Episode 156
“It’s a pleasure to meet you. I’m Park Sol.”
The used car company representatives bowed deeply, almost at a 90-degree angle. “It’s an honor to meet you, Chairman of Chunha Group.”
They were being unusually deferential.
“Come and have a seat.”
“Yes, sir.”
I studied them carefully.
They were CEOs of reputable used car companies, veterans who had survived the cutthroat industry.
“I’d like to hear from each of you, but that would take too long. Is there anyone who can represent the group?”
A man raised his hand hesitantly. “I’ll represent the group.”
He was a large, burly man with a fierce expression, similar to the gangsters and heihaizi I had dealt with before. Perhaps he had been involved in organized crime?
The used car market, with its large transactions and shady dealings, was a breeding ground for organized crime.
“So you’re interested in the US military base’s used goods auction?”
He nodded vigorously. “Yes, a large quantity of vehicles and other used goods will be auctioned off. We specialize in used cars, and Chunha Group handles everything else, so we thought we could monopolize the auction if we joined forces.”
“Hmm.” I crossed my arms and said with a dubious expression, “I understand your intention, but is a consortium really necessary? The auction will be held separately for each item category. We can handle our part, and you can handle the used cars.”
“That’s true, but if we form a consortium with Chunha Group, we can propose a private contract to the US military.”
“A private contract?”
A private contract meant choosing a specific buyer and bypassing the open auction process.
It was less common than an open auction, as it eliminated competition and increased the potential for corruption.
“Do you think the US military would agree to a private contract?”
He said confidently, “They’re a military base, so they’re sensitive about security. And they’re not a for-profit organization. They would prefer a clean and efficient disposal process over maximizing profit. Chunha Group is a large and reputable company, and your charitable activities are well-known. They would trust you. I think it’s a possibility.”
“Hmm.” He had a point.
Selling the goods separately to multiple buyers might generate more profit, but it would also be more complicated and time-consuming.
A private contract with a single buyer would be simpler and less troublesome, so the US military might be receptive to the idea.
“How about joining forces with us? We’ll handle the used cars, and Chunha Group can take everything else.”
“What’s the estimated value of the goods?”
“Over 20,000 used vehicles, worth about 200 billion won. And the other used goods, I’m not sure, but it’ll be hundreds of billions of won, maybe even more.”
It wasn’t a bad deal.
If we secured a private contract, the price would be higher, so we could potentially make hundreds of billions of won, maybe even a trillion won.
“It sounds interesting.”
He smiled brightly at my positive response. “So you’re in?”
“But what if the US military insists on an open auction? There’s no point in forming a consortium then.”
Not everything went according to plan.
There was a possibility, but there was no guarantee the US military would agree.
He thumped his chest. “Don’t worry. I have a contact who works at the US military base. He said it’s a possibility if a trustworthy company is involved.”
“And that trustworthy company is Chunha Group?”
“Yes, he specifically mentioned Chunha Group.”
“Hmm.” I closed my eyes and tapped my fingers, thinking. “And what do we get in return?”
“What?”
“You’re using our name and reputation to secure a private contract. There has to be compensation.”
He said, looking flustered for the first time, “B-but you’ll be getting all the other used goods.”
I said casually, “And there are only about ten of you here. Is that everyone?”
“What?”
“You said the used cars are worth 200 billion won. Each of you will have to pay 20 billion won. Do you have that kind of money?”
“We’ll take out loans, and we were hoping for some financial support from Chunha Group, since we’re forming a consortium…”
“So you’re not just using our name, you’re also asking for money?”
“But we’ll handle everything! The negotiations, the paperwork, everything! It’s a good deal!”
Did they think I was a fool because of my public image as a kind and generous person?
I held all the cards in this deal.
And his “contact” who had specifically mentioned Chunha Group… was there any other company in Korea with enough resources to handle this?
“I don’t see any reason to lend you money. I can just find other used car companies if I have to.”
His face turned pale at my words. “There aren’t many companies that can handle this volume!”
