The Acquisition of Misung Thales
Vice Chairman Jeon Hak-soo of the Misung Group visited Starlink. As he sipped the tea prepared in the reception room, he observed Taesik and President Ryu with a keen eye.
"It is a small company, but a very active one indeed. I can feel the vitality in the expressions of your employees. I can sense that Starlink is a company destined for rapid growth."
"Thank you for the excessive praise."
"I have seen quite a number of companies in my time. You may consider this not merely a compliment, but a prophecy from a seasoned businessman."
"...May I ask the reason for your visit to Starlink?"
"I noticed that you have accumulated quite a significant amount of Misung Electronics stock through WP Morgan recently. I came here because I wanted to understand your intentions behind investing in Misung Electronics."
"……."
"Looking at your background, Representative, you entered the country with a massive amount of capital after studying in the United States... What was your intention in purchasing Misung Electronics stock?"
Taesik, surprised by the depth of Misung Electronics' intelligence gathering, stared at Vice Chairman Jeon. The Vice Chairman quickly added:
"Ah! I did not dig into your background with any malicious intent. I merely investigated to obtain information about our major shareholders."
"To be clear, the Misung Electronics stock was purchased solely for investment purposes. I have invested in Apple as well, in addition to Misung Electronics. You should consider it nothing more than a financial instrument."
"Hmm... Since you are the largest individual shareholder, we should certainly treat you well. Then, let me ask you one more thing."
"Would you be willing to become an ally of Misung?"
Taesik was about to express his agreement but paused.
"An ordinary individual might have answered simply. However, I am the CEO of Starlink. Considering Misung Group's position in Korea, I believe a relationship without mutual benefit is meaningless. What can Misung Group offer me in exchange for my alliance?"
"Hahaha. My thinking was too narrow. I understand that Starlink’s business areas do not overlap with Misung Group’s. What is it that you want? Surely, it isn't the LCDs used in navigation systems?"
"What I want is Misung Thales. If you are willing to sell it, I will acquire it immediately."
"That is a small company with very little operating profit..."
"What matters is that it is a defense industry affiliate, which provides the necessary qualifications to enter the defense sector. Starlink has plans to challenge the defense industry."
"Hmm... That is not a matter I can decide on my own. As you know, it is a company established with government relations in mind, so there are political risks involved. It carries the symbolism of Misung contributing to the national defense industry, so it requires the Chairman's decision. Furthermore, I expect resistance from Thales itself."
"If Thales is willing to sell their stake, I will acquire that as well."
"You are as refreshing as only a young entrepreneur can be. Let us meet again soon."
Vice Chairman Jeon stood up immediately. After seeing him out, Taesik sat down and let out a sigh. President Ryu closed the door and sat down to wet his throat.
"Representative, this is my first time seeing the Vice Chairman of Misung Group in person. But did you really hold that much Misung Electronics stock?"
"I bought it with the money I invested while in the States."
"If we acquire Misung Thales, will it be merged into Starlink?"
"A merger would be difficult; it would likely become a separate subsidiary. We haven't received an answer from Misung yet, so we must wait and see. More importantly, how do the salaries of Misung Thales employees compare to ours?"
"Given the Misung name, their salaries are higher than ours."
"In that case, I should raise our employees' salaries to boost morale."
"Hahaha. The employees will be thrilled. Representative, rather than raising them all at once, why not implement a sequential increase over the years?"
Taesik announced a salary increase following the successful satellite launch and the large-scale sales of navigation systems. Amidst the cheers of his employees, he threw himself back into his work.
A few days later, Vice Chairman Jeon contacted him, saying the Chairman of Misung Group wanted to meet him personally to make a decision, and invited him to a meal. President Ryu felt disappointed that only Taesik was invited, and Taesik headed to the designated hotel.
Upon arriving at the Misung Group's hotel, the manager personally escorted Taesik to the restaurant, leading him to the largest private room. Chairman Lee Hyundo and Vice Chairman Jeon Hak-soo were waiting. After a brief greeting, Taesik took his seat.
"So, you're the fellow who put a satellite into space. You look sharp... I ordered what I like. Do you like sushi?"
"I have no particular preferences."
"How old are you this year, Representative Kim?"
"I am 29."
"Oh! Is that so? You're about the same age as my youngest daughter... Are you seeing anyone?"
"Business is my priority, so I am not seeing anyone."
"Would you like to meet my youngest daughter? She is currently studying abroad in the States... She is my daughter, but she is a beautiful friend."
"I have no interest in dating yet."
As soon as Taesik finished his sentence, the food arrived.
"Is that so...? The food is already here. Dig in!"
Chairman Lee ate in silence, occasionally looking up to observe Taesik. Once the plates were cleared, he resumed the conversation.
"Now that our stomachs are full, let's get to the point. You said you wanted to acquire our Misung Thales?"
"Yes. Acquiring other companies is not bad, but defense companies rarely appear on the market, so I haven't had the opportunity."
"As you know, Misung Group has two defense affiliates: Techwin and Thales. I have no desire to hold onto them as they aren't profitable, but I keep them because I don't want to be criticized by the government for Misung not contributing to national defense. I think I wouldn't be criticized if I just kept Techwin... How can I trust your promise to be an ally?"
