The AUSA Exhibition and the Winds of War
Upon arriving in the United States, Taesik checked into his hotel and headed straight for the AUSA exhibition hall. His staff was already busy setting up the booth, displaying the prepared walkie-talkies and catalogs, and readying themselves to greet visitors. Major defense contractors from the U.S., U.K., and Israel had erected massive booths to showcase an array of heavy weaponry, but since Starlink Communication only had radios to display, Taesik had instructed his staff to wear distinctive attire to demonstrate the devices' utility.
"CEO, wearing a military uniform again after my reserve forces training feels a bit awkward. And wearing a U.S. military uniform feels even stranger."
"I know it’s a bit of a hassle, but to grab the attention of the attendees, you must wear the uniforms and carry the rifles."
Taesik had ordered his staff to don U.S. military gear and carry rifles rented locally, all while equipped with the radios. As attendees walked by and saw Asians in full combat gear striking firing poses in front of the booth, they watched with curious eyes. To demonstrate the two-way communication capability—unlike conventional radios—the staff moved as if they were conducting an actual operation. Realizing they were witnessing a live demonstration, the crowd began to show genuine interest.
When the staff members, equipped with headsets connected to the radios, began speaking freely to one another, military officials were stunned by the performance—unlike their own radios, multiple people could speak simultaneously. They crowded into the booth, requesting detailed explanations. Having successfully piqued their interest, the staff provided brief explanations based on the catalogs and then let the attendees try the headsets themselves to experience the performance firsthand.
"Conventional radios only allow one-way communication, so if a commander is holding the transmit button, no additional orders can be issued. But the radios we’ve launched allow for two-way communication, enabling free and constant contact."
The staff recited the performance specs they had memorized, while Taesik stepped in to provide deeper insights whenever a high-ranking military official approached. In the middle of an explanation, Taesik felt a gaze fixed upon him. He looked up.
"Chief Brian! What brings you here?"
He greeted Brian, the FBI New York Branch Chief, with a welcoming smile.
"Hahaha. To think the man who developed the AESA radar would develop a radio as his second project..."
"It’s for special forces. It’s a pretty decent radio; I’m sure the FBI could use it, too."
Taesik continued his pitch. Brian listened for a long while before speaking.
"...It doesn't seem bad. But more importantly, how did you know?"
"...What are you referring to?"
"You invested 300 million dollars from the AESA sales proceeds into crude oil... How did you know the U.S. was preparing for war?"
"Is that so? It sounds like my investment is going to be a success."
"It’s information I only recently became aware of myself... It’s hard to dismiss it as mere luck."
"Are you here to verify why I invested in oil?"
"..."
"I understood that after the 9/11 attacks, the U.S. intelligence agencies were searching for the culprits to find someone to retaliate against. Bin Laden, who orchestrated the attacks, operates in the shadows, and there are no regimes capable of supporting such a terror organization other than those in the Arab world. Isn't it obvious that the U.S., having been attacked on its own soil, would strike a country in the Arab region?"
"How did you know it would be Iraq?"
"I didn't know that either. But aren't most Arab nations oil producers? Isn't it obvious that if you attack an oil-producing nation, the price of crude oil will rise?"
"Hmm... That’s not an illogical argument. But using 300 million dollars as margin to invest 3 billion dollars? Isn't that a bit too aggressive?"
"Some people bet their entire lives on a single choice; if I lose the 300 million, so be it. But the potential harvest is huge, so isn't it a decent choice?"
"Hahaha. Congratulations. An article is scheduled to be released soon about the President preparing for the Iraq War... You’re going to make a lot of money."
"It hasn't been deposited yet, so I can't be sure."
"The U.S. government has designated you as a subject of focused observation, so please be careful with your future actions."
Taesik tensed at Brian's warning.
"Hahaha. A subject of observation by the U.S. government... Does that mean I’ll be banned from entering the country?"
"Hahaha. No. It just means the companies you invest in and your entry/exit records will be collected by intelligence agencies. If you pose a threat to the United States, sanctions will be taken."
"That’s a relief. Does the FBI have any intention of purchasing our radios?"
"Hahaha. Give me a catalog. I’ll pass it on to the SWAT team leader. I’m sure they’ll want to buy them."
Taesik wrote "FBI" on the list of prospective customers at the front of the booth and watched Brian, who quietly disappeared into the crowd. Once the FBI was added to the list, military officials examined the radios even more closely, taking down contact information and grabbing catalogs. The staff, seeing the growing interest, became even more enthusiastic in their explanations.
During the five-day exhibition, no actual contracts were signed, but countless people took catalogs and contact details, and some military officials asked if samples could be provided for test evaluations. The staff felt disappointed that no immediate sales were made, but Taesik encouraged them, promising that they would receive calls from those who visited the booth. After giving the staff some free time and a bit of spending money, Taesik headed to LA to visit Starlink Map, while the staff cheered up, planning to tour famous tourist spots around Washington before heading home.
