Chapter 169: Isung Group's Future
Chapter 169: Isung Group's Future
The acquisition deal for LK Group's smartphone division went through at lightning speed.
The next day, Chairman Gu Jin-mo flew in personally from Korea to sign the contract.
"Please take good care of our employees."
"Yes, we'll look after them well."
We were set to take over the patents developed by the smartphone division, along with their research data and staff.
We weren't acquiring the factories, but in exchange, LK would have priority production rights for two years.
The total price tag: $3.5 billion.
It wasn't cheap for a division they were shutting down, but the smartphone patents jacked up the value.
After sealing the deal, I took him to a burger joint for lunch.
"Don't think we're giving you the short end of the stick just because you came all the way from Korea.
This is the best burger spot in San Francisco."
"Ah, I've seen your videos, so no worries there."
"Do you like burgers?"
"Love them. I graduated from college here in the U.S., so I'm used to them."
Chairman Gu chuckled lightly.
We ordered double-double burgers, and while waiting for the food, I texted Eddie.
―Kim Shin: Acquired LK's smartphone division.
―Eddie: Where's that?
Eddie and Oh Myeong-woo had zero interest unless it was in their wheelhouse, so I needed to spell it out plainly.
―Kim Shin: The rollable phone people.
―Eddie: Whoa... For real?
A thought struck me, so I turned to Chairman Gu.
"By any chance, did you bring a rollable phone?"
"Yes, I did."
He pulled one out of his suit pocket.
It stretched out sideways, earning it the nickname "super-sized phone."
I'd asked him to bring it since he was coming to the States.
"Just press this button."
"Whoa..."
Following his explanation, I pressed it, and the phone extended smoothly to the side.
'This feels magical. Jackpot.'
Isung Electronics' foldable display phones were a hit, but they weren't my personal favorite.
Back in college, while everyone else had smartphones, my first phone was a flip phone for honoring my elders—free clock feature included.
Every time I saw a foldable, it reminded me of that old relic for some reason.
'This one's genuinely intriguing.'
I'd expected something half-baked, but the build quality was top-notch.
"Could this go into full production?"
"Pardon?"
"I want to give LK the first big order. Mass-produce these rollable phones for me."
"How many units?"
I wasn't a manufacturing expert, but I'd dabbled enough.
Unit costs could halve—or drop way lower—depending on volume.
That's why pharma companies rake it in: mass-produce, and a $1 pill sells for $50.
The rollable phone had me hooked instantly.
"As many as possible."
"Come again?"
"Fire up LK Electronics' smartphone factories and produce at max capacity. I'll buy every single one, no matter the quantity."
"......"
I'd spent plenty of time as a salesman.
If it hit big, great. If not, I had a backup.
'Sell 'em all on the Earth Shopping Mall.'
If no one else buys, I'd scoop them up myself.
Use them to generate Source Coins, hand them out to employees—whatever.
* * *
Chairman Gu handed over fifty rollable phones packed in a luxury carry-on.
"Came to sell a division, ended up making a sales pitch. Who knew?"
"We'll build a solid partnership with LK."
"Haha. We were treating the smartphone division like a lost cause, pocketed $3 billion, and now we've got massive orders... Kinda stings."
"Teaming up with Earth Resource will bring more good fortune."
"Looking forward to it."
The rollable phone order: two million units by year's end.
Isung Electronics produced a hundred million Earth Phones. A bit light by comparison, but LK Electronics' supply chain had crumbled after killing their smartphone ops.
He promised to push production hard back in Korea and crank out as many as possible.
LK's smartphone team would regroup for Rollable 2 R&D, with official handover in a month.
"You'll also need to prepare bulk shipments of LK appliances to the Earth Shopping Mall."
"Appliances too?"
"Yeah, because appliances mean LK."
Chairman Gu smiled contentedly, but balked at the volume.
"This is over 10% of LK Electronics' annual U.S. sales."
"That's how we roll."
The Earth Shopping Mall never ran short on customers—just products.
"Let's make this a win-win all around."
"Pleasure doing business."
I was on my way back to the office after seeing Chairman Gu off.
Ding ding!
A notification from Earth Messenger.
―Vice Chairman Seon Jae-yong: CEO Kim Shin, any interest in investing in the factory Isung Electronics is building in the U.S.?
It was a message from the head of Isung Electronics.
―Kim Shin: Pardon?
―Vice Chairman Seon Jae-yong: Got ahead of myself. Let's meet and discuss details.
―Vice Chairman Seon Jae-yong: Catching a flight to San Francisco tonight.
* * *
The next day, I met Seon Jae-yong in San Francisco.