"I invested on the premise that Misung Electronics would grow, and I intend to hold the stock for several years. Would you trust me if I delegated the voting rights of my shares to you?"
"Well, is there any need to go that far? Mutual trust is important."
Chairman Lee Hyundo wore a playful expression.
"Since you said you invested, may I ask why?"
"I believe that as the global market for IT and information technology activates, the semiconductor and mobile phone markets will perform even better than they do now. It is my judgment that Misung Electronics' revenue will grow by more than 50% within two years."
"Hahaha. It feels good to have a guest who judges Misung Electronics more positively than I, the owner, do. Vice Chairman Jeon! What was our revenue last year?"
"It was just over 39 trillion won, Chairman."
"A young man guarantees that Misung Electronics' revenue will exceed 60 trillion won in two years, yet we are the ones without faith! Isn't it fine to have a company where the guest has more faith than the owner?"
"Chairman, I will establish a strategy to boost the electronics division's revenue."
"No. Representative Kim is the one who believes in it so strongly; how could you establish an improvement strategy when you don't even know the problems? Representative Kim! Let me ask you one more thing. You only predicted the revenue for two years, but what do you expect to happen after two years?"
Faced with Chairman Lee Hyundo's question, Taesik hesitated, wondering whether to mention the semiconductor "chicken game" of Misung Electronics he had heard about through the news before his regression. He decided to give a slight hint.
"If there are many frogs in one well, won't some go hungry? If there are too many frogs, I expect competition to arise within a few years, and a new mutant frog might appear. The frogs that survive will be able to eat more, but they will also have to keep the mutant frog in check."
"Hmm... I assume the frogs refer to semiconductors, but what is the mutant frog?"
"...It is merely the thought of a young, reckless man."
Since he could not reveal the exact future, Taesik avoided specific details, calling his words a simple prophecy.
"I understand. I will sell you Misung Thales. I think someone like you will be of help to Misung Electronics. And are you sure you don't want to meet my youngest daughter?"
To Chairman Lee Hyundo's repeated insistence, Taesik replied:
"I am still not interested in dating. And regarding Misung Thales, I will accept whatever price you propose."
Chairman Lee wore a playful expression.
"What will you do if we inflate the price?"
"Would you sell it at an inflated price to a colleague who is going to be your ally?"
"I met a decent fellow today, but it wouldn't be right without alcohol. Manager!"
Chairman Lee called the hotel manager to order drinks. When they arrived, he poured a glass and proposed a toast.
"For some reason, I feel like we will be seeing a lot of each other in the future. Let us toast to our alliance..."
Taesik clinked his glass with the Chairman and downed the strong liquor. Chairman Lee shook Taesik's hand, handed him a business card with his personal contact information, and left the restaurant.
After the Chairman left, Vice Chairman Jeon approached Taesik.
"The Chairman seems to think very highly of you. He usually doesn't drink, but he had quite a bit today."
"……."
"We will calculate the value of Misung Thales and contact you soon. And as we discussed before, if Thales resists, you will have to purchase Thales' shares."
"I understand. Thank you for your help, Vice Chairman."
After Vice Chairman Jeon left, Taesik calmed his nerves. He realized that dealing with the giants of the business world, whom he had only seen before his regression, was not as difficult as he had imagined.
The following week, Vice Chairman Jeon contacted him, stating that the value of the 50% stake in Misung Thales was 200 billion won, and that they would need to go through the process of paying severance to appease employee dissatisfaction regarding the separation from Misung Group. He suggested signing the acquisition contract in a month. Taesik, having enough funds to cover the acquisition price, calmly waited for the final confirmation.
Misung Group formed public opinion through press releases, announcing the sale of Misung Thales and claiming they were yielding it to Starlink, a company in the space industry, for the sake of defense development. They adjusted the contract date while keeping an eye on the government. When the government made no comment, Misung Group submitted the defense contractor sale documents, and Taesik received another visit from the National Intelligence Service.
"To what do I owe the pleasure of this visit, Section Chief Choi?"
Section Chief Choi, who visited Taesik's office with Department Head Park, bowed politely and explained the purpose of his visit.
"I heard you are acquiring Misung Thales. The government requested the NIS to investigate the feasibility of the approval, so I am here for that purpose."
"Ah! If it's an official investigation, I must cooperate. What would you like to know?"
"Representative, what kind of business do you intend to pursue once you acquire Misung Thales?"
"Instead of the existing electrical and electronic components, I plan to pursue a drone business."
"I understand that Misung Thales has no foundation for manufacturing drones... Wouldn't it be better to acquire a company like Korea Aerospace in Sacheon?"
"Please do not misunderstand. The drones I have in mind are small-scale drones."
"If you are considering small drones, then you won't need a runway."
"Is there anything else you need to know?"
"That is sufficient. The Director has given instructions to cooperate actively."
After Section Chief Choi left, the government's approval for the sale of the defense contractor was granted, and Misung Group and Starlink finalized the acquisition contract for Misung Thales. Immediately after the contract was finalized, Taesik visited Misung Thales. At the Gumi factory, all the employees had come out, watching Taesik's vehicle pass through the main gate with fearful eyes.