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CH341 | GSI
🕑 Added 2025-04-30 17:32:13 +0000 UTC“Did you say three hundred thousand units?”
Unlike the two men who couldn’t hide their confusion, Seok-won responded calmly.
“That’s right.”
“That’s six times more than what we originally planned. Can we really sell that many...?”
President Ahn Byung-seok trailed off, uncertainty in his voice. Across from him, Executive Director Yoon Ki-hoon leaned forward with a serious expression and raised his objection.
“If we go with that figure, the initial inventory alone will exceed 90 billion won. If those end up sitting in storage, the financial loss could be enormous.”
Seok-won lifted his teacup and took a sip of ginseng tea, quietly observing the two men whose faces were etched with concern.
“Why are you worrying about unsold inventory before we’ve even tried selling the product?”
President Ahn and Executive Yoon were momentarily at a loss for words.
Watching them, Seok-won continued in a calm but firm tone.
“To me, even 300,000 units is a conservative estimate.”
“Excuse me?”
Blinking in confusion as if they’d misheard him, the two executives waited. Seok-won went on, composed as ever.
“You're probably aware that with the recent rise of online communities through PC communication, the distribution of MP3 audio files has surged. More and more young people are choosing MP3s over cassette tapes or CDs to listen to music.”
“Of course. That’s exactly what sparked the idea to develop an MP3 player in the first place.”
Executive Yoon, who had read numerous newspaper articles about the growing problem of illegal MP3 uploads and downloads through PC networks, remained quietly attentive.
“The popularity of MP3 files isn’t just a trend in Korea — it’s a global phenomenon.”
Seok-won picked up the sample device from the table.
“And this product, sitting right here in front of us, is the first and only one in the world that allows people to carry and play MP3 files on the go.”
Hearing Seok-won acknowledge the result of their team’s tireless development — achieved through many sleepless nights — filled President Ahn with pride and gratitude.
“Of course, since it’s a completely new and unfamiliar concept, it won’t be easy at first to get consumers to start using it. But once that unfamiliarity fades, I’m confident this will become a product that everyone will be excited to own.”
Executive Yoon, noticing the eager expression on President Ahn’s face, frowned slightly and turned his gaze toward him.
“I agree that it’s an innovative device. But as you mentioned, consumers might resist at first. That’s why I believe we should limit the initial production to a level that avoids surplus inventory.”
Unlike President Ahn, who seemed inclined to agree with whatever Seok-won said, Executive Yoon remained cautious and measured.
“And that’s exactly why I proposed making 300,000 units.”
Seok-won gave a slight shrug of his shoulders.
Hearing this, Executive Yoon thought Seok-won was being overly assertive just to push through his opinion and carefully chose his words.
“Considering the number of cassette players sold annually in Korea, absorbing that kind of volume won’t be easy.”
Though he wanted to say it was virtually impossible, he softened his tone to avoid offending Seok-won.
“I think there’s been a misunderstanding — I never said we’d only be selling the MP3 player in Korea.”
“Pardon?”
Not only Executive Yoon Ki-hoon, but also President Ahn Byung-seok wore a bewildered expression.
“...What exactly do you mean?”
“I’m planning to launch the MP3 player developed by Digital Wave in the United States — the world’s largest consumer electronics market — simultaneously with its release in Korea.”
“...!”
At this completely unexpected revelation, Executive Yoon’s eyes widened.
Even President Ahn, suddenly hearing about an expansion into the U.S., couldn’t hide his surprise.
“Did you just say the United States?”
“That’s right. Since we’re starting something big, shouldn’t we be aiming for a bigger pond, not just a small well?”
Seeing Seok-won speak so casually, Executive Yoon couldn’t tell if he was being bold or simply reckless.
Whether he realized it or not, Seok-won continued speaking with confidence, as if this had been the plan all along.
“If we factor in sales not just in Korea but also in the U.S., 300,000 units isn’t such an overwhelming figure.”
