Chapter 18
Chapter 18
The eyes of the team leader and the manager focused on me. To secure the allocation of operating funds, I had to convince both of them.
Of course, even though the figure was five billion won, I wasn’t planning to take all of it. It would be ideal to receive over one billion won and use it to purchase Samjin Semichem’s convertible bonds, but that wasn’t guaranteed just because I wanted it.
If the allocated amount was below one billion, I would buy Samjin Semichem’s stock instead. In any case, the stock price was going to rise.
I explained my reasoning to both of them.
“Samjin Semichem is a company with global competitiveness in semiconductor materials. They’ve localized semiconductor materials that Japan had monopolized, supplying them to Samhyun Electronics and KS Semiconductor. It’s a solid company, but rumors about cash flow problems caused the stock price to drop. If these rumors turn out to be untrue or resolved, the stock price will rise sharply.”
“Alright. But what if it’s true? Even profitable companies can go bankrupt if cash flow is poor. And if that happens, you could lose at least fifty percent. You understand that, right?”
“Yes, I understand. And I think if it’s true, it’s an even better opportunity.”
“An even better opportunity?”
Both the team leader and the manager tilted their heads at my words.
I explained my reasoning to satisfy their curiosity.
“If Samjin Semichem’s cash flow problem is real, it opens the door to direct investment.”
“Direct investment? You mean…! Deoksu, that’s why you asked about the convertible bonds earlier?”
I nodded at the manager.
“How did you even think of that? That’s not something a newcomer would come up with. Definitely not ordinary.”
The manager clicked his tongue in admiration.
“What do you mean?”
“You’re suggesting negotiating with Samjin Semichem to purchase convertible bonds.”
“Convertible bonds?”
“Yes. Otherwise, we could secure shares through a third-party allocation rights issue.”
“Convertible bonds and a rights issue… that’s not something a newcomer would come up with. At least a manager-level employee would think of that…”
I felt a subtle swell of pride at their sudden praise.
But I tried to maintain composure. I hadn’t succeeded in persuading them yet.
After listening to me, the team leader tapped the desk with the end of his pen.
“Deoksu, do you have any other reasons? So far, what you’ve said is hypothetical. To convince me, you need more direct data as evidence.”
Data?
I recalled the materials on Samjin Semichem that I had analyzed over the past few days.
I presented my own reasoning.
“The financial statements show an increase in accounts receivable, while the ratio of current assets has dropped sharply. Despite this, capital expenditures have surged. Their cash flow cannot be good.”
“Reasonable evidence. But judging a cash flow problem solely on that seems like a leap.”
“Finally, I’ve read a few interviews of CEO Yoon Jeong-min. As an engineer, he has strong dedication to technology. He invests heavily in research and development, which may have accelerated the cash flow shortage.”
“So you combined the accounting data and CEO’s disposition to conclude there’s a cash flow problem?”
“Yes.”
“Not a bad analysis. Right, Manager?”
“Yes. That’s not something a newcomer could do.”
The manager nodded, seemingly pleased with my analysis.
“Alright, I understand. But… Samjin Semichem won’t act according to our expectations.”
“Why do you think so?”
“Because it’s disadvantageous to them.”
I shook my head.
“If my prediction is correct and they truly have a cash shortage, what they need most is cash. It’s not about who has the advantage; both sides need each other. We exchange our cash for the shares of a company with strong growth potential.”
“Even if they have a cash shortage, they could want something else, like loans or bonds.”
“That’s true.”
After the team leader’s remark, no one spoke. Each of us was mentally simulating the possibilities.
“Manager Choi, what do you think about Samjin Semichem?”
“I think it’s an attractive company steadily growing. They invest heavily in technology development and have world-class technical capabilities, making them competitive. When the semiconductor market improves, it will do much better than now.”
“You know a lot.”
“We’ve been monitoring the stock price drop, waiting for the right timing to invest.”
“Hmm…”
The team leader looked thoughtful, unlike his usual demeanor.
I understood. With five billion won on the line, he couldn’t decide lightly.
“Team leader, instead of just thinking, it might be better to contact the company directly.”
He nodded at my suggestion.
“You’re right, Deoksu. Instead of thinking, we should act. Here’s my conclusion: five billion is impossible. But if Samjin Semichem offers us convertible bonds or a third-party allocation rights issue, I’ll allocate that amount.”
“Really?”
“Yes.”
“Then let’s proceed.”
The team leader nodded.
I took out my phone and dialed.
“Where are you calling?”
“Samjin Semichem.”
Their eyes widened.
“Already? That fast?”
“You said to proceed.”
“But… shouldn’t we give them some time?”
“Time comes after the decision is made.”
“Ha… you’re so bold.”
“Yes. Didn’t you know?”
The team leader chuckled softly.
I pressed the call button, switched to speakerphone, and placed the phone on the table.
A moment later, a voice answered.
“This is Manager Kwak Dong-min of Samjin Semichem.”
“Hello, this is Kim Deoksu from Mirae Securities Asset Management Team 9. You’re the person in charge of stocks, right?”
“Yes, that’s correct.”
“I’m calling to ask something. Are your funds running low these days?”
The team leader waved his hand at me as if to say, how could you ask that directly? I asked deliberately.
Unless prepped, it takes time to lie naturally. If caught off guard, the person hesitates, as he did now.
