The N Pay Proposal
The meeting place, based on history, was the Seoul Hilton Hotel. It seemed the hotel staff had been waiting outside since a few minutes before Yoo Jae-won arrived in the lobby. They stood in a line and bowed the moment he stepped out of the car. Yoo Jae-won himself looked puzzled. From inside the car, he had assumed they were waiting for some other important guest.
“Welcome, Chairman Yoo!”
Only after hearing the staff greet him in unison did he realize the welcome line was for him. He returned their bows somewhat awkwardly and shot a questioning glance at Kim Dae-seok, his chief of staff who accompanied him on every official schedule. After more than ten years together, they could communicate with just a look.
“The Seoul Hilton, along with the Gyeongju, Hanoi, and Yanbian Hiltons, are all currently owned by the White Tiger Fund. They were acquired as subsidiaries during the takeover of Daeho Group.”
Thanks to Kim Dae-seok’s quick explanation, the reason for the staff’s and general manager’s deferential treatment became clear. The highlight of the IMF crisis had been Daeho Group’s bankruptcy. Though Yoo Jae-won’s efforts had softened the crisis’s impact, even that milder version proved too much for Daeho Group’s insolvency. The White Tiger Fund acquired its sound subsidiaries while the failing ones were liquidated. The Hilton hotels had survived the viability review and were among the assets taken over. In effect, Yoo Jae-won was the owner, so the staff’s nervousness at his visit was only natural.
“You’ve all been working hard. Any operational difficulties?”
After hearing the explanation, Yoo Jae-won asked the visibly tense general manager about any issues with hotel operations, his tone friendly.
“No problems at all, sir! As the economy improves, more guests are visiting and we’ve returned to normal operations. Thanks to the budget you approved for renovations, we’ve modernized many facilities and replaced all room appliances with the latest ID Group products.”
The general manager answered without hesitation. Yet Yoo Jae-won couldn’t recall ever signing off on any budget for the Hilton chain. The person in charge of East Asia for ID Group was Vice Chairman Choi Kang-wook, and that included oversight of the White Tiger Fund. The budget must have been approved by him.
“Hmm. That sounds like something Vice Chairman Choi Kang-wook approved, not me.”
Yoo Jae-won disliked taking credit for achievements that were not his own. The general manager appeared flustered for a moment but quickly regained his composure. His claim that the hotel's finances were healthy seemed genuine, however. The lobby itself was proof—there were plenty of guests despite it being a weekday. Some had already raised their smartphones and pointed them toward him. It was one of the side effects of widespread smartphone adoption, but since the Android logo was clearly visible on the devices, he simply smiled and struck a pose.
Though the staff appeared nervous at his arrival, they didn’t seem intimidated or overshadowed. After a brief report on the hotel’s status from the general manager, Yoo Jae-won headed to the business meeting room where his appointment awaited.
“Oh! The pride of Korea, Chairman Yoo has arrived!”
When he reached the business atrium under the general manager’s guidance, President Park Sang-kwon was the first to react loudly.
“Aigoo, calling me the pride of Korea? What are you saying?”
Yoo Jae-won waved his hands at the exaggerated greeting.
“I watched Real Camera. You even published a paper recently, didn’t you? I couldn’t understand a word of it, but one thing’s certain—you’re the person closest to the uncharted territory of artificial intelligence. Our researchers went crazy. They begged me to arrange a meeting with you.”
Park Sang-kwon raised his voice while Yoo Jae-won continued waving him off. Busan Group had grown from a beer business and now focused on distributing famous overseas franchises like Burger King and manufacturing construction equipment. Though it seemed unrelated to IT, they conducted active research for the future. Thanks to his connection with Yoo Jae-won, Park Sang-kwon’s interest in IT was especially high, making AI research entirely feasible. At the same time, his words were a subtle display to the other owners present of how close he and Yoo Jae-won truly were. After all, the people gathered in the business atrium were every bit as formidable as Park Sang-kwon.
“Nephew, it’s been a while. Did everything go well?”
Next to greet him was Chairman Jeon Jae-gu of Mirae Group, wearing a meaningful smile—as if he knew Yoo Jae-won had visited Cheong Wa Dae.
“Where does your talent end? You keep surprising everyone, and now you’ve even pulled off something with your in-laws.”
