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CH57 | Heir
🕑 Added 2025-03-27 01:59:34 +0000 UTC"SAVE Investment will cover all the funds required for the acquisition of NEXT."
"Are you asking for more shares in return? You already own 20% of the shares. Increasing your stake further would be difficult."
"I am not asking for more shares. Instead, I want ownership of the software that will be developed in the future."
"Software? Is that even profitable?"
I subtly steered the conversation toward my main point.
At this time, hardware was still considered more valuable.
However, as times changed, software revenue would surpass hardware, and I intended to monopolize that profit entirely.
There was also one more thing the board was mistaken about.
Did they think I only held 20% of Apple's shares?
For years, I had been quietly accumulating Apple stock, spreading my holdings across multiple companies to avoid drawing attention.
Revealing this would come later.
For now, I played the part of someone making a painful concession to secure software ownership.
"It may not be profitable now, but if Apple's products achieve great success, we will eventually recover the investment, won't we? Ah! And if we want Steve to take over as Apple's CEO, we will need to offer him a stake in the company. I will cover that cost as well."
"Are you saying you will buy some of our shares and give them to Steve?"
"I won’t need a large number of shares—just enough to ensure that Steve regains his sense of ownership and fully dedicates himself to Apple."
I subtly shifted the topic.
Since the board had been neglecting software, they didn’t resist the change in discussion.
"You must have a lot of faith in Steve. But if he fails, SAVE Investment will suffer a huge loss."
"Every investment carries risk. Even if we fail, SAVE Investment can handle it."
"Since SAVE Investment is willing to take full responsibility, why not support the decision?"
"Indeed. If they’re willing to bear the burden, we should support them."
Starting with George, the entire board unanimously voted in favor.
On the surface, this deal seemed like a major financial loss for SAVE Investment.
However, a few years down the line, the ones regretting this decision wouldn’t be me—it would be them.
The board meeting concluded, and I immediately left to meet Steve.
I was eager to deliver the good news, and with my return to Korea approaching, I had to move quickly.
"The board has unanimously approved your return to Apple."
"What? That came out of nowhere… Is this for real?"
Was he overwhelmed with emotion?
The usually cold-blooded Steve was momentarily at a loss for words as he composed himself.
"That brings me to my next point—why don’t you abandon the mobile phone development project you’re working on?"
"Why would I do that? The project is practically in its final stages."
"To be honest, if you were to oversee the next model, it would be a great advantage for Taewoo Electronics. But it wouldn’t do much for your reputation."
The InnoPhone was undeniably innovative.
A foldable phone with extensive scheduling features—truly a game-changer.
But the next model? Other than the fact that it was a slider phone, it lacked groundbreaking features.
Of course, Steve’s perfectionist tendencies had added numerous functions.
But that didn’t make it revolutionary. It was simply a well-made product—one of many.
"So, you're asking me to quit the project—not for Taewoo Electronics' benefit, but for my own?"
"In the next model, your name will be completely erased. The remaining development will be handled entirely by Taewoo Electronics."
"You're telling me to return to Apple and focus solely on creating innovative products?"
"Exactly. Instead of creating excellent products like the InoPhone or its successor, I want you to develop products that will lead the industry."
Steve looked puzzled.
It wasn’t exactly something the president of Taewoo Electronics should be saying.
What did Apple's success have to do with Taewoo Group?
That question was bound to arise.
However, for the vision I had in mind to materialize, Apple needed to succeed quickly. Only then could I find a way to offload Taewoo Electronics, which was drowning in debt, and resolve the issues of the remaining affiliates.
"I don’t know your reasons, but I can’t refuse… So, what kind of product do you want me to create?"
"While you will oversee Apple’s overall product lineup, I strongly recommend developing an MP3 player."
"MP3? I’ve heard of it, but I haven’t heard of any electronic devices that can play MP3 files yet."
"Development has already begun in Korea."
"I’ll give it some thought."
Before the iPhone, there was the iPod.
A portable digital media player, the iPod shared many design elements and functions with the iPhone.
The iPod had to exist for the iPhone to become a reality.
Since the iPod wouldn’t be released until 2001, I wanted to accelerate its development by introducing Steve to the MP3 concept early.
"There’s no need to overthink it. If you use the existing MessagePad as a foundation, it shouldn’t be too difficult to create. As for the necessary technology and patents, while I can’t provide them right away, I should be able to deliver them by next year."
"First, I need to return to Apple and restructure the system. Only then can I begin researching MP3 technology."
"It’s not an urgent matter, so take your time."
"Phew… The thought of returning to Apple is overwhelming."
"You’ll do great."
If it wasn’t Steve, no one could do it.
Though he was returning to Apple two years earlier than he had in my previous life, there was no doubt that Apple would rise again.
I returned to Korea with Dimon.
Naturally, he wasn’t affiliated with Taewoo Electronics but had instead secured a position at SAVE Investment's Korean branch.
"So, what exactly am I supposed to do here?"
"Do you know which organization I belong to?"
"I’ve heard some brief information from the employees at SAVE Investment. They said you’re the heir to a major Korean conglomerate."
