Still, I Will Live As The Son-In-Law Of A Conglomerate [EN]: Chapter 74

74. 22nd. Give and Take (4)

Park Tae-jin and I, having grabbed coffee from the vending machine in the break room, entered the conference room with the team members sent by Na Chang-seok.

“Are you ready?”

“Yes, Employee Lee Sung-min. Let’s sit down and start.”

Na Chang-seok’s lips quirked up slightly. Unlike him, the team members were staring at me with stiff expressions. I wasn’t sure if this discussion would go smoothly.

As we sat down, Yoo Hyun-jung raised her hand.

“Manager Yoo, start.”

“Yes, Team Leader.”

Yoo Hyun-jung took a breath and began with a calm expression.

“I object to the shuttle bus service proposed by Employee Lee Sung-min.”

“What’s the reason?”

“Department stores have high product prices and high transaction values, so sufficient profit is guaranteed even if the shuttle bus operating cost is deducted as sales and administrative expenses. However, the profit margin of discount stores is at most less than 10 percent when considering the product price and transaction value. If we operate not only in the nearby area but also to Ilsan, it may decrease even further.”

I nodded, acknowledging her valid point, and asked Yoo Hyun-jung.

“If you’re done, can I respond?”

“Yes.”

“Clearly, department stores and discount stores cannot be compared in terms of product prices and transaction values. The price of products displayed in the store per unit area is at least ten times, and in many cases, hundreds of times higher.”

I took a sip of water and continued.

“In other words, customers’ psychological barrier to consumption is lower in discount stores than in department stores. Selling items individually rather than in boxes lowers that barrier even further. You know the Chairman’s instructions, right?”

“Yes… Instructions have been given to sell all products individually.”

The first answer was vague, and he didn’t seem to like it. Overseas discount stores and SSK Marts are warehouse-style stores, but we’ve created a large supermarket.

I understood that feeling well. How worried and scared would you be to walk a path that no one has gone before, a path that others will laugh at?

As someone who had experienced it enough, I nodded, but I wanted to point out what she missed.

“But that individual unit doesn’t necessarily mean selling only one, Manager Yoo Hyun-jung.”

Yoo Hyun-jung frowned as if I were talking nonsense.

“What do you mean?”

“What if we sell ramen, beer, and soju in bundled packages? If we even put new barcodes on them, they would be new individual units.”

“But aside from snacks, there are currently no domestic ramen or liquor companies that sell bundled packages, Employee Lee Sung-min.”

Yoo Hyun-jung’s point was valid.

Ramen and liquor, the two major processed foods that drive discount store sales.

As of yet, no company sells ramen in bundles of four or five, or beer in six-packs.

Na Chang-seok, who was watching us, raised his hand slightly.

“That problem can be solved. No, it will be solved, Manager Yoo.”

“Team Leader?”

“From next month, Ohsung Foods, Shinnong Foods, Seyang Foods, Hite Beer, Jinro Soju, etc., will be launching bundled products by operating newly expanded packaging lines, Employee Lee Sung-min.”

It was something I had already expected, but I put on a surprised expression.

“Really?”

“Yes. A colleague at Jonggeum [a financial institution] told me that they introduced new packaging equipment with installment financing provided by Haedong Jonggeum last year. They even gave a discount on the interest, but he said he doesn’t know why.”

That’s understandable.

Behind that installment financing agreement, there was a backroom deal between the company’s executives: Haedong Mart would receive priority delivery of the bundled products at a lower price than the single items, as much as they needed.

That agreement was to ensure that Haedong Mart, which would be opening about 10 additional stores by the year after next, could secure stable supplies amidst the checks and balances of existing distribution networks and manufacturers.

All of this was naturally included in the proposal I gave to my grandfather at the beginning of last year. Haedong Jonggeum would reap huge foreign exchange gains and stock price gains from the US index fund, so the opportunity cost from installment financing wouldn’t even be noticeable.

Even though everything was going according to the script I had written, I put on a smile that I mustered from the depths of my soul.

“That’s great. We can contact them to secure supplies. Our group pays in cash, so we’ll have an advantage in price negotiations. And…”

I told them about additional measures to supplement the problems raised by Yoo Hyun-jung.

“Place plenty of cardboard boxes, box tape, and twine near the checkout counters, parking lot entrances, and store entrances. If they pack in bulk there, the transaction value problem should be solved.”

Later on, it would be strange if they weren’t there, but for now, with only warehouse-style stores that display products by the pallet, it’s a groundbreaking idea. Yoo Hyun-jung and the other team members were even quietly exclaiming, so there’s no need to say more, right?

