Rebirth of the Industrial Tycoon - Vol 2 Chapter 511
Chapter 511 Waiting for him to go bankrupt
Li Weidong’s sentence “come to die” made Lu Guangming a little confused.
“Send to death? I’m talking about the Daewoo Group in South Korea, not a small business like a cat or a dog. Daewoo Group is the second largest group in South Korea, second only to Hyundai Group!” Lu Guangming said.
“I’ll explain this to you later.” Li Weidong paused, and then asked: “Is the information from Daewoo Group accurate? Could it be the news deliberately released from Jinzhou City? I want us to Mark up?”
A shopping mall is like a battlefield, and a Daewoo Group suddenly appeared. Li Weidong also did not rule out that it was a smoke bomb deliberately released by the local to increase the price.
Lu Guangming lowered his voice, and replied, “It shouldn’t be a smoke bomb deliberately released. In order to inquire about this news, I made money.”
“That should be true.” Li Weidong continued; “Even if Daewoo Group gets involved, don’t worry, continue to inquire about the news, and I will go there in person the day after tomorrow.
What’s more, it depends on the conditions for corporate mergers and acquisitions. At present, the conditions we have opened are quite good. The price of 30 million has exceeded the net asset value of the third factory.
Korean people are notoriously stingy. I believe that Daewoo Group will definitely offer a price of less than 30 million yuan, and other details will only care about it. When the time comes, we will have more advantage than the acquisition conditions. ”
“But Daewoo Group is a top-tier group after all. It has tens of billions of assets. It is said that it can also be ranked in the top 50 among the world’s top 500. Whether it is compared to capital, scale, or Fame, our puppy’s health is a lot worse than others.” Lu Guangming said.
Li Weidong said confidently; “What about the world’s top 500! Even if the third factory is really sold to Daewoo Group, I have a way to make them vomit all of them before the end of the year!”
……
The acquisition of Sanquan Medical Device Factory, if European and American companies are very involved, Li Weidong may still be nervous. But Li Weidong really didn’t care about Daewoo Group in South Korea.
Not because the strength of the Daewoo Group is not strong enough, but because it is 1997.
The development history of Daewoo Group has been touted as a business myth by Koreans, and Kim Woo-jung, the founder of Daewoo Group, is also regarded by Koreans as a national hero.
Jin Yuzhong started as a clothing shop. At first it was a small clothing store, and later developed into a textile factory. At that time, just in time for the low-end manufacturing industry to move from Japan to the Four Little Dragons in Asia, the shirts produced by Jin Yuzhong were exported to the United States by this opportunity, successfully opening up the time difference in the United States.
After accumulating a certain amount of capital, Jin Yuzhong began to develop in machinery manufacturing, shipbuilding, construction, petroleum, chemicals, automobiles, and communications.
The expansion of the Daewoo Group coincided with the reign of Park Jung-hee. A very important part of Park Jung-hee’s economic policy is that the state subsidizes banks and banks subsidize large enterprises. After large enterprises grow, they will then feed back the country’s economy.
This economic policy allowed South Korea to achieve an economic take-off in a short period of time, but it also created South Korea’s chaebol economy. The entire South Korean economy is controlled by the chaebol, and when the chaebol’s power reaches a certain level, the incumbent is emptied by the chaebol.
The world’s largest chaebol in the future is naturally the famous Samsung. In 1997, the electronics industry had not yet grown. At that time, South Korea’s largest group was the Hyundai Group, which is dominated by automobile manufacturing.
The Daewoo Group, which also focuses on automobile manufacturing, is the second largest group in Korea.
The seventies to nineties belonged to the golden age of automobiles. However, all the cars made were the leaders of their respective countries.
South Korea’s chaebols have a major feature, that is, they involve various industries. The daily life of Koreans is inseparable from the chaebols.
People of later generations often say that Samsung can contract a Korean from birth to death. In fact, other big Korean chaebols can basically do this.
For example, in Lotte supermarkets in South Korea, you can buy shampoo produced by LG Group, ham slices produced by Hana Group, and sanitary napkins produced by Hyundai Group.
