The Yuseong Group Chairman (5)
As soon as Chairman Yoo Jaeho decided to go through with the acquisition, the M&A division at Yuseong Electronics sprang into action.
Vice Chairman Kwon Hyeok-jun personally went out with his staff to inspect Dongwoo Precision’s production facilities and research labs.
He had joined as a researcher at the Yuseong Semiconductor Research Institute and gone on to lead the company’s semiconductor leap-ahead strategy.
It was no exaggeration to say that thanks to his effort and drive, Yuseong Electronics had risen to become the world’s number one memory semiconductor company.
Even in his seventies, Vice Chairman Kwon still refused to slow down, continuing his work in R&D and mentoring the next generation, and Chairman Yoo held him in deep respect.
So when the call came, Chairman Yoo set aside his meeting and answered at once.
“Yes, Vice Chairman Kwon.”
"Did you already know?"
Chairman Yoo blinked in confusion.
“Know what?”
Vice Chairman Kwon’s voice came back, cool and measured.
"About Dongwoo Precision. After looking into the matter more carefully, it seems the Chinese side was the one playing games."
“Playing games?”
"It’s true that the stamp wear rate is high, but it was something they could have anticipated well in advance. It was YMCT that pushed them to ship as soon as the prototype came out."
The words hit Chairman Yoo like a blow to the head.
Did they deliberately create losses? To force Dongwoo Precision into a corner?
Why would they go that far just to acquire Dongwoo Precision?
Vice Chairman Kwon explained the reason.
"When I first heard that you had made the decision, I thought it was strange. But after examining it myself, I understand the reason now. Their lithography technology is exceptionally strong. If Dongwoo Precision had fallen into Chinese hands, the technology gap would have narrowed dramatically. In the worst case, a few years from now Yuseong Electronics might have found itself chasing Chinese semiconductors instead."
“It’s that serious?”
Even as he listened, he could hardly believe it.
Did Dongwoo Precision really have that much value?
"Yes. Until now, we believed that in advanced process technology there was no alternative to EUV, and that NIL was impossible. But after checking the technology myself and speaking directly with the researchers, I’ve begun to think it may be possible."
Chairman Yoo was stunned.
“Is that really true?”
Impossible and possibly possible were worlds apart.
Impossible meant no matter what you tried, it would never work. But possibly possible meant that if you poured in the money and time, you could make it happen.
Vice Chairman Kwon was usually cautious to the point of restraint, never one to show emotion. Yet now his voice was bright, almost like a child’s.
"Now that I’ve found the key to solving this difficult problem, I’ll make sure it can be used in Yuseong Electronics’ foundry before I retire."
“I’ll be counting on you.”
After the call ended, Chairman Yoo found himself murmuring under his breath.
“So that company really was the nail in the horseshoe.”
If he hadn’t met him and listened to his explanation that day, he wouldn’t have cared whether Dongwoo Precision lived or died.
What would have happened if he hadn’t heard those words? Could a kingdom really fall because of a single nail?
In business, you meet all kinds of people. Some are useful, and some are not.
And every once in a while, you meet someone who truly deserves the title of a benefactor. Such people are hard to meet, and even harder to recognize for what they are.
But this one had come to him on his own feet.
Chairman Yoo thought of the young man who had come with Sung Yoon-ah.
So it wasn’t an accident that he exposed the Primus Fund’s corruption?
He had correctly seen the value of Dongwoo Precision, a value Chairman Yoo himself had not known existed. And once he realized that, he could no longer dismiss anything the young man had said.
He told me to increase foundry investment and acquire fabless companies, didn’t he?
Yang Ja-eun, the eldest daughter of Chairman Yang Hyeon-seong of the DA Financial Group, had become unbearably busy after the Primus crisis broke.
One of the tasks she inherited was cleaning up the mess left behind by former Executive Director Yang Jeong-uk’s resignation.
The Financial Supervisory Service first recommended that the selling firms compensate victims by paying out 70 percent of their losses.
Strictly speaking, since the sellers had not been complicit with the fund managers, they were victims too in a sense. But it was hard to escape responsibility for failing to supervise properly.
Following the regulator’s recommendation, DA Securities paid out 70 percent of the fund principal first, then promised additional compensation through the proper procedures in an effort to calm public anger.
Once the fallout from the Primus scandal settled, Executive Director Yang Ja-eun was scheduled to leave her current post and move up to DA Bank.
After finishing an important group meeting, she got into her car and headed to DA Securities headquarters in Yeouido.
She was going to have dinner with her daughter for the first time in a while.
As soon as her daughter got in the car, she chided her.
“I told you I’d meet you at the restaurant. Why come all the way to the company to pick me up?”
“We were going the same way anyway. It’s easier to just take one car.”
“What if the other employees saw?”
“It’s not like they don’t already know.”
“Still. What kind of parent goes to pick up their child at the child’s company?”
Yang Ja-eun nodded.
“All right. I’ll be more careful next time. What do you want to eat?”
Dinner was hanjeongsik, a traditional Korean set meal.
As they ate, Yang Ja-eun asked her daughter, “How’s work these days?”
“Same as always.”
“No man you like?”
“Nope.”
Yang Ja-eun thought of the man her daughter had once been interested in. For a while, she had talked about him constantly at home.
“Do you still keep in touch with him?”
“Who?”
