available—available exclusively to ID Group. As a result, finished-PC manufacturers such as Dell and HP would find it nearly impossible to surpass the iWorks.
“And…… the foundry business has proven to be a golden goose. Non-memory semiconductors were said to be highly profitable, but the results have exceeded expectations.”
This success was made possible by the foundry business. By providing the 120-nanometer process to Intel and AMD, ID Electronics received not only royalties but also various business conveniences. One of these was access to high-yield selected products. The advantage was even clearer with GPUs. Both ATI and NVIDIA had commissioned ID Electronics to produce their products. TSMC, their existing foundry partner, had struggled to prevent customers from being lured away by lower prices, but it could not surpass ID Electronics in the semiconductor industry’s paramount metric: yield. This did not mean TSMC’s partnership had collapsed. ID Electronics had not secured exclusive rights to produce all of ATI and NVIDIA’s next-generation GPUs; it had only been commissioned for certain models. Even among the commissioned products, there was a difference between the two companies. GPUs had been divided into big chips—large, high-end dies—and small chips for the mainstream line. Big chips, priced over one million won per wafer, were supplied to top-tier gamers and enterprises, while small chips were used in volume for mainstream gamers, finished PCs, and game consoles. Small chips sold in greater numbers but required high volume and low margins; big chips sold in smaller quantities but commanded high unit prices. Although both companies had commissioned production from ID Electronics, they differed in product lines. ATI had requested big chips, while NVIDIA had requested small chips. It would be interesting to see what results these decisions would yield in the future. In any case, the conclusion was clear.
“The world’s finest finished PCs will continue to be the iWorks and NewEgg.”
The growth of the finished-PC market was still ongoing. The slowdown would not begin until around 2010, so a solid brand image had to be established before then. The premium segment was especially important. Unlike the fiercely competitive budget segment, the premium market offered reliable royalties and high added value. iWorks and NewEgg were making excellent progress in the premium finished-PC market. This concluded the report on ID Electronics.
“Next?”
“ID Entertainment. We have completed the recruitment of developers for Fantasy Universe.”
It was a report on the composition of the development team in charge of Fantasy Universe – Storm of Time and Space. Upon receiving the project proposal written by Yoo Jae-won, ID Entertainment President Stefan Barber immediately recognized its blockbuster potential. Gathering protagonists from countless comics, animations, and superhero franchises—each with massive fandoms—into a single game was bound to succeed unless something went terribly wrong. He also understood that the game required a story and level of completion that would satisfy the diverse fandoms of these distinct heroes. Naturally, assembling the development team became a serious concern. Blizzard Entertainment was the first name that came to mind, but with World of Warcraft already overwhelming their capacity, an alternative was needed. All game studios under ID Entertainment were already fully engaged. Half-Life 2, Counter-Strike, and GTA: Vice City were in active development, as were the next installments of major North American sports titles for the NBA, NFL, and NHL. While the former games were scheduled for 2002 releases, the sports titles were being prepared for the following year, since 2002 was a World Cup year and left little room for other sports games. Their schedules had therefore been adjusted to launch the 2003 versions early the next year. President Stefan Barber naturally wanted to release a FIFA soccer game, but EA held the exclusive license, leaving no choice. He was pinning his hopes on the following year, when EA’s exclusive contract would expire. ID Software, meanwhile, had no games currently in development but was busy creating ID Tech Engine 3, so it was not idle either. In fact, ID Software now earned more from selling game engines than from selling games, making the development of the next-generation engine a priority. Ultimately, the only option left was to form a new development team. Creating a team was no great challenge, so the matter was promptly brought to Yoo Jae-won’s attention. Upon receiving Stefan Barber’s message, Yoo Jae-won suddenly thought it would be good to assemble the team in Korea. Using the ID Tech Engine would eliminate technical gaps, and Korean computer graphics designers were not far behind their global counterparts—yet their salaries were far lower. Naturally, rumors that ID Entertainment was directly forming a development team in Korea spread through the game industry, creating a sensation by year-end. Yoo Jae-won skimmed the attached résumés. The list included many familiar names, among them designer Kim Young-tae, whose specialty was illustrations of voluptuous figures.
After diligently processing approval documents with Choi Kang-wook, the end finally came into view.
“This is the last one.”
The problematic report finally appeared before Yoo Jae-won. Its official title was “White Tiger Fund Operation Report for 1997–2002 and Disposal Review List Based on Comprehensive Evaluation,” but the nickname used by the employees involved in its preparation was simply the kill list.