The Conglomerate Family Became A Villain [EN]: Chapter 102

103. The First Step of a Giant (1)

Henri Arnault, the head of JP Securities, frowned as he read John Pierre’s report.

“Every time you walk through that door, I swear I get another wrinkle,” Henri grumbled.

John Pierre sighed deeply, looking troubled. “Well… you know about our… particular client, right?”

“So, it’s that friend again?” Henri asked, already knowing the answer.

John Pierre nodded. “Yes, it is.”

“Because of the semiconductor dumping announcement today?”

“He says he’s going to pull out another $100 million.”

He had already withdrawn $200 million of the initial $500 million investment.

“Isn’t that a bit much?” Henri questioned.

“Would you like to speak with Mr. Arnault directly?” John Pierre offered.

Henri Arnault waved his right hand dismissively. “No. Just let him withdraw it.”

“Understood.”

“But you know… isn’t our friend taking a significant risk?”

“Are you talking about the rate of return?”

“Yes.”

Even a 10% loss on a $300 million investment would be $30 million.

‘Thirty million dollars is enough to buy a building in Manhattan,’ Henri thought.

Of course, it wouldn’t buy a huge skyscraper in the heart of Wall Street.

“It’s still around negative 6%.”

“Negative 6% of $200 million… does that mean he’s already lost $12 million?”

“Roughly.”

“Did he make his money too easily? He seems to be throwing it around,” Henri mused.

The person Henri Arnault was concerned about was none other than Jung Hyun-woo. Every time the U.S. Treasury or State Department raised concerns about the trade deficit with Japan or announced new regulations, Hyun-woo would withdraw a large sum from the fund and invest it in Japan.

“I also think he’s averaging down [buying more of a stock as its price decreases] too aggressively.”

“He doesn’t listen to advice, does he?”

“Of course not.”

In the first place, someone who listened to a fund manager’s advice wouldn’t even consider this kind of investment.

“The Japanese semiconductor industry is going to take a big hit because of these regulations.”

“But of all the Japanese companies he’s invested in so far, only one is a semiconductor company.”

“Isn’t that one the problem?”

John Pierre shrugged. “He’s not a client we can exactly stop, is he?”

Today, the United States had announced sanctions related to the dumping of semiconductors, especially DRAM [Dynamic Random-Access Memory], by Japan.

As a result, the stock prices of Japanese IT companies plummeted across the board.

Jung Hyun-woo was trying to scoop up those plummeting stocks, hoping to profit when they recovered.

“Mr. Morgan isn’t here either, so there’s nothing we can do,” John Pierre lamented.

The seat he was sitting in was originally Neil Hamilton’s seat. When Neil Hamilton was around, he would meet with clients like Jung Hyun-woo and try to persuade them directly.

However, Henri Arnault was not the type to directly persuade clients. He was more of a bystander who just watched.

“I don’t think there’s anything we can do about this.”

Henri Arnault nodded and said, “I understand. And we also have money invested in Japan, so look into that first.”

“I will.”

After John Pierre left, Henri Arnault narrowed his brows.

“A trade war between Japan and the United States… doesn’t seem like a good thing.”

He predicted that the trade conflict between the two countries was likely to escalate.

“Throughout history, only those in power have benefited from wars.”

Of course, merchants connected to those in power also often made money.

However, it seemed that JP Morgan was missing from that list of merchants this time.

‘Is it because of Neil’s absence?’

He felt Neil Hamilton’s absence keenly.

* * *

“Charlie, are you sure about this?”

Even Sera, who usually supported Jung Hyun-woo’s decisions, was filled with worry this time.

“I’m fine.”

“What if you lose everything…?”

“It’s not like I’m investing in futures. There’s no way I’ll lose everything.”

Jung Hyun-woo didn’t use loans, margin calls, or short selling for his investments in Japan. He was buying the stocks outright.

‘This side will definitely go up.’

He knew it would definitely go up, but he didn’t use leverage because he didn’t know when it would go up.

“The newspapers are full of stories about a trade war.”

Jung Hyun-woo leaned back in his chair and responded to Sera’s words. “Japan has been particularly aggressive lately. If they keep dumping like that, American companies won’t be able to survive.”

Japan was dumping not only semiconductors but also steel and various raw materials, selling them at unfairly low prices.

American companies were losing out in terms of both price competitiveness and quality due to higher labor costs and inefficiencies compared to Japanese companies.

“Will Japan just back down?”

“Japan can’t wage a war against the United States.”

“Really?”

“The difference in power is too great.”

Sera said, as if she couldn’t believe it. “The roads are full of Japanese cars, the billboards are covered with Japanese products. It’s the same with TV. Only Japanese products are getting rave reviews. The situation in America doesn’t look good to me. Charlie, aren’t you mistaken this time?”

