November 1996
Samsung HQ
Seoul, Republic of korea.
It was cold outside the Samsung HQ that morning, but it didn’t snow. In Samsung office, I waiting for the Representatives from Hyundai, Hanjin, and Daewoo, in the dark office. I was alone, with the eerie silence in the background. Although I didn’t exercise today, as I came there on the subways, but a cold sweat could be felt on my face. I was worried whether I will fail the negotiation, or How I can tell my wife and kids that I wouldn’t be home for Christmas. Just as I reached my desk and pick up the phone to call my wife, I heard a roar outside. I looked out the window, and I saw three black sedans coming close to the HQ.
Several Minutes later, three men, wearing black or gray business suits, walked to the tables. “good morning, mr. Hyunu Choi, Mr. Sanghyun Jung, and Mr. Min-Tae Seo. Please have a seat here.” Mr. Hyunu Choi, a chubby man wearing glasses was from Hyundai, Jung ,a tall man with a dog-like face, was from Daewoo and Seo, a muscular but thin, man, was from Hanjin. They took a seat. The room was silent for a moment. I wanted to say the plan, but I was sweating as if this deal fails, I could lose my job. I had my family to feed. I asked, “So, I invited you here because I want to discuss about formation of Consortium, which will be necessary for purchase of Fokker.” They were not amused. And some of them were indifferent at it “Why do you ask us for this? Could you buy the company on Your own?” Mr. Seo said.
The room was silent for a moment. They were direct competition to us. And they couldn’t cooperate with us this easily. “How we could face the tough costs and Fierce competition?” He had a point. Bombardier had CRJ-200s and Dash 8s, British Aerospace had BAe-146, and Embraer was coming up with EMB-120s turboprops and planning for a regional jets of its own. And for cost, we can’t make up for deficits. I suddenly had a cold sweat. If the Samsung make such a purchase, we could run out of money like Hanbo group. I could envision myself being forced out of my job when Samsung going bankrupt, no way to feed the entire kids, and living out homeless in Seoul station. I needed to think of a way somehow. Something that can convince the representatives, while saving the entire Samsung Corporation. Meanwhile, Mr. Seo asked for a coffee as he was thirsty. I said yes. And got out the seat, and poured the instant coffee in the paper cup and made some hot coffee. When I served it to the whole guests, they really liked it. After we had coffee, we threw the cup away in trash bag. Suddenly, My brain just hatched an idea. What if we liquidate the Fokker after fully acquiring their technology, similar to how we use paper cup? And then found a new fully Korean company?
I responded. “We are not looking for the main competitors, like Boeing or airbus. But on smaller 70 to 130-passenger, regional jet or turboprop aircraft, which can carry passengers for short destination. Also, we could use this technology to improve South Korean aviation industry.” I responded. “If we can’t support it?” the three said in unison. They had a point there. “We should liquidate the entire company after taking the technology from the Fokker, they have a pretty good knowhow of building aircraft, which will be useful when we found a fully Korean aerospace company.” I responded. Mr. Choi said, “This was surprisingly a good idea. Let’s go with your plan.” And all four agreed. I came up with the plan to buy the Fokker aerospace company and just acquire the technology, and then, liquidate it, to be replaced with the fully Korean consortium. And this helped to strike a deal with the companies.
A few days later, I met Woo-Jung Kim, the owner of Daewoo, and Chung Ju-yung, the owner of Hyundai group, and Cho Yangho, the owner of Hanjin group, and Lee Kun-hee, the owner of Samsung. It was the first time that I met them in person. We cut the ribbon for Korean Fokker consortium, a Korean aerospace company and an airplane manufacturer. And many cheered. When the ceremony was over, a man with a round face and wearing glasses, walked to me. “Congratulation on striking a deal with these companies and forming a consortium. How did you do it?” I responded, “It took some ideas from unexpected places.” It was true. The ideas can come from unexpected places.