I nodded and attached a large sheet of paper to the blackboard.
It was a full-sized chart densely filled with the names of over 60 subsidiaries of Taewoo Group.
"This is an overview of Taewoo Group’s subsidiaries, where I am the designated heir. I’ve also listed their main products, revenue, operating profit, and liabilities."
"Hmm… At first glance, it looks like a very solid company. With this scale, it wouldn’t fall short compared to American corporations. Of course, it’s not on par with the top-tier companies, but still impressive."
"I appreciate the positive assessment, but I don’t view the company’s situation favorably. The debt ratio, in particular, is a serious issue."
Dimon stepped closer to the chart.
He began calculating the total debt ratio across all subsidiaries.
"A debt ratio of 400%. That’s quite significant. However, I know that many Korean conglomerates have debt ratios exceeding 500%, so it’s not entirely shocking."
"I want to reduce the debt ratio, even if it means selling off unnecessary subsidiaries."
"So, you want to sell off useless subsidiaries at a high price. If that’s the case, you’ve got the right man for the job."
Dimon wasn’t just a mergers and acquisitions expert.
His top-tier skill was corporate restructuring and business turnaround.
Sandy Weill trusted Dimon to acquire multiple companies, and Dimon, in turn, restructured and improved them to maximize their value.
Simply put, he had the ability to fix failing businesses and sell them for a hefty profit.
"Aside from a few key subsidiaries, everything else needs to be sold."
"That makes things too easy. I came prepared for hostile takeovers, but it turns out I won’t need to go that far."
"Ah, I forgot to mention one crucial detail. The chairman of Taewoo Group—my grandfather—has no intention of selling any subsidiaries."
Dimon, who had been studying the chart, suddenly snapped his head toward me.
"…Are you saying we need to sell off subsidiaries behind the chairman’s back?"
If it were just an easy task, I wouldn’t have gone through the trouble of recruiting Dimon.
I needed him for a difficult mission—forcing my grandfather, who would never willingly let go of what was in his hands, to relinquish control and sell off subsidiaries.
"So? Are you interested now?"
"Now we’re talking. This is starting to get exciting. But you said you’d keep the core subsidiaries—are you planning to sell everything except construction, heavy industry, electronics, finance, and automobiles?"
"We’re going to sell off heavy industry and electronics as well."
"But isn’t Taewoo Heavy Industries a globally recognized company? I heard its shipbuilding division is thriving. And you’re including electronics, too? Taewoo Electronics’ stock price is rising thanks to the success of the InoPhone."
Taewoo Heavy Industries included a shipbuilding division.
After the financial crisis, Taewoo Shipbuilding would eventually separate and become an independent company, but for now, heavy industry and shipbuilding were still under the same umbrella.
That made Taewoo Heavy Industries one of the largest subsidiaries in the group.
"Actually, you don’t need to worry about the electronics division. I already have a plan in place for that."
"So, you’re planning to sell everything except construction and automobiles?"
In my view, the core subsidiaries of Taewoo Group were automobiles, construction, and finance.
Of course, I didn’t intend to sell off electronics and a few other subsidiaries entirely.
Instead, I planned to restructure them using Wall Street’s methods—diversifying risks while increasing profitability.
"Then shall we start with Taewoo Heavy Industries?"
"You’re going for a major subsidiary right from the start."
"It’s also the one carrying the most debt. If we can successfully offload Taewoo Heavy Industries, we can drastically reduce the debt ratio."
"I’m not sure if there’s anyone willing to buy such a massive company."
"I’ve already found a buyer. If we package it well, Hyunjae Group will snatch it up without hesitation."
I had heard something interesting from a team leader in the U.S.:
"Hyunjae Group’s finance executives have been making rounds on Wall Street."
It seemed Chairman Jang Young-joo had taken the bait, and I planned to finance Hyunjae Group’s acquisition of Taewoo Heavy Industries.
"Let me summarize this. We’ll take over Taewoo Heavy Industries through a hostile acquisition and then sell it to Hyunjae Group?"
"Exactly. Do you think it’s feasible?"
"I’d need to analyze the shareholding structure in detail before giving a definitive answer, but considering the peculiar corporate structures of Korean conglomerates, I’d say it’s not impossible."
Korean corporate governance was truly unique.
A group’s chairman could control an entire conglomerate despite holding only a small percentage of shares.
In the U.S., such a structure would have triggered a shareholder revolt, but in Korea, it was the norm.
Of course, things would change significantly after the IMF crisis.
But for now, corporate governance remained unchanged, making a hostile takeover possible.
"The group and my grandfather together hold only 27% of the shares. Of that, my grandfather personally owns just 10%, while the remaining 17% is scattered among various subsidiaries."
"That’s an incredibly weak structure. I’ve taken over many companies before, but it’s rare to find one with such a fragile foundation."
"So, you’re saying an acquisition is possible."
I handed Dimon the breakdown of Taewoo Heavy Industries’ shareholding structure.
He studied the document for a moment before flashing a slightly wicked smile.
