Third-Generation Chaebol

In China, where the fear of famine had not yet disappeared, the government had implemented strict birth control policies.

Of course, those with enough money could afford to pay fines and have multiple children.

However, for high-ranking officials, public scrutiny was a concern, leading to the existence of many hidden children who were never officially registered.

Zheng Hongqin was one such case.

He had a son to whom he couldn't even give his surname.

And based on the detailed information I had obtained, the man standing right next to him as his escort was none other than that hidden son.

With this knowledge in hand, I moved on to the main topic.

"Taewoo Motors is planning to export complete vehicles to China through a joint venture with a Romanian company."

"Romania is a former communist country, so the regulations would be relatively lenient. But it won't be an easy task."

"The distance between China and Romania is a staggering 6,000 kilometers. The transportation costs will be immense, and I would like to entrust the logistics of this operation to you, sir."

"You're asking me to handle transportation rather than regulatory approval? That's an unexpected request."

Securing regulatory approval ultimately required money.

And my proposal implied that the money would be funneled through the vehicle transport business instead.

Zheng Hongqin quickly grasped the underlying meaning of my words.

"To establish stable trade between China and Romania, we will need your support, sir."

"That level of assistance is not difficult to provide."

"However, I would also like the CEO of the transportation company to be someone close to you, sir. Perhaps the gentleman standing beside you?"

"…Are you saying this because you know something?"

"I know nothing at all. I simply assumed he must be someone you favor, given his position at your side."

I was essentially offering to appoint his hidden son as the CEO of the logistics company.

For Zheng Hongqin, there was absolutely no downside to this deal.

And I sweetened the offer even further.

"Additionally, I would like to entrust the management of all profits from the transportation company to you, sir. Furthermore, I will personally invest all the capital needed to establish the business."

"Haha, you're quite a well-mannered young man. But do you really think a transportation company will generate much profit?"

"That will depend on how well our vehicles sell in China, but at the very least, I can guarantee a stable revenue stream. I assure you, sir, that this endeavor will never tarnish your reputation."

In other words, I would make sure he got paid—regardless of how successful the business actually was.

It was an unspoken request for him to ease the regulatory hurdles in return.

Zheng Hongqin understood my intent perfectly.

He turned his head to look at his hidden son.

"Well then, do you think you can handle this?"

"If you entrust it to me, I'll do my best"

A son who couldn't even be registered in the family records.

Zheng Hongqin's hidden weakness.

To that hidden weakness, I was offering the position of CEO of a logistics company—one where money would flow in effortlessly.

"It seems he's willing to give it a try. Can you arrange the position for him?"

"If you grant me this opportunity, it would be an honor. And if you ever need anything from me, please don't hesitate to ask. I may be a nobody in China, but in Korea, I do have some influence."

"Haha, you have a good heart. I will remember you. Now, this old man will take his leave. You young people can continue discussing business."

Zheng Hongqin left, deliberately leaving his son behind.

It was his way of ensuring that I formed a relationship with his son. And, by extension, a relationship with him.

"Alright! Let's have a drink! I'll show you the drinking skills I've mastered while traveling the world."

This was David's area of expertise.

He had spent years winning over political and business elites around the world.

Winning over the hidden son of a high-ranking Chinese official was nothing for him.

***

Back at the hotel, I reflected on the evening's success.

Thanks to David's efforts, building a connection with Zheng Hongqin's son had been easy.

"He's a rather lacking individual. Perhaps because he wasn't officially recognized, he craves special treatment."

"People like that are easy to win over with just a little flattery. But Boss, how did you know that Zheng Hongqin had a hidden son?"

"Taewoo Group's intelligence network is quite formidable."

Yeah, right.

The real reason was my special ability.

"So, how much are you planning to give Zheng Hongqin? If this isn't going to be a one-time deal, we'll need to keep him satisfied."

"If we're going to spend, we should do it properly. Set aside $100 million a year for him."

"Isn't that too much for someone who's only ranked 22nd?"

"His rank may be 22nd, but he's the right-hand man of the one ranked first. If we spend that much, even the number one might start paying attention."

"And if the top leader takes an interest, are you willing to spend even more?"

"Of course. Taewoo Group and SAVE Investment are about to rake in money in China."

China was entering its growth phase.

In about 20 years, it would begin to aggressively push out foreign companies.

But until then, my plan was to extract as much as possible before making my exit. And to do that, I needed to allocate a substantial budget for lobbying.

"Then, I'll stay in China for a while and strengthen our connections."

"David, I'll be counting on you."

"No need to worry! The more connections I have, the better, after all."

***

Back in Korea

As soon as I arrived, I summoned the Planning Director and gave him a brief rundown of what had happened in China.

"Are you saying you've established a connection with the right-hand man of China's top leader?"

