License Agreement (2)
Even after word spread that the U.S. Defense Logistics Agency would be coming soon, Haesol Textile had not really changed all that much.
Hwang Seok-jae was the only one with his hands full, buried in preparations for the meeting, while the employees, as always, focused on keeping the machinery running. As for Seung-hyun, there was nothing in particular for him to do.
He simply kept tinkering in his office with a military-inspired design as a hobby.
The military line he was shaping now was not a new kind of uniform, but a concept for everyday wear that carried a military feel.
That meant there were no fixed details he had to follow. He could touch and adjust it however he liked.
He had spent several days killing time with that little pleasure when a call came in from Japan.
"Hello, this is Okada Sota."
"Ah, yes! Did you receive the sample well?"
"Yes, I did. I was quite surprised after opening it. Haesol Textile's technology exceeded my expectations. No one would imagine that a company famous for making affordable, good-quality clothing would also have this level of technical skill in bedding fabric."
"Thank you. I'm glad to hear that."
"So I've decided to change my mind."
"Pardon?"
"Instead of placing it in just a few suites, I'm going to replace half the hotel rooms with Haesol Textile bedding."
"Wait... really?"
"Of course. I'll send the formal order after I hang up, so please ship it as quickly as possible. We're preparing a room package event around it."
"Haha, yes. Of course. We'll do our utmost to get it to you as quickly as we can."
"Then I'll leave it in your hands."
After ending the call, Seung-hyun let out a short, incredulous laugh.
All the work he had poured into specialty bedding fabric for nearly a month seemed to be returning to him as this kind of reward, and suddenly none of the trouble felt wasted.
A little later, after checking his email, he found an order from Okura Tokyo Hotel waiting for him.
Delighted, Seung-hyun immediately called for Factory Manager Park Han-soo.
"Factory Manager, Okura Tokyo Hotel has ordered 250 sets of Solinen Prestige bedding!"
Park Han-soo's eyes went wide.
"Two hundred and fifty sets? Weren't we expecting around twenty? Something like testing a few and then deciding...?"
"That was the plan, yes. That's what I thought too. But I just heard from President Okada Sota, and he said he was so impressed by the bedding that he's going to fill half the hotel rooms with Solinen Prestige. Hahaha."
"Wahaha! That's fantastic! At five million won per set, that's an order worth more than 1.2 billion won!"
"Yes, it's a much bigger volume than we expected. They've asked us to send it as fast as possible, so let's adjust the production schedule right away."
Park Han-soo nodded, unable to hide his excitement.
"Bedding production at Plant One has been shrinking lately, so this is really like sweet rain after a drought. I'll coordinate the schedule immediately and report back."
To mass-produce Solinen Prestige fabric, Haesol Textile's Plant One shifted straight into a 24-hour operation.
All of the employees happily joined in on the extra shifts.
An order on this scale from Okura Tokyo Hotel, one of Japan's top luxury hotels, would raise Haesol Textile's international standing even further, and the steady stream of orders would help secure their jobs for the long term.
From the employees' perspective, extra shifts also meant higher pay, so there was no reason to dislike the order.
Of course, anyone who didn't want overtime was assigned mainly to daytime work, so there was no complaint among the staff.
Seung-hyun walked through the production floor with a satisfied smile.
The fact that the technology his father had left behind was now being recognized around the world filled him with pride.
"President, at this rate I think we can ship the first batch within a week."
"Good. Let's make it to the highest quality and live up to Okura Tokyo Hotel's expectations."
*
While Haesol Textile was busy producing Solinen Prestige, the Ministry of National Defense was receiving the delegation from the U.S. Defense Logistics Agency.
"It's a pleasure to meet you."
It was a remarkable scene, with not a vice minister but the Minister of National Defense himself greeting the delegation.
Feeling the flashbulbs popping all around him at this very moment, Minister Kim Pil-yeon wore a deeply satisfied smile.
Soon after, the defense minister and the delegation gathered in the reception room at the Ministry of National Defense in Yongsan and spoke with reporters present.
"Interest in Korea's Dualtex fabric is very high. If possible, I would like to visit Haesol Textile today."
Knowing full well that meeting the defense minister was of no real significance, Robert Clark, the deputy director of the DLA, smiled quietly and stated his position.
He understood that this time held great meaning for the Korean defense minister, so he was accommodating the ceremony while also making clear that he wanted it over as quickly as possible.
Minister Kim, naturally catching the message, decided that almost all the photos that needed to be taken had already been taken and quickly excused himself.
An hour later, the vehicles carrying the U.S. Defense Logistics Agency delegation arrived at the front gate of Haesol Textile.
Alongside Deputy Director Robert Clark were Dr. Catherine Hamilton of DARPA and five other delegates, including a U.S. Army procurement officer.
Several vehicles carrying reporters were already parked in front of the company, and security vehicles were visible as well, there to protect the DLA party.
At Haesol Textile, Seung-hyun and Hwang Seok-jae came out personally to greet them.
"Welcome."
They did not greet them with a fuss as though receiving a king's procession. They simply met them with calm smiles.
Somehow, greeting them too warmly would feel as though they were starting the negotiation already at a loss.
"Mr. Jung, it's good to meet you. We'd like to look around the company first, if that's possible."
"Of course. I'll show you around. This way, please."
As the group entered the factory, they were met with the busy sight of Solinen Prestige bedding production in full swing.
The workers were focused on cutting fabric, sewing, and packing the finished goods.
Robert, slightly taken aback by the sight of factory workers so absorbed in bedding production rather than military uniforms, said, "Bedding production is in full swing right now."
