Seoul, Korea.
Under the guidance of the Westeros system, after annexing Kia Motors, Samsung quickly made the decision to invest and build a factory in China. On the one hand, it was inevitable to open up overseas markets. On the other hand, the prospects of the Chinese automobile market are really attractive. .
Last time the Samsung team went to Suzhou for inspection and negotiation, this time it was a return visit from Suzhou.
It just happened that in South Korea, Chen Qing accompanied the domestic representative team throughout the whole process. Lee Kun-hee, the head of Samsung's Lee family, also attended in person. In the morning, he visited the automobile factory in Seoul, which used to belong to Kia and is now owned by Samsung. A banquet was hosted at noon and started at one o'clock in the afternoon. Another symposium lasting two hours.
After a busy day, a joint venture factory project with a total investment of 2 billion yuan and an expected annual output of 100,000 cars was basically confirmed, of which Suzhou local state-owned enterprises hold 55% and Samsung Motors holds 45%. It is worth mentioning that 50% of the funds that Chinese companies need to invest this time will be provided in the form of low-interest loans by foreign financial institutions recommended by the Westeros system to reduce China's financial pressure.
Due to the financial crisis, in order to prevent governments at all levels from blindly investing and pushing up debt, the approval of large-scale projects has become more stringent, especially in automobile-related industries. In addition, Suzhou is too close to Shanghai, and the major car companies in the capital certainly don’t want to see a strong competitor appear in a nearby city to carve up the market.
Therefore, when this project is finalized, it is still uncertain whether it can obtain central approval.
For Suzhou, the advantages and disadvantages are obvious.
The disadvantage is the lack of foundation in the automotive industry, which may become the main excuse for some people to attack the establishment of Samsung's joint venture car factory.
The advantage is actually the same.
There are no large-scale automobile companies in the local area, and the foundation of the automobile industry in Jiangsu as a whole is relatively weak, which will prompt the local government to provide strong support. After all, even though Jiangsu and Shanghai are adjacent, they are both provincial-level administrative regions and have different interests. The local government will definitely not give in to accommodate Shanghai car companies.
And funding.
Half of the 1.1 billion yuan that China needs to invest comes from low-interest loans provided by the Westeros system, which greatly alleviates local financial pressure.
The last thing is political performance.
The 2 billion big project has driven considerable growth in economic data, so some people cannot help but try their best.
In short, with a 2 billion project here, it is not easy to resist the temptation and turn it down.
Chen Qing actively brokered this project, of course, mainly for the benefit of her own Westeros system.
In addition, the reason why he offered to help the local government solve half of the funding problems was because he followed his boss's instructions and entangled the Samsung Li family in the automobile business. Otherwise, Chen Qing would definitely not have paid for the 550 million low-interest loan. This money is invested elsewhere. It is not impossible to double it several times over the same 10-year period, but this time it can only get an annual interest rate of 6.5%.
At three o'clock in the afternoon, the symposium ended.
Chen Qing patiently said goodbye to the Chinese delegation and Samsung executives such as Li Jianxi, declined the invitation to a cocktail party in the evening, and finally got away.
After leaving the Samsung Group headquarters building in Moogyo-dong, Jongno District, Chen Qing got into the car, followed Lin Gyuli who was sitting next to her and glanced at the female boss who was still energetic and looking down at a document. After a pause, she said: "Mr. Chen, Samsung Why are we trying to push for this project when the condition of the car is obviously terrible, I mean, even if we want to promote cooperation, Hyundai seems to be better?"
Samsung Motors is indeed facing a lot of worries right now.
Let’s start from the beginning. Samsung has wanted to enter the automobile market for a long time, but the biggest obstacle is not funding, but also the review by the authorities. Three years ago, in order to obtain a car production license, Lee Kun-hee was forced to agree to the plan given by the Kim Young-sam government to build a Samsung automobile factory in Busan.
The Kim Young-sam administration was motivated purely by political considerations and in order to gain regional support, without considering whether Busan was suitable for building an automobile factory.
Due to the harsh environment and incomplete supporting facilities, the construction cost of Samsung's Busan factory is far higher than that of other Korean car companies. During the same period, Hyundai built a factory in Asan City, Chungcheongnam Province, South Korea, with a cost of 200,000 won per square meter. The construction cost of Samsung's Busan factory is as high as 1 million won, five times as much.
The results are predictable.
At the same time as taking over Kia, the first batch of cars from Samsung's Busan plant officially started rolling off the production line in March after a year-long publicity.
Due to the financial crisis, the demand for local cars in South Korea has dropped sharply. Samsung Motors can only lower prices. Currently, it loses 1.5 million won for every car sold. If production is stopped and sales are stopped, the depreciation of the factory built with a huge investment of 600 billion won, coupled with the huge salary expenses of 5,000 employees, will only lead to greater losses.
A typical example of riding a tiger with difficulty.
