The Betrayal of Daeah Motors and the Northern Threat
Jeong Jae-hoon, Executive Director of Daeah Motors, whom Taesik hadn't seen in a while, mentioned the progress of the driving assistance system currently under development and expressed his intention to apply it to their luxury car lineup first. "The development of the driving assistance system is now in the final stages, so we will begin by applying it to our premium vehicles."
"That’s good news. It looks like Starlink will start seeing revenue from this now."
Deepmind had invested significant time into developing the software for the driving assistance system alongside Daeah Motors, so they were optimistic about the revenue that would be generated once it was implemented in actual vehicles. While Starlink’s map data had been included in Daeah Motors' export models, this new contract for both the navigation hardware and the software for domestic vehicles promised much larger returns.
"CEO Kim! I’m afraid I have some bad news to share."
"……."
"We’ve decided that we need to switch the navigation hardware that Starlink was supposed to supply to another provider."
"Excuse me……? While we haven't signed the final contract yet, wasn't the entire development of the driving assistance system predicated on us supplying the hardware?"
"In return, we will increase the supply price for the software."
President Ryu Gwang-su, who was sitting in on the meeting, looked flabbergasted at the absurd proposal. "If not us, then exactly who are you getting the hardware from?"
"I cannot give you the details, but this is a matter related to the President. Daeah Motors is in a situation where we have no choice."
As the volume of their supply shrank from navigation hardware to just software, Taesik asked, "Does this apply to the export models as well? Are you replacing us with another company for those too?"
"Yes. Starlink will only be providing the electronic maps."
With the expected revenue vanishing, Taesik let out a sigh, and President Ryu Gwang-su asked indignantly, "Isn't this going too far? You’ve taken only the technology you needed from us, and the software margins aren't even that high……."
"I apologize. This is a direct order from the Chairman, so I am in a position where I cannot uphold our previous agreements."
Taesik, regretting that he had only drafted their collaboration as a memorandum of understanding rather than a binding contract, decided to terminate the business agreement with Daeah Motors.
"Understood. If Daeah Motors intends to source the navigation hardware elsewhere, there’s nothing I can do. Do you still intend to use the electronic maps from Starlink Maps?"
"Yes. We plan to keep using Starlink Maps for our export vehicles. I came here in person because I felt it was the polite thing to do. I want to apologize once again."
After Executive Director Jeong Jae-hoon of Daeah Motors left the room, President Ryu Gwang-su was agitated, calling it a typical act of corporate tyranny. Taesik sat at his desk and called for Cha Youngjin, the CEO of Starlink Deepmind. As the expected revenue evaporated before his eyes, Taesik lit a cigarette with President Ryu. As thick smoke filled the office, Taesik opened the window, and soon, CEO Cha Youngjin entered.
"CEO, you haven't smoked in a while. Is something wrong?"
"Executive Director Jeong Jae-hoon from Daeah Motors was just here. I was informed that the navigation hardware we were supposed to supply is being switched to another company."
"Then what happens to the driving assistance software we’ve been providing development support for?"
"I intend to collect the remaining development costs and end it there."
"I’ve heard plenty of stories about corporate tyranny, but I didn't think they’d go as far as to bully a company of Starlink’s scale. CEO, does this mean all future collaborations are canceled?"
"Yes. We will finish once we deliver the driving assistance software."
"That’s a relief. Researcher Lee Sangwook has been busy with the joint development with Edison Motors, so it would have been difficult to spare the time anyway……."
"CEO Cha. I’d like to proceed with developing a navigation app this time."
"What kind of app……?"
"A-ple has released a smartphone, and the second product they are developing will be equipped with a GPS chip, which will provide map services. The navigation market will shift from being vehicle-centric to person-centric, and we need to develop a map service for smartphones."
"I’ve heard A-ple’s smartphone is popular, but will it be able to dominate the vehicle navigation market as well?"
"It will be difficult to completely dominate the vehicle navigation market, but most people will use it. I’d like you to proceed with the development as a collaborative project with Starlink Maps."
"Looking at A-ple’s app market, there are both paid and free options… which sector are you targeting?"
"Naturally, we plan to provide it for free to capture the market. I intend to follow the profit model system already implemented by Starlink Maps."
"Understood. I will discuss the details with Se-in from Starlink Maps."
Just as Taesik was about to leave the office early to have a drink of soju to comfort President Ryu Gwang-su, who had lost the expected revenue right before his eyes, his phone rang, and he stopped in his tracks. Knowing it was the Chairman of the Misung Group, he asked for understanding from President Ryu and CEO Cha Youngjin before answering.
"Yes, Chairman."
"Did you happen to receive any word from Daeah Motors?"
"Executive Director Jeong Jae-hoon was just here. But why?"
"Hmm… even the mighty Daeah Motors is helpless, it seems."
"……."
"Was the contracted volume canceled?"
"It wasn't a signed contract yet, but it is true that the volume was canceled."
"I’ll tell you this in confidence. The current President has quite a greed for money. Since he became President, there’s news that he established a company through Daeah Motors to prepare for his post-retirement life. They are currently gathering all the profitable work they can find to funnel it through Daeah Motors."
"Then, is our navigation hardware being handed over to a company established by the President?"
"Probably! Don't take it too personally! If you get on the wrong side of the highest authority, you’re the only one who will lose out!"
"Understood. Thank you for letting me know."
