Investor That Can See The Future

Chapter 147

The role of a company is to make a profit.

But that’s not all. It is also the role of companies to create jobs, pay workers, and pay taxes. As a company grows, so do these roles and responsibilities.

How could it be possible for a large conglomerate to grow into such a global company because of the hard work of the chairman alone?

Of course, it is true that the president worked hard, but it was possible thanks to the national support, hard-working workers and consumers who consumed the products.

As such, a number of social infrastructures are the basis for the success of a company. Therefore, companies need to play a socially meaningful role beyond just making money.

Korean conglomerates make good money, but are stingy in social contribution activities. It’s fortunate that they don’t embezzle company money, let alone donate, and pay taxes properly.

It is not for nothing that the people criticize their own companies that are doing well.

Thanks to this donation to the savings bank victims, the image has improved a bit, but the image of OTK Company in Korea is not very good.

Apparently, the corporation is registered in a tax haven and mainly invested in the United States, so there is a misunderstanding that money earned in Korea is diverted to the United States (the press writes articles like that).

In fact, aside from investing in derivatives during the L6 crisis, OTK Company actually made very little money in Korea.

Although K Company, a consolidated corporation, is making money mainly in Korea, it is only a fraction of the total revenue.

Anyway, OTK Company also needs to play a social role to some extent as it has its headquarters in Korea and is active.

So what can you really do?

Taek-gyu heard my story and said.

“Can’t we just donate like last time?”

“Even if I donate, I wonder if the money will be used properly.”

It is not uncommon for donor organizations to steal donations from the back or hold a money party among executives.

Therefore, in the case of Bill Gates, the world’s largest donor, he set up his own foundation and conducts various charitable projects.

As such, he felt that he wanted to do something meaningful beyond just making money.

“You know, youth unemployment is serious in Korea.”

Numerous young people are unable to find a job, so they either postpone graduating or focus solely on civil service exams.

The president recommended overseas employment to young people who are clamoring for jobs, saying, ‘Try to make Korea empty. If you ask where all the young people are from, they will all say they went to the Middle East.” He said, turning the inside of the job seekers upside down.

In fact, there is nothing wrong with encouraging overseas employment.

Unemployment in the first place is caused by a mismatch between jobs and job seekers. If it cannot be solved internally, one way is to find a solution externally.

However, this does not mean that the country provides a supply only if there is a demand for it, or that it is said to go blindly.

Now is not the 1970s, when there was a boom in Middle East construction, what are you going to do in the Middle East?

“Then why are you talking nonsense like that?”

“No matter what you say, Park Si-hyung is a salaried employee who joined the company as a regular employee and rose to the position of president.”

Thanks to that image, he was able to succeed as a politician and rise to the presidency.

When Park Si-hyung worked at Eunsung Heavy Industries, it was a period of high growth for the Korean economy.

In the past, when large corporations do well, SMEs do well, and household income increases, leading to a virtuous cycle of consumption. This is the so-called trickle-down effect theory.

However, this trickle-down effect does not work properly during the low growth period.

What would you do if you were exempted from corporate tax while shouting business-friendly for a hundred days, and allowed dispatched workers and non-regular workers?

The easiest way for large corporations to increase profits is not through technological innovation or new market development, but by squeezing out subcontractors. Lowering the cost of delivery reduces the cost. If non-regular workers are used instead of regular workers, labor costs will be reduced and profits will increase even more.

As a result, only large corporations were paid, and the economy of the working class became even more difficult. Nevertheless, the perception of the president is still there.

When the people realized that business-friendly business only applies to large corporations, the government suddenly pulled out a card called the creative economy.

“What is the creative economy?”

I read the government announcement as it was.

“The purpose of the creative economy is to create jobs and markets through creation and innovation, and to realize a new society where creativity is fully expressed by strengthening leadership in the creative economy.”

“So what does that mean?”

“… … .”

Actually, I don’t even know what I’m talking about.

Creation, innovation, creative economy leadership, creativity, new society, etc. All kinds of good words seem to be included, but there are no concrete details.

Maybe the person who said it doesn’t know what you’re talking about?

“Anyway, the government invested taxes and built creative economy support centers everywhere.”

“What kind of support do you provide?”

“Youth Entrepreneurship.”

“Five! I’m fine. Are you supporting startups?”

“no. It’s like a food truck.”

“Still, they created a food truck.”

“But it didn’t last a few months and most of them were ruined.”

“… … .”

Korea already has a high rate of self-employment and fierce competition.

The biggest reason for this is still the IMF. It is no exaggeration to say that the 1997 financial crisis changed the landscape of the Korean economy.

At this time, companies collapsed one after another, and a large number of retirees poured out, and they semi-forced themselves into self-employment in order to make a living.

Even now, starting a chicken restaurant after my honorary retirement is no less than a course.

As a result, a tteokbokki shop set up by a retiree and a tteokbokki food truck founded with government support were running opposite to each other.

The current self-employment economy is at its worst, so businesses are closing one after another. In such a situation, it is impossible to do business well by providing tax support and setting up a food truck.

In the end, it often went bankrupt after a few months.

In addition, there are support for the establishment of youth stores in traditional markets, but the situation was similar to that of food trucks. They are repeating openings and closings, and they are only paying taxes.

“I would rather have used that money to support startups.”

While various supports were provided for self-employment start-ups, there was no special support for start-up start-ups.

This is in contrast to the Chinese government’s nurturing of start-ups at the government level as part of the resolution of youth unemployment.

When I ask Chinese college students what their dreams are, they shout “startup”. However, if we ask the same question to us or college students, the answer is ’employment’.

