The first executive board meeting of 2005.
Was it six years ago when I first attended one of these meetings?
Compared to then, quite a few people had been replaced.
There were noticeably more foreign CEOs now.
Overall, the age group of the executives had also gotten significantly younger.
I merely turned my head to take a look at the faces of the affiliate CEOs—
But those who met my gaze quickly lowered their heads or offered awkward smiles, visibly tense.
"We'll begin the executive board meeting."
"I'd like to start with a report from Taewoo Electronics. Are you ready, President Lisa?"
"Please give me a moment. I'll initiate the interpretation system and then begin."
Interpretation system?
President Lisa put on a device that looked like a headset, and only then began her report.
"Before I begin the report, I'd like to check if the system is functioning properly."
She looked toward the screen and spoke in English.
On the screen, her words appeared in real-time, translated into Korean like subtitles.
"It's working well. Is this program the work of Team Leader Min-jeong Chun?"
"Yes. She made it because people said it was too difficult to communicate with me."
She really is remarkable.
I knew she had been working on a translation algorithm, but I didn't expect her to have completed such a flawless system already.
Once again, I was impressed by Chun Minjeong's capabilities.
But for now, I focused on President Lisa's report.
"I'll begin with updates on Taewoo Electronics and Semiconductors. First, Taewoo Electronics saw a 31% increase in sales compared to last year. Revenue has grown rapidly both in overseas and domestic markets."
"Those are solid results."
"Our market share in the TV sector rose sharply thanks to our collaboration with Apple. And our partnership with the Arnault family helped elevate our luxury brand image. In a few categories, we even reached the number one market share domestically."
Taewoo Electronics' growth showed no signs of slowing down.
Through collaborations with Apple and the prestigious Arnault family, the company continued to evolve its brand image and was receiving strong feedback from consumers.
"And how about Taewoo Semiconductors?"
"With the expansion of the smartphone market, demand for semiconductors is increasing significantly. Additionally, more semiconductors are being used in home appliances, resulting in a 40% year-over-year increase in semiconductor sales. We expect this figure to grow even more this year."
Everything seemed to be going well for Taewoo Electronics and Taewoo Semiconductors.
In particular, since most of the semiconductors used in Taewoo Electronics were supplied by Taewoo Semiconductors, the business cycle was creating a virtuous loop.
Even in such favorable circumstances—
President Lisa looked displeased, her brows slightly furrowed.
"Is there something else you'd like to say?"
"Taewoo Semiconductors is simply too small. We need to at least double the size of our factories and dramatically increase production capacity!"
[Ahem.]
Coughs were heard from various places.
Especially from the older executives who had worked with Grandfather for a long time—every single one of them was clearing their throats.
The reason for their coughs was simple.
Expanding or building new semiconductor plants requires enormous capital investment.
Securing land, facilities, equipment—
To increase production capacity to the extent President Lisa wanted would require at least 3 trillion won in initial investment. The board members were subtly voicing their concerns through their coughs.
[I also agree with building a new semiconductor plant. But doubling the size all at once is too much.]
[A twofold expansion in one go is unreasonable.]
[Given that the semiconductor market isn't bad, moderate expansion does seem wise.]
[Waiting to observe market conditions a bit more before deciding also wouldn't be a bad idea.]
More executives chimed in.
They were speaking confidently, assuming I would oppose a large-scale expansion of the semiconductor division.
But my thoughts were the exact opposite of theirs.
"If we're going to expand, wouldn't it be better to go for a fivefold increase rather than just double it?"
"I'd love to expand by five times as well, but I toned it down to double the size because the cost would be too high."
"A fivefold expansion would likely cost around 10 to 15 trillion won. Could Taewoo Electronics and Semiconductors handle that burden on their own?"
"It's absolutely possible. We don't need to pay the entire amount at once. If we invest 1 to 2 trillion won annually, we can handle it."
At Lisa's words, more coughs echoed through the room.
I almost wanted to hand them some water, but since I wasn't the official chairman yet, I decided to persuade them instead.
"Please explain in detail how Taewoo Electronics and Semiconductors plan to raise the necessary funds."
"Starting with Apple, several electronics companies are paying us substantial royalty fees each year. Those funds alone are more than enough to cover the construction costs."
"How much did we receive in royalties last year?"
"1.2 trillion won. Apple accounts for 50% of the royalty payments, and the rest comes from various smartphone manufacturers."
Taewoo Electronics and its research institute continued to apply for numerous patents even now.
Because they had purchased and developed patents even before smartphones hit the market, Taewoo Group was earning truly astronomical royalty income every year.
"Even without the royalty income, would it still be possible to fund the construction?"
"There would be no problem. Taewoo Semiconductors earned over 3.4 trillion won in operating profit. The factory expansion can be fully funded with just Taewoo Semiconductor's retained earnings."