Jung Hyun-woo straightened his back and replied. “If you compare companies, America might not be able to beat Japan. But if you consider the power of the state, there’s still a big gap.”

“Are you saying that the United States will pressure Japan with military or political power?”

“Of course. The United States will use every means at its disposal to pressure Japan.”

As a result, Western countries, including Japan, that were running trade surpluses with the United States would sign the Plaza Accord [a 1985 agreement to depreciate the U.S. dollar relative to the Japanese yen and German mark].

‘What I’m waiting for is that Plaza Accord.’

Sera narrowed her eyes at his answer.

“Hmph, when you talk about international affairs, you’re like an old man.”

“Please say I have good analytical skills.”

Sera raised her right hand and asked, “But you know… if Japan surrenders, shouldn’t we *not* invest in Japan?”

“Well… just because they surrender doesn’t mean everything they’ve built up until now will collapse immediately.”

“But it’ll be hard to rise any higher than this, right?”

Jung Hyun-woo gestured with his hand as if something was moving forward.

“You could say it’s the law of inertia?”

Sera snorted and raised her voice. “Hey, I know that much.”

Jung Hyun-woo sighed briefly when she got a little angry.

“Don’t get mad. I just wanted to explain it a little better.”

“I’m not that angry. I just don’t understand what you’re saying.”

Sera thought that if Japan surrendered before the trade war, it would be right to invest in the United States.

‘Because the agreement will be made in a way that benefits the United States.’

Logically, her thinking was correct.

If the powerful party takes the agreement in a way that benefits them, then investing in that side would be the right answer.

However, Jung Hyun-woo knew the stories behind that agreement.

‘The United States isn’t taking Japan’s money, but rather driving Japan to explode [economically].’

The moment the Plaza Accord was signed, Japan had no choice but to head towards a bubble collapse.

‘Let’s hold onto Japanese stocks and real estate until the Olympics [referring to the planned 1988 Summer Olympics].’

Jung Hyun-woo said to Sera, “Even if the United States and Japan sign an agreement, Japanese companies will still be strong.”

“You’re saying the momentum won’t be easily broken?”

“It’ll last at least two or three years.”

“That long?”

Sera thought that the effects of an agreement usually appeared within half a year of its signing.

‘Does Charlie know something I don’t?’

She thought he might have heard something from Justin Balmer, a member of the Federal Reserve Board.

“American companies won’t get stronger just because Japanese companies get weaker.”

Sera’s eyes widened at Jung Hyun-woo’s words.

“Ah! You’re saying it’ll take two or three years for Japanese companies weakening and American companies strengthening to coincide.”

“Was my initial explanation a bit difficult?”

“I understand now.”

Jung Hyun-woo sighed briefly inside at her words that she understood.

‘Hoo, it’s hard to persuade her since I can’t tell her I know the future.’

He put his hands together and said, “I’m going to Texas tomorrow.”

“Texas, like the game shop?”

“No. I made an appointment to meet Michael Dell of PC’s Limited.”

Sera clapped her hands lightly as if she had remembered something.

“Ah, that computer manufacturer?”

“Yes.”

“Are you going with Anne?”

“That’s the plan.”

Sera had to stay and watch over the headquarters, so she couldn’t go to Texas with Jung Hyun-woo.

‘I think the old days were better.’

She wondered if money and happiness changed in inverse proportion once they crossed a certain line.

* * *

Austin, Texas.

Jung Hyun-woo felt suffocated as soon as he stepped out of the airport.

“It’s hot.”

Anne fanned herself with her hand and echoed his words.

“The Austin branch said they’d come to pick us up.”

Victoria Corporation was small, but it had branches throughout the United States for JP Services.

‘Most of them are remodeled game shops.’

Anne focused on the people standing at the entrance holding signs.

“Mr. President, I think that’s him.”

She raised her hand, and a man holding a sign approached.

“Are you with Victoria Corporation?”

Jung Hyun-woo nodded and replied, “Yes, we are.”

“I’m Garcia.”

The man with tanned skin extended his hand.

Jung Hyun-woo shook his hand and asked, “Are you from the Austin branch?”

“Yes, I am.”

Garcia pointed to a Honda sedan instead of a pickup truck.

“We don’t have a luxury vehicle at the branch. Please bear with this.”

Jung Hyun-woo and Anne got into the sedan with bright voices.

“A truck would have been fine with us.”

Garcia, after confirming that the two had boarded, quickly ran and sat in the driver’s seat.

“Where shall we go?”

Anne handed him a note.

“There’s an address here.”

