After finishing the schedules in the United States and China, I returned to Korea.
Whenever I wrapped up an overseas business trip, I usually stopped by Captain Kang's office to rest while eating ramen with my closest aides. However, there was no time for that now. President Han was working overnight at the Financial Tower, so instead of going to Captain Kang's office, I headed straight to the Financial Tower.
"I noticed on the way here that the oil prices have fallen quite a bit in the meantime."
"Although there had been a steep decline before, if you look at the current graph, oil prices have plummeted almost like a cliff."
Even before the regression, oil prices had been falling sharply. But this time, the decline was steeper than before, because Taewoo Securities, the fintech bank, and all the financial firms in the Financial Tower were aggressively engaging in short selling.
"The lowest point is still far off. They'll probably keep falling for at least another month."
"As the chairman predicted, it looks like the price will break the $40 mark. At this rate, water might become more expensive than oil."
"Well, that works in our favor."
"If the earnings increase until the end of the year, raising $25 billion should be very doable."
Taewoo Securities was posting record-breaking profits. In terms of rate of return, previous major events like the Lehman shock or other big incidents yielded higher rates, but because the investment amount this time was huge, the profits were even greater.
"I'm glad it looks like we'll surpass $25 billion. I was actually on my way back after checking out something to buy in China."
"Is it something expensive?"
"Not too much. It's roughly a $2 to $3 billion item."
"...We'll need to push a bit harder until the end of the year."
Raising $25 billion was not a difficult task. However, since investments had to be made beyond just acquiring oil companies, it was necessary to hold tightly onto the seed money.
"Is it frustrating to spend every last bit you earn?"
"Not at all! Chairman, it's not wasted on frivolous things. These are investments for the future, so it's definitely worth it."
"The oil war is just past round one. To steadily score through until round nine, stamina is vital. So don't overexert yourselves."
The oil war didn't end in 2014. It was a conflict that would continue for years, an unending war as long as the chicken game between the U.S. and OPEC persisted.
"The longer the war drags on, the better for us. Where else can you find a game with such huge money moving around?"
"The $25 billion used to acquire oil companies will be quickly recovered. Oil prices are expected to rise again in the first half of next year."
The continuation of the oil war didn't mean oil prices kept falling. There were rebounds, and especially when OPEC hinted even slightly at production cuts, oil prices surged significantly.
"Will Saudi Arabia cut production? The moment they do, it's like admitting defeat."
"Who said they would cut production? They only hint at such moves slightly. And in half a year, the world gets used to the low oil price era. Then prices gradually start climbing."
The era of one-sided decline was over. The period of repeated ups and downs had begun. Of course, oil prices have always fluctuated. But in this era, rises and falls proceeded sharply, so timing was everything to make significant gains.
"We'll finish acquiring the oil companies before the oil price rises."
"It's important what we do, but even more important is how proactively the U.S. government moves."
"Through David, I've heard that the White House is very actively engaging with oil companies. And in Hess's case, a strong voice for selling has already emerged in the boardroom."
Everything was flowing smoothly in the direction I wanted. The moment we announced the consortium, the acquisition of the oil companies would be completed within days.
In 2014, Taewoo Group had been extremely busy throughout the year. It wasn't only Taewoo Securities that was occupied due to the oil war; Taewoo Semiconductor, especially with the imminent completion of its large-scale semiconductor complex, was also going through a very hectic period.
And today, the semiconductor complex in Gyeonggi-do was completed.
For the completion ceremony, political and business figures from all sectors gathered, and delegations from overseas groups, including the United States, filled the venue with congratulatory attendees.
"We will now begin the completion ceremony!"
Was it because this was an event certain to be covered by the news? So many politicians wanted to deliver congratulatory speeches that the speeches dragged on for more than two hours.
"Chairman, this feels like coming back to a wedding hall. Back then, I was just as frazzled and waiting for it to be over quickly."
"But we can't just chase away those who came to congratulate us."
The ceremony ended as the sun was setting. The top executives hurriedly moved to the newly built R&D center located at the center of the semiconductor complex almost like seeking refuge.
"From here, it's clear that the semiconductor complex is really huge. I can't take it all in at a glance."
"The problem is, this semiconductor complex isn't the only one. The semiconductor complex being built in the U.S. is no small scale either."
Leaning against the window, I looked down at the semiconductor complex. President Lisa stood beside me, her face half filled with expectation and half with worry.
"You should be prepared to operate with losses for a few years. This is not a semiconductor complex built with the expectation of immediate profitability."
"Still, I don't think the losses will be that severe. American companies like Apple and Qualcomm, as well as Korean and Japanese companies, are issuing semiconductor production orders. The utilization rate is expected to exceed 80% at a minimum."
Taewoo Group used a massive amount of semiconductors as well—electronics, electric vehicles, and more. But Taewoo Group alone could never take full responsibility for the entire semiconductor complex. Overseas groups' support was necessary.
