CH136 | Heir

Taewoo Motors' expansion into China was a huge success.

It had been showing an annual growth rate close to 100%.

Both Taewoo Group and Shanghai Automotive were benefiting from this success.

Additionally, the Shanghai faction, where Zheng Hongqin belonged, also shared in the profits.

Given all this, how could they not find me appealing?

Zheng Hongqin even stepped forward before I had a chance to bring up the topic.

"If there's another business you want to expand into China, just let me know anytime. I'll do everything in my power to help you."

"I was actually considering entering the Chinese IT sector."

"Isn't the IT industry struggling because of the dot-com bubble?"

"Precisely because it's a difficult time, we need to enter aggressively and establish a strong foundation."

"Haha, I like that. I've been seeing too many weak-willed young people lately, but meeting you is quite refreshing."

Zheng Hongqin poured me a glass of baijiu.

After taking a sip, I continued the conversation.

"This time, the sector we're entering is gaming."

"A conglomerate like Taewoo Group is getting into gaming? That's unexpected."

"We won't be developing games ourselves. We simply own a company that distributes them."

"Still, doesn’t a large corporation have its pride? Gaming seems a bit beneath you."

The perception of gaming was the same in both China and Korea.

To the older generation, games were often dismissed as mere children's toys.

"Think of it as a stepping stone to establishing an IT infrastructure."

"Hmm… Well, if Taewoo Group is behind it, it's not my place to interfere. So, what do you need my help with?"

"I'd like your assistance with obtaining publishing licenses (Panhao)."

"Of course, that's no problem at all. If it's a game you've brought, I'll make sure it gets approved without issue."

Panhao was a type of license.

Without it, a game couldn't be officially distributed in China.

At present, obtaining a Panhao wasn’t too difficult, but in just ten years, game companies would struggle to get one.

But had I come all this way just to secure a Panhao?

I had a much bigger plan in mind, and for that, I needed Zheng Hongqin’s influence.

"Would you be able to grant me exclusive rights to all Panhao licenses for games released from Korea?"

"Haha, so you're asking me to make it so that any Korean game entering the Chinese market would need your approval first?"

"Would that be too difficult?"

"It's not impossible, but it does seem like it could be problematic."

Monopolies were a sensitive issue.

Even though it would only apply to Korean games, the mere inclusion of the word "exclusive rights" could trigger serious concerns.

"I'm not suggesting that I hold the monopoly alone. I want to establish a joint venture to manage it together."

"Hmm, so you mean to share the profits. Do you really think gaming can be profitable?"

"If we can form a joint venture with a solid Chinese distributor, I can guarantee its profitability."

Zheng Hongqin had already seen great success with joint ventures.

So when I brought up the idea again, he showed significant interest.

While monopolies could be controversial, money had a way of making those concerns seem less pressing.

"Which company do you want to partner with? I'd prefer one we have good ties with."

"I've shortlisted a few companies. Would you like to choose one?"

I pulled out a piece of paper listing several Chinese game distributors.

Zheng Hongqin called in his aides for a discussion, then circled one of the names.

"This company looks good. We already have connections with them."

"Tencent, I see. I was actually thinking of forming a joint venture with Tencent as my first choice."

"Haha, as expected of you. You really understand us well. But how will the shares be divided?"

"Would it work if Tencent held 51% and Taewoo Group took 49%?"

"Wouldn't that be too much of a loss for you? Hmm… how about this? I'll help you acquire some of Tencent’s shares."

He’s willing to go this far?

I hadn't expected Zheng Hongqin to look out for me this much.

Tencent would eventually become the most valuable company in China by market capitalization.

"Since you're offering to help, of course, I'll gladly go along with it."

"I hear Tencent is struggling due to the dot-com bubble. Are you interested in acquiring about 30% of their shares? If that’s too much of a burden, you can take a smaller stake."

"Not just 30%—I'm willing to acquire even 40%. Since you're helping me, I should make a bold move as well."

"Haha, you really are different from other young men. I'll help you acquire Tencent’s shares at the best possible price."

An unexpected jackpot had landed in my lap.

At that moment, all the money I had invested in winning over Zheng Hongqin felt entirely worth it.

***

The next day

Zheng Hongqin's power was truly remarkable.

In just a single day, I was able to arrange a meeting with Ma Huateng, one of Tencent's founders.

"I was introduced by the elder. I’m Ma Huateng from Tencent."

"Pleased to meet you. I'm Kim Min-jae, Vice Chairman of Taewoo Group. The elder suggested that we establish a strong relationship with Tencent."

"I heard as much. I never realized that Taewoo Group had such close ties with him."

Ma Huateng looked deeply moved.

He seemed genuinely touched by the fact that Zheng Hongqin, a key figure in power, was backing this deal.

