The Google Proposal
"I understand that the effective range of the radios supplied by Starlink is around 3km. It seems there would be issues with that range if special forces were to face an unexpected attack. Am I correct?"
"I am not in a position to comment on military operations, so I cannot answer that. However, the radios supplied by Starlink can extend their range through relay functions, and they can provide location data to command via satellite. Furthermore, by using our satellite communication service, they can communicate directly with the command center."
"No! Doesn't that mean the Ministry of National Defense has to subscribe to a satellite communication service to use that feature?"
"Not at all. The U.S. military uses that function via their own satellite network, and we are providing it to the South Korean Ministry of National Defense free of charge. Starlink decided to provide it at no cost for the safety of the deployed troops."
Upon hearing that Starlink was providing the satellite service for free, the attending Ministry of National Defense officials and reporters nodded, reacting positively to Starlink's decision. Seeing the atmosphere shift in Starlink's favor, Assemblyman Hwang Byung-min hurriedly moved to his next question.
"I understand that Starlink has reaped massive profits from this radio supply contract. I am concerned about private entities profiting from deployment opportunities."
"Assemblyman Hwang Byung-min. You keep mentioning that Starlink has reaped massive profits, but are you aware of the scale of the contract? The total price of all the radios Starlink supplied is only 750 million won. The U.S. purchased radios worth 30 billion won, but we prioritized supplying the South Korean Ministry of National Defense over the U.S. military for the sake of our deployed troops. Is 750 million won really a massive amount?"
At Taesik's counter-question, Assemblyman Hwang looked flustered. "Answer only what you are asked. Who told you to answer things I didn't ask about?"
The chairman, seeing the ruling and opposition party secretaries looking embarrassed by Taesik's rebuttal, tapped his gavel to settle the room. "Are there any other members who wish to ask additional questions to Starlink CEO Kim Taesik? Due to time constraints, we will move on to questions for the Ministry of National Defense."
Following the chairman's procedural remark, Assemblyman Jung Min-jae raised his hand to request the floor.
"Recently, CEO Kim Taesik, you acquired Misung Thales from the Misung Group, didn't you?"
"Yes."
Perhaps feeling burdened by mentioning a conglomerate like the Misung Group, Assemblyman Jung limited his questions to Starlink.
"It is a problem that Starlink, which lacks technical prowess, acquired Misung Thales, but the Ministry of Commerce, Industry and Energy that approved it is also at fault. Setting aside the equipment Misung Thales currently supplies, there are major concerns regarding Misung Thales, which supplies electrical and electronic components for the defense sector. Do you have any intention to resell Misung Thales?"
"Assemblyman. You just said that Starlink lacks technical prowess... Starlink is the first company in South Korea to launch two satellites into space. We are a company that achieved what the government could not, and Misung Thales—no, Starlink Defense—is currently building the technical capability to supply unmanned aerial vehicles and state-of-the-art radar to the Ministry of National Defense. If I am to answer your question about resale, I will say I have absolutely no intention to do so."
"……."
At Taesik's statement, Assemblyman Jung, who had raised doubts about the validity of the Misung Thales acquisition, scanned the expressions of the attendees who seemed to agree with the claim that Starlink was the first company to launch satellites and possessed sufficient technology. He then passed the floor back to the chairman, stating he had used enough of his time.
"Are there any others who wish to question the witness?"
Assemblyman Hwang, perhaps having no more questions, bowed his head and pretended to look at his documents, and the chairman told Taesik to return to his seat from the witness stand.
Once the questioning regarding Starlink concluded, Taesik immediately left the committee room. Outside, Department Head Park, who had been waiting, greeted him with a word of thanks.
"CEO, you answered very refreshingly. It seems the two assemblymen won't be taking any further action."
"Did you watch me answering?"
"Yes. I watched it on National Assembly TV. We have secured additional information regarding the misconduct of those two assemblymen, and we will release it on the internet."
"I suppose they'll have a hard time explaining the rumors about themselves for a while."
While reviewing plans for additional satellites to be launched after attending the National Assembly, Taesik received an urgent call from Sane of Starlink Map in the U.S.
"CEO! You need to come to the U.S. Google has made an offer to acquire Starlink Map."
"Yes...?"
"Google saw our electronic map service and sent a letter of intent to acquire it for 1 billion dollars. This isn't something I can decide on my own, so I contacted you urgently. Will you come to the U.S.?"
"I have no intention of selling Starlink Map, so is there any need to meet with Google?"
"That's what I expected. So, I told them you probably wouldn't have any interest in selling, and they said if they can't acquire it, they want to form a business partnership for the map service."
Taesik felt intrigued by Google's proposal and checked the other party's schedule.
"Is that so? When do they want to meet?"
"They said they would meet you as soon as you arrive in the U.S."
