Investor That Can See The Future

Chapter 253

I headed to the Japanese restaurant in the basement of the Ceylon Hotel with Taek-gyu. Chan-young Han, who had come first, got up and greeted us.

“See you after a long time.”

The first and last time we met was at the time of the X-Cop bidding. And this is our second meeting.

In the meantime, things have changed a lot. While Karos has become a global company, Eunsung Cha is experiencing several difficulties.

They are probably still under tremendous pressure from shareholders.

One of the common problems of Korean chaebols is that they have weak management rights. Like other chaebols, the Chan-Young Han family’s stake is less than 5 percent. Trying to control the entire group with a small stake, all kinds of tricks, including circular shareholding, are likely to be mobilized.

In a normal case, there seems to be no problem, but when the company’s circumstances deteriorate or the stake relationship changes due to the succession of management rights, the vulnerability is exposed as it is.

Mineo sashimi came up on the table.

“What did you say you wanted to see?”

He answered my question with a heavy expression on his face.

“I want to ask CEO Kang Jin-hoo for help.”

After all, I wouldn’t have asked to meet just to eat sashimi. But Taek-gyu is already working hard with chopsticks.

“What kind of help specifically?”

“I want to be supplied with OTK batteries.”

“Large-sized batteries for vehicles have not yet been released.”

“I heard that battery pack development is almost over. Why don’t we start production at the Suwon plant of Seoseong SB soon?”

“You know.”

Some of the production lines have already been changed.

Taek-gyu asked as he grabbed the sashimi and ate it.

“What about hydrogen cars?”

Chanyoung Han smiled bitterly.

In the meantime, the hydrogen car plan that Eunsung Motors has been ambitiously pursuing has come to a halt.

Hydrogen cars have clear advantages over electric vehicles in terms of charging time and mileage. So, the era of hydrogen cars may one day be ushered in.

But no matter how good a skill is, it is useless if the timing is not right. What will that mean when the era of hydrogen cars comes after the downfall of Eunsung Motors?

Now, with the OTK battery, that possibility has disappeared, and automakers who have been standing in the hydrogen car camp have already withdrew.

Instead of answering, I brought up something else.

“It seems to be fashionable these days to form an alliance here and there. Weren’t there quite a few love calls?”

Although sales have plummeted, Eunsung Motor is one of the top five automakers in the world. There must have been a lot of hand gestures here and there.

But why did you have to come to me?

“It was not. But if we have to hold hands, wouldn’t it be better to join hands with the number one company?”

Perhaps if I decline, either way will go hand in hand.

“Aren’t we going to solve the strike first?”

Chanyoung Han nodded his head.

“We will come to a conclusion soon.”

Although the company is in crisis, the union is pushing hard. And when the company comes out of the crisis, it will ask for more.

“Even if we get over it this year, the same thing will happen again next year.”

Compared to other manufacturing industries, the wages of Eunseong tea producers are particularly high. This is also true compared to competitors such as GM, BMW and Toyota.

How the hell did Eunsung car come to have such a high-cost structure?

First of all, because it was profitable. The company is not stupid. As the wage of regular workers increased, fewer regular workers were hired as much as possible, and the positions were filled with non-regular workers. In addition, the company responded by not building any more factories in Korea and continuously increasing its overseas factories.

After all, the union only needs to raise the wages of regular workers, because there is no reason to take care of non-regular workers who are not union members.

The bigger reason is the backlash from shareholders. What shareholder would stand still to see stocks plummet due to a strike?

Chan-young Han asked with her eyes bright.

“Is there any good way?”

“I do not know. Even if the damage is huge right now, we need to solve it this time.”

* * *

After meeting Chan-Young Han, we went straight to Golden Gate.

Hyun-joo’s older sister was drinking coffee while working. Taek-gyu asked, surprised.

“uh! Can I have coffee, sister?”

“It’s decaf.”

“Is decaf okay?”

“About one or two cups a day.”

Hyunjoo noona stopped what she was doing and got up. He didn’t notice when he was sitting, but looking at it this way, he can clearly see that his stomach is out.