"We plan to establish a joint venture for game distribution, with Tencent holding 51% of the shares."

"I appreciate the offer, but as you know, the dot-com bubble has left our company in a difficult financial situation."

In other words, they weren’t in a position to set up a joint venture.

That was my mistake.

I should have brought up the topic of acquiring Tencent’s shares before discussing the joint venture.

"That’s why we’re looking to acquire a stake in Tencent. How much would it cost to purchase around 40% of your shares?"

"40% might be difficult, but how about 33% for $33 million?"

Just $33 million?

In ten years, that $33 million would be worth more than $100 billion.

At the very least, this deal would yield over 4,000 times the return—how could I possibly refuse?

It was such a favorable deal that I was tempted to offer even more money.

"How about this? Taewoo Group will acquire 40% of Tencent's shares for $40 million and cover all the costs required to establish the joint venture."

"Are you serious? If you do that, it will be a huge relief for our company."

"Taewoo Group is engaged in various IT ventures. Why not launch a game platform and a music streaming site through our joint venture as well?"

"That would be amazing! I've actually used the music site developed by Taewoo Electronics before. With just a few adjustments to fit the Chinese market, I think we could launch it right away!"

Ma Huateng’s excitement was evident in his raised voice.

To him, this must have felt like rain after a long drought.

After all, he was being given a fully developed music platform and game distribution system, meaning he could enter the Chinese market without spending a dime on development costs.

"Our legal team will be in China within the week. As soon as the contract is signed, we’ll transfer the $40 million."

"I’m so glad I came today. I never imagined we’d finalize a deal under such great conditions. This is all thanks to the elder."

"As you know, a portion of Tencent’s share of the joint venture’s profits will need to go to the elder."

"Don't worry about that. I'll make sure the elder is satisfied and has no reason to be displeased."

For me, this was a deal with nothing but advantages.

Tencent would bear the cost of payments to the Shanghai faction, and I would gain exclusive control over the distribution rights for Korean games in China. Any game company looking to enter the Chinese market would have no choice but to use my platform.

Honestly, I hadn’t wanted to resort to such tactics.

But with Taewoo Semiconductor consuming more money than expected, I had no other choice.

After successfully wrapping up negotiations, I returned to Korea.

I immediately summoned the CEOs of various game companies that had signed distribution agreements with my platform.

"I know it’s abrupt, but I wanted to deliver some good news as soon as possible, so I invited you all here today."

"What news?"

MC Soft’s CEO, Lim Jin-tae, spoke up confidently.

With Linjee, their MMORPG game, achieving massive success, his confidence was through the roof.

"The game platform’s entry into the Chinese market has been confirmed. All Korean games distributed through our platform will receive their licenses within this month!"

"Are you saying we’ll be able to enter the Chinese market?"

"That’s right. I personally went there and negotiated the deal myself."

"But entering China means a ton of work—language localization alone is a huge task."

"You can take your time with that. We’ll release the games in the Chinese market as they become ready."

The CEOs exchanged glances.

Their eyes were filled with caution and wariness.

It was only natural—these companies had been fierce competitors in the Korean market, so keeping an eye on each other was second nature.

"China’s population is more than 20 times that of Korea. There’s more than enough to go around. Plus, Taewoo Electronics will be actively supporting the expansion. From localization to business model optimization, we’ll provide full assistance."

"MC Soft will trust and follow Taewoo Group."

Lim Jin-tae declared firmly.

The other game company CEOs quickly followed suit, agreeing without hesitation.

No one raised any objections.

And for good reason—Taewoo Group had invested heavily in game companies over the years.

"And there's one more favor I'd like to ask of you."

"Whatever it is, just say the word. We'll do it."

"Are you aware of the new mobile phone that Apple is releasing?"

"I heard they unveiled it at CES. Some say it's closer to a small laptop than a phone."

Since they were in the gaming industry, everyone seemed to be familiar with the iPhone.

Some had even seen it in person at CES.

"I’d like you to develop games specifically for the iPhone."

"Mobile games? Those are usually made by smaller companies."

Mobile games weren’t considered profitable.

But with the arrival of the iPhone, that was about to change drastically.

Developing iPhone games as soon as possible was crucial.

"Not just any mobile game—iPhone games. As someone just mentioned, the iPhone has performance specs comparable to a small laptop. It can run low-spec PC games."

"Technically, we could optimize existing PC games for lower specs, but why should we?"

Their response was noticeably different from their enthusiasm about entering the Chinese market.

Perhaps it was their pride as PC game developers that made them reluctant to work on iPhone games.

But pride meant nothing when faced with profit.

Right now, mobile games might be looked down upon, but in just ten years, every game company would be rushing to get into the mobile gaming market.