“Venture... Venture.”
The division director was pinching the bridge of his nose again today because Manager Oh had brought him another difficult assignment.
Strictly speaking, it wasn’t an assignment Manager Oh had brought. It was a proposal from that troublemaker who always submitted absurd reports—and was always right.
This time was no different.
At the Bank of Korea’s request, they injected market stabilization funds into the KOSPI, and then the political issue was dramatically resolved, sending the index leaping all the way to the 2,800 range.
Thanks to that, they had earned the title of guardian of the domestic market and a 15% return almost for free.
“So what that guy is saying is that we should invest in startups?”
“Yes, that’s right.”
“Those startups where ninety-nine out of a hundred fail?”
“Yes... that’s right.”
“The fact that you’re reporting this to me means you’ve already been persuaded. Are you in favor again this time?”
“...What can I do? With this market stabilization fund injection, we caught both rabbits—our image and our returns. And that guy’s face already showed he’d made up his mind.”
Tsk—
The division director smacked his lips.
Whether it was direct investments or outsourced management... every portfolio that guy touched was first-rate in every respect. The division director thought that if he himself had spoken with the guy, he probably would have already been persuaded too.
“...Still, no.”
But even so, no.
Venture investment was an area where nothing could be guaranteed, no matter how overwhelmingly impressive that guy’s track record was. Finding a unicorn among startups had lower odds than winning first prize in the lottery. At least the lottery produced around ten winners every week.
“But even if I try to stop him with everything I’ve got, he’ll just ignore me, won’t he?”
“Well, yes.”
“Then let’s do this. How about we keep it moderate?”
“By moderate, you mean...?”
“Let’s make a second So-bu-jang Fund. Yeah, that’s the most reasonable option.”
The So-bu-jang Fund.
Short for materials, parts, and equipment, this fund had begun because of Japan’s restrictions on semiconductor components. At the time, relations between Korea and Japan had been somewhat hostile, and Japan had restricted several key components used in our semiconductors.
So our government created this fund with the purpose of saying, “Let’s stop using Japanese-made parts, and let’s make all semiconductors with our own independent technology.”
The results were good.
Normally, patriotic marketing funds like this saw their returns plunge into the abyss, but the So-bu-jang Fund produced a staggering 100% return in just one year, printing money for citizens inspired by patriotism.
But whether that was truly a success was questionable.
The purpose of this fund was clearly parts independence through nurturing small but strong companies, yet most of its portfolio consisted of Hoam Electronics and Seongyeong Hynix. So contrary to its intent, it did not achieve technological independence or foster small but strong companies; hardly any money even went to actual materials, parts, and equipment firms.
Still, well, since it printed money for people, did that make it a success?
“What do you think? At this level, we can support the ventures he wants, and we can reduce our risk burden. It seems like the best compromise.”
“Director...”
It was an excellent suggestion, but Manager Oh’s face remained troubled.
“...That guy is serious.”
“What?”
“He doesn’t want a fund that just pretends to invest in ventures and calls it a day. He wants a fund that can genuinely support real startups.”
“Why on earth...? Ninety-nine out of a hundred startups fail, don’t they? This isn’t a decision an investor can make.”
The venture investment team within the pension fund had been created only because the government forced it into existence. For that reason, they had allocated no more than tens of billions of won to it. Considering the survival rate of startups, even that money felt like a waste.
Manager Oh smiled bitterly and continued.
“Former Director Park Seongcheol once said something like this.”
“Former Director Park did?”
“Yes. He said this guy isn’t interested in how much money he can make by investing... He’s interested in what he can create by investing money.”
“What does that even...”
“It was the same with the defense industry investment. That guy was more interested in what kind of weapons could be made than in profits.”
The division director, who had been recoiling in horror, grew somber when the defense industry was mentioned.
The defense industry was currently the pension fund’s representative moneymaker, having soared nearly sevenfold. In the sinking KOSPI market, it was almost the only thing producing returns.
And the one who had actively bought into it was Lee Sejun.
“So he has no intention of doing this halfway? He really wants to bang his head against the bare ground and find unicorn companies?”
“Yes... that’s right. He says he’ll decide exactly which startups to invest in after consulting with the companies. He’ll probably bring a list within a month.”
“Fine... He’s always done well for us, so he’ll probably do well again this time too. So how much? How much does he want to invest?”
Manager Oh glanced around like a dog desperate to relieve itself. It seemed the amount was difficult to say out loud.
“What is it, man? Hurry up and tell me.”
As the division director kept pressing him for an answer, Manager Oh very cautiously raised two fingers.
“T-two...”
“Twenty billion won? Well... compared to the returns he’s brought in, that’s not a huge amount. Fine. Let’s try it.”
Manager Oh shook his head.
“Then 120 billion won? Hah... That guy really has guts of steel. Fine, give it a shot.”
Manager Oh shook his head again. At that, the division director’s expression slowly began to turn grim.
“Don’t tell me it’s 200 billion won?”
“No... it wasn’t. It’s two trillion won.”