“Where have you been?”

“I met Chan-Young Han.”

My sister was surprised by my words.

“Chairman Eun Sung-cha? what brings you here?”

“I said I’d see you there.”

I briefly explained what we talked about earlier.

“I think we need to adjust the conditions a bit, but I think my sister should help me.”

Hyunjoo noona looked at me with a puzzled expression.

“You said you don’t want to care about Eunseong-cha, what kind of wind did you have?

That’s because I saw the foreknowledge… … .

“Well, business is business. Chairman Im Jin-yong had the same idea.”

Maybe we’ll have it later.

Taehyung nodded his head vigorously.

“that’s right.”

“From our side, we will attach team leader Seo Sang-won and the team members. Please pack according to the other people and only give orders to noona.”

“If it weren’t for us, who would we trust?”

Hyunjoo noona smiled as if she couldn’t help it.

“Whenever I tell you to take a break because you think of your baby, you’ve been working on it again.”

* * *

Most CEOs are reluctant to comment directly on labor-management issues. This is because it can adversely affect negotiations.

However, a day before the second round of negotiations, Chairman Chan-young Han personally appeared in front of the press and announced the company’s position.

“Currently, Eunsung Cha is facing various difficulties and is in the process of overcoming them. No further wage increase is possible due to poor management. Above all, it is absolutely unacceptable to stipulate that the employment of union members’ children first is deprived of fair employment opportunities and may lead to deterioration of the employment structure. The management hopes to negotiate at a reasonable level with the union.”

As the remarks were made, the Eunseong Tea Union fiercely protested, and negotiations broke down before they even sat down at the table.

The union immediately voted in favor of the strike, which was passed by an overwhelming 92 cents.

Joo Seong-moo, chairman of the union, shouted in an angry voice.

“Unless Chan-Young Han, who has ignored the union’s legitimate demands, comes and apologizes in person, there will be no withdrawal of the strike!”

A full-scale strike started, and all conveyor belts in domestic factories stopped.

Politicians unanimously called for the resumption of negotiations. However, the management did not back down, nor did the union.

Concerned about the use of replacement workers, the union took over the factory.

Nevertheless, the company did not take any action. No replacement manpower was put in, and no extreme measures such as factory closures were taken.

A week passed like that.

Even if the factory stops for one day, the company incurs a huge loss. The losses were already snowballing.

When a finished car factory stops, all of the partner factories that supply to that company stop. It doesn’t end here. The local commercial area where the factory is located is virtually dependent on Eunsung Motors. All shops, including restaurants, are also closed.

When even the exhibited cars were sold, there were no more cars to sell. Foreign factories were running well, so there were enough stocks, but according to the labor-management agreement, these quantities cannot be brought into Korea.

As the shipment was delayed, complaints from the contracted consumers erupted. There was no promise of when I would receive it. Tired of waiting, consumers canceled their contracts and looked for cars from other companies, or turned to used car parks.

The used car market has experienced an unexpected boom. Used car dealers quickly raised the price of popular car models.

Eunsung’s crisis is a good opportunity for competitors to increase their market share in Korea.

GM and Renault, which have factories in Korea, poured out quantities while operating their factories as much as possible, and imported car dealers tried to increase their imports by contacting the headquarters.

Joo Seong-moo, chairman of the union, was puzzled

Even if we don’t wave the white flag by now, it’s only normal if we talk about having a conversation. Still, there is no movement on either side.

He comforted his agitated members.

“If we wait a little bit, eventually the management will have no choice but to raise their hand. Just hold on a little longer and we will surely win!”

* * *

Although profits are not announced separately for each country, it is a well-known fact that Eunsung’s profit margin is overwhelmingly higher in Korea than overseas.

There is a reason why vehicle prices are high due to discrimination in domestic demand, but it is because the sales network and logistics are well-established, and marketing expenses are reduced due to the high awareness and preference.

However, as the strike was prolonged and domestic sales were virtually halted, the stock price, which had already bottomed out, plummeted again.