At that, Executive Yoon, showing a slight hint of panic, tried to intervene.
“Even so, we haven't even established proper distribution channels domestically yet, let alone overseas. Producing such a large initial batch carries tremendous risk.”
In reality, they didn’t even have a fully equipped factory yet, much less a distribution network. Hearing this, President Ahn found himself unconsciously nodding in agreement.
“Why do you assume we don’t have a distribution network ready?”
Seok-won asked, as if puzzled by the concern.
“What do you mean...?”
“Huh...? Excuse me?”
Momentarily speechless, the two executives blinked in confusion.
“We have Mido Department Store — a superb retail channel that already has an established brand.”
“Ah!”
Realizing what he had overlooked, Executive Yoon slapped his knee and exclaimed.
“I completely forgot about that!”
President Ahn’s eyes also sparkled as a bright smile spread across his face.
If they could sell the product through the electronics section of Mido Department Store — considered one of the “Big Three” alongside Lotte and Utopia — it would not only solve their distribution issues but also greatly enhance the product’s brand image.
“That’s the whole point of having affiliate companies — to make use of them at times like this.”
Seok-won winked playfully.
“You're absolutely right,” President Ahn quickly agreed, nodding eagerly.
“Indeed, with support from Mido Department Store, I believe we can resolve distribution without much difficulty.”
After a brief hesitation, Executive Yoon also nodded in agreement.
“As for the U.S.,” Seok-won continued, “nothing’s finalized yet, but now that we have mass-production samples ready, I’ll make sure we get the product into major electronics retailers like Best Buy. So, don't worry.”
At Seok-won’s confident tone, President Ahn gasped in surprise.
“Did you say Best Buy?”
“That’s right.”
Hearing this, President Ahn spoke with an excited expression.
“Best Buy is the largest electronics retail chain in the United States. If we could supply to them, there would be nothing more we could ask for.”
Indeed, if they secured a deal with Best Buy — which operated hundreds of stores across the U.S. — it wouldn’t be difficult to move 300,000 units, just as Seok-won had said.
Moreover, unlike Korea, American retailers like Best Buy typically purchased products outright, meaning there would be no need to worry about leftover inventory.
However, that also meant the standards for supplier approval were extremely strict.
Still, seeing how confidently Seok-won spoke — as if the deal were already certain — both men felt that he must have something solid backing him up, even if they didn’t know exactly what it was.
“However,” Seok-won added, “in return, we would like you to advance 10 billion won (around $100 million) to fund production, and grant us exclusive distribution rights for the U.S. market. What do you think?”
Hearing this unexpected proposal, President Ahn’s face showed clear surprise.
Since it was something they hadn’t discussed at all beforehand, Executive Yoon also turned to look at Seok-won, visibly taken aback.
“Mr. President…”
Seok-won raised a hand, cutting off Executive Yoon before he could speak.
“We're not tapping into the company’s retained earnings,” Seok-won explained. “The funds will come from profits generated by the Treasury Operations Department, so there’s no need to worry.”
Executive Yoon had more to say, because that wasn’t the only reason for his surprise.
But with President Ahn present, and seeing that Seok-won seemed fully determined, Yoon hesitated for a moment before falling silent, realizing there was little point in arguing.
‘Even so, the money managed by the Treasury Department is still company funds,’ Yoon thought bitterly.
Then another troubling question crossed his mind:
‘How could they possibly have made enough profit to casually pull out 10 billion won?’
‘Just how did they manage that?’
Executive Yoon’s mind grew increasingly tangled with questions.
Meanwhile, President Ahn adjusted his gold-rimmed glasses and, adopting a cautious tone, asked:
“Could you clarify exactly what you mean by ‘exclusive distribution rights’?”
Seok-won, noting that President Ahn was listening carefully, continued:
“Exactly what it sounds like. The right to exclusively sell not only the MP3 player we’ve just developed, but also any future MP3 players that Digital Wave produces, within the United States.”