“…Ah, no, not at all.”
A brief pause, and his voice trembled slightly.
The manager and team leader exchanged glances, sensing something. Then they both gave me a subtle thumbs-up.
“Oh, really not? That’s too bad. If you needed cash, we could have joined as financial investors.”
“Financial investors?”
“Yes.”
“….”
No answer. The atmosphere suggested my prediction was correct.
After a short silence, he spoke again.
“We don’t necessarily need funds, but we’re not refusing investment. If it’s not too much trouble, how much would you consider investing?”
The team leader held up two fingers in front of me.
“About two billion won. It could increase depending on negotiations.”
“Ah, understood. I’ll call back this number shortly.”
The call ended.
“This is getting interesting.”
Manager Choi said with an intrigued expression.
“Deoksu, you’re impressive. You know how to unsettle the other side.”
“Thank you.”
Within two minutes, the phone rang. I answered nervously.
“This is Kim Deoksu of Mirae Securities.”
“This is CEO Yoon Jeong-min of Samjin Semichem. Did you propose an investment?”
“Yes.”
“Is the amount two billion won?”
“Not confirmed yet. It could increase or decrease.”
“Understood. If we contract, when will the funds be transferred?”
“As soon as the contract is signed. Oh, sorry to interrupt, this is Team Leader Kim Yu-ri.”
“Team leader? Wasn’t the person I just spoke with Kim Deoksu?”
“Yes, I’m an employee, not the team leader.”
“An employee? Haha.”
A laugh of disbelief.
“You must be excellent, if a newcomer leads the negotiation.”
“Yes. He’s the smartest talent in our team. This investment was his idea.”
The team leader said.
“Let’s meet in person instead of just a call. How about tonight?”
The other party suggested a meeting. There was no reason to refuse.
“Sounds good.”
We set the appointment and ended the call.
The stakes were five billion won.
Our team headed to the sushi restaurant where the meeting was scheduled.
Upon arrival, we gave our names, and the staff guided us to a private room.
Two people were waiting.
“I’m CEO Yoon Jeong-min.”
“And I’m CFO Kwak Jae-hoon.”
We exchanged greetings and business cards.
“Shall we start with dinner?”
The other party asked, but the team leader responded.
“No. Let’s proceed with the negotiation first. Dinner can follow once it’s concluded.”
“Agreed.”
I looked at CEO Yoon. His eyes seemed to know everything. After a brief hesitation, he spoke.
“I’ll be frank. Our company’s cash flow is not good.”
As expected! Samjin Semichem did have cash problems.
“Is there a reason?”
“Deliveries of localized semiconductor materials were delayed, causing a cash crunch. Development costs were high. …But Mr. Kim Deoksu, how did you know we had cash problems?”
“Accounting data and your interviews. The rumors helped too.”
Actually, the strongest hint was the scent. The strong signal I detected from Samjin Semichem.
“Hmph, not an ordinary person. Accurately analyzing the situation just from data and interviews… I’m impressed.”
“Oh, no. I was just lucky.”
“How much are you thinking of investing?”
The team leader gestured for me to answer.
“Up to five billion won.”
“…Exactly the amount we need. You deduced it from the financial statements?”
“Not exactly.”
But his gaze showed doubt.
“Very well. Then we’ll issue convertible bonds worth five billion won. Conversion price will be twenty percent below the current stock price.”
“Goo…”
The team leader tried to speak, and I grabbed her hand. She flinched.
“Oh, sorry. Kim Deoksu will answer.”
“Please set it at thirty percent. The bond interest rate will be two percent.”
“That’s difficult. How about twenty-five percent at two percent?”
I looked at the team leader for approval, and she nodded.
“Yes, let’s do that.”
“Thank you.”
CEO Yoon extended his hand. A handshake sealed the negotiation.
The convertible bonds were secured. I had sensed the opportunity. It would be profitable.
Now, all that remained was waiting. I was curious to see how Samjin Semichem would thrive.
After the meeting, CEO Yoon returned, recalling the miraculous event.
Had they failed to secure a financial investor this month, the company would have gone bankrupt.
The bank threatened to recall loans, but miraculously, an investor appeared with the full required amount—five billion won.
Even if the major shareholder’s stake diluted, it was acceptable. A bankrupt company’s stock would become worthless anyway.
He thought of the man who orchestrated this deal: Kim Deoksu. Could he really be a newcomer? His instincts doubted it.
CEO Yoon now saw a bright future for Mirae Securities.
The next day, Mirae Securities’ due diligence and legal teams visited Samjin Semichem to conduct thorough checks before drafting the contract.
A month later, the stock price had not changed significantly.
No notable events occurred.
Just as the stagnation was becoming frustrating, breaking news appeared.
[Japanese government imposes export restrictions on three key semiconductor materials to South Korea.]
The items were hydrogen fluoride, photoresist, and polyimide.
Citing national security, the real reason was the South Korean Supreme Court’s ruling ordering compensation for forced labor victims.
The market reacted sharply. Semiconductor company stocks fell.
But semiconductor material company stocks surged.
They needed to replace materials previously imported from Japan with domestic alternatives.
The efforts of Samjin Semichem to localize materials finally paid off.
I clicked on Samjin Semichem.
“It’s hitting the upper limit.”
I watched the stock, glowing red, with satisfaction.