President Lee Yong-kwon of TG Group was also present. Moving past the now somewhat overused Real Camera topic, he mentioned the news of Chevron’s successful Siberian oil field exploration. His tone was full of envy. TG Group, having solidly established TG Mobile, was now exploring expansion possibilities. They needed new growth engines, and the energy sector was undeniably attractive—though also fiercely competitive. The success of Chevron’s Siberian exploration was understandably enviable.
Of course, Yoo Jae-won’s capabilities were beyond question. If even Busan Group was researching AI, then TG Group, an IT company, naturally maintained far larger research facilities and investments than Busan Group. Recently, they had been exploring AI development based on Yoo Jae-won’s papers, prepared to pour hundreds of billions of won into it if the potential proved real. Such investments would have been unthinkable for the old TG, but with the solid cash cow of TG Mobile and the presence of Yoo Jae-won, they could commit to bold spending.
“It’s been a while, Jae-won.”
Finally, there was President Ryu Jun-sik of Yugyeong Group, who addressed him familiarly. Though seated at the very end due to the impressive lineup of attendees, his closeness to Yoo Jae-won was second only to Park Sang-kwon’s.
“Yes, hello, Uncle. How’s Soo-kyung doing these days?”
“Haha, Soo-kyung is doing well. She was busy playing around until recently, but she seems to have matured and has started learning the family business.”
If it was the family business, it must refer to Yugyeong Group. At any rate, it was good to hear she was doing well. After exchanging greetings and pleasantries with everyone present, Yoo Jae-won soon stepped onto the stage.
“The reason I arranged today’s gathering is to propose a new business venture to you all. Has anyone here heard the term ‘fintech’?”
Yoo Jae-won looked around at the group. No one responded. Fintech—a combination of finance and technology—referred to bringing financial services into the mobile environment. Since widespread smartphone adoption had begun only a few years earlier, fintech was still a developing concept. That was precisely why even N Pay, the service ID Group had been promoting, remained sluggish despite being in operation for more than a year. To break through this stagnation, Yoo Jae-won had decided to take action personally, and choosing Korea as the starting point was only natural. Korea embraced cutting-edge technology faster than any other country, making it the ideal testing ground for new products and services.
“Android smartphones come with the fintech service called N Pay. However, it hasn’t been properly utilized yet. I want to properly launch it together with all of you—by integrating it with AI Eyes.”
N Pay’s structure was simple. Users purchased N Pay points with cash or credit cards, then used them at any online or offline store where N Pay was accepted. The payment process was extremely straightforward. Pressing the N Pay button sent a message to the registered smartphone, and approving it in the N Pay app completed the transaction. Sellers receiving N Pay could immediately exchange points for cash or accumulate N Points before requesting a withdrawal. Requests could be made directly in the N Pay app, with funds deposited instantly into the designated account. As long as the bank wasn’t temporarily halting transactions for system maintenance, 24-hour exchanges were possible. The biggest advantage was the absence of fees. While fixed fees applied when using the financial network, N Pay could easily absorb those costs internally.
The challenge was that N Pay needed sufficient activation and high circulation of N Points before substantial cash would accumulate in accounts, allowing interest and investment returns to offset network usage fees and operating costs. That threshold hadn’t been reached yet.
“When making payments for online shopping, customers must go through extremely cumbersome procedures. N Pay simplifies all of that.”
He demonstrated it live. He accessed P Market, purchased an item, and completed payment by simply launching AI Eyes on his smartphone and scanning the QR code on the checkout screen.
“It’s the same for sellers. Bank transfers require manual verification, and card payments involve system setup and fees. But with N Pay, it’s simple.”
Once registered as a user, a QR code containing the user’s unique key was generated. Uploading it to the payment site and linking it with the seller version of N Pay was all that was needed. When N Points arrived, an ID Talk message would automatically notify the seller of the deposit.
“So, Chairman Yoo, you’re asking us to adopt N Pay for our B2C businesses. It would certainly make things more convenient. But compared to the benefits you gain, what we get seems rather small.”
