Free Web NovelDark circles hung heavily beneath Choi Woosik’s eyes when I saw him again after a long time.
“President Kim Muhyuk. Welcome.”
The moment he spotted me, he put on a polite smile and extended his hand.
We shook hands and sat down.
Even after taking our seats, I didn’t bring up business right away. I chatted about trivial matters, carefully observing his condition.
“How is KS Group these days?”
“Don’t you already know?”
The response was sharper than expected.
It seemed Sovereign had been causing him considerable stress.
Though they had reached an agreement through my mediation, it was a fragile relationship that could collapse at any time.
“Do you really think I monitor trivial matters like that every day?”
“What did you say? Trivial?”
Choi Woosik’s eyes flared. I gave him a deep smile.
“If you had attempted to convert to a holding company structure a few years ago, as I advised, none of this would have happened. I warned you several times. Didn’t I?”
At the Federation of Korean Industries, I had repeatedly advised the chairmen to reorganize their group control structures.
To move away from vulnerable circular shareholding structures and convert into holding companies.
Some groups accepted my advice and restructured accordingly.
Others ignored me until the end.
One of those was Choi Woosik.
“To attempt a holding company conversion requires enormous capital. We were preparing when we were attacked. It’s not fair to criticize us blindly, is it?”
If this had been before the foreign exchange crisis, maybe.
But claiming KS Group lacked money to convert into a holding company? That was absurd.
Before the crisis, holding companies had been illegal in Korea, forcing conglomerates to expand through circular ownership.
But the crisis had exposed the severe flaws of that structure.
Especially Jungwoo Group, which I acquired.
Because of circular ownership, all its affiliates had deteriorated simultaneously.
Even a company generating trillions in revenue could collapse overnight under that structure.
It wasn’t a lack of competitiveness that destroyed Jungwoo Group.
It was the shared burden of massive debt tied together through circular holdings.
I shrugged at his flimsy excuse.
“I can’t believe KS Group lacked funds. No group has more retained earnings than yours.”
Unlike other conglomerates, KS Group had clear cash cows.
They had grown through acquisitions using enormous cash reserves.
It wouldn’t be an exaggeration to say they held the largest cash reserves in Korea.
“Well, I suppose you’ve burned most of that defending management control this time.”
“......”
“I didn’t come here to argue about that. As long as you keep your promise to Sovereign, your management control will remain secure. It’s a matter of trust.”
When I took a step back, Choi Woosik rubbed his eyes and sighed.
“Then what exactly did you want to discuss?”
I took out the item I had brought.
“You know what this is, don’t you?”
“That’s the iPhone, isn’t it? Where did you—”
His eyes widened instantly.
“I’ve secured exclusive distribution rights for the iPhone in Korea, Japan, and China.”
“I see. That doesn’t even surprise me anymore.”
“So I’ll ask. Does KS Telecom want exclusive distribution in Korea?”
KS Telecom’s market share in Korea was close to 60%.
“Hmm.”
Choi Woosik stared at the iPhone on the table with a complicated expression.
“Let’s hear the contract terms first.”
I handed him the terms agreed upon with Steve Jobs.
As he read, his face gradually hardened.
“You don’t actually expect us to accept these terms, do you?” ƒreeωebnovel.ƈom
“I’m not sure.”
“We would never sign under these conditions. Not even Korea Telecom or Geumseong would.”
“Don’t make bold claims. I came to give you the opportunity.”
After a pause, he shook his head again.
“......No matter how I look at it, we can’t accept this. We’ll pass.”
“I see. Understood.”
I neatly gathered the documents and slipped the iPhone back into my jacket.
Choi Woosik looked more surprised than I did.
“You’re giving up that cleanly?”
“There’s no reason to persuade someone who says no. You’ll likely regret today’s decision.”
“I’ve received reports on the iPhone. But many say it’s just a storm in a teacup. If you want to sell in Korea, you’d be better off working with us.”
I understood his threat.
In Korea, telecom carriers were absolute kings.
“A storm in a teacup... That seems to be the narrative domestically.”
“Domestic phones continue to improve. No matter how good the iPhone is, it won’t create dynamic change in this market.”
“Perhaps. But I’m confident in its success.”
“Why?”
His doubt was reasonable. The Korean domestic market was effectively a graveyard for foreign phones.
But the iPhone was different.
“You’ll understand once you experience it. A storm in a teacup? Not even close. This device will change the world. Within a few years, ordinary phones will lose competitiveness.”
“......That’s excessive.”
“If that’s how you see it, so be it. Let’s end this topic. I’ll meet other carriers.”
I spoke decisively. Choi Woosik bit his lip.
After a long silence, he said,
“......No carrier will accept it.”
“Why? Because of Wi-Fi? Because you can’t sell data?”
“......”
He fell silent.
