Preparing the Capital
Having concluded his business in the United States, Taesik visited Japan alongside Luke, who had recently handed in his resignation. Before departing the U.S., Luke had scheduled appointments with companies he had dealt with in the past, relaying the general requirements to the Japanese firms in advance.
"Welcome to Tetsuya Securities."
Upon arriving at the brokerage firm, an employee greeted Luke with a bow. Since Taesik was disguised as an employee rather than an investor, the Tetsuya Securities staff focused all their attention on Luke.
"Yosuke! It’s been a while. It’s been a year since we met during that last U.S. investment deal."
"I heard you left WP Morgan... Did you establish a new firm?"
"Yes. I was fortunate enough to meet a good investor, so I went independent."
"I was surprised to hear that this investment fund is at least 5 billion dollars. I heard you intend to use other stocks as collateral for this investment—which stocks are you planning to pledge?"
Luke produced the stocks Taesik held along with a power of attorney.
"They are shares of A-Ple and Misung Electronics."
"Oh! Those are the companies currently competing in the smartphone market. Since their market capitalization is high, a substantial loan will be possible."
"I am thinking of a loan of 15 billion dollars. Is that possible? I’m looking at a three-month short-term investment."
"If you are in urgent need of cash, why not sell the stocks instead of taking a loan? Because they are valuable shares, we could proceed with a block deal, which would net you more than the current market value."
Taesik had already made it clear to Luke that he had no intention of selling the shares, so Luke shook his head firmly.
"That is not what the investor wants. The collateral is solid, so we will proceed with the loan."
"Considering the value of the two companies' stocks, 16 billion dollars is possible. However, the condition is that if the loan period is exceeded, the stocks will be sold at today’s valuation."
Yosuke of Tetsuya Securities, judging that today was the cheapest point for the stocks since A-Ple and Misung Electronics were on an upward trend, added the condition of acquisition at today’s price in exchange for increasing the loan amount. Taesik, confident in his foresight, nodded at Luke, and Luke immediately signaled his acceptance. As they drafted the contract, they confirmed each other's requirements.
"Where do you intend to invest the 5.5 billion dollars?"
"I hear the Japanese market is booming, so I’m thinking of investing in the Japanese stock market. They say this summer will be hot, so I’m considering investing in power companies. Does Tetsuya Securities happen to hold shares in power companies?"
"You mean Japan Electric Power. Naturally, as they are safe assets, we hold a significant amount."
"How much do you hold? Would you be willing to lend them to me if I pay 1% of the current stock value as interest?"
Luke, knowing the scale of funds that could be deployed through short-selling in the stock market was limited, gently dangled the bait in front of Tetsuya Securities.
"Hmm... Since it’s a short-term loan, you must pay at least 2%."
"Agreed. In return, if you introduce me to other brokerage firms that hold Japan Electric Power shares, I will pay a commission of 1 million dollars per successful introduction."
Yosuke, delighted at the prospect of receiving over 1 million dollars in simple referral fees, replied, "At the 2% level, there are quite a few places that would be willing to lend. By when do you need them?"
"The sooner, the better."
In addition to the loan agreement, they agreed to borrow the Japan Electric Power shares for three months, and Luke and Yosuke exchanged satisfied smiles. As they left Tetsuya Securities, Luke loosened his tie and spoke to Taesik.
"CEO Kim, it is time you told me the truth. We have taken out the loan and secured the Japan Electric Power shares, but you must give me specific information so I can maximize the profits."
"……."
Taesik hesitated for a moment, unable to admit he had regressed in time, but decided to reveal his true intentions.
"Japan experiences periodic major earthquakes. I decided to invest based on research from a Japanese institute that studies earthquakes, which suggests that VHF (Very High Frequency) anomalous scattering occurs as a precursor before a major quake. Recently, the same phenomenon has been occurring in eastern Japan."
"What...? CEO! Are you insane?"
At Taesik's words, Luke wore an absurd expression and spat out a curse. "You are proceeding with an investment based on such unscientific grounds? I threw away my resignation letter and started this company, only to invest in this kind of madness..."
Luke, who had been muttering to himself, calmed down after a while and spoke to Taesik again.
"Even if it’s not an earthquake, Japan’s economy is poor, so I will invest by leveraging the market conditions. Since the Japanese economy has yet to emerge from its recession, we should at least not suffer a loss."
Luke suggested an investment strategy he had devised to protect Taesik’s capital, but Taesik replied sternly.
"Even if I lose the investment, it is my money. Even if I lose it, I will pay your commission, so please proceed exactly as I said."
Faced with Taesik’s strong insistence, Luke took a step back.
"Phew! Fine. I will proceed with investments in Japan Electric Power and power plant-related companies. And are there any other places you are thinking of investing in?"
"Please focus your investments on areas where there are factories in eastern Japan."
"Understood. I will proceed with the investments centered on the companies you mentioned. However, if you do not follow my advice, there could be massive losses."
Luke shook his head, unable to undo the fact that he had already resigned, and delivered a final warning. Taesik responded in a powerful tone.
"I take full responsibility for all investments. You just need to invest in the places I have told you."
At Taesik’s words, Luke responded mechanically, unlike before, and the two parted ways, agreeing to report the investment results to Taesik on a weekly basis.