"I about jumped out of my skin thinking you were buying LK Electronics outright."
"Glad we cleared that up."
He'd assumed it was a full takeover at first. Follow-up reports set him straight.
"I'm here in San Francisco with a major proposal."
"I'm all ears."
"Truth is, Isung doesn't see LK as real competition. The market cap, revenue, net profit gaps were always huge. Now we only overlap on some appliances."
He started with a light LK diss, then got down to business.
"Isung Electronics is planning a $50 billion long-term U.S. investment. Building factories, hiring workers. To align with Buy America policies."
He planned to jump on the U.S. President's bandwagon—no other choice for Isung.
"Then I heard you were acquiring LK Electronics, and it got me thinking hard about Isung Group's future."
"Isung Group's future?"
"Yeah, sounds random, but I've been under my father's thumb for evaluations since I was a kid."
To claim Isung Group's heir spot, he'd faced nonstop scrutiny and prodding from his dad since childhood.
By the time he was mature enough to think otherwise, inheriting Isung was his only path.
"I wanted my kids to grow up free. No meddling, full support for whatever life they chose. And they've been thriving, happy as can be."
Makes sense, really.
If my dad owned Isung Group, I'd bet on a blissful upbringing too.
"Raising them showed me they're not cut out for running Isung."
"I see. Must be disappointing."
"It is, but Korea's tax system hits major shareholder inheritance with 60% rates. With all the media and public scrutiny, normal succession's off the table—unless I want to send my kids to prison like I almost did."
It landed like a joke, but no one laughed. Probably because he'd actually done time.
Illegal succession drew fire from press, activists, the public.
"In 15 or 20 years when I step down, Isung Group will need a new owner. That's why I'm proposing you invest in Isung Electronics' U.S. factory."
"Me?"
"Yes. The U.S. factory Isung builds will use cutting-edge semiconductor processes and tech."
Under secrecy, his plan boiled down to this:
I'd fund over half the construction via bank loans. Isung Group could guarantee if needed.
"So you're offering me Isung Electronics shares."
"Even better, actually. You'd establish the U.S. entity yourself, with Isung Electronics as partner. You'd own a massive U.S. semiconductor fab."
"......"
Isung Electronics held over $200 billion in cash equivalents.
Handing over factory shares for investment would raise eyebrows.
Better I start it up, Isung collaborates—no issues.
"This tilts way in my favor."
"I have one condition too. Invest some off-the-books funds for my kids into your U.S. entity."
If he can't pass on control, he secures their wealth.
I get a state-of-the-art semiconductor plant through investment.
'No wonder Korean conglomerates trade at discounts.'
* * *
President Biden was handling business in the White House.
He was midway through an economic-policy discussion with the Treasury Secretary and the rest of the cabinet.
Ding ding!
A ping from Earth Messenger.
He only used his new Earth Messenger account for family and Kim Shin.
"Excuse me a sec."
He fished his phone from his jacket's inner pocket.
Seeing it was Kim Shin, he read the message.
―Kim Shin: Good day, Mr. President.
Biden, the veteran politician, was polite to everyone—but didn't linger.
A superstar rich guy like Kim Shin could help during his presidency and beyond.
Perhaps Kim Shin was the person he needed to keep closest.
―President Biden: Good day. Energized from crashing at your place after White House duties. Might have to drop by more often when time allows.
He'd typed long to show warmth.
After President Biden stayed overnight, the media coverage had become noticeably friendlier.
In America, press freedom bowed to cash.
Outlets pocketing Earth Channel ad dollars had no beef with Kim Shin.
―Kim Shin: Come again soon?
"Haha."
Biden chuckled softly. After a quick check-in, he planned to resume the meeting.
―Kim Shin: Teaming up with a Korean firm to build a massive U.S. factory.
―President Biden: A factory?
Buy America.
Post-COVID difficulties and inflation had driven down his approval ratings.
Kim Shin's investment would supercharge his campaigns ahead.
―Kim Shin: Over $50 billion committed in the next four years.
―President Biden: $50 billion? Confirming the figure—$50 billion?
Even $5 billion would've thrilled him; this was staggeringly huge.
―Kim Shin: Yes, planning around $50 billion. Could grow with the economy.
―Kim Shin: Mr. President, you'll ensure those preferential policies, right?
A $50 billion investment warranted policy perks and tax breaks.
Easy concessions for such scale; Congress wouldn't balk.
Senators and reps would lobby to snag it for their districts.
Biden beamed as he replied.
―President Biden: Promises kept, naturally. I'll see about even more support.
―President Biden: Looks like San Francisco again this week.