An Important Guest (1)
At 10:00 a.m., in the conference room of Haesol Textile, Seung-hyun received Lieutenant Colonel Mok Jae-gyun from the Defense Acquisition Program Administration.
Lieutenant Colonel Mok, still in his uniform, sat with impeccable posture at the conference table, while a young soldier beside him held a tablet.
"It is a pleasure to meet you, Representative Jung."
When Lieutenant Colonel Mok offered his hand, Seung-hyun took it with a light smile.
"Yes, it’s a pleasure. I was quite surprised that the Defense Acquisition Program Administration took an interest in our company. I never would have imagined it."
"To be honest, I was surprised too. I never thought a functional fabric like this would come out of Korea. I only learned such a fabric existed after I happened to try on a Lesser Factory sweatshirt my daughter gave me as a gift."
"I see."
Seung-hyun gestured for him to sit and said, "I have a rough idea, but what exactly does the Defense Acquisition Program Administration want to propose?"
When Lieutenant Colonel Mok nodded toward the man beside him, the soldier handed the tablet to Seung-hyun.
"This is the detailed analysis we conducted on the Dual-Tex fabric. Frankly, it shows remarkable potential for military uniforms."
Seung-hyun took the tablet and studied the screen.
A variety of test results, graphs, and comparative analyses were laid out in careful detail.
"As you can see, the weight reduction rate reaches 32 percent. That means it could significantly reduce fatigue for soldiers carrying out long operations. Breathability and moisture absorption are also 145 percent better than existing uniforms. It performed excellently in durability tests as well. What impressed us most was how well the fabric’s strength held up even after repeated friction and washing."
"That much is true."
When he first developed the Dual-Tex fabric, he had thought of it simply as a very good functional textile, and he had not been able to imagine just how useful those properties would be for soldiers.
But hearing the numbers made him wonder whether there might not be a better fabric for military uniforms than Dual-Tex after all.
Especially with the unfinished version, whose outer surface had an irregular, slightly stiff feel. If he only paid a little more attention to that area and optimized the waterproofing further, it could preserve combat effectiveness far better during long rainy seasons.
It would be a world apart from the awful feeling of wearing a uniform soaked through with water.
If it were the perfected Dual-Tex, that issue would not even exist. Which made it hard to say whether this was a good thing or not...
"For that reason, our agency could not help but take a serious interest in Haesol Textile ahead of the new uniform bid. The existing contractors have no real innovation."
"Yes..."
"Technology keeps advancing, and our agency keeps demanding higher standards, but there aren’t many companies that advance along with them. In clothing and other gear, especially, there has practically been no progress at all. In that sense, we valued your company highly not only for the functional fabric itself, but for its price."
Seung-hyun gave a wry smile.
Of course, since this was a government contract, function mattered, but price would be the most important thing of all.
At the same time, he found it almost amusing.
In military procurement, where corruption and backroom dealings were supposedly everywhere, seeing them act so strict felt a little different from what he had expected.
"The Lesser Factory price is certainly not high."
"If a large-scale order of hundreds of thousands of sets is decided here, I believe the price could come down even further. However, there is one concern I wanted to raise..."
Lieutenant Colonel Mok paused briefly and watched Seung-hyun’s reaction.
When Seung-hyun remained silent, listening without any outward sign, Mok continued.
"Among the performance requirements set by the Ministry of National Defense, one evaluation scored relatively low. It was the flame-resistance test. The results were somewhat lacking compared with existing uniforms, and since these are combat uniforms, we naturally have no choice but to take flame resistance seriously."
"I see. Dual-Tex was originally developed for civilian clothing, after all. If it’s for military use, flame-retardant treatment would naturally be important."
"Exactly. We believe this can still be overcome technically, so we are not overly worried."
Seung-hyun looked down quietly at the figures on the tablet, his expression unreadable.
Seeing that, Lieutenant Colonel Mok Jae-gyun spoke with unmistakable earnestness.
"Representative Jung, this proposal could become an enormous opportunity for Haesol Textile. Right now the textile industry as a whole is in a downturn, and a defense contract would guarantee stable revenue. If you can meet the Ministry of National Defense’s required specifications with samples, uniform replacement would begin with front-line units and then proceed in stages, which could eventually expand across the entire military. If that happens, annual orders of hundreds of thousands of sets could follow."
Seung-hyun fell into thought for a moment.
A defense contract was undoubtedly an attractive offer, but there was a practical problem.
"Lieutenant Colonel, I’m deeply grateful for the proposal, and I’m even moved that our technology has received such a strong evaluation from the Defense Acquisition Program Administration. But to be frank, our current production capacity is completely maxed out."
Lieutenant Colonel Mok’s expression changed subtly.
"Pardon?"
"Right now, both Plant 1 and Plant 2 are running at full capacity, twenty-four hours a day, producing exported bedding and Lesser Factory apparel. We could somehow manage an initial run of 5,000 sets, but any amount beyond that is, realistically, impossible."
Lieutenant Colonel Mok looked as though he could hardly believe it.
"But... this is a tremendous opportunity. Could you not consider establishing a third plant?"
Seung-hyun shook his head apologetically.
"Setting up a third plant would take at least a year. From finding the site to bringing in equipment and hiring staff... and above all, right now our focus is on GyeolBit and Lesser Factory."
Deep disappointment spread across Lieutenant Colonel Mok’s face.
