When his long lament finally came to an end, I carefully opened my mouth.
“I see. So that’s what happened.”
“...Yes. KD Solution is the greatest blemish on my career. We’re considering withdrawing from the business in stages.”
“Then what would you do if your funding situation were a little more comfortable?”
“Unfortunately, that market isn’t one you can simply charge into just because you have a little extra money. To catch up with the low-price offensive and technological lead of Chinese products, we’d have to endure losses for at least a decade or more. I can’t hold out that long.”
“Really? You’re saying you really could catch up technologically in a decade or so?”
“...Pardon?”
I swallowed hard.
Not several decades, but a decade or so. If that was all, wasn’t it worth trying?
“If you can just endure losses for a decade or so, is it possible to restore the supply chain?”
“Well, to be honest... it isn’t completely impossible. After the United States imposed an 800% tariff on Chinese solar panels, Europe also began imposing anti-dumping duties. If you look only at technology and unit costs, China still has the advantage, but when you consider the various interests of the international community, there are openings.”
As expected, it was meaningless to look at the economy purely as the economy itself.
China’s monopoly over the supply chain had put many major countries on guard. Everyone knew the Chinese authorities intervened in the market, and they were a country that could throw their weight around whenever it suited them.
“But that doesn’t mean there’s an opportunity for us. To endure losses while also building up technology would cost tens of trillions of won at minimum. How could we possibly withstand that?”
“You don’t have the stamina to fight a game of chicken.”
“Yes. And there’s no guarantee we’ll catch up technologically ten years from now, either. For various reasons, even green companies in Europe are on the verge of bankruptcy. That’s the reality.”
I smiled bitterly.
How ironic that China, an icon of environmental destruction, was a model nation when it came to renewable energy. Back during the 2018 Paris Agreement, probably no one expected the global supply chain to turn out like this. Well, back then, Koreans probably didn’t expect Chinese solar cells to take over 95% of the domestic market either.
“What about the United States? What’s the situation with American renewable energy companies?”
“At present, the only country that can keep China in check is the United States. But that country is hopeless.”
In truth, this was something the United States should have done.
The United States was the country where the most climate papers in the world were published, the country with climate physicists, and the country with the most environmental organizations. And yet, in terms of carbon emissions per capita, it was the highest. Why such a contradiction existed could be understood just by looking at DiCapri.
DiCapri, a byword for environmental protection, was an honorary physicist who sang about “the environment, the environment” at every Oscar ceremony.
But once the Oscars ended, he would go to places like Miami or Ibiza, Spain, and enjoy yacht parties, and the energy consumed by those parties was greater than what a hundred Americans used in an entire year.
“...It’s that bad?”
The hypocrisy and contradictions rampant in American society had a long and storied history, and there seemed to be little sign they would improve in the future.
In truth, humanity had begun reducing carbon emissions very late when it came to the Paris Agreement. According to the original timetable, carbon reduction should have begun with the Kyoto Protocol in 1997. But the country that rejected the Kyoto Protocol back then was the United States.
Time passed, and now Donald was going to the UN and claiming climate change was a hoax, so that too was ironic.
“Yes, it’s hopeless. Even if the global community keeps Chinese parts in check, there are no companies that can endure tens of trillions of won in losses. The executives at our Solution division also reached that conclusion after much deliberation.”
The bleak story continued, but the more it did, the firmer my resolve became.
We had to do it. If my memory was correct, the Chinese authorities naturally did use parts as leverage. If we didn’t want their current 95% share of the domestic cell market to become 100%, bone-cutting pain was essential.
“I see.”
“My goodness, I feel like I’ve done nothing but complain. I apologize.”
“Not at all.”
“Still, our K-defense industry has recently been receiving very favorable reviews from the global community. We can work hard enough to exceed the faith you placed in KD Group by investing in us, Team Leader.”
“Yes. You’ll do well. I have no doubt.”
To him, who looked brimming with confidence, I said,
“But Chairman Nam, do you remember the promise we made before?”
“A promise... you mean?”
“We agreed that if a management dispute arose within KD Group, I would become your reliable white knight. Do you remember?”
Only then did he speak as if he had recalled it.
“Ah, yes. Of course I remember! Thanks to you, I’ve been able to focus solely on technology development without worrying about management control. I’ve always been grateful.”
“It’s too early to be grateful. Now I intend to put that promise into action.”
“...Pardon?”
I picked up the documents.
“I looked into it, and these are KD Group’s prime affiliates. Insurance, Galleria, resorts... But these cash cows all went into your younger siblings’ hands, didn’t they?”
“Ah, yes. We divided the affiliates that way according to my father’s will. They may be prime assets, but all the affiliates that embody the company’s identity were inherited by me.”
“Let’s bring them back.”
“Pardon? What?”
“What Chairman Nam wants isn’t for them to hand over their shares anyway, is it? ‘I’ll handle management, so step away from the business.’ Isn’t that it?”
Nam Sangi turned pale.
“W-why all of a sudden...”
“As you said, Chairman, the renewable energy market will inevitably run losses for some time. We don’t just need one or two solid cash cows.”
“Surely... you’re not saying we should cover Solution’s losses with the money earned by the other affiliates?”
“Yes. That’s what makes it a ‘group,’ isn’t it?”
