Episode 151
I had provoked the CEO of Saseong Electronics, implying he wasn’t at my level, but I hadn’t actually expected a call from the chairman of Saseong Group. It was unlikely that he would react to a competitor’s marketing strategy.
My intention was to provoke the CEO and make him double down on their trade-in program.
It was a one-sided game, and Chunha Group was the only one winning.
Of course, Saseong and MG weren’t just sitting idly by.
“They filed a complaint with the Fair Trade Commission?” I asked, after hearing Im Jong-geun’s nervous report.
“Yes, they’re accusing us of abusing our dominant position in the secondhand market and disrupting market order.”
“The Fair Trade Commission? Aren’t they busy with corporate restructuring? Would they even bother with something like this?”
The Fair Trade Commission (FTC), also known as the “economic police,” was a powerful agency in charge of the government’s restructuring efforts. They had the authority to investigate and punish large corporations, but they were already swamped with work.
“That’s true, but it’s still a complaint from Saseong and MG. They’ll have to at least go through the motions, won’t they?”
I understood his concern. The FTC was powerful, and Daehoo Electronics was still a fledgling company.
But I wasn’t worried.
The secondhand market had been operating in the shadows for decades and was only now emerging into the light, led by Chunha Trading. It meant there were still many hidden aspects, even I, the industry leader, wasn’t aware of everything.
Most secondhand dealers dealt in cash and didn’t keep proper records. It would take a long time for the FTC to investigate the market thoroughly, and they were already busy with other matters.
And we only controlled the export market, not the domestic market, so even if they did investigate, the “monopoly” accusation wouldn’t hold up.
I suspected that Saseong and MG weren’t serious about the complaint. It was just a gesture of intimidation, a way to tell me to back off.
“Hehehe, don’t worry. It won’t be a problem.”
“But…”
I interrupted him. “Trust me, Managing Director Im. Chunha Group might be small, but we’re strong. We’re always prepared for external attacks. Don’t worry. More importantly…” I smirked. “Saseong and MG are starting to annoy me.”
I wasn’t doing this for personal gain. It was just a way to normalize Daehoo Electronics.
They had also pressured Daehoo by moving up their product release dates when Daehoo was struggling.
If they wanted to compete, they should do it fairly in the market, not by playing the victim and using political influence.
Of course, I would have done the same if it had been effective, but what I did was romance, and what they did was adultery.
I couldn’t let this slide.
I had to respond forcefully.
“Managing Director Im, let’s retaliate. Expand the trade-in program to all Daehoo Electronics products, not just large appliances.”
“What?!”
Daehoo Electronics produced a wide range of products, but it was still less than the variety of secondhand goods handled by Chunha Trading.
We could handle it.
“Radios, VCRs, computers… everything. Tell them they can trade in any product for a new one, even other brands. Let’s go on a buying spree.”
As Daehoo Electronics launched its expanded trade-in program, consumers started viewing the company more favorably.
Everyone liked a good deal.
If we had lowered the prices, it would have been perceived as a sign of declining quality. But the trade-in program was just a way to get rid of old electronics, so there was less psychological resistance.
Daehoo Electronics’ sales increased across the board, and Saseong and MG were alarmed.
They hadn’t expected us to become even more aggressive after they filed a complaint with the FTC.
They changed their tactics, resorting to a smear campaign.
They interviewed disgruntled Daehoo customers, highlighting their complaints and trying to damage Daehoo’s image.
A smear campaign against me?
How pathetic.
“My fellow Koreans…” I said with a righteous indignation, facing the reporters.
I had to use my carefully crafted image.
“I acquired Daehoo Electronics and Daehoo Energy with my own money, concerned about the employees’ plight. The companies were in a terrible state when I acquired them. But I didn’t give up, I worked tirelessly to revive them, encouraged by the loyal customers who loved and supported Daehoo. And I succeeded in normalizing the companies. And then I thought, ‘This is all thanks to our customers.’ I wanted to give something back, to show my gratitude. So I came up with the trade-in program.”
