The Price of Ambition
“Yes. As we transition the existing TA50 lead-in fighter trainer from a dual-seat to a single-seat configuration, I will immediately begin development on a high-end aircraft. Since we have also acquired the engine division of Misung Techwin, we will proceed with the development of a 20,000-pound thrust engine simultaneously.”
“CEO, the development of the aircraft alone will cost at least 8 trillion won. Do we have the funding? If we consider the weaponry that goes into the aircraft, the required capital is far too high.”
“I will handle the funding. And since Defense has already completed the development of the AESA radar, we will be able to save on development costs.”
While CEO Jo Yun-je looked flustered and focused on the report Taesik had distributed, the head of Defense, CEO Park In-tak, stepped in.
“CEO. I understand the development of air-to-ground and air-to-air missiles for the aircraft, but I am baffled that you are suddenly asking us to develop an unmanned underwater vehicle for anti-submarine reconnaissance.”
Taesik shared the details of his conversation with Lieutenant General Choi Young-gyu of the Ministry of National Defense and expressed his firm resolve to develop the unmanned underwater vehicle in-house.
“Since we lack the foundational technology for sonar, please begin developing the basic sonar technology concurrently with the air-to-air and air-to-ground missiles. It will take at least five years to secure the necessary sonar technology.”
“Even if you give us time for sonar development, we lack the basic technology related to submarines, so it will take a significant amount of time.”
“If it were a manned submarine, that might be true, but since it is unmanned, we can shorten the timeline. Deepmind will handle the software related to submarine operation, so I would like you to use a power source that requires quietness instead of a diesel engine.”
“Then we would have to use lithium batteries or hydrogen fuel cells, but independent development is difficult.”
“If Defense cannot do it, please collaborate with other domestic research institutes.”
Despite Taesik’s strong determination, the two men remained unmoved. They placed their reports on the desk, exchanging glances, until CEO Park In-tak spoke up with a worried expression.
“CEO, it is true that Starlink has been seeing rapid sales growth recently. However, it is clear that we will face difficulties if we develop a high-end aircraft and an unmanned underwater vehicle at the same time.”
“I have a plan. I will take care of the funding shortfall, so please just hurry up with the conceptual research.”
Even after Taesik’s words, the two remained stubborn, so he had no choice but to call CEO Ryu Gwang-su. CEO Ryu sat down, looking nervous as if overwhelmed by the atmosphere in the office, and Taesik checked the financial situation of Starlink Communication.
“CEO Ryu Gwang-su! How much cash reserves does Starlink Communication have right now?”
At the sudden question, CEO Ryu took out his notebook, checked the figures immediately, and replied.
“If you combine the funds recently received from mobile processor sales with our existing reserves, it is approximately 1 trillion won.”
CEO Park In-tak and CEO Jo Yun-je were surprised by the unexpectedly large amount of available funds, but they still looked worried because it fell far short of the scale of capital required for aircraft and unmanned underwater vehicle development.
“I also have significant personal funds. I hold 5% of A-ple stock, which is worth about 15 trillion won at current value, and I also have Misung Electronics stock, so please put your worries aside.”
When Taesik revealed his personal assets, the two men looked somewhat relieved. They promised to proceed with development sequentially, prioritizing the less expensive weapons first, and agreed to begin with conceptual research. Taesik also left instructions to prepare for a capital increase through a third-party allotment to increase his stake in Starlink Aerospace, as he did not yet hold 100% of the shares.
After launching small satellites into orbit via Space Y and checking the performance of the communication satellites, Taesik realized that his worst fears had come to pass while watching a news flash.
The news continuously broadcasted footage provided by Yeonpyeong Island residents, reporting that North Korean artillery fire was ongoing and that the Blue House had issued the highest level of local provocation readiness, Jindotgae One. Fortunately, it did not escalate into a full-scale war, but South Korean Marine soldiers and civilians were killed. The Ministry of National Defense, together with the Defense Acquisition Program Administration, attempted to urgently introduce a weapon system capable of detecting North Korean artillery fire in advance and attacking the source of the provocation, but due to budget issues, the incident concluded with the deployment of self-propelled howitzers and surface-to-surface missiles to Yeonpyeong and Baengnyeong Islands.
Taesik donated consolation money to the Ministry of National Defense for the fallen Marines and immediately visited the United States. Since he could not receive budget support for weapon development due to the Ministry of National Defense’s budget constraints, he decided to find a way to raise money with Luke from WP Morgan.
When Taesik arrived in the U.S., Luke came to greet him, so they decided to talk at a hotel rather than at WP Morgan.
“You must be busy, is it alright for you to come out yourself?”
“Our biggest investor is visiting the U.S.; I had to come out. What is it this time?”
“What is the current value of A-ple stock? I have a place to invest, and I want to secure the maximum loan possible using A-ple and Misung Electronics stock as collateral.”
“It is approximately 11 billion dollars. Where is this investment going?”
“I am thinking of investing in Japan.”
“Is it stocks? Or currency investment?”
“I am thinking of investing in stocks. I am considering short selling.”
