RR 37
[037] Let’s Not Be Greedy 1.
Miracle Investment in New York established a wholly-owned Korean investment company, and Oh Se-hyun assumed the role of CEO for both the U.S. and Korean entities.
Now, as the major shareholder and Oh Se-hyun as the professional CEO, we were in a delicate relationship. While his attitude toward me didn’t seem to change much, he stopped directly opposing my opinions.
He listened more attentively, and when he did offer a differing opinion, it was always a well-reasoned one based on data.
Especially when I said I would sell all of my Dell Computer shares, he didn’t get excited. Instead, he showed me a stock trend graph and said,
“Last week, the stock price was $47. It’s never dropped since its listing, it’s truly diamond-grade. How about we reconsider when it goes over $60?”
“Do you think there’s no bubble?”
“Of course there is. But a bubble is also a component of the stock price. The reason I’m saying $60 is that the bubble will burst when it hits $60. That’s when people start to suspect a bubble. It won’t be too late to exit then.”
His eye for analyzing stock prices was sharp.
I, being someone far removed from stock investment, had no way of knowing about bubbles or anything else. I only knew Dell Computer’s stock price well because I was interested in Michael Dell as a person.
That’s why I knew well that the stock price soared to $49, plummeted to $10, then climbed back up to $60, and maintained that level.
But Oh Se-hyun had predicted the $60 figure. He was an amazing person.
“Uncle. We’ve made over a hundred times our profit. Isn’t that enough? There’s no reason to be greedier.”
“If you don’t want to be greedy, as you say, sell Dell Computer and invest in stable places. Coca-Cola, Heinz, etc. Wouldn’t you?”
“That’s too stable. That’s not what an investment firm should do. Individuals should do that.”
Now, my uncle was well-balanced too. He sighed and took a step back.
“You said Japan, right? Do you have any companies in mind?”
“Could you look into it for me? See if there’s anything good?”
I also wanted to see what Oh Se-hyun would find before I even mentioned it. Perhaps he might find an even better company than I could.
“Then I’ll draw up a list, and we can discuss it again. If there’s no better place than America, you’ll change your mind, right?”
“Of course. Investing in the best place is fundamental, isn’t it?”
I also pretended to back down a step. He was an essential person, so I had to humor him a bit, didn’t I?
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Grandfather’s Scrutiny and Jin Yeong-jun’s Return
“Grandfather, may you live a long and healthy life.”
“That’s enough. What’s with the deep bow… You seem a bit more mature, how is it? Have you learned a lot?”
Chairman Jin, who refused Jin Yeong-jun’s deep bow after returning from Germany after several years, did not lower his stern gaze.
He had meticulously checked Jin Yeong-jun’s life through the weekly branch reports. Although there were occasional instances of him getting completely drunk, there were no particular incidents to speak of.
“There was no need to go to Germany, Grandfather.”
“What did you say?”
Chairman Jin’s eyebrows twitched, but Jin Yeong-jun did not lose his composure.
“Our electronics products are selling out. Production can’t keep up. European distributors are even putting down deposits and waiting. But since it was all thanks to you, Grandfather, I thought it would be faster to learn directly from you.”
“It’s thanks to me?”
“You stripped out all the convenience features and put in only essential functions, then scattered them cheaply like air-dropping. That made Eastern Europe as well as Western Europe enthusiastic. Isn’t this all your strategy, Grandfather?”
Jin Yeong-jun sat beside Chairman Jin and bowed his head respectfully.
“I learned a lot. Thank you, Grandfather.”
“It seems your head is clearer now that you’ve kept away from women.”
“I haven’t even had alcohol. Just a little wine very occasionally, that’s all.”
Jin Yeong-jun found a faint smile on his grandfather’s lips and felt relieved. He felt he had perhaps swayed his grandfather’s distrusting heart a little.
He wanted to end his exile now. In Korea, the title of Sunyang Group’s eldest grandson held absolute power, but in Germany, it meant nothing.
They barely knew the name Sunyang, and even if they did, that was all there was to it. It only mattered within the Korean expatriate community.
He wanted to live like a crown prince in his homeland as soon as possible.
However, the words that came from his grandfather’s lips crushed that hope mercilessly.
“Alright. The branch managers all praised your restraint. Just work hard like this until you’re thirty. Then come back and take an important position.”
He wanted to spring up and shout that it was too much, but thanks to the patience he learned in Europe, he was able to smile brightly.
“Yes, Grandfather. I will work hard. Please watch over me.”
Jin Yeong-jun finished his New Year’s greetings and returned home. He didn’t forget to spit once outside his grandfather’s house.
“He said I have to be stuck in Europe until I’m thirty.”
“So? You didn’t get angry, did you?”
“Oh, Father. I’m not a reckless child anymore. I told him I’d work hard and left.”
“Good job.”
Vice Chairman Jin Yeong-gi patted his son’s shoulder once. Then he looked around at his children sitting on the living room sofa and said,
“Now that you’re adults, remember my words. Grandfather will surely monitor your every move. If even a slight unsavory rumor surfaces, it won’t just be you, but others will be affected too.”
The eldest daughter, Hye-kyung, and the youngest, Kyung-jun, had bored expressions.
Anyway, there was no reason for them, who were far down the line of succession, to try and gain their grandfather’s favor. They fully understood that their father’s words were meant to tell Jin Yeong-jun, the eldest son of the family, not to cause trouble. Because they were adults, as their father said.
“Hye-kyung, when you graduate from university next month, I’ll introduce you to a good man, so hurry up and get married. And whether you go study abroad…”
“Dad! Who gets married right after graduation these days? Give it a few more years…”
“Listen to me until I finish!”
At Jin Yeong-gi’s roar, the pouting lips of his two children quickly retracted.