Shareholders stood up. Institutional investors and minority shareholders alike criticized management.

Things would have been better if Han Min-goo had been there. He is the one who drove the Korean economy and made Eunsung Motors into a global company. However, Chan-Young Han has not yet played a special role.

The issue of an all-out strike broke out when the new CEO was skeptical of the management ability.

Chan-young Han went to persuade the major shareholders to appease them.

And I announced to the press about the future investment plan along with the OTK battery mass production plan.

“Caros is working with several companies including Suseong Group to create a battery and electric vehicle production complex in Asia. We are currently reviewing several countries as candidates.”

Then the reporters quickly asked questions.

“Where are the potential candidates?”

“Is Korea included among them?”

“Are you not interested in investing in Korea?”

I just cut it off.

“The Korean automobile industry is too risky due to the high cost structure and frequent strikes. Unless you’re an idiot, you wouldn’t invest in Korea even if you see the current situation.”

* * *

-what? Did you openly open the union again after the Gangjin?

-What are we going to do after Kangjin?

– What’s wrong with the trade union?

– Even after Kang Jin-hoo, he got along with the chaebol and became the same.

– What are you talking about? It was Kang Jin-hoo who helped the union of the mailing company and sent the president there.(Read more @ wuxiax.com)

-But why are you doing this to the Eunseong Tea Union?

-Are the union of the postal company and the union of Eunseong Cha? There is a big difference between commoners and nobles.

– Kang Jin-hoo is on the side of the management and is taking the lead in destroying the union. The Eunseong Tea Union will fight to the end for the benefit of all workers!

-Isn’t it just for the benefit of the Eunseong Tea Union? Why do you bring other workers into your struggle?

-Don’t you think about the death of workers from subcontractors because of your strike?

-The non-regular workers who used to work in factories are now starving!

-I just need to work with that salary, isn’t it too much to ask my children to join the company?

-If a child joins the company where the father worked for a long time, wouldn’t he work with more love? I’m not asking you to hire me unconditionally, I’m asking you to hire me first if you are qualified. This is also beneficial to the company.

– Is this a word or bullshit?

– You’re making a dog noise once in a while.

-So the union goes on strike because it is full of loyalty? Declare that you will strike from generation to generation.

Don’t you even think about sacrificing for the company for over 15 years?

-If anyone hears it, they’ll think it’s forced labor by dragging him from Eunsung car and not paying a penny per month. I joined the company because I wanted to, and I worked for a paycheck, what sacrifice?

-Han Min-goo also passed on the chairmanship to his child, so why are you swearing only at the union! What are we doing wrong?

– That’s why the chaebols are swearing. You’re being insulted because you’re doing the same thing.

– Haha According to the logic of the Eunseong Tea Union, the current president should be Park Si-hyeong’s son.

– Members of the National Assembly are also elected as proportional representatives of their children.

– Yes, yes. Parliamentarians would think they sacrificed themselves for the country, but please do that.

While looking at the internet, Taek-gyu tapped my shoulder and said.

“Today, the Internet is overflowing with your swear words.”

“… … .”

This is why I don’t see comments.

At this point, I wonder if there is anyone in Korea who is as scornful as me. I feel like I’m buying something that’s abusive for some reason.

In my remarks, not only the Eunseong Tea Union but also the Metal Workers’ Union stood up. (The Eunseong Tea Union is under the Metal Workers’ Union, not an independent union.)

The metallurgical union issued a statement calling for an end to union-destroying acts, and heralded a rally in Tokyo. Still, there were no cases like the Parents’ Union, so I received an official permission to protest.

The physical of the workers who have worked in factories for more than ten years should not be taken lightly. If you watch the video of the clash with the police, the police officers in their 20s are also falling out.

Fortunately, unlike in the past, such physical collisions are rare these days.

“Can I protest in front of the company?”

“Korea is a country with freedom of assembly and demonstration.”

I respect this again.

But apart from that, they say they are protesting in front of the company, but it is impossible to stand still.

I gave instructions to the staff.

“From tomorrow until the end of the protests, everyone should not go to work and work from home.”