“T-that’s absurd! Under the Capital Markets Act, it’s impossible to invest money earned by other affiliates into a loss-making business.”
“The government will turn a blind eye to that much. If there’s really no other way, just merge them while you’re at it. The pension fund will even approve the merger ratio to suit your convenience, Chairman.”
Nam Sangi broke out in a cold sweat.
His heart must have dropped. He would have to draw blood with the younger siblings he had been getting along with reasonably well, and on top of that, invest in renewable energy, a field that seemed hopelessly distant.
“I’m not saying this empty-handed. A Chinese fund called Changcheng Fund will soon purchase shares worth several trillion won. It’s a private equity fund, but don’t worry. Since it’s a pension fund entrusted manager, it won’t interfere with your management control.”
“...Then you’re saying that fund’s shares will also be friendly shares for me.”
“That’s right.”
“But renewable energy is far too uncertain. Team Leader, could you please reconsider once more...?”
“Chairman, this is what I believe. Unless someone is a person like Jobs, Mustin, or Warren, every CEO can be replaced. If you refuse, then your younger siblings will also be given an opportunity.”
The conversation, which had begun as a proposal, inevitably ended as a threat.
Nam Sangi’s face hardened even further. If the friendly shares that had been so firm turned into hostile shares, it was perfectly obvious who would be driven out of the group.
“I’ll say it again, I’m not asking you to do this empty-handed. If you devote yourself to renewable energy, I’ll also draw out the institutional support that follows. Please trust me.”
“U-understood. If that is your will, Team Leader, I’ll try. However... my siblings’ affiliates are impossible for now. I can’t take them away yet.”
“Is it because of lingering affection?”
“Any lingering affection was already severed during the inheritance fight. But that’s the reality. Perhaps my siblings have come to their senses recently, because they haven’t caused any public scandals or made any major mistakes that could be held against them. Without rumors or incidents, taking away their management rights looks extremely difficult.”
I looked at him with a bitter smile.
“Chairman. Do you know Yi Bangwon?”
“...Pardon?”
“When Yi Bangwon destroyed his wife’s family and his in-laws, did he have any clear reason?”
Nam Sangi asked with a bloodless face.
“Are you telling me to find fault with them somehow...?”
*
[Breaking News - KOSPI Breaks Through 4,800!]
[Is the Era of KOSPI 5,000 Really Opening?]
[Domestic Stock Market Soars on Semiconductor Supercycle!]
[The Bear Does the Tricks and the Fox Takes the Money? Domestic Corporate Tax Revenue Expected to Hit Record Highs Amid Semiconductor Boom!]
One day after the by-election ended.
The KOSPI, which had been wavering around 4,500, finally broke free from the Boxpi and headed toward 5,000. Among global rating agencies, none denied the coming era of AI. Thanks to that, our semiconductor companies, which sold blue jeans and pickaxes, were breaking new highs day after day.
“We can do it. We have always done well. We are a people who can make it happen.”
On a day when KOSPI 5,000 was hanging right before their eyes, President Kim Sangcheol visited the Yeouido stock market and offered his congratulations in advance.
Ironically, the one benefiting most from the companies’ strong performance was the ruling government.
Under the previous administration, Hoam Electronics and others had paid zero won in corporate tax due to semiconductor losses, but this year’s corporate tax revenue was expected to reach an all-time high.
“Oh my. What’s this, Sejun? You don’t need that much money this time.”
Meilin, whom I met for the first time in a while, smiled at my invoice, which was smaller than she had expected.
“Yes, this time it’s not money to scatter among such big shots.”
“That’s a relief. Then I just need to get this money from CEO Ming and move it to the Singapore account, right?”
“Ah, no. This time, it’s not money for Prime Minister Lee Chanho. Please spread it to the people on this list. The accounts are below.”
“Mm... Who are they? I don’t think I’ve seen these people before.”
“They’re members of the Korean National Assembly’s Science, ICT, Broadcasting, and Communications Committee. Please distribute it evenly, without favoring the ruling or opposition party.”
“You’ve broadened your network while I wasn’t looking, Sejun. Have you become acquainted with opposition figures these days too?”
“Haha.”
I laughed and said to Meilin,
“Ah, Meilin, I have one favor to ask.”
“Go ahead.”
“Your father handles various businesses, doesn’t he? Among them, is there perhaps any business related to renewable energy?”
“Mm... probably not, of course. My dad doesn’t touch businesses unless they can collude with power. Real estate, military supply contracts, things like that?”
“Aha...”
“But if you need it, Sejun, I’ll ask him to look into it. Though no matter how much he searches, it’ll probably be hard to connect with major companies.”
I nodded.
“That’s fine. Even second-tier companies are okay, so please look into it. Especially if they’re suffering from financial difficulties.”
“What on earth are you going to do by finding shell companies like that?”
Instead of answering, I grinned.
To be honest, I didn’t know whether second-tier companies could provide us with technical help either. A hostile merger to steal technology... that probably wouldn’t be as easy as it sounded. But when a farmer sows seeds, how can he pick and choose the land? Just as Chairman Lee Kunhee once reverse-engineered Japanese radios, we would have to open the lid on anything and everything and take it apart.
“...”
All the corporate tax earned from semiconductors now had to be spent on renewable energy.
If my memory was correct, because we failed to achieve self-sufficiency in energy parts, we too ended up filming an Exodus from China.