Not even the sound of breathing could be heard in the director’s office. Manager Oh looked at the division director, who had frozen like a stone statue, and said,
“I’ll say it again, but that guy is truly serious. He’s truly serious about finding startups...”
*
Chairman Lee Geonhui, the master of talent management, once said:
One genius can feed tens of thousands.
In reality, back when even the concept of semiconductors was still vague in Korea, he made an extremely aggressive investment in that business... and in less than twenty years, the world truly became unable to function without semiconductors.
But it seemed Chairman Lee Geonhui’s words needed to be redefined once more.
Mustin, the CEO of Teslan, was originally from South Africa. The engineers at big tech firms like Goggle, Meta, and Amazon are mostly from India or China. Considering the current economic growth rates of South Africa and India, one can painfully realize how great a national loss it is to lose even a single talented person.
After Lee Geonhui’s death, polarization in the international community progressed rapidly.
Just as most Koreans come to Seoul to succeed, now everyone goes to America to succeed.
It has become an era where a single genius can sway the fate of an entire country.
“...”
Asan, South Chungcheong Province. On the road to the Asan Motors factory.
I gazed out the window, lost in those thoughts.
I know the future.
Just as the current global industry cannot function without semiconductors, an era will soon come when it cannot function without AI. Cars will be driven by autonomous systems, and production plants will operate under AI control.
If I told people that next year’s Nobel Prizes in Physics and Chemistry would go to AI engineers, would they believe me?
The Fourth Industrial Revolution, as if it were only natural, would once again be led by the United States. The countries that survived in that era were either those with companies that built an overwhelming lead in industries America had not touched, or those that supplied key components to America.
And most industries America failed to sweep up fell into China’s bowl. If a country wanted to survive, it had to export even intermediate goods to them.
“...”
And now, I am about to step into a future I do not know.
A country that sold blood, sold hair, and earned money by dispatching troops to Vietnam created semiconductors in just fifty years. There was no way such a country lacked talent... Giving seed money to talented people who had the ability but never had the opportunity had become my greatest assignment in this life.
[Breaking News — Taiwan Government Revises GDP Growth Rate Upward to 4.5%!]
[Sharp Rise on Strong AI-Related Exports!]
[Korea’s Growth Rate for the Same Period Revised Down to 0.5%... Are Our Semiconductors Fine as They Are?]
Watching that news, I got off the KTX.
Back when we were taking the rice bowl from Japan, it had been fun and satisfying. But now that we had to protect our own rice bowl, it was no easy task.
“Welcome, Senior Manager Lee.”
When I visited Asan Motors, Chairman Choi Seongjin greeted me with a bright face.
“I’ve made a mistake. You’re Team Leader now, aren’t you? I thought you were extraordinary because your eye for things was so sharp, but even your promotion speed is extraordinary.”
“You flatter me. Haha.”
“This is our production line. And the building next to it is the newly established electric vehicle factory line. I’ll escort you this way first.”
The factory line was unusually quiet today.
It seemed my influence over Asan Motors had grown far too large. All the union members had gone on vacation on the same date, as if telling me to look around comfortably, and thanks to that, I was able to tour the place with ease.
“I apologize for showing you this on a day like this of all days. We were clearly communicating well...”
“Not at all. I heard the factory would be shut down, so I deliberately chose this date.”
“I see. Still, I wanted to show you the factory working hard...”
“Everyone has their own circumstances. I believe you’ll resolve it well.”
When we entered the conference room, the heavy conversation began in earnest.
“Chairman. What is the current state of your internal reserves?”
Chairman Choi’s face darkened even more than when he had been looking at the factory where only flies were buzzing.
“It’s tougher than expected. Once we declared a bleeding competition, BYD immediately responded with their own price cuts... The money poured in so far is already in the hundreds of billions. But within a year, it looks like it will reach the trillions.”
[The Worst Onslaught]
That was how the Wall Street Journal described the current European electric vehicle market.
It was because BYD, backed by the government, was increasing its market share in Europe with absurdly low prices.
This was not merely a matter of competition between companies.
The EU accused the Chinese government of “backing BYD with all kinds of benefits, including R&D support, low-interest loans, reductions in electricity costs, and discounts on raw material prices,” and warned of terrifying tariffs.
However, many experts predicted that the EU, weak in unity and divided by differing interests, would never actually implement those tariffs.
Their point was that if tariffs were imposed on BYD, then BWM vehicles sold in China would also be hit with tariffs, and Germany would never agree to that.
“In truth, ever since China began this onslaught, not only we but also the European industry have been struggling. Chinese cars still occupy a fairly low share of the European market, but if this low-price offensive continues, no one knows what will happen. Everyone in the industry seems aware of it.”
Just as the world predicted, Europe, caught in internal strife, was very slowly consumed by Chinese cars.
If my memory is correct, in about two years, BYD’s market share surpasses Teslan’s for the first time. Starting with that, BYD overtakes one company after another, eventually bringing down even Volkswagen, the unshakable number one. And so, Europe’s automotive hegemony slowly faded away.
Just like today’s economy.