“All you’ve done is be from Grandfather’s bloodline. Thanks to that, you live enjoying everything you want and everything you desire. If Grandfather abandons you, you won’t even enjoy half of your current standard of living.”
“Father, why are you suddenly saying such things…”
“Don’t you know Grandfather has changed since last year? People’s thoughts change as they get older. If there’s something to eat, an aging parent’s heart thinks of their eldest son, and if there’s food, they want to give it to their youngest. Grandfather’s affection is now directed towards your youngest uncle and Do-jun’s family.”
Everyone had some idea of the atmosphere. They even heard that Chairman Jin, despite his busy schedule, watched the movie made by their youngest uncle.
“Consider Grandfather’s age. How much longer will he live? Until then, don’t cause any trouble and visit Grandfather often. Once Sunyang Group is in my hands, you can live however you want. Do you understand?”
“What does not causing trouble and living quietly have to do with marriage?”
When Hye-kyung retorted indignantly, Jin Yeong-gi, frustrated, burst into a shout.
“Who in our family has had a love marriage? Look at Uncle Yoon-gi! He lived for over ten years treated like a disowned child. That’s the price of the marriage you desire. If you want to marry as you please, pack your bags and leave right now!”
Jin Hye-kyung became speechless at her father’s outburst.
Jin Yeong-gi calmed down as all his children bowed their heads and looked at him cautiously.
He was so anxious these days that he couldn’t even sleep.
This was because his father, Chairman Jin, had drastically changed after the failed acquisition of Ajin Motors last year. Major group affairs were often handled without his knowledge, and even affiliate issues that he used to decide unilaterally now required the chairman’s final approval.
Rumors that the group’s succession structure would change began to spread, and affiliate presidents frequently bypassed him to report directly to the chairman.
His father had definitely changed. He vaguely guessed the reason too.
A nephew he had never once been wary of, or whose existence was even insignificant, was now shaking the entire household.
Jin Yeong-gi had already firmly decided that if his children prevented him from becoming the owner of Sunyang Group, it would be better to abandon them.
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The Next Target: SoftBank
“I found a hidden gem, but it’s not going to be easy.”
The list Oh Se-hyun handed me had only one company on it.
“Last year’s revenue was 100 billion yen, close to 800 billion won in our currency.”
“Then isn’t it already a fully grown goose?”
“This company’s trajectory is similar to the IT industry. As the IT industry grows, this company also grows. It will get even bigger in the future.”
In 1992, Microsoft’s Windows 3.1 dominated the Japanese computer industry. Furthermore, software like MS Office sold like hotcakes. The size of Japan’s software market was roughly twenty times that of Korea. Although the population was only a little more than twice, copyright awareness was clear. SoftBank, which held exclusive distribution rights for Microsoft, quickly grew into a large corporation.
I didn’t say, ‘Actually, I was thinking of SoftBank when I said that.’ There’s no need to mention it if it aligns with my thoughts.
Isn’t it the true virtue of an owner to bear the blame and give credit to those below them?
“What do you mean ‘not going to be easy’?”
“Since the company is on track, they probably think they don’t need investment. This company’s founder… Oh, right, this person is a third-generation Zainichi Korean.”
“I know that too. It was in the newspaper once. In a special feature on successful Koreans abroad. They said he was a bit eccentric.”
“Really? Anyway, as he wrote a success story in Japan, many investors flocked to him. But he had no need for it, so he supposedly refused them all.”
“The same as Dell Computer.”
Companies that are doing well have people bringing them money, while companies that aren’t have everyone who visits demanding their borrowed money back.
“No. This one is much more high-handed. The CEO is so full of confidence.”
“Are they planning an IPO?”
I only knew about it from internet articles, so I had no idea of the exact timing. But I definitely remembered that it comfortably exceeded a hundred times its value upon listing.
“Well, there was no mention of that.”
“Then there’s still an opportunity.”
“The problem is persuasion… I don’t think it’s possible.”
The investors who failed so far are different from me. That’s because they can’t even imagine that the stock price would skyrocket, no matter how successful a software distributor is.
If they knew this fact, they could invest as much as they wanted.
“Uncle.”
“Yes.”
“Grandfather once said this: ‘Everything in the world has a price. However, everyone has a different price in mind.'”
“Well, that doesn’t sound like a profound statement, does it? They’re even selling water, which is so common.”
In Korea, bottled water was officially sold for the first time during the 1988 Seoul Olympics. At the time, the government allowed bottled water sales for foreign athletes during the Olympics but prohibited it afterward.
The government feared that selling bottled water could create a sense of disparity among citizens, with the rich buying bottled water and the poor drinking tap water, and that it would cause problems like groundwater depletion and environmental pollution. Thus, they did not allow bottled water sales.
However, bottled water companies have been persistently demanding permission to sell bottled water and have currently filed a complaint with the Constitutional Court.
“Exactly. SoftBank’s stock is also a product, isn’t it? They will definitely sell it. If they’re paid enough money.”
At my words, Oh Se-hyun began to look at me with eyes full of curiosity.
“Then how much do you think you can give?”
“What do you think, Uncle?”
He pondered for a moment, then extended his palm.
“Five times. With that, you should be able to make about a 30% profit from the initial momentum after listing.”
“I don’t think they’d be interested in five times, though?”
“That’s why I said it’s difficult. Many investors would have offered up to five times. Conversely, it also means there’s no investment value beyond that.”
“Then the SoftBank CEO might sell if we offer more than five times? Because everyone thinks that way?”
Oh Se-hyun smiled faintly at my words.
“Perhaps. How many times are you thinking?”
“Let’s ask the SoftBank CEO how many times he wants to sell it for. And offer to give him what he wants. I want to see how eccentric that CEO is.”
I won’t be too greedy. I’ll just aim for a two-fold profit.
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