Third-Generation Chaebol

Is there anyone in Korea who has done as many acquisition and sale contracts as I have?

Since the IMF crisis, I have sold companies the size of conglomerates and acquired mega companies like GM and AIG.

For smaller companies, I have acquired dozens of them.

Yet, no contract has ever concluded as quickly as the one with Chairman Son Jung-woo.

"It's not like roasting beans over a lightning fire, but finishing a $10 billion deal in just a few hours—that's a first."

"I've seen many acquisition deals on Wall Street, but never one that wrapped up this fast."

Chairman Son wasn't just fast at drafting contracts.

He was also precise with money, immediately transferring $100 million to Beryl.

"Payment confirmed. One hundred million dollars have been deposited into the fintech bank account."

"I wanted to give you more, but time was tight, so $100 million was all I could manage for now. But this isn't the end; we will continue to work together, so don't be too disappointed."

"You're giving me $100 million just like that? It's more than I deserve for what I've done."

Beryl, once one of the heirs of Waggoner Ranch,

knew that $100 million wasn't a small amount even for him.

"We pay bonuses based on merit. Because you managed Together Work so well, we achieved good results. Just accept it."

"I want to work with you and the chairman longer than I want money."

"If you want to keep working with me, take the $100 million. It makes me feel better."

"Alright then, I won't refuse and will accept it gratefully."

Beryl hung his head, unable to take the weight of what had been said.

Leaving him like that, President Han continued speaking.

"Thirty percent of Together Work's shares belong to the fintech bank. What will you do about that? You can either compensate in cash or share ARM's equity."

"The fintech bank isn't in urgent need of cash anymore. Jamie Dimon would also prefer to hold some of ARM's shares. Still, discuss with Dimon and do as you wish."

The fintech bank was essentially my personal vault.

It didn't matter much whether the shares were held by Taewoo Group or the fintech bank, so I made this decision.

"When do you plan to inform President Lisa?"

"It's time to talk to her. I was about to move operations to Taewoo Semiconductor anyway."

President Lisa of Taewoo Semiconductor.

I acquired the semiconductor design company without consulting her.

But since she had emphasized the necessity of design capabilities, I didn't think it would cause any major issues.

The new headquarters weren't only in Seoul.

Taewoo Semiconductor and the gaming company had new headquarters in Gyeonggi Province as well.

Although these buildings were shorter and smaller compared to those in Seoul, they were more than sufficient for Taewoo Semiconductor's needs.

The owners of the Taewoo Semiconductor building were two people.

Vice President Wei, who managed semiconductor production and the foundry division, and President Lisa, who oversaw semiconductor design and was in charge of Taewoo Semiconductor overall.

Both were semiconductor experts from Taiwan and were the driving forces behind Taewoo Semiconductor's growth.

"It's been a while since I've had the chance to sit with both of you like this."

"I thought Chairman Kim had completely lost interest in Taewoo Semiconductor."

"No way. You both do such an excellent job that I have no need to interfere. As they say, no news is good news, right?"

"Still, we'd appreciate a little more attention."

President Lisa sounded slightly annoyed.

To ease her irritation, I pulled out an expensive gift I had bought.

"Let me show you just how much I care about Taewoo Semiconductor."

With a casual flick, I slid the ARM acquisition contract across to her.

President Lisa examined the contract for a moment and then stiffened.

"You acquired the UK's ARM? How can you make such a decision without consulting us?"

"The situation developed too quickly for me to discuss it in advance. Chairman Son Jung-woo of SoftBank said if we didn't acquire it immediately, he wouldn't sell it at all."

I leveraged Chairman Son's name.

No matter how swift a dealmaker he was, there was still enough time to consult with President Lisa.

I simply hadn't managed it.

"You could have at least called to inform us."

"I came straight to Taewoo Semiconductor as soon as the contract was finalized. Are you against the ARM acquisition? If so, we can cancel the deal immediately."

"...I'm not against it. Although ARM is currently at a loss, most smartphone companies use ARM's semiconductor design technology, so it has significant growth potential."

As expected, she liked it.

President Lisa may have been annoyed that I signed the semiconductor design company deal without consulting her, but she couldn't hide her delight at acquiring ARM, the very company she had wanted—her lips kept twitching with barely contained excitement.

"Taewoo Semiconductor is going to catch two rabbits: fabless and foundry. That's why both of your roles are so important."

"Now that we've acquired ARM, there's no need to worry about the fabless side. I'm confident we can elevate Taewoo Semiconductor's design capabilities to a world-class level within five years."

Lisa spoke with conviction.

After all, Taewoo Semiconductor's design capabilities had been rising sharply each year,

thanks to massive capital investments and aggressive talent recruitment.

But that didn't mean the foundry business was being neglected.

On the contrary, in terms of investment, more than ten times as much had gone into the foundry division.

"The foundry division is performing well. We're signing contracts with major companies worldwide, and several firms are already lined up to use our new foundry complex when it's completed next year."

"I don't expect to see profits in the first year, so please don't feel rushed."

"I will aim to double Taewoo Semiconductor's revenues within five years. In terms of sheer scale, our factories surpass those of Samjin Electronics and even Taiwan's leading semiconductor companies."

"That's the power of economies of scale in the foundry market."

The foundry market itself was continually expanding.

It wouldn't be long before the global market exceeded $100 billion.

Analysts expected that, by securing a foothold now, we could seize about 50% of the market.