“Han Miru.”
“Oh.”
“He’s really something else. He exposed the fund’s corruption and then left the company as if he’d done what he came to do and had no further attachment. I thought he’d ask for something afterward, but he didn’t even do that.”
“……”
He had asked for something, all right. It was just that the things he asked for had been so bizarre.
“Mom, actually...”
And so Sung Yoon-ah told her about what had happened in the meantime.
As her daughter spoke, Yang Ja-eun could not hide her astonishment.
“He bought junk bonds and then asked to meet Chairman Yoo Jaeho?”
“Yes.”
The rest was even more absurd.
“And then, when he met Chairman Yoo Jaeho, he told him to acquire Dongwoo Precision?”
“Yes.”
It was beyond common sense, and far too presumptuous.
“Do you think M&A is some kind of children’s game? What if Chairman Yoo had gotten angry over that?”
Chairman Yoo Jaeho’s influence in the business world needed no explanation.
If he had only gotten angry and let it go, that would have been lucky. If it had gone badly, the damage might have reached her daughter as well.
Fortunately, he was known for being affable and free of grudges. Even if he had felt a little put out, he would likely laugh it off.
With a tone of instruction, Yang Ja-eun scolded her daughter.
“If something like that happens, you need to tell me in advance.”
Sung Yoon-ah pouted slightly.
“You were busy, so I didn’t want to bother you.”
“What was Chairman Yoo’s reaction?”
“He didn’t seem offended. If anything, he looked amused.”
Yang Ja-eun shook her head.
“You can never know what businesspeople are thinking. They smile to your face and stab you in the back.”
That made Sung Yoon-ah worry a little too.
Will Miru be all right?
Yang Ja-eun asked, still unable to make sense of it. “But why Dongwoo Precision of all things?”
“He said the technology was good enough that it wouldn’t go under easily.”
“Really?”
“Yeah. There’s even talk that a Singaporean company called XRT Semicon might acquire it recently.”
“That’s the kind of thing you never know until it’s finalized.”
How many deals collapsed right before closing?
“I don’t know whether it’ll happen or not, but the bond price is already going up. If you sold now, you’d probably make double.”
“Is that so?”
Picking out a solid bond from a pile of distressed ones was about as hard as guessing the winning lottery numbers. If it had been easy, would institutions ever have sold them at fire-sale prices in the first place?
And yet...
Han Miru had correctly identified the hidden rot in the fund, a rot nobody else had seen.
Well, if he has that kind of insight, maybe he really can pick out the companies that will survive among all the ones going under.
Buying junk bonds and making a killing was hardly unheard of, after all.
In the middle of their conversation, Yang Ja-eun’s phone rang. The moment she saw the name on the screen, her face went white.
Seeing that reaction, Sung Yoon-ah asked, “What is it? Who is it?”
“Chairman Yoo Jaeho.”
“What? Seriously?”
Looking at her daughter’s shock, Yang Ja-eun thought back.
They had met several times at business gatherings and exchanged numbers, but they were not the sort of people who contacted each other privately.
And yet he was calling out of nowhere.
Why?
With trembling fingers, she answered.
“Hello?”
The voice on the other end was warm and cheerful.
“Hello, Executive Director. This is Yoo Jaeho.”
“Yes. Hello, Chairman. It’s been a while. I hope you’ve been well.”
“Do you have a moment to talk?”
“Of course.”
After a brief exchange of ordinary pleasantries, Chairman Yoo said,
“Your daughter came by my company the other day.”
So that’s what this is about!
Though flustered inside, Yang Ja-eun kept her tone as careful as she could.
“I was surprised to hear about that myself.”
“Your daughter really does take after her mother. She was exceptional.”
“Thank you.”
Is he mocking me?
“By any chance, are you with your daughter right now?”
“Yes.”
“Perfect. Could you put her on?”
She wanted to say, let’s just pretend that day never happened, but the fact that he was specifically asking to speak suggested he had no intention of letting it slide.
Even if she was his daughter, she was an adult now. She had to apologize for her own mistakes herself.
“Understood.”
She handed the phone to her daughter and whispered, “Tell him it was your fault, no matter what.”
“Okay, okay.”
Sung Yoon-ah hurriedly took the call.
“Hello, Chairman. I should have apologized for the other day long ago...”
“Apologize? Ah! I’m sorry I got up first that day.”
Having been ready to apologize and instead finding herself on the receiving end of one, Sung Yoon-ah was stunned.
“W-what are you talking about? I’m the one who should apologize...”
“And thank you very much. I received a great deal of help because of you. I won’t forget the favor you did for me this time.”
“...Yes?”
Still confused, Sung Yoon-ah listened as Yoo Jaeho continued.
“How about dining with your mother sometime? If you’re available, I’d be happy to arrange a table with Arum as well.”
“Ah, yes. I’m free anytime.”
“Ah, and might I ask for Han Miru’s contact information?”
“W-why?”
Was he planning to call and yell at him?
“I’d like to thank him, and I also have a few things I’d like to ask him privately.”
“Oh, yes. I’ll text it to you right away.”
After the call ended, Yang Ja-eun immediately asked her daughter, “What did he say?”
Sung Yoon-ah looked up. “He said he was grateful.”
“For what?”
“I’m not really sure. And he asked for Miru’s contact information.”
“...What?”