The standard for being considered wealthy is usually $1 million in liquid assets. And for the super-rich, it’s $30 million. The number of super-rich individuals is continuously increasing in countries like China, Russia, and India, and they have emerged as major consumers in the luxury goods market. They’re buying supercars exceeding a million dollars, as well as yachts and private jets, almost flaunting them, and the market targeting the super-rich is steadily growing.
Among these, private jets can be considered the ultimate status symbol. It’s not just about buying one; there are ongoing costs like hangar fees, maintenance fees, and salaries for the pilot and crew. Because of this, unless you’re seriously wealthy, it’s difficult to handle the upkeep.
Well, we’re wealthy enough, so it’s not really a concern for us.
Sales representatives from Boeing, Gulfstream, Embraer, and Dassault, among others, visited OTK Company headquarters. Some companies even sent models that were available for test flights to Korea.
Apparently, rumors that OTK Company was going to purchase a private jet had been circulating for a while now. The reason was because Senior Manager Sang-yeop had been actively looking into it. He had even gone on several test flights.
“……Huh? When did you do test flights?”
Senior Manager Sang-yeop, looking like a child caught trying to buy a toy behind his mom’s back, changed the subject.
“No, well… it’s not like I personally wanted to ride one, but it would be good to have, right? I think CarOS and Faceit could also use one.”
Come to think of it, that’s true.
Both companies are targeting not only the US market but also the global market, so they have frequent business trips. It must have been a hassle to book tickets every time.
“But then why haven’t we bought one until now?”
Taek-gyu blinked and looked at me.
“Do you really not know why you’re asking? The CEO drives a compact car to work, how could the Executive Director sign a contract for a BMW?”
“Ah…….”
It was because of me?
A private jet is convenient to have, but it’s not essential. So, it seems they couldn’t bring up the idea of purchasing one until now. They’ve also been busy with research and development and product launches.
I felt somewhat apologetic.
I nodded.
“We should ask if they need one, and we should purchase them for the other companies as well.”
As soon as I said that, everyone welcomed the idea. Especially Tobey and Gerard were overjoyed.
“It’s been my dream to throw a party with actors in a private jet in the sky. Have you heard of the Mile High Club?”
“…….”
That actually exists?
“I’ll definitely invite you, CEO.”
“……No, thanks.”
I am a little curious, but I decided to pass.
If Ellie finds out, it won’t just end with nagging.
Anyway, we decided to buy one for ourselves, two for CarOS, and one for Faceit.
I met with the representatives and listened to their presentations. They enthusiastically explained and promoted the performance and options of their respective private jets.
Taek-gyu said in a small voice.
“Don’t they all look the same?”
“Well, planes do all look pretty similar.”
If you cover the logos, it’s hard to tell which company’s plane it is.
Senior Manager Sang-yeop shook his head.
“What are you talking about? The wing and engine shapes are slightly different here. And the number of windows is different too. I can tell them apart at a glance.”
“…….”
He really must have been looking at them intently all this time.
Unlike airliners designed to transport as many passengers as possible, the interiors of private jets are all unique.
Conference rooms, bedrooms, and shower booths are standard, and they can be custom-made according to the user’s preferences. The design can also be decorated in a classic or extravagant style.
There are so many things to choose from.
I put down the pamphlets I was holding and said to Senior Manager Sang-yeop.
“Just pick the one you want to buy, Senior Manager. Don’t worry about the price.”
Then Senior Manager Sang-yeop said excitedly.
“Really? You can’t take back your words later.”
And immediately, he called the representatives together in one place.
“Which company can deliver the fastest? Raise your hand.”
Negotiations with GM and Ford were proceeding smoothly without major issues. They had reached a broad agreement, but disagreements arose on the details.
As expected, both Chairman Theresa McFalland and Chairman Hugo Petreus were formidable opponents. The two approached the negotiations like gladiators in an arena.
Chairman McFalland, in particular, was extraordinary. She was famous for not batting an eye even when surrounded by angry workers who had been laid off.
However, our negotiation team was also not to be underestimated. Director Hyun-joo was leading the negotiations with Team Leader Seo Sang-won. They debated over even changing a single word in the negotiation document for a long time.
“Isn’t it right that TS Company should be fully responsible for recalls due to battery failures?”
“We will take responsibility for defects that occur during the manufacturing process, but we cannot accept responsibility beyond that.”
“CL Chemical, which has supplied batteries to GM so far, has been responsible for battery recalls.”
“That’s because you made a bad contract on your end. It is right to take responsibility only within the usual scope.”
“And what exactly does ‘usual scope’ mean?”
Taek-gyu said in a small voice.
“My sister’s personality is still alive and well.”
“Indeed.”
The tension was palpable, almost suffocating. Well, with every digit and decimal point, tens of millions of dollars were at stake.
The only breaks were mealtimes and quick bathroom trips. After about three days like that, everyone’s eyes became sunken and their voices were hoarse. But no one relaxed their posture or gaze.
Ellie assisted the branch manager from the side, reviewing various legal clauses. Contracts aren’t just finalized by us signing them; they need to be checked to ensure there are no legal violations. Just like how interest rates exceeding the legal maximum interest rate or body relinquishment contracts are invalid.
Even with a slight nod from Director Hyun-joo, Ellie would find and present the necessary materials. Perhaps because they had worked together for a long time, their teamwork was seamless.
They are truly professional when working.
After a week of negotiations, a draft of the negotiation document was created.
We shook hands in front of domestic and foreign media in the Diamond Hall of the Ceylon Hotel.