He went on smoothly:
“Of course, it wouldn’t be permanent. The term would be four years, and after deducting various expenses, the net profits would be split equally — 50-50 — between us and Digital Wave.”
President Ahn pursed his lips slightly as if weighing the idea, then cautiously asked:
“If we produce the products and deliver them, you’re saying Daheung Venture Capital would handle everything — transportation, distribution, and sales in the U.S.?”
“That’s right,” Seok-won confirmed.
Given that Digital Wave had neither the production facilities nor any established distribution networks — and hadn't even considered U.S. sales until now — it was, in fact, an attractive offer.
Not to mention, with Seok-won offering to handle the transportation and American market entry in exchange for just 50% of the net profit, there was little reason to refuse.
Furthermore, to launch domestic sales through Mido Department Store, they would inevitably need Seok-won’s support. Refusing him could backfire.
Most importantly, although they now had production samples ready, they still needed significant funds to start mass production — and the promise of a 10 billion won advance made the offer even harder to resist.
‘And besides, if it's President Park, he's someone we can trust.’
Unlike the CEOs of other large corporations he had encountered, Seok-won had never abused his position or tried to force unfair terms to his advantage.
He had always treated them as equals, consistently maintaining a respectful partnership.
This gave President Ahn the confidence to trust him once again.
Finally, President Ahn made his decision and nodded.
“Very well. We’ll accept your proposal.”
“You've made a wise choice,” Seok-won said, flashing a small smile.
In truth, Seok-won had proposed this deal not only because he was confident in the success of Digital Wave’s MP3 player, but also because he anticipated a major opportunity.
He knew that by selling in the U.S., they could earn U.S. dollars — and when the impending IMF crisis hit, they would reap massive foreign exchange gains.
‘If I remember correctly, during the IMF crisis, the exchange rate soared to nearly 2,000 won per dollar.’
Considering the current exchange rate was around 900 won per dollar,
‘That’s more than double — an incredible opportunity to double our margins.’
‘There’s no way I’m going to miss this.’
If they could profit from the exchange rate gain, it would also be a good outcome for Digital Wave, who would benefit from the increased earnings.
At the very least, it would prevent the unfortunate fate from his original memory — where despite developing an innovative product like the MP3 player, Digital Wave was forced to sell off its technology and patents for a pittance due to lack of funds.
‘Of course, even if Digital Wave ends up losing out to competitors later, I’ll do whatever it takes to make sure no one strips them of their patents,’ Seok-won thought with quiet resolve.
With a soft smile, he spoke again.
“In that case, would it be possible to lower the retail price to around 200,000 won?”
“We’ll have to discuss the specifics with our team,” President Ahn replied in a voice full of enthusiasm, “but we’ll do our best to make it work.”
“Oh, and by the way—have you decided on a name for the product yet?”
“It’s not final,” Ahn said, “but internally, we’ve been referring to it as the MPMan, inspired by the Walkman.”
“Hmm… not bad,” Seok-won mused. “But it kind of sounds like a knockoff of the Walkman. That could be a little off-putting.”
Realizing that the questionable naming choice had been his own idea, Ahn blushed slightly in embarrassment.
“Now that you mention it… I can see that.”
Seok-won glanced down at the mass production sample in his hand. Then, a thought struck him, and he looked up with a spark in his eyes.
“What if we took ‘Wave’ from your company name and called it New Wave — to emphasize that this is a groundbreaking product unlike anything before it?”
“New Wave… New Wave…”
President Ahn repeated the name a few times under his breath, letting the words roll off his tongue. Then he broke into a wide smile.
“It has meaning, and it’s catchy. I like it!”
“Then let’s go with that,” Seok-won said.
As he looked down at the MP3 player in his hand, a deep smile crossed his face.
“Just like its name, it’s going to start a whole new wave across the world.”