"Then... what about a technology transfer? If you could provide the Dual-Tex technology to the military, we could collaborate with another company for production."
Seung-hyun’s expression hardened at the absurd suggestion.
"I’m sorry, but Dual-Tex is our company’s core technology. My father devoted his life to researching it, and I completed it myself. A technology transfer is not something we can consider."
A heavy silence settled over the conference room.
Lieutenant Colonel Mok let out a long sigh.
"That is truly a shame. I never thought we would miss such a good opportunity."
"I’m sincerely sorry as well. But given Haesol Textile’s current situation, we have no room to take on a defense contract."
Lieutenant Colonel Mok slowly stood up.
"I understand. Still, if you change your mind later, please contact us anytime. Our door is always open."
"Thank you. I appreciate your respectful proposal."
The two men shook hands and concluded the meeting.
After Lieutenant Colonel Mok left, Seung-hyun idly fingered a sample from Lesser Factory’s new comfort line.
A defense contract was certainly a big opportunity, but Haesol Textile had other priorities right now.
*
Paris, France. LVMH headquarters.
Antoine Arnault stood by the window, looking out over Paris with the Eiffel Tower visible in the distance.
Spread across his desk was the latest sales report for Haesol Textile’s GyeolBit bedding.
"Remarkable."
He murmured to himself and returned to his desk to read the report again.
GyeolBit bedding was posting sales figures in the European market, especially in France and Italy, that far exceeded expectations.
The response from luxury department stores and boutiques had been especially strong.
Antoine’s secretary, Camille Dubois, knocked and entered the office.
"Mr. Arnault, here is the information regarding Frette that Ms. Delphine is pursuing."
With the elegance of a noblewoman, Camille placed a document on Antoine’s desk.
"So Delphine’s target acquisition is a bedding brand, of all things..."
Rumors had been circulating for some time.
His sister, Delphine Arnault, the CEO of Christian Dior, had supposedly chosen Frette as another acquisition target for the LVMH Group.
Founded in 1860, Frette was an Italian luxury bedding brand known as the very name of the world’s finest linen.
It was the kind of high-end bedding brand used by European royal families and noble houses, major hotels, and even the Vatican.
With a brand like that, there was nothing strange about LVMH wanting to acquire it.
The problem was the timing.
Not long after Haesol Textile was brought under the LVMH Group, his sister Delphine was trying to acquire Frette?
And now, with GyeolBit currently enjoying a surge of popularity across Europe, another bedding brand?
To Antoine, his sister’s intent was perfectly clear.
"It seems she’s trying to keep an eye on you, Mr. Antoine."
Camille seemed to share the same opinion.
On reflection, it was almost ridiculous.
After all, he and Delphine had both opposed the equity investment in Haesol Textile.
Delphine, not knowing that, was trying to buy a luxury bedding brand to keep her brother in check, but in truth she did not realize she was aiming at their father.
"And what about Father?"
"No particular comments have been made."
"So if the price is reasonable, he won’t refuse the acquisition?"
"It seems he won’t object as long as it is a good business. The luxury home market is growing quickly, after all. In particular, since the pandemic people have been spending more time at home, and demand for luxury bedding and home furnishings has surged."
"Frette would be a good business, no doubt. But isn’t the company owned by a private equity fund?"
"Yes. It was acquired in 2006 by a private equity fund called Change Capital Partners. Since they haven’t officially put Frette up for sale since then, we can assume sales are stable."
"So that means we’d have to pay dearly for it?"
"..."
After nodding, Antoine studied Frette’s report for a long moment before asking, "If I acquire it, what do you think my sister will do then?"
"If she is truly trying to acquire Frette for the purpose I fear, then after the acquisition I think she’ll use pricing and positioning policy to target Haesol Textile’s GyeolBit bedding."
"Would that work? The concepts are too different."
"When the concepts are different, if the price is overwhelmingly better, the choice becomes easy."
"I suppose so..."
Antoine nodded.
When two brands with different concepts stand right next to each other, consumer attention naturally leans toward whichever is cheaper or more expensive.
In the end, positioning was what mattered.
Just as a plain man looks all the more shabby when placed beside a handsome one, if they were displayed side by side in a department store, one side would inevitably suffer. And in Antoine’s view, Delphine could easily beat GyeolBit if the acquisition was of the caliber of Frette.
And a group like LVMH certainly had enough power to decide where a department-store booth would be placed.
"What should we do?"
"Why? Do you think I should make a formal appeal to Father and try to stop it?"
"If you could do that, it would prevent things from getting complicated."
If things unfolded the way Camille suggested, there would indeed be no headache.
But...
"Father is the sort of man who will let a minor misunderstanding slide when business is involved. You want me to go to him and ask him to oppose it? He’d call me an idiot. And if Haesol Textile’s GyeolBit ends up losing, he’ll just think, 'I must have misread it,' and forget about it. In the end, the only one who’ll be in trouble is Gabriel Moreau, the one who proposed the equity investment."
"My thinking was too narrow. Then will you simply watch?"
"I can’t do that. If you know the other side is preparing a pistol, the least we should do is inspect the weapons we have as well."
Camille’s eyes lit with something bright.
"Then... are you planning to go to Korea?"
Antoine gave a faint smile.
"Yes. Book me a flight to Korea. I need to see it for myself."
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