“If ten isn’t enough, we’ll find a hundred. If a hundred isn’t enough, we’ll find a thousand. Used car dealers are a dime a dozen in Korea.”
“My contact can help us secure a private contract! He won’t help you if we’re not involved!”
I smiled at his desperate plea. “Is your contact more powerful than a National Assembly member?”
“What?”
“We’re Chunha Group, ranked 17th in the business world. We have connections.”
I smiled. “Anyway, thank you for the information. It’s a lucrative opportunity.”
He stood up abruptly, his face contorted in anger. “This is outrageous! How can you be so unethical?! This isn’t right, Chairman Park!”
“Unethical? Was there ever any ethics in this industry?”
I shrugged, looking at the fuming used car dealer. “If I have to, I’ll enter the used car market myself.”
After sending the disgruntled used car dealers away, I asked Park Jong-bum, “The used car market seems profitable, doesn’t it?”
“Are you planning to enter the used car market, sir?”
“I wasn’t interested before, but 20,000 vehicles is a good starting point, isn’t it?”
In the secondhand market, the one who controlled the supply was king.
And I controlled the Korean used goods export market.
There would be plenty of buyers for 20,000 used vehicles.
“It’s not a bad idea, but the other used car dealers will protest. There are a lot of them.”
“What can they do? They’re just scammers, ripping off customers. We’ll crush them.”
The profit margin for each car was so high that scamming customers was standard practice.
They would lowball sellers and overcharge buyers.
I wasn’t afraid of them.
“Let’s enter the used car market. Contact the Chinese buyers and inquire about the prices. And explore the Middle Eastern market as well.”
“Yes, sir.”
“I’m going to meet with Assemblyman Lee An-jin.”
Assemblyman Lee An-jin, who had gained national recognition through the gold collection campaign, had become a prominent political figure, leading the young reformers within his party and establishing his own faction.
I sneered at the word “reformers,” knowing his true nature, but he was undeniably more powerful than before.
He had the connections to influence the US military.
“Let’s do this.”
I met with the US military through Assemblyman Lee’s introduction and received a positive response. I immediately entered the used car market.
I built a storage lot for the vehicles, hired some experts, and started learning about the industry.
And I realized how massive the market was.
1.5 million used cars traded annually, worth 15 trillion won.
And that was a conservative estimate, considering the prevalence of under-the-table deals. The actual market size was probably much larger.
“This is bigger than I thought.”
It was a massive market, considering that the annual sales of new cars in Korea were less than 1 million.
And this massive market was being exploited by countless small-time dealers.
“I should take this seriously.”
I smelled money.
Ordinary people had no choice but to deal with used car dealers, but there were countless cases of fraud.
Buying a flooded car or a car with a hidden accident history was a common occurrence.
Chunha Group, with its positive image, could disrupt this market.
“People would rather deal with Chunha Group than those shady dealers. They’ll trust us not to scam them. And if we offer after-sales service, it’s game over.”
Other large corporations weren’t interested in the used car market yet, but it was a lucrative opportunity.
This was the perfect time to enter the market.
“Let’s invest.” My eyes gleamed. “We’ll crush them with money.”
Park Jong-bum said cautiously, “How much are we talking about…?”
“Build storage lots across the country, enough to hold 100,000 vehicles. Hire employees. Launch a massive advertising campaign. The slogan will be…” I smiled. “‘Tired of being scammed? Trustworthy Chunha Used Cars. Buy with confidence.’ How about that? And minimize the profit margin.”
We had to differentiate ourselves from the other dealers.
And the best way to do that was to offer higher prices to customers.
Park Jong-bum said with a worried expression, “The initial investment will be substantial, and with a low profit margin, it’ll take a long time to generate a profit.”
“It’s an investment. Spend whatever it takes.”
The used car market was a chaotic mess.
Thousands of small-time dealers were fighting over scraps, and now a giant like Chunha Group was entering the arena, armed with its financial might.
We had to dominate the market from the beginning.
“Invest billions, even trillions of won. Make it so overwhelming that no one dares to compete. Let’s crush them all and take over the market.”