If that happened, Taewoo Semiconductor could generate $50 billion in revenue from foundries alone.

If annual sales exceeded 60 trillion won, Taewoo Group could be the powerful engine that drove not just its own growth but also Korea's overall economic expansion.

"Economies of scale are real, but to run Taewoo Semiconductor's plants at full capacity, the global demand for semiconductors will need to more than double. The U.S. factory will also be finished the year after next."

"Even if we take losses for more than five years, Taewoo Group has more than enough strength to shoulder it. And even at our current sales level, we shouldn't actually see any red ink."

Is there any business without risk?

Especially in semiconductors, where the industry is cyclical, the risks were even greater.

Despite the danger, Taewoo Group poured hundreds of billions of dollars into these high-risk ventures.

Only a group like Taewoo could attempt such aggressive investment.

Naturally, there was no expectation of recouping that investment quickly.

For now, Taewoo Semiconductor was the Group's biggest cash cow, but with this new round of investment, it could see larger losses than the entire Taewoo Trading division.

"Still, there are hopeful signs. Smartphone users keep increasing, and the demand for automotive semiconductors is skyrocketing because of electric vehicles."

"Semiconductor demand will grow not just twofold, but more than fivefold. By then, only Taewoo Semiconductor's foundries will be able to keep up."

This wasn't just motivational talk.

The actual demand for semiconductors was indeed surging—so much so that there was a real chance our foundry could reach full capacity sooner than expected.

"Chairman, may I offer a word?"

"Any time. If the fabless division needs anything, just let me know. If necessary, we could even acquire another design specialist on the scale of ARM."

The fabless market couldn't be ignored.

If foundries could reach a $100b scale in a short time, the fabless sector could easily grow to at least $60b just as quickly.

So whatever Lisa wanted, I planned to accommodate.

If Taewoo could secure even a portion of the fabless pie, the semiconductor unit alone could propel us to No. 1 in Korean business.

"ARM is more than enough as a design house. Rather, I want to push stronger collaboration with the AI center."

"So AI is very helpful in semiconductor design?"

"It's extremely useful. AI often produces designs in ways people never could—sometimes it's even better at optimization. Of course, sometimes the results are absolute nonsense, but overall, it's been invaluable."

In the end, semiconductor design is shaped by countless rounds of trial and error.

Artificial intelligence enables hundreds of virtual experiments every single day, making it possible to achieve excellent results.

If humans then use those results as a foundation for redesign, truly optimal designs can be found.

"I'm already planning to expand the AI center even further, and I intend to promote Team Leader Chun to be director in charge of the whole operation."

"That'll make her the youngest director ever. Isn't that a bit harsh on Team Leader Chun? Why not assign her to Taewoo Semiconductor instead? I could provide a strong protective shield for her here."

"Who at the AI center would dare envy or resent Team Leader Chun? Even the IIT faculty accept her decisions without question."

"That's too bad."

'Protective shield,' my foot—

President Lisa just wanted Chun to herself on Taewoo Semiconductor's roster.

"Well, I'm counting on you! Taewoo Semiconductor has to serve as a strong pillar for the entire group."

"We'll make sure the roots of that pillar don't ever get pulled loose."

Lisa exuded the spirit of a true leader.

Next to her, Vice President Wei gave only a gentle smile—like a true sage.

Seeing those two, I felt Taewoo Semiconductor might grow even faster than I'd expected.

***

June 2013.

The season had turned muggy with summer's approach.

And then, came news hot enough to raise the temperature of the U.S. economy.

"Chairman! The U.S. Federal Reserve has finally signaled its intention to taper quantitative easing. The Fed chairman made the announcement at a press conference!"

"So the time has finally come."

Tapering quantitative easing.

They weren't pulling the trigger yet—merely indicating the intention.

But statements from the Fed chair, the so-called 'president of the economy,' were more than enough to shake the American financial markets.

And this was the very signal we'd been waiting for.

It was the moment that Quantum Fund's George, who'd been anticipating this shift, was poised to act.

TL/n -

Quantitative Easing (QE) is a monetary policy tool used by central banks when traditional interest rate cuts are no longer effective (usually because rates are already near zero).

Here's how it works:

Central Bank Buys Assets – The central bank (like the U.S. Federal Reserve, ECB, or Bank of Japan) purchases large amounts of financial assets, usually government bonds, but sometimes corporate bonds or other securities.

Injects Money into the Economy – By buying these assets, the central bank credits commercial banks with reserves, effectively creating new money.

Lowers Long-Term Interest Rates – This pushes up bond prices (since demand rises) and lowers their yields (interest rates). It also indirectly reduces borrowing costs for businesses and households.

Stimulates Spending and Investment – With cheaper borrowing and more liquidity, banks are encouraged to lend, companies to invest, and consumers to spend.

Boosts Inflation (if too low) – QE is often used when inflation is below target, aiming to prevent deflation and encourage moderate price growth.

📌 Real-world examples:

The U.S. Federal Reserve used QE after the 2008 Global Financial Crisis, and again during the COVID-19 pandemic, buying trillions of dollars in assets.

The Bank of Japan has been using QE since the early 2000s to fight deflation.

📌 Risks of QE:

Can inflate asset bubbles (stocks, housing).

Increases wealth inequality (those owning assets benefit more).

Makes it harder to unwind policy without destabilizing markets.