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CH82 | Heir
🕑 Added 2025-04-06 03:54:45 +0000 UTCAugust 1997.
A very welcome guest had arrived in Korea.
Steve, who should have been incredibly busy preparing for a new product launch, had flown into Korea without even notifying me.
It wasn’t entirely surprising, though.
The mobile phone division was still operating out of Taewoo Electronics’ building, so he had every reason to visit Korea for product development.
“I’ll excuse myself. Please have a great conversation.”
President Woo Sung-il vacated his office for us.
Even after becoming president, he still displayed unwavering loyalty to me.
Well, that’s precisely why he still held that position.
“Steve! What brings you here unannounced? Seeing you in Korea makes it even more exciting.”
“I wanted to surprise you.”
“You definitely did. I never imagined you’d come to Korea at this time.”
“It’s too soon to be surprised. Ta-da!”
Steve pulled out a white box.
The moment I saw it, I had a strong hunch about what was inside.
“No way… already?”
“Open it. You’re going to be shocked. The product’s name is iPod.”
I carefully opened the box.
Inside was exactly what I had expected—the very same iPod I had seen in my past life.
“How did you develop this so quickly?”
“You sent the entire development team of the world’s first MP3 player to Apple. Of course, we had to make it happen. You’re not saying we were too slow, are you?”
Of course not!
Even though I had supported them from behind the scenes, this iPod had come out shockingly fast.
In the original timeline, it wasn’t supposed to launch until 2000.
But Steve had created it three years ahead of schedule.
“It has 1GB of storage. That’s enough for at least 100 songs. And the size is just perfect.”
“The storage capacity still bothers me. I wanted to use a 2GB hard disk, but the costs didn’t add up, so we had no choice but to go with 1GB.”
Since this product was ahead of its time, it was inevitable that the storage would be somewhat limited.
However, the cutting-edge design and interface remained unchanged.
I felt a little sorry for Digitalcast, the developers of the world's first MP3 player.
But the iPod’s design was on a whole different level.
“Still, this is incredible. I can’t believe you made the iPod this quickly!”
“It’s still too early to be amazed. I have one more thing to show you.”
Steve pulled out another box.
And it looked very familiar.
It was the same packaging Taewoo Electronics had used for the InnoPhone not long ago.
“Did you already develop the next version of the InnoPhone? I thought you were focusing on the iPod and putting mobile phones on hold for now.”
“It’s not much different from the InnoPhone. I just added one function.”
I opened the box and examined the new version of the InnoPhone.
As Steve said, it looked almost identical to the previous model.
The only noticeable difference was a small hole on the side of the phone.
“…No way. Is this a mobile phone that can play music?”
"Correct! We’ll unveil the next version of the InnoPhone at the upcoming German electronics fair, and then introduce the iPod at next year’s CES."
"Congratulations! Truly, congratulations."
"Shouldn’t you be the one receiving congratulations?"
Steve squinted at me and pointed in my direction.
I had no idea what he meant, so I spread my hands in confusion. Seeing this, he continued.
"There's a saying: ‘The bear does the tricks, but someone else makes the money.’ Isn’t that exactly what’s happening here? You handed over the mobile phone division to Apple, but Taewoo Electronics and the technology research lab still hold all the key patents. A significant portion of our revenue will be going to royalties, so you’re the one who should be celebrating."
I had pulled a little trick.
Just as Steve said, I hadn’t transferred the essential patents to Apple.
The patents that Taewoo’s employees had worked so hard to develop were too valuable to simply give away.
And since Taewoo Group needed a solid cash cow, it made sense to hold onto those patents.
"So, do you dislike this arrangement?"
"Not at all. If it weren’t for you, there would be no InnoPhone and no iPod. I’m more than happy to pay the royalties with a smile."
"Then I’ll gladly accept. As you know, Korea’s economic situation isn’t great right now. We need to bring in as many dollars as possible."
"I’ve heard about what’s happening in Korea. Thanks to the new InnoPhone and iPod, we’re going to be raking in dollars starting next year."
Steve’s confidence was sky-high.
And it was understandable—his products had stunning designs and top-tier functionality.
But there was still one thing he hadn’t thought about.
"By the way, what’s your plan for MP3 files?"
"That’s actually been on my mind. I heard about a site where people are illegally sharing MP3 files, and I’m worried that launching our product might seem like we’re endorsing piracy."
"Did you say there’s already an MP3 file-sharing site?"
"Yes, a few months ago, a site using a P2P system started gaining popularity."
What? How?
P2P sites weren’t supposed to appear for another year or two.
But now, without me intending it, an illegal P2P site had already emerged and was spreading fast.
"Do you know the name of this P2P site?"
"It’s called Napster. Rumor has it that the MP3 players revealed at CES inspired its creation."
Now I understood why the timeline had shifted.
It was all because of me.
Since I had introduced the world’s first MP3 player ahead of schedule, P2P sites had also appeared sooner than expected.
"It sounds like P2P sites aren’t that well-known yet."
"They’re just on the verge of exploding in popularity."
If they had already become mainstream, there was no way I wouldn’t have noticed.
One of the three major U.S. record companies was mine.
With the rise of P2P sites cutting into music sales, it was only a matter of time before they reached out to me.