Only if semiconductor demand increased beyond the current level could the entire complex be fully operational.
That was why President Lisa was worried.
"The demand for semiconductors will increase significantly. Don't worry too much."
"I keep thinking that while Samsung Electronics is just standing still, we're the only ones building such a huge semiconductor factory."
"If Samsung Electronics were to release the corporate reserves they've been hoarding, building a semiconductor complex this size would be a piece of cake for them. They'll regret not investing early."
Of course, Taewoo Group could also end up regretting it. Although it was certain that semiconductor demand would continue to grow, the semiconductor business had its cycles. Should a downturn come, Taewoo Semiconductor could face enormous losses.
Still, a large investment in semiconductors was necessary. Semiconductors could be used as a strategic weapon, and to wield influence in international relations, Taewoo Group had to possess vast semiconductor production capacity.
"Samsung Electronics won't interfere, right?"
"That's unlikely. The semiconductor complex is essentially a foundry-only factory. If anyone were to pose a threat, it would be from Taiwan."
The Taewoo Semiconductor complex should have actually been in Taiwan. But I took the initiative first and established a massive foundry complex in Korea to secure our lead.
Despite that, news continued to come about foundry factories being built in Taiwan, and our biggest competitor was likely to be a Taiwanese semiconductor company rather than Samsung Electronics.
"I can't promise you everything, but I can promise we won't be overtaken by latecomers. Taiwanese semiconductor companies will never catch up to even the tip of Taewoo Semiconductor's toes."
"That's reassuring to hear from President Lisa."
Lisa gave me a fiercely sharp look. She was a woman of strong pride and would never allow any latecomer to surpass Taewoo Semiconductor.
In fact, I had been a little worried. Both of the executives leading Taewoo Semiconductor were of Taiwanese origin. There was a slight concern, but the executives' affection for Taewoo Semiconductor was greater than I expected.
So, there was no need for unnecessary worry. I was confident that Taewoo Semiconductor would monopolize the foundry market.
***
Hess, a company specializing in oil and natural gas exploration, held oil field rights in North and South America and was considered one of the prominent oil companies due to its excellent exploration capabilities.
However, they faced two consecutive crises. The first came with the surge in shale gas production, known as the shale revolution. The second, even more severe crisis came with the oil war that caused oil prices to plummet.
Because of this, an emergency board meeting was convened. The board had been in continuous dialogue with the U.S. government, and now it was time to make a choice.
"Oil prices have fallen again today. They have dropped nearly 40% in six months. And forecasts predict they could fall as much as 50% next month."
"Next month is an issue, but there is no guarantee that prices will rise next year or the year after. Shale gas production keeps increasing, and OPEC shows no sign of halting production increases."
"The sooner we start the sale process, the more we can minimize losses."
Everyone recognized the severity of the situation. But regarding the company's sale, two sharply opposing opinions clashed.
"Is it even reasonable to talk about selling the company? We cannot just end Hess's history of over 80 years like this."
"Let's endure the current crisis a little longer. We survived the two previous oil wars, didn't we? We can definitely survive this third oil war too!"
Hess was a company with deep history and tradition. The management was proud of the company as if they had been part of the very start of oil exploration.
"We cannot survive without government help. But the Obama administration only cares about shale companies. Haven't we been told they'll just watch and let us fail?"
"That's right. Market capitalization has halved in six months, and debt has tripled."
Every man for himself. That was the clear message from the White House.
Knowing they could no longer expect government support like before, the majority of the board favored selling the company.
"Our debt is increasing, but if we can discover oil fields in South America, we can pay off the debt all at once. With our technological capability, it's definitely possible."
"Finding oil fields isn't the end of it. When you add the costs of developing those fields and transportation, it could actually lead to greater losses. With oil prices falling this much, producing oil will only cause prices to drop even further."
The supporters of the sale grew increasingly anxious. Since they all held some shares, bankruptcy would mean they wouldn't get a single cent back.
Of course, not everyone felt the same. Among the supporters were those worried not about their own profit but about the company's employees.
"Think about the employees who travel across vast oceans for oil exploration. For them to get proper compensation, a strong parent company is necessary."
"Can Taewoo Group be that strong parent company? They say a consortium will be formed, but isn't Taewoo Group the one holding the lead?"
The board had heard from the U.S. government that Taewoo Group was the prospective buyer. Some were uneasy about a Korean company acquiring Hess instead of an American one.
"As far as I've checked, Taewoo Group's debt ratio is almost zero, and they have several billions of dollars in retained earnings."
"Hmm, understood. We will proceed with the sale for now, but we will meet with Taewoo Group to make the final decision."
The board was already leaning toward the sale. However, there was still a possibility that the final negotiations with Taewoo Group could collapse.