Parents also want their children to get a job at a large company, become a doctor or a lawyer, not start a startup.

Apart from the problem of perception, it is also because the start-up environment is not that good.

Unlike other countries, there are not many successful startups, and if they fail, they will be put to shame. In a society that does not accept failure, it is natural to find a stable job in this case.

Of course, there are young people who jump into new industries with enthusiasm under these circumstances, but there are many cases where they experience trial and error or get frustrated at the development stage because there is no proper support.

What I’m paying attention to is this part.

“I was wondering if OTK Company would support startups.”

“Are you going to invest?”

I shook my head.

“There is nothing like that, but is it a part of social contribution activities?”

It is good to nurture startups that can succeed, but I want to create an environment where you can keep trying even if you fail.

I organized my thoughts and made a PPT for my presentation.

Now that I’m doing this, I remember the time when I was doing group assignments in my freshman year. I think I remember doing homework all night at a cafe with Seon-ah… … .

Anyway, it’s not easy to do it for a long time. I forgot all the shortcut keys so I don’t know what it is.

Should I just hire an employee? If you call Ki-Hong sunbaenim and order it, you’ll be fine.

That senior did an amazingly good one PPT.

As I moaned in front of the computer, Taek-gyu, who was watching me, said:

“If you don’t know, call Bill Gates and ask. Would you accept it if I bet?”

“… … .”

surely?

* * *

I gathered a team leader or higher and held a meeting. Everyone gathered in the conference room, and Taek-gyu and Sang-yeop senior also took their seats.

“The reason why we have gathered like this is because we have decided that now is the time for OTK Company to engage in social contribution activities.”

I started PPT.

The statistics of startups in the US, China, and Korea were displayed on the screen. It was embarrassing to compare.

“What do you think is the current problem with Korean startups?”

The size of the domestic market, government support, negative perceptions, lack of managerial competency, items flocking to the red ocean, etc.

Various opinions emerged.

Sangyeop senior said.

“Isn’t regulation the biggest problem? All kinds of new industries are illegal due to various regulations.”

Seriously, is there even a statistic that 75% of the world’s top 100 startups are illegal in Korea?

“If only carpooling starts to be properly serviced, the taxi industry will pick it up.”

“It’s fortunate that there are laws related to that.”

At my words, Sangyeop-senpai shook his head.

“There were times when we made laws that didn’t exist and banned them.”

A startup created a car auction app called Hello Dealer. It was a way of connecting car sellers and dealers through an app.

Then, offline used car dealers strongly protested. Accordingly, Kim Tae-seong, a member of the Korea Household Party, which has a large used car park in the district, submitted and approved the amendment to the Automobile Management Act so that the automobile auction business must have a certain size of parking lot and auction house.

When this happened, the Hello Dealer was forced to close the door.

They shouted that it was a youth startup or the 4th industrial revolution, and made a healthy startup illegal overnight because the local residents objected to it.

Carpooling, too, would be enough if the National Assembly deleted the exceptions to the Transportation Business Act. If the taxi industry protests, you never know which member of parliament who is conscious of the vote will move.

“So, beyond investing in promising startups, I’m thinking about creating an environment for startups.”

asked Michael.

“How do you mean?”

I said flipping over the screen.

“It provides space and services for start-ups. I plan to create a shared office for that.”(Read more @ wuxiax.com)

Senior Ki Hong asked.

“Aren’t there many shared offices in Gangnam?”

“right.”

A shared office is a method in which the entire building is leased and then subdivided into smaller office spaces and leased again.

Currently, the most famous and largest shared office company is Workspace.

The business started in Manhattan, New York in 2010, and has now expanded to more than 50 cities in 16 countries around the world. It has also entered Korea and has branches in Gangnam, Yeouido, and Gwanghwamun.

As the demand for shared offices was confirmed, a number of similar companies emerged, and they are flourishing mainly in Gangnam.

“The purpose of a shared office is to make a profit by renting space. So the price is not that cheap.”

Shared offices are priced by the number of people, not the space. To set up an office space for two people, the minimum cost is 1 million won. If you look at it, it’s about the same as any office rental.

Instead, there is no or small deposit, and it provides various additional services.

Beverages such as coffee and beer are basic, and various devices and 3 printers for developers, professional studios, security systems, conference rooms, shower rooms, postal service, various lectures, etc.

As many start-up companies are located, community formation and networking are possible if necessary.

“It is similar to what I envision. But our goal is to grow startups, not rental income. By keeping the rent as low as possible, we go beyond renting a space to provide necessary services step by step. From incorporation, equity issues between business partners, collaboration with related companies, accounting, law, taxation, public relations, etc. In case of failure, we minimize the risk and help us try again, and furthermore, we connect investors or we invest directly.”

Taek-gyu asked a realistic question.

“How much does it cost?”

“Operating expenses will be covered to some extent by receiving from the tenants, so, excluding the initial cost, you will have to pay monthly rent and various service expenses.”

The head of the HR team, Michael Lee, strongly agreed.

“There are many startups with passion in Korea. It is very desirable to support them.”

The same was true of Jung Ki-hong, the head of the PR team.

“It goes well with the image of OTK Company and I think it will be a great help in publicity.”

Sangyeop senior nodded her head.

“It would be pretty good value for money.”

said Henry.

“It is a social contribution activity, but if you grow a startup and make direct investment, you can actually make a profit.”

After the presentation, I asked the attendees.

“Those who agree, raise your hand.”

At my words, everyone raised their hands at once.

Taek-gyu looked at him and muttered.