Chapter 26: What Happens When You Build a Company Ranked Among the World’s Top Ten by Market Capitalization in South Korea
Chapter 26: What Happens When You Build a Company Ranked Among the World’s Top Ten by Market Capitalization in South Korea
United States. An emergency meeting was convened at the headquarters of global big-tech company Google.
“The stability makes no sense.”
One employee shook his head as he spoke.
“It isn’t connected to the outside through an API.”
The Google vice president asked in shock.
“Don’t tell me it’s solving the problems using only the device’s own visual reasoning?”
“Yes. We’re certain.”
“What lunatic made this? How is this even possible?”
The atmosphere in the conference room turned grave.
“How much do you think they spent developing it?”
“We don’t know. We’ve confirmed that it was made by a small or medium-sized South Korean company.”
“Haah... We pour forty-eight billion dollars into this every year...”
Companies ranked among the world’s top ten by market capitalization were spending approximately seventy trillion won every year developing AI.
Yet an AI made in South Korea was doing something that none of the big-tech companies had managed to properly implement.
Hermes (Downgraded Ver.), oblivious to the situation, diligently carried out the experimental tasks assigned to her.
At that moment, an employee loudly slurping a shake made an absurd suggestion.
“Could someone in India or somewhere be controlling it remotely? This doesn’t make any sense.”
“You lunatic! What have you been listening to this whole time? We disconnected the internet cable!”
Another employee shouted at him in frustration.
The Google vice president tore at his hair before finally speaking.
“First, let’s see the face of whoever made this.”
“Understood.”
“And the employee who was slurping the shake is fired. Leave.”
Science Facility Factory No. 2 Office
The words “First-Quarter Sales Review Meeting” were written in large letters on the whiteboard.
“Sales of the HPM drone Xellos scheduled through the end of this year amount to one hundred and twenty billion won.”
“You sold the entire year-end production volume?”
At my question, Taeju shook his head and turned over a document.
“Not yet, but at this rate, selling it all is only a matter of time.”
“So going all the way to the United Kingdom for the demonstration was worthwhile.”
One hundred and twenty billion won.
Considering the days before we started the business, when I repaired and resold broken computers, it was truly tremendous progress.
Could I possibly have a talent for business?
“Next is the R-Type drone. This year’s projected sales are six hundred billion won.”
“What?”
My mouth fell open.
“You sold six hundred billion won’s worth of something priced at five hundred thousand won per unit?”
“Toy Empire is selling them like crazy. The R-Type is currently our company’s definite cash cow.”
Ian’s father had not become a chaebol for nothing. His skill at breaking into distribution networks was practically an art form.
But we should not have had enough production equipment to manufacture six hundred billion won’s worth. How had he sold that many?
“Taeju, we won’t be able to meet that level of production.”
“So I tripled the production equipment at Factory No. 1. I also significantly increased the number of employees. It’s currently running around the clock in three shifts.”
While I had been shut inside the laboratory, devoting myself solely to developing new technology, Taeju had been running around outside and steadily growing our company to the size of a major corporation.
“You must have worked hard, Taeju.”
Looking at him closely, I saw that the dark circles beneath his eyes had returned.
Hermes had eliminated the minor administrative busywork, but Taeju had poured all the time that freed up into expanding the company.
“You were right. No matter how exceptional the AI is, you ultimately still need people on-site.”
Taeju casually remarked as he massaged his stiff neck.
“Now, for the long-awaited new business. Projected sales for the enterprise AI business this year are five hundred billion won.”
“What?”
The figure was impossible to believe.
“The HPM drone I nearly killed myself building over several sleepless nights only brings in one hundred and twenty billion won a year.”
[Drones require production facilities and physical products, but enterprise AI models can be duplicated and sold solely as software. The profit margins are different.]
“No, even so...”
I did not work for money, but if someone truly wanted to rake in enormous profits, a software platform business was indeed the best option.
“Why are you so surprised? This is ultimately an AI you created too.”
Taeju gave a faint laugh as he looked at my dumbfounded expression.
“It’s selling this well because you made it well.”
He said it so casually, but if Taeju had not gone out and handled the sales himself, I doubted we would have sold five hundred billion won’s worth.
No, I might still have been sprawled over my desk at school, doodling blueprints.