In South Korea, the industry under the top chaebol can really supply your daily needs.
Among them, Daewoo Group has the largest number of stalls and the most involved industries.
The business strategy of the Daewoo Group is to develop in an all-round way, no matter what the industry is, it must be horizontal.
But it is precisely because of this rapid expansion that the Daewoo Group is large but not strong. Among the main businesses of the Daewoo Group, few are ranked first in Korea.
For foreign trade and retail, Daewoo Group is no better than Lotte; for electronics, Daewoo Group is no better than Samsung; for communications, Daewoo Group is no better than SK; for automobiles and shipbuilding, Daewoo Group is no better than Hyundai; for daily necessities, Daewoo Group is no better than LG; For steel, Daewoo Group can’t compare with Pohang Steel; for industrial raw materials, Daewoo Group can’t compare with Doosan; for petrochemical and transportation, Daewoo Group can’t compare with Hana.
This large but not strong situation also laid the groundwork for the future bankruptcy of Daewoo Group.
In 1996, Jin Yuzhong, the leader of the Daewoo Group, formulated an ambitious “five-year plan” to double Daewoo’s overseas business within five years, and at the same time double the size of Daewoo’s factory.
Then the 1997 Asian financial crisis occurred and South Korea’s economy collapsed. This expansionary “five-year plan” was completed, and it became a deadly plan.
The Daewoo Group, with total assets of more than 60 billion yuan, went bankrupt in a short time. Kim Woo-jung, once regarded as a national hero by South Koreans, was sentenced to 10 years in prison and fined more than 20 trillion won.
In the end, the assets of Daewoo Group were also annexed by many American companies at low prices, and there was no **** left.
This is also a true portrayal of South Korean companies during the Asian financial crisis. At that time, the IMF was willing to lend to South Korea, and the conditions attached to it were relatively well-meaning for Koreans, using the term “being of power and humiliating the country”.
South Korea eventually survived the Asian financial crisis and quickly recovered its vitality, but the price it paid was to sell the entire country to Wall Street.
For example, Samsung Group, the number one in South Korea, Wall Street holds 55% of the shares. And nearly 90% of Samsung’s preferred stock is controlled by Wall Street. The Lee family, which controls Samsung, only owns 2% of Samsung.
Fortunately, the Lee family firmly controls the entire Samsung Group through a complex equity structure.
However, the most important function of preferred stock is to enjoy dividends, so Wall Street took most of Samsung’s profits through dividends. Samsung Group, which contracted Koreans from birth to death, is actually Wall Street wage earners.
It is precisely because South Korea was so miserable during the Asian financial crisis that Li Weidong did not take Daewoo Group to heart.
The current Daewoo Group, which came to acquire Sanquan Factory, should be implementing the so-called five-year expansion plan.
However, this behavior of Daewoo Group, in Li Weidong’s view, is undoubtedly a door-to-door death. The faster the Daewoo Group expands, the faster it will die after the Asian financial crisis breaks out!
Even if Daewoo Group really acquired the Sanjeon Factory, Li Weidong was not worried at all. The big deal was to wait until November, when the Asian financial crisis hit South Korea, and Daewoo Group was facing a bankruptcy crisis and would take the initiative to spit out the Sanjeon Factory.
……
Two days later, Li Weidong came to Jinzhou again.
In the past two days, Lu Guangming has also collected more information.
“Jinzhou City originally had an office of Daewoo Group. According to my inquiries, people from Daewoo Group proposed to Jinzhou City to acquire Sanquan Factory 20 days ago.” Lu Guangming explained.
“Twenty days ago? It was just after the assessment of the assets and debts of the Third Whole Plant, right?” Li Weidong asked.
Lu Guangming nodded: “It was about that time, when we just started to discuss the price, the Koreans came to propose the purchase.”
“The valuation of the Sanquan Factory has just been completed, and the acquisition will be proposed immediately. This is because an insider has leaked the news.” Li Weidong smiled disapprovingly.
This is also a normal thing. There is no impermeable wall in the world. It is impossible to achieve complete confidentiality when acquiring a company with former employees.