Upon returning to Korea, Taesik visited Starlink Aviation. While observing the P3CK performance improvement site contracted with the Defense Acquisition Program Administration, he also checked on the development site of the Korean Utility Helicopter (KUH) nearby. Despite Taesik’s efforts, the KUH could not be developed independently, and while they had proposed a joint development to U.S. firms, Sikorsky, a helicopter specialist, had demanded exorbitant costs and effectively rejected Starlink Aviation’s proposal. In the end, they signed a technical agreement with a European firm to proceed with development and decided to equip the utility helicopter with the Switchblade.
The utility helicopter, having finished its detailed design, was in its final assembly stage, and CEO Jo Yoon-je prepared a "roll-out" ceremony to commemorate the aircraft emerging from the factory.
"CEO Jo! Who from the government is scheduled to attend this event?"
"I heard a VIP from the Ministry of National Defense is coming to strengthen security. It’s still being kept quiet, but the VIP’s attendance seems confirmed."
Taesik frowned at the news that the President, who had snatched away the navigation supply contract for Starlink Communication, was coming. CEO Jo Yoon-je, aware of this, sensed the mood and offered his own opinion.
"I will inform the relevant agencies that it is difficult for you to attend, CEO."
"No. We have to face each other eventually, so why avoid it? When is the scheduled date for the event?"
"It is next Wednesday, two weeks from now."
"I will clear my schedule. How is the process of mounting the Switchblade on the utility helicopter going?"
"Defense has developed the canister for the helicopter, and we have finished the mounting tests."
"Were there any issues?"
"There were no issues with the mounting, but we need to check if there will be problems with actual inert ammunition tests. The helicopter’s flight speed is 140 knots, and the key is whether the canister’s pneumatic launch pressure can overcome the airflow generated during flight."
"What were the results of the fluid analysis?"
"No particular problems were found. As you know, one can only be at ease with aircraft after conducting real-environment tests, so I have many concerns."
"More than that, I heard rumors that the Defense Acquisition Program Administration is enacting a law regarding aircraft safety. Are there any requirements demanded of us?"
"Actually, the engineers are having a hard time because of something called the Airworthiness Certification Act. The utility helicopter already started development, so it shouldn't be subject to it, but they are saying they will retroactively check whether it passes safety standards. It’s a bit difficult to submit the massive amount of development data all at once."
"Since it is a law, we must follow it. Please encourage the staff well."
After returning to Starlink Communication, Taesik checked the investment report sent by Luke. Luke was buying up Japan Electric Power shares as much as possible, and additionally, he was buying shares of companies that supplied the power plants operated by Japan Electric Power. Since it had only been a week, the amount purchased was not large, and Luke sent an opinion suggesting that since the largest company in the eastern Japan region was a beer factory, he would additionally buy shares of that beer company.
Taesik sent a reply telling him to buy as many shares as possible, and then he welcomed the utility helicopter roll-out ceremony. Having gone down to Sacheon a day early, Taesik inspected the runway and factory where the event would be held, checking the preparations. Security guards stationed throughout the factory attached seals to the doors leading to the factory roof to check for security risks, and Taesik reviewed the materials summarizing the points he would mention to the President in the conference room.
The next day, the VIP, who had departed from the Blue House by helicopter, arrived at Sacheon Airport, and Taesik greeted the people from the Ministry of National Defense and the Army Headquarters attending the utility helicopter roll-out ceremony. Everyone was waiting for the guest of honor with expectant eyes, eager to see the first utility helicopter developed domestically.
A moment later, the President arrived at Starlink Aviation in a security vehicle from Sacheon Airport, and CEO Jo Yoon-je, who was moderating, announced the start of the event along with the news of the President’s arrival. After the protocol event, the President took the podium and delivered a congratulatory speech, stating that they had developed a helicopter for the 11th time in the world, and added that the utility helicopter would contribute to the development of the Republic of Korea’s military power. After boarding the cockpit of the utility helicopter and taking photos, the President spoke with the key VIPs.
The President, seemingly knowing everyone except Taesik and CEO Jo Yoon-je, shook hands with the two and spoke.
"CEO Kim, you are the CEO of Starlink. You have worked hard on the utility helicopter development."
Taesik replied to the ceremonial greeting.
"I will strive to help strengthen the Republic of Korea’s military power."
Just as the President was about to pass Taesik to shake hands with someone else, he seemed to remember something.
"Please understand the Dae-Ah Motors matter in a broad-minded way. There will be other benefits for Starlink in return."
He then gave instructions to the Minister of National Defense to increase the production volume of defense weapons produced by Starlink and greeted others. Taesik wore an absurd expression at the President’s words—the same President who had pressured Dae-Ah Motors to snatch away Starlink Communication’s production volume, now offering to increase defense weapon production instead—but he corrected his expression, considering the eyes of the people around him.
When the event ended, Lieutenant General Choi Young-gyu, who had moved to the Defense Acquisition Program Administration, greeted Taesik.
"CEO Kim! You worked hard on today’s event. Finally, the Republic of Korea has its own domestically developed helicopter."
"You will probably feel that it is a little different from existing helicopters. Since we have mounted two types of Switchblade, it also possesses attack capabilities."
"How is the development progress of the unmanned aerial vehicles that were requested for development last year?"