Taewoo Semiconductors, once a loss-making division, had now grown into Taewoo Group's undisputed cash cow—generating more and more operating profit each year.
"No one will object to reinvesting Taewoo Semiconductor's profits. Even the shareholders won't oppose it."
"Then I'll prepare a detailed proposal and get started!"
By invoking the shareholders, I effectively silenced the board.
Since I owned over 60% of Taewoo Group's shares, my words were equivalent to those of a majority shareholder. It wasn't a lie.
"Next report, please."
Following Taewoo Electronics, I received reports in order of companies with the highest revenue.
Taewoo Telecom, Taewoo Motors, Taewoo Construction—
All of them were experiencing a boom, not just in sales but also in operating profit.
However, not all subsidiaries were in the black.
Taewoo Trading, which had aggressively pursued mining rights acquisitions last year, recorded a massive deficit.
"We've acquired the mining rights, but actual mining hasn't begun yet, so there's been no revenue. Excluding that, sales figures are about the same as the previous year."
"Resource development isn't a short-term revenue-generating business. It's a long-term project, envisioned over more than a decade. There's no need to panic just because there's no immediate profit."
President Lee Jong-soo of Taewoo Trading, clearly nervous, was presenting.
He had just been appointed president last year, and his nervousness showed.
Still, I didn't think he lacked ability—so I offered him some encouragement.
"We're doing our best to begin mining as soon as possible. We're cooperating with Taewoo
Construction and Taewoo Chemical, and progress is going well."
"How much has been invested so far in acquiring raw material mines?"
"Excluding Wall Street capital, over 10 trillion won has come from Taewoo Group alone."
"Only 10 trillion? I recall the original proposal stating that Taewoo Group would invest at least 20 trillion won."
Ten trillion won was enough to purchase an entire mid-sized company.
Taewoo Group's surplus from last year was nearly half of that amount.
But thanks to the efforts of various subsidiaries, the used-up surplus was quickly recovering, and Taewoo Group's balance was gaining breathing room once again.
When you think about it, a surplus of several trillion won wasn't such an enormous sum.
Before the collapse, Samsung Electronics had accumulated a surplus of about 150 trillion won in its accounts.
This was partly because they hadn't found suitable investment opportunities, and partly to avoid repeating humiliating histories like the IMF crisis.
But Taewoo Group didn't have to do that.
I knew exactly which business sectors would be the future growth engines, so there was no reason not to invest.
"We're currently negotiating with several countries. Many foreign companies have already planted deep roots in mining projects, so there are delays."
"Then we should pioneer new countries. How about Mongolia? Isn't it famous for its abundant underground resources?"
"That's true, but Mongolia's underground resources are practically monopolized by China."
Mongolia was one of the top 10 countries globally in terms of underground resource reserves.
Yet it was a country that hadn't made much money from those resources.
The main reason was its geography. Since there was no other way to export resources other than through China, Mongolia was forced to sell its underground wealth to China at low prices.
"Mongolia's geographic location is the worst. It's basically a landlocked country with worse access than an island nation."
"Exactly. Russia surrounds it to the north, China blocks the south, and the distance to the sea makes transporting underground resources difficult."
Transportation of underground resources had to be done by land or sea.
But land routes were blocked by communist countries, and sea routes were too far, so no matter how rich Mongolia was in resources, there was no easy way to sell them.
"If we get China and Russia's approval, couldn't we bring Mongolia's resources here?"
"Technically yes, but China has no reason to allow that. Why would they share Mongolia's huge profits with us?"
"I'll handle that problem myself. Mr. Lee, prepare a mining development proposal for Mongolia. I want two versions: one using Russia's route and one using China's."
"I'll get it done as soon as possible!"
China and Russia.
I had excellent relations with both countries, so there was a way to solve this.
Of course, both countries were somewhat unstable, and I was uneasy, but the importance of underground resources meant we had to take the risk.
"That's all for today's report. For Taewoo Group to lead the future, we must constantly reinvent ourselves. We need to shift from manufacturing-centered business to high value-added manufacturing and services. Even if we settle for the present, Taewoo Group is strong enough not to fail—but that won't make us the best in the world."
We had already become Korea's top company.
Naturally, the next goal was to be the best in the world, and I needed to let the board know what I was aiming for.
"To become a butterfly, you have to shed your skin more than five times. Shedding is risky, but if we succeed, we can become butterflies soaring on the world stage. Let's not settle for being caterpillars crawling on Korea's small stage."
Some of the executives agreed, while others were dissatisfied with my aggressive investment approach.
Still, I had no intention of firing those who opposed me right away.
They would come around once I showed results.
Of course, if they still reacted the same way then, I'd have to hand over their position to someone else.