“This Daewoo Group really saves trouble. If you want to acquire a company, you don’t want to do any investigation, but when others are about to have a good talk, they will rush to stop you!” Lu Guangming said.
“After all, Daewoo Group is South Korean, and I don’t know the situation of domestic companies. I guess that we are going to buy the Sanquan factory and leaked out. They knew that the Sanquan factory is a high-quality asset, so they also came to propose the acquisition.” Li Weidong Opening analysis said.
Lu Guangming was sullen; “The Shenyuan City Mansion is also deep enough. He clearly knows that Daewoo Group is going to acquire Sanquan Factory, and he patiently negotiates with us, even the details are finalized!”
“Shen Yuan is taking advantage of the situation! If he is only talking with a family, then the price will definitely not go up. So he talks with us while talking with the Koreans, so that he can use the negotiation process on our side to force the Koreans Give better conditions. This time, we were used as guns by him!” Li Weidong said.
“It’s really annoying! I talked to him sincerely for so many days, but I didn’t expect to be tricked by him as a monkey!” Lu Guangming said with a wry expression.
Li Weidong asked: “Have you inquired out in the past two days, what kind of acquisition conditions did Daewoo Group offer?”
“I’ve heard that Daewoo Group’s acquisition conditions are far worse than ours! They are only willing to pay 25 million. And it is not a one-time payment, but a batch payment, two or three million in place at a time.”
Lu Guangming went on to introduce: “Moreover, Daewoo Group still refuses to accept all employees. The employees who belonged to the Sanquan Factory need to pass the training and assessment of Daewoo Group before they can take up their jobs.”
“Assessment? This is an excuse to lay off employees in disguise! Those older workers, I am afraid they will be unlucky.” Li Weidong sighed.
Foreign-funded enterprises are not as conscientious as Li Weidong. The layoffs are absolutely unambiguous. They will not care whether they are laid-off workers or whether their families have difficulties.
If you can work and can bring benefits to the company, you can stay. Otherwise, if you can’t bring benefits to the company, you will definitely have to roll over.
This so-called training appraisal is obviously a way to eliminate employees. Those who are older and less educated do not have much learning ability. If training and appraisal are carried out, they will inevitably be eliminated.
Li Weidong went on to say; “We have the advantage by looking at the conditions we can see, but Daewoo Group is a foreign company after all. Even if they offer lower conditions, Golden State may also choose them.
25 million foreign capital, which is more than our 30 million! Old Lu, you have to be mentally prepared. Our hard work for more than a month may be in vain! ”
……
In the conference room, Shen Yuan said with an apologetic expression; “Chairman Li, I’m really sorry, we can’t refuse the investment of Daewoo Group!
Our Jinzhou City is located on the Liaodong Peninsula, facing Japan and South Korea across the sea. It has always been an important area to attract investment from Japan and South Korea. Our policy is to give priority to foreign investment from Japan and South Korea.
Daewoo Group is South Korea’s top enterprise, and we also have many investment projects in Jinzhou City. Therefore, based on the principle of friendly, reciprocal and long-term cooperation, we must give priority to accepting Daewoo Group’s investment. In this regard, I also hope that Chairman Li can understand. ”
Li Weidong knew that Shen Yuan’s appearance of apology was pretended, but he smiled and nodded, and said, “I understand. It’s really not easy to attract investment from a large enterprise like the Daewoo Group.
But there is one point I want to explain. As far as I know, the conditions for our puppy’s health are better than those of Daewoo Group.
We are willing to invest 30 million, while Daewoo Group only invested 25 million, and our 30 million can be paid in one lump sum, and Daewoo Group’s 25 million can be paid in batches like squeezing toothpaste.
We are also willing to accept all the employees of the Sanquan Factory, but these Daewoo Groups can’t do it. Therefore, I think choosing us will bring more benefits to the employees of Jinzhou City and Sanquan Factory. ”
“In the short term, this is the case. If you choose your puppies to be healthy, the third factory can sell 5 million more, and the employees are more secure. But we can’t just look at short-term gains, but also look at long-term gains!”