After calling President Ryu to explain the U.S. business trip, he packed his bags and departed. As soon as he arrived in the U.S., he headed to Starlink Map. Sane, seemingly very interested in the business proposal Google had presented, even came out to the lobby to wait for Taesik, and Taesik headed to the conference room with him.
"When are we meeting Google?"
"I've scheduled it for the afternoon, so they should arrive by the time you finish your discussion with me."
"Who is coming?"
"They said Larry, one of their co-founders, would come, and he'll likely bring executives related to their map service as well."
Sane showed Taesik the two business proposals Google had presented and asked a question.
"CEO, 1 billion dollars is a massive amount. Do you really have no intention of selling?"
"Sane. Map data is foundational data that can generate massive profits. As the world becomes more connected, the importance of map data will only be highlighted further. It's not for sale."
"I think that will be the case in the future, but the massive acquisition price makes me waver."
"More importantly, how is the production of map data outside of North America going?"
"Europe is in the final stages, and China and Southeast Asia are a bit delayed because they are lower in priority."
"Once the European region is finished, we should start selling navigation systems immediately."
"I'm already in contact with offline and online companies to break into the European market."
The two reviewed the negotiation details before meeting Google, and two hours later, the people from Google arrived. The visitors from Google visited Starlink Map in comfortable attire rather than suits, and Sane went out personally to greet them. After brief introductions, Taesik looked at Larry, the co-founder of Google, with curiosity and brought up the business discussion.
"It is an honor to meet Google, the rising powerhouse in the search market. I have received two proposals, but since I already conveyed that an acquisition is difficult, let's get straight to the point."
At the mention that an acquisition was off the table, Larry frowned slightly. "Is 1 billion dollars not enough?"
"No. 1 billion dollars is a huge amount of money. I judge that the map market I see is worth more than 1 billion dollars. The services that can be provided in connection with maps are endless, and I believe the business potential will only broaden in the future."
"It seems you have the same thoughts as us. It can't be helped. If an acquisition is difficult, let's think about what we can do jointly between the two companies through a partnership."
As Larry declared the abandonment of the acquisition, Taesik pulled his chair closer and checked Google's concrete plans.
"How does Google intend to use the map service?"
"As you know, Google has almost caught up to Yahoo in the search market. To create an economic profit model, Google has been showing ads related to search terms to consumers and collecting ad revenue, but we have internally judged that the direct effect is insufficient."
"I understand what you mean. You are thinking of connecting ads and reservation information related to hotels when someone searches for a hotel in a specific area."
Larry looked at Taesik for a moment as he presented an opinion that aligned with their business direction.
"It's suddenly getting scary. You seem to have pierced through Google's business direction. Our judgment is that if we provide information and reviews offered by local guides like Starlink Map, rather than just showing simple search results, we can surpass our competitor, Yahoo. We looked for a company most similar to our business direction, and since Starlink Map was providing the service we were thinking of, we sent the letter of intent for acquisition."
"Hahaha. Since acquisition is impossible, let's change the topic to a concrete business direction we can share. What do you want from us?"
"Please allow Google to use your map service and local guide information."
"That's not a difficult proposal."
"Then, are you agreeing?"
"The issue is how to divide the profits from the map service, isn't it? Do you have a plan in mind at Google?"
"Are you perhaps aware of the AdSense service that Google is providing?"
"You mean sharing ad revenue with website creators, right? Is it true that the revenue split is 3 for Google and 7 for the website operator?"
"We haven't disclosed the revenue split ratio yet, but you know the details. There are two things Google can propose. The first is paying a fixed amount as an annual usage fee, and the second is setting a revenue split ratio for Google AdSense."
Taesik fell into thought for a moment at Google's proposal, then realized that Google's stock listing was this year.
"From Starlink Map's perspective, we will achieve common goals through a partnership at first, but I think Google could take over our service in the future. How about we exchange shares between Google and Starlink Map to build mutual trust? I think mutual trust is a priority over the revenue split issue."
"Our Google code of conduct is 'Don't be evil.' Do you not trust us?"
"I trust Google as well. I am proposing this to solidify the trust between the two companies."
"Hmm... as you know, the share issue is not something I can decide on my own. We would have to consider the share value of Starlink Map and Google to determine the exchange ratio, and that is not an easy task. Is this a prerequisite for the business partnership?"
"No, it is not. The revenue split structure I want seems appropriate if it's in the form of AdSense, and let's discuss the revenue split ratio additionally."
"That's a relief. We even visited Starlink Map, and I was worried the partnership would fall through. Let's discuss the share exchange ratio later and settle the revenue split ratio first. As you know, I would like to propose the same 7:3 ratio..."
"We are providing more information through electronic maps than individuals, so I don't think applying the conventional ratio is appropriate. We are in a situation where we also have to distribute profits to customers who participated as local guides on Starlink Map, so please reconsider."
When Taesik showed his refusal to Larry's revenue split proposal, Larry exchanged whispers with the executive next to him and then made a different proposal.