“Then let’s hear from the next person.”

Na Chang-seok, who met my eyes, pointed to a male team member who raised his hand.

“I would like to talk about the Food Bank, Employee Lee Sung-min.”

“Please proceed.”

“I agree with selling products with declining freshness at a closing sale in terms of quality control and cash flow. But if we only donate what’s left from the closing sale through the Food Bank, the expenses will increase.”

I wondered why it wasn’t coming up. Isn’t it still unfamiliar?

“You don’t think we’ll just donate and be done with it, do you?”

“Then what are you going to do?”

Even in the face of the team member’s somewhat accusatory tone, I didn’t lose my composure and opened my mouth.

“Of course, we have to spread it through the media. The number of stores is small now, so the effect will be minimal, but we should use it later when the scale grows and people come out to attack us. Consumption isn’t just about using your head, it’s also about using your heart, right?”

The team member tried to say something to me, but he closed his mouth after hearing my words. What I said wasn’t wrong, was it? Human consumption is a mix of rationality and irrationality.

As the discount store business grows, the complaints from traditional market merchants will increase, and politicians who want to pander to popularity will try to beat us up. We need to save the Food Bank as a shield to use then.

“Next question, please.”

“I have something to say about seasoned meat. 85% meat and 15% seasoning, and even with fresh meat…”

This wasn’t even worth listening to, so I raised my hand and shut him up.

“The basics of business are trust and honesty. The group’s image has been enhanced by the Seongsu Bridge incident [a tragic bridge collapse that the company helped with relief efforts], so are you saying we should do water business with meat business? Besides, if it’s not fresh meat, are you saying we should make it with gone-bad meat?”

Even though I had done all sorts of dirty things in my previous life as a businessman, such as buying out labor unions and bribing, I never forgave those who played with food. I slammed the desk and raised my voice, and the surprised employee lowered his head.

“I’m sorry, Employee Lee Sung-min.”

“I understand that you want to save even a little bit and make a profit because we sell cheap goods. But…”

After pausing, I said, thinking of my grandfather.

“The Chairman always told us to look further and bigger than the immediate profit. Keep in mind that we are now becoming the face of Haedong.”

After that, questions poured in for several hours about the profitability of shuttle bus operating costs, sales of ready-to-eat foods, the lowest price guarantee system, the 100 percent exchange and refund system, and the application of the half-life period, and I countered them using my experience and knowledge.

“…If we create a store that people want to come to, we will naturally make money. I hope you don’t dwell on immediate profits and losses.”

Unlike me, who spoke confidently, Na Chang-seok carefully raised his hand and said.

“Employee Lee Sung-min, it’s good that you’re directly promoting the vehicle [the shuttle bus]. But saying that you’ll cover the deficit with your own money is a bit…”

It would be burdensome. If the performance is poor or there is a deficit, wouldn’t it be their fault? I shook my head and opened my mouth.

“It’s not that I don’t trust you. I’m promising this because it’s my job to reduce the worries of my family. I’ll cover the deficit even if I have to liquidate the cash I have, or even the group shares under my name.”

Seeing that the team members still didn’t believe me, I said to Na Chang-seok.

“Please tell the CEO, Team Leader. Exactly what I just said.”

“Employee Lee Sung-min?”

“It’s not a bluff, Team Leader. I’m a guy who does what he says. I’d appreciate it if you could tell him now.”

Na Chang-seok sighed as he looked at me with my head bowed and pressed his phone number.

“This is Na Chang-seok, CEO. It’s not that, but Employee Lee Sung-min…”

As he reported the contents of the discussion that had been going on for several hours, laughter erupted from the phone.

“[What did I say, Director Na? That kid, he’s the Chairman’s eldest grandson, right? Hahaha.]”

“Still, this is too much of a risk, CEO. If something goes wrong…”

“[Don’t worry. I’ll talk to the Chairman, so tell him to take responsibility for covering the money or burning the shares. Instead, you guys have to faithfully execute according to that kid’s opinion.]”

Only then did Na Chang-seok and the team members nod. Is the permission of the veteran CEO, who has been with the company for decades, more trustworthy than the young owner’s eldest grandson? Hierarchy is a gangster, damn it.

“I understand, CEO.”

Na Chang-seok hung up the phone and said to me.

“Employee Lee Sung-min, you’ll have to keep what you just said.”

“Of course, Team Leader. Let’s make sure to get a written agreement on that clause first. There’s no promise as trustworthy as a document.”