Shen Yuan made an official expression, and then said: “Daewoo Group is foreign-funded after all, and it is also a Fortune 500 company in the world, with strong strength. And South Korea is also a high-income country, which is more advanced in technology than us.
In the introduction of Daewoo Group’s investment, we can take advantage of the strong capital of foreign companies and use foreign advanced technology to complete the upgrading of the industry. It will definitely be more beneficial to our Jinzhou City in the long run. ”
Li Weidong nodded, as if he agreed with Shen Yuan’s statement. Then he stood up, stretched out his right hand towards Shen Yuan, and said at the same time: “Since you have made a decision, then I won’t force it. I hope we will pay it back in the future. There are opportunities for cooperation.”
Shen Yuan replied very officially: “I again express my sincere apologies to Chairman Li, General Manager Lu, and Puppy Health, and I am very grateful to Chairman Li for understanding our work.”
……
Li Weidong and Lu Guangming left the meeting room.
Lu Guangming said with an uncomfortable face; “What makes the use of the strong capital of foreign companies and advanced foreign technology, clearly means that Daewoo Group’s foreign investment status!”
“This is normal. In the past two years, the country has attached great importance to attracting investment, especially attracting foreign investment, which is also a very important assessment indicator for the local government! Foreign companies are definitely welcome to invest locally, not to mention Jinzhou. It was originally the gathering place of Japanese and Korean capital.” Li Weidong said calmly.
“But the conditions we offered are obviously better!” Lu Guangming said unconvinced.
“But they are foreign investors! This is enough.” Li Weidong responded.
Lu Guangming couldn’t help but whispered in a low voice: “I would rather give to foreigners than domestic slaves!”
Li Weidong smiled: “Lao Lu, you can’t say that. Everyone is the master of the country!”
Lu Guangming didn’t have such a good mentality as Li Weidong. He didn’t bother to argue with Li Weidong. Instead, he asked directly: “You didn’t say that before. Even if Daewoo Group bought the Sanquan factory, they could vomit them all. So what shall we do next?”
“What to do? One word!” Li Weidong stretched out a finger, and then said: “Wait!”
“Waiting for what?” Lu Guangming asked unclearly.
“Wait for Daewoo Group to go bankrupt!” Li Weidong replied.
“Don’t tease me!” Lu Guangming shook his head and said.
Li Weidong replied with a serious face: “I didn’t tease you, what I said is true!”
“That’s the Daewoo Group. It can also be ranked in the top 50 of the world’s top 500. They have tens of billions of dollars in assets. How can they go bankrupt! Even if it is going to go bankrupt, it is not something we can wait for! Billion dollars, even if it is burned as paper money, it will have to be burned for a few years!” Lu Guangming said.
“Who said that the world’s top 500 can’t go bankrupt? Maybe even South Korea will go bankrupt by then!” Li Weidong smiled, and then said; “Lao Lu, you can wait patiently. It is estimated that by the end of this year, or next year At the beginning of the year, that Shen Yuan would beg us to take over the third factory!”
……
Li Weidong and Lu Guangming returned to the capital together.
As soon as he got off the plane, Li Weidong turned on his cell phone and received a call from the secretary.
“Chairman, there is a person named Situ Jian who called you!”
“Academician Situ!” Li Weidong was startled, and quickly asked for Situ Jian’s call, and then went back.
After the two exchanged a few words, Situ Jian said: “Xiao Li, do you remember that we had a meeting once to discuss the negotiation of joining the WTO.”
Li Weidong thought for a while, then replied: “Remember, Professor Huang Liwei was there at that time.”
“Yes, that time, you also discussed Thailand’s economy with Lao Huang. At that time, you judged that Thailand would abandon the fixed exchange rate, and international financial speculators would also attack Thailand.” Situ Jian continued.
“There is such a thing.” Li Weidong then asked: “Thailand has not announced the abandonment of fixed exchange rates, right?”
“Thailand did not give up the fixed exchange rate, but the international financial speculators have already come!” Situ Jian sighed, and then said; “You are also half of the forecast, so there will be an internal meeting tomorrow, you have to come!”
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(End of this chapter)