In order to solve the sales of Samsung cars, the entire Samsung Group has launched mandatory apportionment and requires employees to purchase, including Samsung Electronics, which is still nominally a part of the Samsung chaebol. Still out of his own boss's strategy, Chen Qing did not stop this, and even asked the executives of Samsung Electronics from the Westeros system to actively cooperate.
Now, Samsung Motors can only look forward to sorting out Kia's assets as soon as possible in order to use Kia's complete supply chain and global sales network to dilute costs and open up sales.
In fact, they have completely lost control of Samsung Electronics. The automotive business can be said to be the last stand of the Samsung Lee family.
Even Simon standing behind him actually hopes that Li Jianxi can succeed.
After all, the industry trend is here. No matter how successful Samsung Motors is, the downward trend of the traditional automobile industry is inevitable. As long as the Samsung Lee family has something to rely on, there will be less possibility of causing trouble with Samsung Electronics.
This time we try our best to help Samsung Motors enter China this time, and the same consideration is given.
However, of course, Chen Qing would not explain this in-depth consideration to Lin Guili. When the female assistant asked, Chen Qing simply ignored it and just ordered: "If you have time in the evening, the latest batch of attendant candidates, please come and show me look."
Seeing that her question was ignored, Lin Guili said nothing and nodded in agreement. She looked at her memo and said, "Mr. Chen, during the meeting just now, the assistant of LG Chairman Goo Bonmoo contacted me. The president hopes to meet you?"
Chen Qing refused directly: "No time."
Daewoo collapsed, and LG, which had not surrendered to the Westeros system at the beginning, also felt the crisis more and more. The reason why the Westeros system has not taken action yet was mainly to break up Daewoo and digest it first. However, some paving the way for LG The means have already begun to be implemented.
LG Furniture is obviously getting worried.
Chen Qing is definitely not in a hurry and plans to wait for a while.
Seeing what Chen Qing said, Lin Guili didn't ask why this time, and continued: "Also, our team has officially signed an acquisition agreement with Mini6 Studio, the developer of "Frozen Age". This is the summary of the agreement. In addition, SK Entertainment, "The Spies" will wrap up tomorrow, they have arranged a wrapping party and invited Mr. Chen to attend?"
Chen Qing quickly browsed the acquisition agreement worth 3 billion won in her hand and was very satisfied. Mini6 spent 3.5 billion won just to develop "Frozen Age". There are also several stand-alone games on sale, even if it has to bear the other party's responsibility. The debt is about 1.7 billion won. Considering that we can win this company 100% cleanly, it is definitely not a loss.
Think about being a little angry about another project.
Regarding Acrab Online, the developer of "Paradise", this was Chen Qing's first goal after returning from the United States last time. Even if he used the method of asking banks to press for debts in order to win this company, Acrab's founder and president Jiang Qizhi Still refusing to sell all the shares.
In fact, this is understandable.
Of the three projects that were initially recommended to my boss as cases, "Frozen Age" was operating at a loss, and "Wind Kingdom II" development progress had stalled due to lack of funds, so it was easy to give up completely. Let’s talk about “Paradise”. This game has completed closed testing and was originally planned to be launched in June.
It's like a movie actually.
The project has been successfully completed, and when investors and directors are optimistic about it, it will definitely be promoted to theaters and not sold out to distributors easily.
Chen Qing talked with her boss and finally agreed to let Acrab president Jiang Qizhi and another major shareholder of the company each retain 10% of the shares, while this side would take 80%.
After a slight concession and some other games, the deal between the two parties was reached.
20% may not seem like much, but before the acquisition, Jiang Qizhi and the small investment fund held only 53% of the shares. They sold the company for 6 billion won and retained 20% of the shares, which was equivalent to recovering all the previous investment and Having a surplus and retaining the feasibility of making more in the future is definitely a very cost-effective business.
Chen Qing can also accept her boss's thinking about the expansion of the Westeros system that focuses on control rather than monopoly. However, in her current position, she is still a little unhappy when she is forced to give in by a small company worth only two to three million.
Hearing another question, Chen Qing refused: "No, let them prepare a rough cut sample for me as soon as possible."
Of course it is for my boss.
Lin Guili nodded in agreement.
The two of them talked about things as they drove through the northern part of Seoul, across the Han River, and arrived at the Acrab headquarters in Yeoksam-dong, Gangnam District.
There was still some time in the afternoon. Even though she was dissatisfied with Acrab's head Jiang Qizhi, Chen Qing still strictly followed her boss's instructions. Based on Simon's opinions after taking the time to try out the game in the past few days, she planned to discuss the modification plan with the Acrab team. There are also release plans.
To acquire these studios in advance, in order to avoid being forced to raise prices, Chen Qing adopted an independent shell company. The subsequent distribution will definitely not be left to these small companies to do on their own. The three entertainment giants in South Korea and China and the United States will begin to follow suit.
In addition, these studios will also be affiliated to the three giants SK Entertainment, Samsung Entertainment and Modern Entertainment controlled by the Westeros system.