When I took out the contract and handed it over, Na Chang-seok and the team members looked at me with expressions that seemed like they were raising both hands and feet [a Korean idiom meaning they were completely overwhelmed].

***

After Lee Sung-min and Park Tae-jin left work, the team members who remained in the office were talking about Lee Sung-min.

“What the hell is he?”

“He’s not human, he’s a monster, Team Leader.”

The team members either clicked their tongues or shook their heads. They were chilled by Lee Sung-min’s answers and rebuttals, who knew more about discount stores than they did, who had thick bones in the distribution industry [meaning he was very experienced and knowledgeable].

“How about it, Manager Yoo? Are you satisfied with Employee Lee Sung-min’s feedback?”

“Yes, Team Leader. If we increase the transaction value and inventory turnover by recycling bundled packaging and cardboard boxes, we’ll be able to extract several times the shuttle bus operating cost.”

Unlike before, Yoo Hyun-jung was actively agreeing with Lee Sung-min’s proposal. She could clearly picture the scene of Koreans pushing carts and filling them with all sorts of things at the mart in the future.

“I thought our Manager Yoo was only interested in Chief Park, but it looks like she took care of her work as well, haha.”

Na Chang-seok threw a mischievous joke and laughed loudly, and Yoo Hyun-jung’s face flushed.

“T, Team Leader?”

“Chief Park is a good guy. Do well while he’s here. I’ll push you hard, hehe.”

Yoo Hyun-jung lowered her head, and Na Chang-seok, who was looking at her, stopped laughing.

“How about marketing in connection with the Food Bank?”

“I think it will be effective. It would be good to open it when the number of stores increases and we clash with small business owners later.”

“Good. Seasoned meat…”

Na Chang-seok trailed off and took a light breath as he looked at another team member who couldn’t lift his head.

“Let’s not talk about it. I don’t think that was it either. The Vice Chairman raised the company’s image even while suffering that ordeal at the beginning of last year, so we can’t ruin it. Right?”

Na Chang-seok looked at the team members nodding and then compared and verified the opinions on the questions they had asked Lee Sung-min and the feedback Lee Sung-min had presented, and then held up the written agreement that Lee Sung-min had presented.

In the middle of the right end of the paper, half of Lee Sung-min’s seal was stamped [a traditional Korean way of signing documents], and Na Chang-seok’s and Lee Sung-min’s signatures were written at the bottom. That guy was determined to cover everything with his own money if this went wrong.

“As you can see, a guy younger than us has promised to take responsibility. Besides, he said he would do on-site promotion with us. He’s the owner and rich, but there’s no one like him in the world. We can’t lose either, right?”

“Yes, Team Leader!”

The team members answered loudly to Na Chang-seok’s question. Even if he was a young guy, he would work together and take all the responsibility for what went wrong, so their pride wouldn’t allow them to slack off. Aren’t they all talents who were selected and selected from the department store business division?

“We only have our bodies, so let’s work hard and do well enough not to die. That’s all.”

***

Let’s rewind for a moment.

Lee Dae-soo, who was in Samcheong-dong, was receiving a call from Tae Jae-ho.

“What? He’s going to liquidate his private assets?”

“[Yes, Brother. He said he would cover all the losses if the business fails according to what he proposed this time, hehe.]”

Tae Jae-ho told Lee Dae-soo about the phone call he had just received as if he was excited to death, and Lee Dae-soo nodded, humming lowly.

“That guy is very confident. He even promised to burn his shares.”

“[But if you think about the picture he’s been painting since last year, he’s also meticulous, haha.]”

“It’s more accurate to say he’s cunning than meticulous. He’s my eldest grandson, but he’s really disgusting, hehe.”

He finishes all the preliminary work by mobilizing all means, and then he delivers the final blow himself. He even puts on a desperate look as if he’s going to die if that fails.

There’s no way to draw the trust of the members more meticulously and cunningly than this, so Lee Dae-soo was very pleased. Isn’t his eldest grandson a first-class producer who is making a hit by encompassing the perspectives of extras, supporting actors, leading actors, audiences, directors, and producers?

“[Thanks to Sung-min, Young-chan’s Jonggeum is growing rapidly, so the loss from installment financing won’t even be noticeable. That kid Sung-min, the more I see him, the more amazing he is, haha.]”

“There’s no need to praise him too much. He still has a long way to go. You keep a close eye on him and throw him the necessary words, euhehe.”

Even though he said it indifferently, Lee Dae-soo couldn’t stop laughing at the amazing antics his grandson was showing.