I paused for the cameras and continued,
“I thought it was a good way to recycle resources and help our customers save money, but it seems other companies don’t agree.”
I didn’t mention Saseong and MG specifically, but everyone knew who I was talking about.
“They’re accusing us of monopolizing the secondhand market and filing complaints with the Fair Trade Commission. They’re even launching a smear campaign, criticizing our products. It’s outrageous! Are we the only ones handling used goods? There are junkyards and secondhand shops everywhere. And people trade used goods among themselves. Do we control all of that? They’re just making excuses to attack us!”
Those who knew my true nature would call this hypocrisy, but I didn’t care.
Politicians and businessmen lied and manipulated their image all the time.
I was just playing the role of an ideal CEO, and people loved it.
“I’m not asking for much. I just want to build a company that grows with its customers! Is that so wrong? Shouldn’t companies care about their customers?”
My acting reached its peak as I bowed my head and said,
“Please help me. This is… not right.”
It wasn’t a good idea for a CEO to be in the media spotlight too often.
CEOs were seen as greedy people, exploiting consumers for profit. Few people viewed them favorably.
Most CEOs tried to avoid media attention, as any misstep could damage their company’s image.
But I was different.
I was a young, self-made billionaire, a philanthropist who criticized corporate greed and championed ethical business practices. I was the ideal CEO.
And my plea for help, claiming I was being obstructed from doing good deeds for the consumers, was bound to resonate with the public.
“Those bastards!”
“They’re treating consumers like fools.”
“I’m going to buy Daehoo products from now on. I trust CEO Park. He wouldn’t sell us low-quality products.”
And these positive reactions translated into increased sales.
“Sir, the response has been explosive!”
The combination of my public image and the trade-in program created a powerful synergy.
Daehoo Electronics’ market share was at an all-time high.
Of course, it was a temporary boost, but it was still effective.
“Image is everything for a company. Tell them to maintain the quality, or they’ll ruin my image.”
Image wasn’t eternal.
It might work a few times, but excessive exposure would eventually erode it. I had to use it sparingly, only for critical moments.
And this was one of those moments.
We would use the trade-in program to gain market share and then consolidate our position.
“What are Saseong and MG doing?”
“They haven’t reacted yet.”
I hadn’t mentioned them specifically, so it would be unwise for them to criticize Daehoo publicly. They would just be painting themselves as villains.
Im Jong-geun said with an excited expression, “I hope this continues.”
“Hehehe, are you happy?”
“Of course, I was worried about losing my job, but life has been great since you arrived, Chairman.”
“Don’t get too excited. This won’t last forever.”
“What?”
Saseong and MG were currently losing ground because they were unfamiliar with the secondhand market, but they wouldn’t stay down forever.
There were plenty of other countries besides China where they could sell their used appliances, even if the prices were lower.
“Focus on quality control. We have to turn these new customers, attracted by the current trend, into loyal customers.”
The image of Daehoo Electronics under my leadership would determine its future for the next decade.
“Launch a prime-time advertising campaign. Spare no expense. Plaster Daehoo advertisements all over Korea. Show the people that Daehoo Electronics is back!”
Im Jong-geun, seemingly inspired by my words, nodded vigorously. “Yes, sir! I’ll execute it immediately! Daehoo Electronics is back!”
Everyone thought Daehoo was finished after the group’s collapse.
Daehoo Group, tainted by corruption and debt, had been dismantled.
Although Daehoo Electronics and Daehoo Energy had been given a new lease on life under new ownership, no one had much faith in their future.
Their new owner was an unknown figure from the junkyard and secondhand goods industry.
But their skepticism soon vanished.
The new chairman had revitalized Daehoo Electronics with an aggressive marketing campaign and a trade-in program, achieving record market share.
It was an unstoppable force.
Daehoo Electronics advertisements were everywhere, on TV, in newspapers, on the radio.
The fanfare announcing Daehoo Electronics’ resurrection echoed throughout Korea.