"Technically, it's his hidden son that I've formed a connection with. But this should allow us to export finished vehicles from our Romanian factory to China."

"Once again, I'm amazed by your abilities. First, you created the InnoPhone at Taewoo Electronics, and now, you've secured Taewoo Motors' entry into China. This is truly remarkable."

The Planning Director showered me with praise, visibly moved.

It didn't have the sickly sweet, insincere tone of Vice President Woo Sung-il's flattery.

Rather, it felt like the genuine pride of a parent watching their child succeed.

"I'll report directly to the Chairman myself."

"Will you? Then I'll prepare the report right away. Please wait just a moment. The Planning Office has already been working on the materials, so it won't take long."

The Planning Office put together a flawless report.

With the documents in hand, I took the stairs up to the Chairman's office.

Only those from the Planning Office could access the Chairman's office via the stairs, a testament to how much my grandfather valued it.

***

"Ah, the Head of Planning is here. Your title keeps changing so often that I sometimes lose track. But I doubt you came here without reason—what's the matter?"

"I've come to discuss the Lode Motors factory in Romania."

"You're not going to suggest selling it again, are you?"

My grandfather's pupils trembled slightly.

After my repeated proposals to sell off companies, it seemed he had grown wary.

"No, not at all. I've come to report a strategy to increase exports using the Lode Motors factory."

"That factory was originally established as a foothold for entering the European market. How exactly do you plan to use it?"

"We can export finished vehicles produced in Romania to China. Let me show you the details."

I presented the report prepared by the Planning Office to my grandfather.

As he flipped through each page, I provided additional explanations.

"Since Romania was once a communist bloc country, this approach is feasible. We've already secured approval from the Chinese government."

"So, you're saying that by using the transportation company's profits as lobbying funds, we can facilitate exports."

"Currently, Taewoo Motors has entered China through a semi-knockdown (SKD) assembly system, but its profitability is much lower than exporting finished vehicles."

"That's why I've been working on establishing a complete vehicle manufacturing plant in China."

"Before setting up a factory in China, we can use the Romanian plant as a stepping stone."

"Impressive. Why didn't anyone else think of this?"

My grandfather looked at me with warm eyes.

It seemed as though any lingering resentment between us had melted away with this proposal.

"We should start by exporting small cars, and if the response is good, we can expand to mid-size vehicle production as well."

"Let's do that. I've been struggling to find a market for the cars produced at the Lode factory, but thanks to you, that problem is solved."

"This was only possible because you had the foresight to expand overseas early on, Grandfather."

"Hah, that's good to hear. But when you say we should use the Lode factory until we establish a plant in China, does that mean you support building a factory there?"

My grandfather's eyes gleamed with anticipation.

But unfortunately for him, I was against the idea.

Expanding into China was inevitable, but entering the market now would result in massive debt.

All my efforts to reduce the company's debt ratio would be undone in an instant.

That didn't mean I was completely opposed, though.

I needed a way to build a factory in China with minimal debt.

"It's difficult for Taewoo Motors to enter China alone. The Chinese government doesn't grant approval for wholly foreign-owned vehicle manufacturing plants; they require joint ventures with local companies."

"That's why we're currently in discussions with several Chinese firms."

"In addition to a Chinese partner, I believe adding an American company and forming a three-way joint venture would greatly increase our chances of success."

A three-way joint venture.

This was the solution I had in mind—bringing in another company to share the financial burden.

"By a joint venture, do you mean GM? You do realize we had a major conflict with them in Poland?"

"Yes, I'm aware of the intense battle over acquiring FSO, the Polish automaker."

My grandfather was deeply committed to corporate acquisitions.

When GM had set its sights on acquiring FSO, he fought fiercely and won.

"And yet, you're suggesting a joint venture with GM?"

"GM isn't the only American automaker."

"You're not saying... Ford, are you?"

Taewoo Motors had a long-standing technological relationship with GM.

Since we had built our expertise by producing GM vehicles, forming a joint venture with Ford would be an irreversible move—it would completely sever our ties with GM.

That was exactly what I wanted.

During the Asian financial crisis, Taewoo Motors had been in desperate need of foreign currency.

The company had sought to resolve the crisis by forming a joint venture with GM.

The deal was nearly finalized when GM suddenly backed out at the last moment.

Shortly after, Taewoo Motors collapsed.

It was clear that GM had deliberately delayed the joint venture to weaken Taewoo Motors, then swooped in to acquire the company once it was vulnerable.

"I want to establish a joint venture with Ford for our entry into China. We focus on small cars, while Ford specializes in large vehicles. A joint venture would create significant synergy."

"Do you really think that's possible? We have no prior relationship with Ford."

No relationship?

Of course, we had one.

I had been preparing for this moment.

I had acquired 20% of Ford's shares.