As soon as he arrived in LA, Taesik visited Starlink Map. Seeing Se-in waiting at the entrance, he asked curiously.
"Se-in. Is something the matter?"
"CEO. The navigation system you sent as a sample has done it."
"What do you mean by that?"
"We sent samples to QVC, a U.S. home shopping company, to sell the navigation units, and they want to sign a contract immediately."
"Which of the 7-inch or 5-inch models from Korea do they want to contract?"
"They want to contract both."
"Isn't that a faster reaction than expected?"
"The evaluation is that it's cheaper than competitors' navigation systems and the electronic maps are more sophisticated."
"Does the home shopping company have any requirements?"
"They want us to price them separately: one with the map update cost included, and one where the navigation and the electronic map are purchased separately."
"Hmm... What do you think, Se-in? Is separate selling more advantageous? Or is a lifetime free map update service better?"
"To increase revenue, charging for updates is necessary... but to complete the electronic map you envisioned, I think we need customer participation. How about providing a free map update service to those who act as local guides, as you mentioned before?"
"You mean providing free map updates to people who leave reviews on restaurants and tourist information on Starlink Map?"
"Yes. If they leave 12 reviews a year, we give them free map updates."
"That’s a decent strategy. We could really improve the completeness of the electronic map."
"Instead, you’ll have to sacrifice some of the profit you’d otherwise reap. Is that alright?"
"Of course. Large-scale investment in Starlink Map is possible soon, so I don't need to consider immediate financial gain. Right now, we need to improve the completeness of the Starlink map."
"Hahaha. It’s easy to run a company when the owner is rich. Oh! I’ve been talking to you in the lobby for too long. Let’s head upstairs!"
Taesik moved to the office while discussing the navigation launch strategy with Se-in. When a phone suddenly rang, Se-in excused himself, saying he would go get the proposal from the shopping mall.
"Hello. This is Luke from WP Morgan. I’m calling because there has been a significant change in the product you invested in."
Taesik guessed that news of the Iraq War had spread through the financial district.
"A change...?"
"Rumors are spreading on Wall Street that the U.S. is going to wage war in Iraq, and the price of the crude oil futures you invested in is skyrocketing. When you invested, the WTI (West Texas Intermediate) price was 23 dollars, but it’s now 27 dollars. It’s up by a whopping 17%."
"Is that so? I guess I was lucky."
"I’m calling because I think we should consider when to liquidate the futures. When should we set the liquidation point?"
Knowing that the U.S. would submit an Iraq disarmament resolution to the UN to secure legitimacy for the invasion and wage the Iraq War with the U.K. next March, Taesik answered calmly.
"Isn't the rumor about the Iraq War still in its early stages? Let’s wait until the atmosphere heats up a bit more."
"You really are a gambler. I agree. The firm is gathering crude oil-related products, and I believe we should hold them until the official declaration of war to maximize profits. I will continue the futures investment until a significant change occurs."
"Let’s do that. Please call me again if any major changes occur."
After ending the call, Se-in entered and looked at Taesik’s face.
"CEO. Is something good happening? You have a big smile on your face."
"Yes. I heard that the product I invested in earlier this year has generated a profit. We’ll be able to make a large-scale investment in Starlink Map soon."
"Hahaha. That’s good news for me. If we use that investment to build electronic maps for regions outside of North America, we can catch up to our competitors, Garmin and Navteq. Could you take a look at this?"
"Is this the proposal from QVC?"
"Yes. We can start selling as soon as we finalize the final price."
QVC, the home shopping company, requested an exclusive contract with the home shopping industry, claiming that if they used their company, they could increase market share in the navigation market currently monopolized by Garmin, and proposed to broadcast at least once a week.
"The margin rate QVC is demanding is 25%. Isn't that too high?"
"I suggested we negotiate the margin rate while proceeding with QVC, but I’m thinking of lowering it to 20% on our end."
"Then, can we offer a price that can compete with Garmin products while providing the free electronic map update service?"
"To be honest, the more we sell through QVC, the more we operate at a loss. However, I believe we can hit the break-even point by using it as an opportunity to promote our product and selling it online. The key to the price is the terminal cost. Can you supply it from Korea at a price lower than Garmin?"
"If we mass-produce, we can lower the price of the 7-inch model to 250 dollars."
"Wait... 250 dollars? QVC can make a profit at that price too. How is that price possible?"
"Hahaha. The most expensive part of a navigation system is the LCD, and isn't Korea the main supplier?"
"CEO, let’s start production with 100,000 units each for the 7-inch and 5-inch products. I’ll enter negotiations with QVC immediately."
Taesik discussed the navigation sales strategy with Se-in and established a strategy to sell simultaneously through online retailers rather than relying solely on QVC.