Chapter 184: Everything About Mirae Motors
A state of emergency had gripped Mirae Motors for the past few days.
With the media running stories about defect cover-ups and other bad news plaguing the company, the atmosphere at headquarters was chaotic.
"No, Reporter Yoon Sang-hyeok. Defect data we're hiding? Nothing like that exists at all. We'll conduct tests under the same conditions as in the U.S. and make the recall decision here in Korea too."
"You said it's the same vehicle as in the U.S., so why do the specs differ only when it comes to the recall? That's..."
Mirae Motors had a decent relationship with the press, but pressure from other conglomerates had led to naked exposure of the defects they wanted to hide.
The Ministry of Land, Infrastructure and Transport announced it would conduct a safety inspection.
―As expected from Mirae Motors.
―They don't care about consumers. They treat them like suckers.
The rank-and-file employees bore the brunt of the public's fierce backlash.
The PR team worked day and night, requesting corrections.
"Manager! Check out this article."
"What now?"
Whenever an article about Mirae Motors appeared, Manager Lee Myeong-sook's heart would sink.
In the midst of pulling all-nighters to deal with overseas media, she saw the headline.
[Mirae Motors Group Joining the Earth Car Project?]
"Huh? Earth Car?"
Earth Resource was the fastest-growing mega-corporation in the U.S.
Since everything Kim Shin touched turned into a massive hit, Earth Resource held an almost omnipotent image in Korea.
"Isn't this good news?"
"It's huge good news. But is our company really making the Earth Car?"
"That's what the article seems to suggest."
The barrage of complaint calls over the past few days vanished the moment the article dropped.
Instead, calls of encouragement poured in from shareholders.
―It's true you're producing the Earth Car, right?
―We believed in Mirae Motors.
Mirae Motors' stock rocketed to the daily limit the moment the market opened.
* * *
[Mirae Motors to Participate in Earth Car Development]
Korean media outlets splashed articles about Mirae Motors everywhere.
TV stations led their morning news with it, and newspapers devoted most of their front pages to the story.
[Kim Shin Unites Korean Firms to Challenge Electric Vehicle Dominance]
The online articles drew massive attention.
―Insane. This is huge.
―Korean companies are impressive when you look at them individually. Especially competitive in EVs.
―Batteries, electronics, cars—everything!
―LK is the hidden gem. World's best battery tech, making electric motors too. Supplying to GM and cracking the top 10 engines lol.
―LK makes anything with motors lol.
―Vehicle comms tech, sensors, cameras, electronic boards—they make it all.
―Just made a joint venture with Magna for EV powertrains.
―EVs have simple structures. Turns out Korean firms make all the parts.
―Software capabilities aren't bad either.
―Assembly quality is top-notch. Made in Korea is reliable.
―If they all team up for an EV company... time for a reevaluation of Korean firms?
Reactions to every article were scorching hot.
* * *
"We've been had."
Chairman Jin Myeong-il gave a wry smile.
Mirae Motors' stock was hitting the daily limit.
As the owner, it was good news, but it wasn't achieved through their own efforts.
"They leaked the article to take away our options."
He had planned to join the Earth Car project anyway. But with the article out first, the stock had surged.
Tomorrow and the day after would see continued gains, no doubt.
What if they announced they weren't participating?
'The stock would plummet to the daily limit, and distrust in management would skyrocket.'
With public opinion already sour on Mirae Motors, the media and shareholders would turn into rabid dogs.
Individual investors, institutions, even Chairman Jin Myeong-il himself believed joining the Earth Car project would benefit the company.
But they needed to negotiate favorable terms—now impossible.
"Father, we can't just sit on this."
"And if we don't?"
"We're Mirae Group. If we take this lying down, everyone will think we're pushovers."
President Jin Tae-seop spoke firmly.
Mirae Group had led the Korean economy for about 30 years starting 50 years ago.
It had lorded over other companies.
Even after the group split and divided, they couldn't tolerate being treated like an ordinary firm.
"Enough, Yoo-kyung."
"Yes, Father."
"Tell Kim Shin this is sufficient. Say it's time to meet and discuss business."
* * *
The sweetness of capitalism.
My wealth was growing as the New York stock market dipped, and news on the Omicron variant I'd worried about came in.
―Vice President An Myeong-guk: Analyzed the virus. South African medical team's judgment was spot on. Infectivity is much higher, but symptoms are milder.
―Kim Shin: That's a relief at least.
―Vice President An Myeong-guk: No hospitalizations among South African cases. Partly because they're young, but they see severe Omicron cases as extremely rare.
The update came after completing the virus analysis.
As an investor and businessman, but positioned at the forefront of global pandemic response with the K-Vaccine...
―Vice President An Myeong-guk: Just finished the analysis, so we haven't gone public. U.S. and European health authorities are clamoring for the info.
―Kim Shin: Share it right away.