Upon hearing that the lost volume was linked to the President, Taesik decided to completely sever his ties with Daeah Motors and headed out to comfort the frustrated President Ryu Gwang-su.
As the new President took office, relations with North Korea began to deteriorate steadily. North Korea boasted of their launch vehicle technology by firing the Unha-2 rocket, which they claimed carried a communications satellite. Although the communications satellite that North Korea claimed to have successfully launched failed to properly enter orbit, South Korea and the United States began sanctions against North Korea, fearing that the Unha rocket could reach the U.S. if equipped with a nuclear warhead. North Korea reacted strongly to the sanctions from the U.S. and its allies, eventually crossing the NLL using high-speed boats in the West Sea. Fortunately, the South Korean Navy, having learned lessons from the Yeonpyeong Naval Battle, had changed its rules of engagement. The North Korean high-speed boat that crossed the NLL was crippled by the Navy's counterattack and forced to retreat, gaining nothing.
While the South Korean government celebrated the victory in the Battle of Daecheong, Chairman Lee Hyundo decided to finally launch the smartphone developed in collaboration with Google to compete against A-ple. Chairman Lee Hyundo called Taesik directly to invite him to the smartphone launch event.
"CEO Kim, we’ve finally decided to launch our smartphone."
"Misung Electronics has finally completed the development."
"It’s very late. A-ple’s smartphone is already far ahead, and we are two years behind."
"Where do you plan to hold the launch event?"
"In the U.S., of course. To compete with A-ple, we need to capture the U.S. market first! You’re coming, right?"
Taesik made an excuse, as he had decided not to attend the launch event out of consideration for his relationship with Mike Jobs of A-ple.
"I’m busy with domestic work, so it will be difficult for me to attend the launch event."
"I see. Well, I’ll send you 10 of the newly launched smartphones, so distribute them to the people around you!"
As Misung Electronics held their launch event, A-ple began attacking Misung Electronics' smartphone, labeling them a "copycat." Ironically, the launch of Misung Electronics' smartphone actually increased A-ple’s sales, and Starlink, which had provided the design blueprints for the mobile processor, was able to reap even greater profits.
While South Korea was buzzing with the launch of Misung Electronics' smartphone, an incident occurred in the West Sea where a South Korean patrol ship was sunk by a torpedo attack. South Korea was plunged into grief after losing numerous naval personnel, and the Ministry of National Defense launched an investigation team to find evidence of the sinking. North Korea, already under sanctions from the U.S. and its allies, protested, claiming the incident had nothing to do with them and that they were being framed for the sinking of the Cheonan, which they claimed had sunk due to other causes. However, the controversy was put to rest when a North Korean torpedo was recovered by the investigation team’s nets.
After the sinking of the Cheonan, the South Korean Ministry of National Defense reached out to defense industry companies, asking them to find ways to detect and attack North Korean submarines. Each company utilized their areas of expertise to send weapon development proposals to the Ministry.
Starlink also received a proposal from the Ministry of National Defense, so Taesik called Lieutenant General Choi Young-gyu of the Ministry of National Defense instead of CEO Jo Yun-je.
"General Choi! Congratulations on your promotion."
"Thank you. I was thinking of retiring, but fortunately, I was promoted. Are you calling because of the proposal sent to Starlink Aviation?"
"Yes. I saw the proposal regarding the introduction of P-3C (anti-submarine patrol) aircraft for submarine detection, and I contacted you because it seemed too absurd."
"It was an inevitable choice to reinforce our anti-submarine capabilities all at once."
"Even so, I don't think it's appropriate to bring in aircraft that the U.S. military has operated for 30 years and perform performance upgrades to make them operational. Shouldn't we at least be introducing an aircraft like the Boeing 737-based P-8 Poseidon?"
"It was an inevitable choice to reinforce anti-submarine capabilities with a limited budget."
"Is the Ministry of National Defense really that short on budget?"
"Yes. We need to reinforce the sonar systems of our ships first and then reinforce our submarine detection capabilities, but the budget is extremely tight."
"Then, is it enough if Starlink Aviation just handles the performance upgrade work for the P-3C?"
"Yes. The schedule is urgent."
"By any chance, would it be okay if Starlink develops an unmanned underwater vehicle for anti-submarine reconnaissance?"
"CEO, as I mentioned earlier, the budget is tight, so support from the Ministry of National Defense is impossible."
"For now, Starlink will proceed with the development on our own."
"Thank you. I’m sorry to burden you because the defense budget is insufficient. And I’m scheduled to move from the Ministry of National Defense to the Defense Acquisition Program Administration soon."
"Ah! You mean the specialized agency for defense acquisition."
"Yes. My assigned duties are in acquisition, so I have to move."
"We’ll be seeing each other more often then."
After hanging up with Lieutenant General Choi Young-gyu, Taesik immediately summoned Park In-tak, CEO of Starlink Defense, and Jo Yun-je, CEO of Starlink Aviation, to Seoul. The two, who had been summoned suddenly, arrived at Starlink Communication in the afternoon with curious expressions, and Taesik calmly conveyed his thoughts.
"It is time for Starlink to start developing weapons on our own. Please establish a plan to develop the weapon systems in the materials I have distributed."
The two were filled with astonishment as they looked at the report Taesik had distributed, and CEO Jo Yun-je was the first to ask Taesik a question.
"We’ve just completed the development of the TA-50 tactical lead-in fighter, and now you’re saying we should develop a high-end aircraft domestically? CEO, an astronomical amount of resources will be invested; are you sure about this?"