“Hermes, what about the enterprise AI? Did you optimize it for each company?”
[Yes. I retained only the necessary functions in a lightweight form.]
“Hermes says she’ll handle her own updates too. She really is incredible.”
Taeju stroked the monitor as though proud of Hermes.
He looked insane.
“Many companies still have time remaining on their free trials, so we won’t know the final result until the end of the year.”
“What if they don’t switch to the paid version after the free period ends?”
“I don’t think that’ll happen. The response from the field has been enthusiastic.”
After putting together Taeju’s entire briefing, it appeared that our company, founded less than a year ago, was projected to greatly exceed 1.1 trillion won in annual sales this year.
Office of the President, Blue House
“You want to create an environment where the nation’s brightest students choose engineering schools?”
The Minister of Education’s eyes widened at the President’s statement.
“All of South Korea’s most outstanding students are trying to enter medical school.”
The President had recently gained a profound realization from Ryu Hyesung’s actions.
One genius could change an entire country.
He wanted to increase the probability of producing such a genius.
“Their careers are theirs to choose. It is not something the Ministry of Education can force or interfere with.”
The Minister of Education looked troubled.
In South Korean society, the career paths of exceptionally intelligent students were primarily decided by their “mothers.”
Every one of them wanted her child to become a stable and respected doctor.
“Doctors are, of course, essential to the country, but...”
“The nation’s future and scientific advancement require genius engineers.”
The Director of the Agency for Defense Development supported the President’s point.
“It isn’t that I fail to recognize their importance, but honestly, engineers’ salaries... We all know what they’re like.”
The Director immediately challenged the Minister of Education’s statement.
“LK Hynix employees’ salaries have already surpassed those of most doctors.”
Considering that it took an average of approximately ten years after entering medical school and completing fellowship training before someone began earning serious money, it was not an incorrect statement.
“That may be true, but LK Hynix is only one company. To redirect brilliant students from medicine to engineering, we would need at least five more companies on LK Hynix’s level.”
The Minister of Education continued to look troubled.
Realistically, it was extremely difficult to encourage South Korea’s brightest students to study poorly paid engineering, where they could be dismissed at any time, rather than become doctors with lifelong security.
“...Why don’t we ask Hyesung?”
At that moment, the Director of the Agency for Defense Development casually made the suggestion.
“In the United States, it is common for a single genius to establish several innovative major corporations.”
“Hmm... That is true.”
“We do not need to create five companies like LK Hynix. If just one more company ranked among the world’s top ten by market capitalization emerges, we can stop the concentration of students in medical schools.”
The Minister of Education let out a hollow chuckle at the Director’s words.
“That’s easy to say.”
When the President gave him a cold, displeased look, the Minister flinched and hurriedly composed his expression.
“No, well, what I mean is... South Korea’s economic structure, in which two or three existing conglomerates drag the entire economy along by the collar, has remained entrenched for decades. I’m asking whether a global big-tech company like that could simply appear out of nowhere.”
The Minister’s point was also extremely realistic and correct.
Given South Korea’s distorted industrial structure, it was nearly impossible for big-tech companies to spring up everywhere.
“What would happen if one did?”
The President asked in a low voice.
“What?”
“I am asking what you think would happen if another company ranked among the world’s top ten by market capitalization emerged, Minister.”
Realizing that the President was not joking, the Minister answered immediately.
“If that truly happened... intelligent students would no longer struggle desperately to become doctors. Instead, because it takes decades for doctors to begin making serious money, medicine might become a profession they avoid.”
The Minister of Education continued while he was at it.
“And would that be all? The dollar exchange rate would fall, and brilliant people from every country would come to ours.”
The President immediately picked up the desk’s internal telephone and pressed a button.
“Secretary Seo.”
“Yes, Mr. President.”
“Schedule a private meeting with CEO Ryu Hyesung at the earliest possible time.”
“Will you be going alone?”
“Call the Deputy Prime Minister for Economic Affairs as well. He is coming with me.”
Science Facility Factory No. 2 Office
“You’re offering us exemptions from military service?”
The President and the Deputy Prime Minister for Economic Affairs, who had arrived at the factory without warning, sat on the old sofa and waited breathlessly for my answer.