Garcia took the address from her and nodded. “It’s not far from here.”

“You’re good at finding your way around?”

“A service installer can’t *not* know the address.”

Garcia was one of the JP Service installers. He had cleared his schedule today after receiving a call from headquarters that an executive was coming.

“Let’s get going.”

“Please drive safely.”

Garcia smiled and said, “I’ll show you the skills of a best driver.”

Austin Airport wasn’t very big, so the Honda sedan quickly left the airport.

Jung Hyun-woo thought as he headed to his appointment with Michael Dell.

‘Rather than pushing too hard, let’s act with composure.’

JP Services had been a huge success, so Dell Computer wasn’t a necessity.

For him now, it was just something that would be nice to have.

About 30 minutes?

Maybe even shorter.

Garcia stopped the car and turned his head.

“We’ve arrived.”

Jung Hyun-woo pointed to a building that looked like a warehouse.

“Is that the place?”

“That’s what the address says.”

Jung Hyun-woo nodded and opened the car door.

“Please wait here until we return.”

Garcia saluted and said cheerfully, “Understood!”

Jung Hyun-woo and Anne looked at the building presumed to be the headquarters of PC’s Limited.

“Honestly, I can’t say it looks good.”

“If they use this whole big building, the scale would be quite large, wouldn’t it?”

“Do you think they’ll use all of it?”

Jung Hyun-woo shook his head and walked towards the entrance.

* * *

Tap. Tap.

The sound of assembling and fitting parts was the only thing filling the empty space.

“What is this…”

This wasn’t the PC’s Limited that Jung Hyun-woo had imagined.

At least dozens of people should have been assembling computers. However, there were only about ten people touching computers in the empty space.

‘This is Dell Computer?’

He couldn’t believe it.

Even if it was 1984.

“Who are you looking for?”

A man wearing glasses turned his head and asked.

“I’ve come to see Michael Dell.”

“Mr. Dell?”

“Yes.”

The man turned his gaze to the left and raised his voice. “Mr. Dell! Someone’s here to see you.”

A tall young man stopped using the screwdriver and raised his voice.

“Someone’s here to see me?”

“That’s what they say.”

The tall young man turned the screw all the way in and then looked up.

“You’re wearing a suit.”

Meaning they weren’t someone delivering parts.

“I made an appointment.”

At Jung Hyun-woo’s words, the tall young man said, holding the screw, “There’s still one hour and twenty minutes left until the appointment time.”

Jung Hyun-woo turned his head to Anne.

“Did we come early?”

“We were supposed to meet at 3 o’clock.”

“That means we have to wait more than an hour.”

It was when Jung Hyun-woo shrugged lightly that Michael Dell said, “Wait over there. I’ll go after I finish this.”

It seemed he wouldn’t have to wait a full hour.

“Understood.”

Jung Hyun-woo raised his right hand and stepped aside with Anne.

“It’s an empty space.”

Anne’s impression was no different from Jung Hyun-woo’s.

“I thought it would be a factory with some scale, but it’s not at all.”

“You’re the one who instructed me to find this company, Mr. President.”

Jung Hyun-woo sighed briefly.

“Hoo… I didn’t think it would be this small. By the way, Anne, how did you manage to find such a small company?”

He had expected the company to be somewhat established since Anne had found PC’s Limited.

But that wasn’t the case at all.

PC’s Limited was like a toddler just taking its first steps.

“I have a reporter among my relatives.”

“Did you ask him for a favor?”

Anne nodded and replied, “I treated him to dinner as a thank you.”

Jung Hyun-woo smiled.

“I’ll give you a bonus if today’s meeting goes well.”

Anne tilted her head at his words.

“A bonus?”

“Because Anne found the very company I was looking for.”

Anne thought that Jung Hyun-woo would be greatly disappointed in the size or appearance of PC’s Limited.

But that wasn’t the case at all.

Jung Hyun-woo was satisfied with the current PC’s Limited.

‘If I invest now, it’ll be like being a co-founder.’

It was when he was imagining the future of becoming the major shareholder of Dell Computer that Michael Dell put down the screwdriver and took off his gloves.

“Finished the work.”

Meaning to prepare for the meeting.

Jung Hyun-woo nodded and echoed his words.

“We’re welcome anytime.”

Michael Dell pointed to the plastic chair on the left with his right hand and said, “Let’s go over there.”

Anne’s eyes widened when she saw the plastic chair.

‘Are we really going to have the meeting there?’

The plastic chair placed on one side of the factory was worse than a beach lounge chair.

However, Jung Hyun-woo nodded with a bright voice.

“Understood.”

Anne had no choice but to sigh deeply and follow him.