I spoke as the representative.
“OTK Company will prioritize GM and Ford as our partners and cooperate in the fields of unmanned vehicles and electric vehicles.”
This was nothing short of a seismic shift in the automotive industry.
The media rushed to write articles, and Ronald immediately tweeted.
[The Big 3 alliance is very good for American workers. Now America will hire more workers and make more cars. Anyone who tries to stop this will not be left alone.]
This was nothing short of a warning to other countries that were blocking imports through trade barriers.
– Wow! Big 3 alliance. Crazy.
– Isn’t this practically GM and Ford becoming subsidiaries of CarOS?
– Not quite to that extent, it’s the same as Seosung Electronics making Andromeda smartphones.
– Is there really a need to do it this way? Wouldn’t it be better to just do everything on your own?
– The global car market sells 90 million units a year. It’s impossible for one company to produce all of that.
– Supplying software and batteries to expand the pie is the priority.
– Closed platforms have limitations. Choosing an open platform is the right choice. Just look at smartphones, Andromeda’s market share is overwhelmingly higher than NOS.
– It’s fortunate that Eunseong Motors joined early.
– By the way, when will the AD series be released in Korea? I’ve been waiting to buy one.
– At that price, I’d rather buy a Mercedes or BMW. German cars are always better.
– Okay, next pedestrian.
In a video call, Daryl said, exaggerating slightly.
“The competition in the finished car market will become fierce.”
Supplying autonomous driving software and OTK batteries means that rival companies will also gain the strengths that CarOS possesses.
While there’s the advantage of earning revenue from software sales and advancing technology, we will also have to compete fiercely in the finished car market.
This situation is somewhat similar to Seosung Electronics.
Seosung Electronics manufactures and sells TVs and smartphones while also supplying displays, semiconductors, and batteries to competitors.
I do have some concerns.
“Are we going to be alright?”
Daryl confidently nodded.
“CarOS is already synonymous with future cars as a brand. We won’t be overtaken by GM and Ford. And competition helps with development.”
“Challenge and response, is it?”
He smiled at my words.
“Arnold Toynbee’s words.”
Stagnant water is bound to rot, and without predators, one becomes complacent. By responding to challenges, we can develop further.
Smartphones too have continued to develop as Andromeda and NOS, Seosung Electronics and Npple, etc., compete with each other.
“The car market is too big to monopolize. And there are many other things we need to do besides that.”
The era of car companies only making and selling cars is over. Fields to expand into are endless, such as electric trucks, electric scooters, ride-sharing, car-sharing, etc.
Unmanned trucks are already partially commercialized, and the next step is to enter the ride-sharing market using the AD series.
It’s about time to push out Iber.
During the semiconductor boom, Seosung Electronics’ market capitalization increased to 350 trillion won. Even at that time, there were talks of overvaluation, but currently, the market cap has surpassed a whopping 700 trillion won!
This was a result of anticipation for future revenue from the automotive electronics business and the added value of the 24.5 percent CarOS stake held by the company.
It’s the largest among Asian companies and among the top ten in the world. Inevitably, there are talks of overvaluation, but there are also strong counterarguments that it will soon surpass Gooble and Npple.
Berkshire Hathaway, which invested in Seosung Electronics early on, also doubled its earnings, earning praise as expected from Warren Boat.
Thanks to the stock price increase, Chairman Im Jin-yong’s assets also increased significantly. But he’s still only 4th in Korea. For reference, 1st is me, 2nd is Taek-gyu, and 3rd is Director Hyun-joo.
Thanks to Seosung Electronics, KOSPI also hit a record high. However, if you look inside, the situation wasn’t that good.
Among individual stocks, only Seosung Electronics and Seosung SB and other Seosung Group stocks were rising, and the market capitalization of other large corporations was rather on a downward trend. Therefore, the returns of funds that included Seosung Electronics and those that did not were drastically different.
The domestic economy was also in serious trouble. There are several reasons for this, and one of them is Seosung Electronics.
Taek-gyu asked, as if he didn’t understand.
“Why is it because of Seosung Electronics?”
“It’s similar to the resource curse.”
The basis of the economy is the exchange rate.
Countries that have oil earn huge amounts of foreign currency just by extracting and selling the oil in the ground. Therefore, regardless of their domestic economic situation, their currency continues to be overvalued, which is disadvantageous for export companies.
Korea’s domestic demand is currently not good. The unemployment rate continues to rise, and employment and investment show no signs of improvement.
In this case, the won’s value should fall, which is normal. If the exchange rate rises, companies gain price competitiveness and increase exports, which leads to employment and investment.
However, Seosung Electronics is doing too well. Not only are they raking in dollars with semiconductors, but they are also attracting global investment funds into the country.
When foreign capital enters the country, they sell dollars and buy won, naturally leading to the overvaluation of the won.
Experts predicted that if Seosung Electronics didn’t exist, the exchange rate would be 20 percent higher than it is now. From the perspective of other export companies, they are inadvertently suffering damage due to the overvalued won.
Just like the content of an article I read before, Enphon didn’t just change the mobile phone market, it changed the world.
I could intuitively sense it. Change is likely to come faster and bigger than everyone expects.
The market has already passed the singularity.
It will be a good opportunity for some, but a crisis for others. Challenge and response bring development, but if the challenger is too strong or the response is wrong, you will go bankrupt.
You have to survive first to develop or do anything else, right? I wonder how many of the current large corporations will still be thriving 10 years from now?
I said to Chairman Im Jin-yong.
“We should meet with CL Group and SSK Group.”