“The condition is that your company grows into one ranked among the world’s top ten by market capitalization.”
“No... That doesn’t sound like a difficulty level comparable to winning an Olympic gold medal.”
Taeju spoke with an incredulous expression.
“Can it not be done? CEO Ryu Hyesung, CEO Choi Taeju.”
The President looked at us earnestly.
At that moment, the Deputy Prime Minister for Economic Affairs casually spoke.
“Mr. President, why are you saying something you would normally say in front of the heads of major conglomerates to high school students?”
“Remain silent.”
The President cut off his question.
The Deputy Prime Minister sat there looking dumbfounded.
“Hyesung, can you do it?”
“I’m not sure...”
At that moment, Taeju whispered to me.
“Let’s just agree to it no matter what.”
“To this?”
“You said before that you wanted to grow it into the world’s best defense company.”
We had briefly discussed something like that before.
“Don’t you remember saying that to become an unrivaled weapons company, we would need a space-development business, satellites, a nuclear-power business, and even our own semiconductor production facilities?”
“I did say that, but...”
“If we make all of that a reality, forget the top ten. We could even become number one.”
“Hmm... Hmm...”
As our whispering continued, the Deputy Prime Minister cleared his throat.
“I truly don’t know what we are doing negotiating with children like these.”
The Deputy Prime Minister looked openly dissatisfied.
“Understood. By when do we need to accomplish it?”
I asked under the Deputy Prime Minister’s disapproving gaze, and the President answered.
“Would it be possible within ten years?”
“You won’t be President ten years from now.”
“Promises like these are transferred between presidents.”
The President spoke as though reassuring me that there was nothing to worry about.
“We will produce a document promising military-service exemptions for both Hyesung and Taeju. The government will do anything within its power, so you need only ask.”
“There is something we absolutely need, then.”
“What is it? We will grant anything.”
“I want to see all of Taiwan’s TSNC semiconductor production facilities.”
(Translator’s Note:TSNC / TSMC — “TSNC” is the fictionalized name used in the source for Taiwan Semiconductor Manufacturing Company. TSMC was founded on February 21, 1987, in Taiwan and pioneered the dedicated semiconductor-foundry model, manufacturing chips designed by other companies)
The President’s confident expression vanished, however, as though my answer was unexpected.
“That would be...”
“Would it be impossible? I’m asking because I’m genuinely planning something on a very large scale.”
“For now... Understood.”
And so, under the observation of the Deputy Prime Minister for Economic Affairs, we drafted a classified document with the President.
“I truly cannot believe we are doing this with mere students...”
The Deputy Prime Minister remained dissatisfied.
<If Science Facility enters the world’s top ten companies by market capitalization, its two CEOs will be exempted from military service.>
Inside the Presidential Vehicle
“Mr. President, who are those students that you would make such a promise?”
The Deputy Prime Minister for Economic Affairs was puzzled.
Requests to contribute to national development were normally made when the heads of major conglomerates gathered.
“Since you are the Deputy Prime Minister for Economic Affairs, I will explain it in monetary terms. Those boys reached annual sales of 1.2 trillion won just four months after founding their company.”
“What?”
Only then did the Deputy Prime Minister fully understand.
Almost no company had ever achieved such a feat.
Unless it was being backed by a major conglomerate, it would have been absolutely impossible.
“If what you say is true, Mr. President, they rank in the top 0.03 percent of South Korean companies.”
“I know. It took Google five years to reach that point and Facebook six. Those two students achieved it.”
“No, Mr. President. I should not have looked down on them back there. This is...”
The Deputy Prime Minister’s face turned red.
“Had you told me beforehand, I would have pleaded with them too.”
“It is fine. I only needed the Deputy Prime Minister’s observation to produce the classified document. The problem is arranging an internal tour of TSNC...”
Bzzzt—
At that moment, the President’s phone rang.
“Mr. President, this is Secretary Seo Dojin.”
“What is it?”
“Taiwan’s Vice Minister of National Defense has sent an urgent letter to the South Korean government.”
“What does it say?”
“They are asking to meet CEO Ryu Hyesung immediately.”
“That will not be easy. What happened?”
“The Chinese military has surrounded the entirety of Taiwan.”
“What?”