"The emergence of P2P sites isn’t necessarily a bad thing for us."
"Because MP3 files will spread quickly? That’s good for us as MP3 player manufacturers, but public backlash could be directed at us."
"That must not happen, of course. That’s why I’ve already set up a separate site."
I opened my laptop and navigated to the MCA Records website.
There, hidden like a tiny speck, was the music download section I had quietly prepared.
"Don’t tell me... you’ve already created a digital music store?"
"I was the first to invest in MP3 players, so naturally, I had to build a platform like this."
"An online music store with an e-commerce system... With this, we can avoid public criticism."
After all, if people were paying a fair price for music, who could complain?
Well, there were always some who would.
"But the record labels will likely oppose this. Can you handle that part, Steve?"
"Convincing every label won’t be easy."
"MCA Records is already on board."
"What do you mean?"
"I bought it. MCA Records belongs to me now."
"How far ahead have you been planning all this? You acquired MCA Records to secure a stable music supply for your platform."
That was exactly why I had taken all of MCA Records' shares from Panasonic, where they had been lying dormant.
"And I want MCA Records to lead the charge in protesting against illegal file-sharing sites, as well as pursuing lawsuits."
"Protests are one thing, but lawsuits too?"
"That’s what will make people even more interested in MP3 files."
"Ah, a kind of ‘noise marketing’ strategy."
"Once public interest explodes, MCA Records and Apple can formally launch a legal music store together. If we make it so that Apple’s devices can only download music from this store, we won’t be criticized—we’ll be praised."
Turning piracy into legitimacy.
If we packaged this idea well, the iPod was destined to succeed.
"Looks like we’re going to be extremely busy for a while. But you’re not planning to take all the profits from the music store yourself, are you? If Apple’s devices are exclusively using the platform, shouldn’t we get a fair share of the revenue?"
"Sharp as always. I was hoping to slip that past you."
"I was fooled once. If I let it happen again, wouldn’t that make me an idiot?"
"For music downloads on Apple devices, I propose splitting the net profit 7:3."
"Wait, are you saying Apple only gets 3? That’s too low. We need at least 4."
"I’m the one who bought the record label and built the music store, yet you want 4?"
I was willing to go as far as a 5:5 split.
But negotiating with reluctance was a business instinct I couldn’t ignore.
"I can’t back down on this. I’ve already given you all the software revenue—this is the least we deserve."
"Fine, let’s settle on 6:4. Are you satisfied?"
"Honestly, it still feels lacking, but I’ll have to accept it. You’re the one who orchestrated everything, after all."
"Thank you. Then, I’ll leave the U.S. record companies in your hands. I’ll be supporting you from behind the scenes."
"Don’t worry. I plan to bring the iPod to my meetings with the record labels. Once they see it, their perspective will change."
The iPod’s design and functionality were revolutionary.
Even someone completely ignorant of electronics would instantly recognize that the MP3 market was about to explode.
***
The Federation of Korean Industries (FKI), commonly known as Jeonggyeongryeon, was an organization representing South Korea’s conglomerates.
Founded by the Samjin Group’s founder, it was established during the military regime to serve as a lobbying group for corporate interests.
Just last year, the FKI gatherings had seen the heads of the top 20 business groups in attendance.
But at this meeting, empty seats were scattered throughout the room.
Seeing this, Chae Jeong-han, chairman of KS Group and the current president of the FKI, let out a heavy sigh.
"This is truly heartbreaking. How did the Korean economy end up in such a dire state?"
"Chairmen, if I may speak frankly—at this rate, companies are going to start collapsing. Please, we need your help."
The plea came from Kwon Ho-chang, chairman of Kia Group, ranked fourth in the business world.
With his company on the verge of bankruptcy, he was desperate.
"Chairman Kwon, how are we supposed to help? Your debts exceed 5 trillion won. This is beyond what we can manage—it requires direct government intervention."
"Chairman Kim Tae-joong, can’t you help? I heard that Taewoo Group is the only company in Korea with substantial foreign currency reserves. Please, I beg you."
Chairman Kim Tae-joong turned his head away.
If it were up to him, he would have stepped in and acquired Kia Group’s subsidiaries.
But for the sake of his grandson, he barely held himself back.
And now, it wasn’t just Kia Group—even SS Group had begun asking for assistance.
"Our SS Group also needs help. We’re willing to sell SS Motors. Weren’t many of you interested in acquiring SS Motors? We’re open to selling it at a good price to either Samjin Group or Taewoo Group."
"……."
No one spoke.
Samjin Group, a latecomer to the automobile industry, had been eyeing both Kia Motors and SS Motors.
However, with major corporations collapsing one after another, stepping forward to acquire a struggling automaker was too great a risk.
The same was true for Chairman Kim Tae-joong.
Once again, he thought of his grandson and barely held his tongue.
As everyone remained silent, the FKI meeting continued.
At some point, the discussion shifted to the election of next year’s chairman.
"I nominate Chairman Kim Tae-joong as the next president of the Federation of Korean Industries."
"I second the nomination."
What are these guys thinking, making me chairman?
He hadn’t said a single word, yet he was suddenly being pushed into leading the FKI.
Was this a good thing or a bad thing?
Kim Tae-joong had no idea how he should feel about it.