―Vice President An Myeong-guk: You sure? Won't it mess with your investments?
―Kim Shin: Can't monopolize info like that.
I didn't want to profit by hiding the virus.
'If Omicron is a mild COVID...'
Panic in New York markets could ease. But expecting a surge would be amateurish.
[Jerome Powell Showing Hawkish Claws?]
[Powell Shifts Stance: "Good Time to Drop 'Transitory' from Inflation Talk."]
[OECD Forecasts Higher Global Inflation]
U.S. consumer prices topping 9% had sparked chaos.
Food prices up 30%, oil tripled in two years.
Unsustainable for low-savings Americans.
A consumption-driven giant where cars were essential—making inflation even more painful.
―President Biden: Once my return date to the U.S. is set, shall we discuss the schedule?
―President Biden: I really want to attend my friend's business announcement.
The political climate had soured enough for the U.S. President to get antsy.
Inflation was now the top priority for the government and Fed.
Wall Street said rate hikes were inevitable.
'What happens if the Fed tightens the money supply?'
Not an economist, but even Nobel winners couldn't fully grasp it.
Paul Krugman, last year's Nobel laureate, had said inflation would never happen.
[Nobel Economist Paul Krugman: "Lucky investors are just ignorant fools who don't understand the economy. Inflation won't happen in this era."]
The guy who mocked me last year over bubbles.
Now he was eating his words as inflation took hold.
―Jin Yoo-kyung: Father wants to meet and talk business.
Right on cue—I agreed to meet Chairman Jin Myeong-il.
―Jin Yoo-kyung: When are you free?
―Kim Shin: Heading over today.
I set the time.
EV conditions were ripe; no more delays.
―Jin Yoo-kyung: Where?
―Kim Shin: Mirae Motors HQ.
I picked the spot too.
Entering the tiger's den, but to catch the tiger.
* * *
"Good to see you again."
"Have you been well?"
"Thanks to you."
Chairman Jin Myeong-il greeted me in the HQ conference room with all executives managing director level and above.
Even team leaders overseeing five or six staff puffed up.
Mirae Motors employed over 70,000.
Yet the vibe differed vastly from my last meeting with Jin Myeong-il.
The EV venture I'd half-doubted was now solidifying.
Above all, my wealth had doubled, breeding immense confidence.
"I'd like Mirae Motors Group to be a pillar of the Earth Car project."
Already publicized via articles, I detailed the plan to unite Korean firms for an EV company to the chairman and execs.
"We'll handle tech and next-gen vehicle development entirely."
"Yes, expecting active cooperation from factory construction onward."
Factory site: tax-friendly Texas.
Equipment: Maximize robots, apply Tesla's Gigapress Lego-like assembly.
Chairman Jin Myeong-il frowned.
"Mirae Motors has never done this. Costs will rise, trial and error inevitable."
"If Tesla did it, we can too. We'll recruit any needed talent."
New auto plants naturally packed cutting-edge tech.
Korean culture's strength: Make the impossible happen, fast.
But one crucial point.
"No safety compromises for Earth Car. All safety options on even small cars."
"..."
"Defects disclosed transparently on the homepage. Orders online only."
Various proposals for great cars.
Chairman Jin knew online sales' merits.
Mirae couldn't due to dealers, but knew it was the future.
Still, his furrowed brow stemmed from the dictatorial rollout.
Mirae Motors as Earth Car's foundation, loyal worker.
In return: Minor equity stake.
Profits from EVs, but sacrificing pride, final vehicle decisions—much more.
Chairman Jin Myeong-il muttered lowly.
"You're forcing a tough choice."
"Yes."
* * *
It was President Jin Tae-seop's first time seeing Kim Shin.
He'd heard the name, but hearing demands firsthand left him stunned and incredulous.
'Is this punk mocking us?'
Build a cutting-edge U.S. factory for Earth Resource using Mirae Motors' know-how.
Hand over all auto production expertise, aggressively develop next-gen models.
Final designs and specs decided by Earth Car, not Mirae.
Gains from the U.S. factory, but zero say in management.
"Hold on, let me say something."
Unable to hold back, President Jin Tae-seop spoke.
Eyes from Kim Shin, Jin Myeong-il, and execs turned to him.
"Under the guise of tech cooperation, you're demanding all our tech? Does that make sense?"
Steal everything based on Mirae tech.
Build a super-factory in the U.S., boost competitiveness, soon an Earth Auto lab too.
Ultimately, feeding the dog with rice you'd cooked—utterly unfair.
Kim Shin said apologetically.
"I know. These terms disadvantage Mirae Motors."
"You know and still demand this?"
No shame, he wouldn't answer boldly.
Worst case, leak Kim Shin's words to press.
Kim Shin replied.
"Absorbing tech from subcontractors—that's Mirae Motors' specialty, right?"
"..."
"I'm at least paying for it."