It was Chairman Jeon Jae-gu of Mirae Group. Having focused on Yoo Jae-won’s presentation, he had quickly grasped N Pay’s overall structure. The system didn’t rely on particularly complex technology. However, the security surrounding N Point deductions and actual cash transfers was on a level other companies couldn’t match. Moreover, integration with AI Eyes gave N Pay a powerful weapon to expand beyond online into offline transactions. Simply printing a QR code and placing it beside the register allowed merchants to receive N Points.
If N Pay became widespread, people could enjoy all services with just a smartphone, without the hassle of carrying cash. Yoo Jae-won had gathered these particular presidents—those with special relationships to him—precisely to target the offline market. Mirae Group operated businesses ranging from Mount Kumgang tours to department stores and duty-free shops. TG Mobile was, needless to say, Korea’s largest mobile carrier with membership services tied to countless franchise locations. Busan Group handled various consumer goods from liquor to hamburgers and convenience stores, while Yugyeong Group’s reach was defined by chicken alone.
“You all know the saying: even three bushels of beads become treasure only when strung together. If your businesses are the beads, N Pay will be the thread that turns them into treasure.”
Yoo Jae-won then explained the synergy effects. For example, TG Mobile assigned membership tiers based on subscribers’ monthly fees and awarded points accordingly. Those points could be used for discounts at partner stores.
“What if those points could be converted into N Points?”
TG Mobile’s membership network was far larger than other carriers’ thanks to its early start in mobile services. Yet when considering the entire online and offline market, the usable scope of membership points remained limited. Converting them to N Points would expand that scope hundreds of times over. The same applied to Yugyeong Group. Yugyeong Chicken had become the nation’s chicken after the 2002 World Cup, with over a thousand franchise locations nationwide. The statement “chicken means Yugyeong Chicken” was no longer advertising—it was fact. If N Pay were applied to Yugyeong Chicken and other Yugyeong Group services, accessibility would reach an entirely new dimension.
“If you sign up, I’ll also create an app that will revolutionize the delivery culture.”
As an added incentive, Yoo Jae-won proposed a delivery app. President Ryu Jun-sik of Yugyeong Group also served as chairman of the Franchise Association—a position that had naturally come to him after a domestic franchise surpassed foreign competitors. Yoo Jae-won had envisioned a delivery app that would leverage Ryu Jun-sik’s position and maximize N Pay’s synergy. Phone ordering had been innovative in its time, but that era had passed. It had been standard since the 1990s. Moreover, some people found phone calls difficult, and businesses struggled with systematic management. Integrating all franchise orders through a delivery app and combining it with N Pay would create tremendous synergy.
“Nephew! I mean, Chairman Yoo! What about us? Is there nothing prepared for Mirae Group?”
Chairman Jeon Jae-gu of Mirae Group was practically burning with impatience. The synergy effects achievable by combining TG Mobile and Yugyeong Chicken with N Pay were impressive even from the sidelines. Yet nothing had been mentioned for Mirae Group—until Yoo Jae-won’s next words left him speechless.
“Equity in N Pay.”
Businesspeople understood how crucial equity stakes were. Especially Jeon Jae-gu, who had won the infamous “princes’ rebellion”—a power struggle with his brothers—to inherit Mirae Group. He had a particular attachment to equity.
“I can’t sell much. The portion I can offer you gentlemen is about 20% of the total.”
Color returned to the faces of Jeon Jae-gu and the other presidents seated around the table. Even that much was significant! Every business Yoo Jae-won started might begin with question marks, but they all eventually became massive successes. The electric vehicle project, once considered reckless, had exploded with the F2. While global automakers like GM and Mercedes struggled to achieve comparable recognition, the unveiling of the self-driving electric vehicle had placed it at the very top. If Lightning Bolt were to begin official F2 sales immediately, tens of thousands of pre-orders would flood in. That was why investors lined up to pour money into anything Yoo Jae-won touched. Not just individuals, but investment banks and commercial banks were clamoring to participate. Yet Yoo Jae-won remained selective about investments. With his own overflowing capital, he could generally handle funding on his own. For him to now offer equity in the new N Pay venture was a clear declaration of intent to launch N Pay as quickly and decisively as possible.
In reality, Yoo Jae-won’s sights were set on this coming August. His goal was to unveil N Pay alongside the long-awaited AI-integrated app at IDDC 2003, which meant his steps had to be bold and swift.