Luke, lost in thought for a moment, seemed to have made up his mind.
“CEO Kim, do you really need to invest through WP Morgan?”
“Pardon…?”
“I don’t know which stock you are planning to invest in, but if you entrust A-ple and Misung Electronics stock to a Japanese securities firm and take out a loan, the currency exchange fee issue will be resolved.”
“Then wouldn’t the investment be made without going through WP Morgan? If WP Morgan finds out, it seems there would be sanctions against you, Luke.”
“I will do it myself. Instead, please allow me to announce that I am the one who led the investment. I am thinking of quitting WP Morgan and going independent.”
“There is a possibility that losses could occur in the investment I am planning.”
“Where is there an investment without risk? Even if it is risky, the loan amount raised with A-ple and Misung Electronics stock is at least 5 billion dollars, which is a scale that can move the Japanese market, so I can generate a profit.”
“Is that so? If you go independent, I will have to put the investment into the company you establish.”
“You promised. You must invest in me later. But where are you planning to invest?”
“I am thinking of short selling against the entire Japanese power sector.”
“The Japanese power sector…? Isn’t that a company operated by the Japanese government in the form of a public enterprise? It’s a company where stock fluctuations aren’t large; may I ask the reason for the short sell?”
“The Japanese power sector is a public enterprise, and most of the power plant operations are handled by contract workers instead of full-time employees. Perhaps that is why there have been more than 10 shutdowns at power plants operated by Japanese power companies last year, so I am investing with the prediction that if something happens, a stock crash is possible.”
Taesik could not reveal the fact that a massive earthquake would occur in Japan, so he expressed his intention to invest by mentioning the problems of the Japanese power sector. Luke, perhaps trusting Taesik, nodded without any particular questions and said he would head to Japan immediately after submitting his resignation.
“CEO Kim, then I will take out the maximum loan with A-ple and Misung Electronics stock and enter into a short sell against the entire Japanese power sector. How long should the period be?”
“Wouldn’t three months be enough? If there is no stock price fluctuation within three months, I will withdraw immediately.”
Taesik decided to meet Sane of Starlink Map while visiting the U.S., and Sane sent a vehicle for Taesik, whom he hadn’t seen in a long time. Taesik, who arrived comfortably at Starlink Map, checked the major business details reported by Sane and confirmed the progress of the app development he had instructed CEO Cha Young-jin to undertake.
“Is the app development with CEO Cha Young-jin going well?”
“The app development is proceeding smoothly, but we are experiencing difficulties because there is no smartphone to test the app on.”
Since A-ple’s smartphones were not yet equipped with GPS chips, Sane voiced his difficulties.
“But CEO, can a navigation app for smartphones generate revenue? I am developing it because you instructed me to, but I doubt whether it will generate profit.”
“Look at the electronic maps collaborating with Google. With the advent of smartphones, computers have entered our hands, and people will book hotels and restaurants by looking at location information rather than hotel names, and they will move to promised locations using apps. If we hold sufficient data, collaboration proposals will come in from portal companies in each country.”
“You mean the app will transition into the form of the electronic map that Google is servicing?”
“Trust me. Additional revenue will be generated through app development. And we are the only company that can provide navigation apps to the whole world.”
Sane was already generating significant revenue by supplying electronic maps to car companies in addition to Google, so he decided to follow Taesik’s instructions.
“CEO Cha Young-jin says that electronic maps related to roads need to be subdivided and rewritten, but is that possible? Considering the current GPS error, isn’t it impossible to provide traffic guidance by lane?”
“A large number of Starlink satellites have been put into orbit via Space Y this time. Previously, it was only possible to provide 0.3m-class location information in Korea, but this time, it became possible to provide it to the North American region all at once. Europe should be possible by the end of this year.”
“Ah! If we guide the way at the lane level, the ripple effect will be huge. People who rely on navigation find it difficult to change lanes to exit the highway, but it would be great if we could guide them in advance.”
“Other competing companies can only use the location information service opened by the U.S. government, whereas we can receive more precise location information services. We must utilize our business strengths more to outpace our competitors.”
“That goes without saying. I will immediately begin the electronic map upgrade work. And I will have to negotiate separately with car companies. We will have to receive additional costs for the newly developed electronic maps.”
“I will delegate the negotiations to Sane, so please focus on app development for now. Since I have to travel between Korea and Japan for business for the time being, business trips to the U.S. are difficult, so Sane will have to handle it.”
“Understood. There are no major business expenditures, and we are only in a state of having sales, so there are no difficulties at all.”
“Sane! Regarding the incentive I mentioned before, I am thinking of giving you 0.1% of Starlink Map stock… please tell me if it is smaller than you thought.”
“Hahaha. I would have been happier if you had brought up the incentive story earlier… it is sufficient. I am managing the number one company in the electronic map market and receiving a sufficient salary, and you are even giving me stock on top of that, so how could it be small? I am always grateful.”
Taesik covered the taxes incurred by transferring 0.1% of his own stock to Sane with his own funds, and Sane joked that he would work even harder with company loyalty.