“I understand manufacturers resisting—it’s their survival. I’ve heard Ilseong Electronics opposes it. But I don’t understand the carriers’ resistance. This device will inevitably consume far more data than current handsets. Without data, it’s useless.”
This wasn’t unique to the iPhone.
All future smartphones would prioritize data over voice calls.
“Don’t look at the trees—look at the forest. Otherwise you’ll be left behind. And Wi-Fi coverage in Korea isn’t that widespread yet.”
“Still—”
“That’s enough. I have no intention of persuading you.”
He had rejected it first, yet clung with lingering regret.
I drew a firm line.
“I clearly gave you the opportunity. You declined. Let’s discuss something else.”
I had already expected KS Telecom to refuse.
With its dominant share, there was no reason for it to bow to Apple’s demands.
I finally brought up my real purpose.
“Apple wants to acquire KS Teletech.”
“KS Teletech? What do you mean suddenly—”
“More precisely, they want to acquire its production plants. To manufacture iPhones in Korea.”
At present, KS Teletech’s technology meant nothing for the iPhone.
What I wanted were its {N•o•v•e•l•i•g•h•t} Cheonan plant and the factory under construction in China.
“Don’t be ridiculous. KS Teletech will never be sold. It’s a company I’m actively nurturing.”
He lied without blinking. I raised one corner of my mouth.
“Really? I heard you’re already in preliminary negotiations to sell it to Pantech.”
“W-what—”
I looked straight into his shaken eyes.
“Don’t lie to me. This is a warning.”
“......”
“I heard talks with Pantech have progressed significantly. But Pantech wants the patents and developers—not the factories.”
“How much do you know?”
“As much as you do.”
He sighed softly.
When KS Telecom merged with Daehan Telecom, it had agreed to limit KS Teletech’s annual handset production to 1.2 million units.
If exceeded, they would face daily penalties of 1.1 billion won.
The regulation was temporary until 2005—but extension was all but certain.
With 60% market share, allowing KS Telecom to dominate handset supply as well would be disastrous.
Choi Woosik knew that.
That was why he had been negotiating to transfer management rights to Pantech.
“Pantech has surplus production capacity. If you sell the production plants separately, you could gain leverage in negotiations.”
Pantech’s goal was simple.
Acquire KS Teletech to become second in domestic market share.
Pantech already ranked within the global top ten in handset production capacity.
To them, KS Teletech’s factories were a burden.
Integrating facilities wasn’t something that could be done quickly.
“I’ll offer 150 billion won for all domestic production plants, including Cheonan, and the plant under construction in China.”
“150 billion?”
“Yes. I heard the group values KS Teletech at 400 billion in total.”
“......”
“And you’re demanding 300 billion for 60% of the shares. Pantech considers that absurd.”
Choi Woosik gave a hollow laugh.
“I wonder where the leak came from.”
“That’s not what matters. This is a good offer.”
“It’s not just good—it’s excellent. So good I worry there’s a trap.”
The group’s retained earnings were nearly depleted.
They had spent over one trillion won buying back shares to defend management control due to their agreement with Sovereign.
“A trap? Apple needs a production base in Korea. Building from scratch would take years. With KS Teletech’s facilities, production could begin in one or two months.”
“Will you acquire it personally?”
“Most likely. But the article will say Apple is preparing the acquisition.”
“Hmm...”
“If you renegotiate with Pantech after selling the factories, you could secure over 200 billion.”
He remained silent, thinking.
But not for long.
“No matter how I think about it, it won’t work.”
“That’s disappointing.”
“If you acquire all of KS Teletech, I’ll consider it. Acquire the full 89.2% stake held by KS Telecom.”
So he intended to use our urgency.
“Price?”
“With management premium included—500 billion.”
“You’re being greedy.”
“We’re not the desperate ones. And don’t think of pressuring me through management control. We made an agreement. If you break it, your credibility disappears.”
“As if I would. I don’t break promises first. I have no intention of siding with Sovereign.”
He knew that.
That was why he was confident.
“So? Will you take KS Teletech for 500 billion?”
The technology meant nothing to me.
The iPhone’s early launch would only accelerate the shift to smartphones.
“I see. I need the factories, not KS Teletech. I decline.”
“Too bad.”
He didn’t look disappointed at all.
‘Fine.’
I stood up without hesitation.
“I’ll be going.”
He stood as well and extended his hand.
“If you change your mind, contact me. We’re always open.”
I didn’t like the victorious smile on his face.
I grasped his hand and gave him a crooked smile.
“No. I won’t be coming back.”
Still holding his hand, I added,
“By the way, were you aware that your wife has been increasing her stake in KS Co. and its affiliates under borrowed names?”
His face froze instantly.
“Oh. You didn’t know? My mistake.”
I shook his now-limp hand firmly, smiling again.
Sovereign isn’t your real problem. And you dare act bold?