"Yes. We've received a large order from Okura Tokyo Hotel in Japan. We produce not only uniforms, but also bedding, casual wear, and a range of other products."
Robert and the rest of the delegation looked genuinely surprised.
They had known Haesol Textile was not a company devoted solely to uniforms, but seeing them fully engaged in premium bedding production gave them a fresh shock.
Dr. Catherine, standing beside him, whispered to Robert, "A company like this may not be easy to negotiate with. If they were focused only on uniforms, they might have accepted our proposal much more easily..."
Robert nodded.
He knew as well that a company with diverse business areas had less dependence on any one sector, which gave it a stronger hand in negotiations.
After a cursory look around the factory, the delegation followed Seung-hyun into the conference room.
On the table were samples of Dualtex fabric and technical documents.
"First, I'll give you a brief explanation of the characteristics and advantages of Dualtex fabric."
Seung-hyun began his presentation.
He emphasized that Dualtex was 32.4 percent lighter than existing uniforms, offered superior breathability and durability, and performed especially well in high-temperature environments, though in truth they knew the material's functions better than he did.
It was a meaningless ritual, but the delegation listened to the presentation in silence.
"This fabric was completed after years of research by our team, based on the technology developed by my father. We are currently supplying it to the Korean military, and soldier satisfaction is very high. We're only grateful that the delegation has taken an interest. Do you have any questions?"
There were no questions about performance.
They had already done all the research.
The factory tour and the presentation had both been formalities; the real matter began now.
Robert got straight to the point.
"Mr. Jung, the U.S. Department of Defense would like to introduce the Dualtex fabric technology used in your uniforms."
At that blunt opening, Hwang Seok-jae asked in fluent English, "Are you requesting a technology transfer?"
"That's correct."
"That is not something we had considered..."
"We will pay you $25 million as a fee."
Seeing the first signs of refusal, Robert Clark tossed the number out flatly.
At that instant, Seung-hyun, who had been drinking water, choked with a startled "Kek" and clapped a hand over his mouth.
He nearly spat out the water, but forced himself to calm down and said with a smile, "I'm sorry, but we're not considering a technology transfer."
Even as he refused, his voice trembled faintly.
Good heavens. This wasn't even an investment deal, just a fee payment, and they were offering 36 billion won. In terms of the scale Seung-hyun was used to, that was something he had never experienced before.
"Opportunities like this don't come often. Wouldn't it be wise to think it over again?"
Robert's face had hardened as though he might stand up at any moment.
His expression said that if they said yes here, they'd receive 36 billion won, but the moment they said no, he would get up and leave.
Even Hwang Seok-jae, who had handled plenty of large transactions, felt his nerves shaking at this one.
At that moment, Jung Seung-hyun waved his hand without the slightest sign of fear.
"The technology transfer is not possible. We are only considering license production."
This was technology his father had left behind and that he had developed further. To hand it over for a one-time payment would be unthinkable to Seung-hyun.
He would rather take no money at all than simply hand over the Dualtex technology.
"We didn't come to Korea thinking about license production."
"Then I'm sorry."
That turned out to be a relief for Hwang Seok-jae.
With the young CEO taking control of the situation, the pressure immediately eased.
A brief, awkward silence followed, and Deputy Director Robert Clark frowned in discomfort.
Then he spoke with the U.S. Army procurement officer.
After more than ten minutes of prolonged discussion, Deputy Director Robert said with great reluctance, "If a technology transfer is off the table, then what royalty rate are you thinking of for a license?"
This time Hwang Seok-jae stepped forward.
"Nine percent."
At the absurd figure, astonishment spread across the faces of the American delegation all at once.
"Nine percent? You know that's an unreasonable condition, don't you?"
"It would be hard to call it unreasonable when you consider the unique technology Dualtex currently holds. Even taking into account the innovation, exclusivity, and rarity of the technology, 9 percent is by no means excessive."
"Five percent. We can't give you more than 5 percent."
Now that the president had made clear he cared less about the money than about being properly valued, Hwang Seok-jae spoke without hesitation.
"I'm sorry, but 5 percent is not a condition we can accept."
"Perhaps you don't realize how much money even 5 percent could bring to a small company like yours?"
"We want fair value for the technology, not just money. And this Dualtex technology does not demand extraordinary costs in the course of producing uniforms. You also have to take into account that there is little difference from the cost of making existing uniforms. Even so, 5 percent is not something we can accept."
"As an ally, I think asking for terms this excessive is unreasonable."
"On the contrary, because we are allies, the American side's demands feel excessive. Five percent is not acceptable."
The conference room fell silent again.
Hwang Seok-jae looked over at Seung-hyun, and Seung-hyun gave the faintest nod, lending his support to the position.
Deputy Director Robert Clark shook his head toward the rest of the delegation, signaling that this was not going to work.
At that point, Dr. Catherine, who had come with the delegation, stood up and approached him, and the two of them whispered back and forth for quite some time.
Another ten minutes passed.
It was a tense moment in which his palms grew damp on their own.
It was the first meeting in which hundreds of millions of won were moving with each sentence, and even Seung-hyun, who had spoken boldly on the surface, was burning up inside.
After a long stretch of silence, Deputy Director Robert finally spoke again.
"Let's compromise fairly at 7 percent. We can't go any higher than that. If you say no, then today's negotiations are over."
It was the final ultimatum.
Hwang Seok-jae turned to look at Seung-hyun.
Seven percent had been the number Hwang Seok-jae had set as his target from the beginning.
Seung-hyun swallowed down the urge to cheer and nodded.
With that, Hwang Seok-jae smiled faintly and said, "We accept 7 percent."
And so the U.S. Army uniform license agreement, generating over $100 million in annual sales, was secured.
---