Seok-won leaned back comfortably in the rear seat of his recently purchased Rolls-Royce Phantom, phone in hand, speaking with Landon in New York.
[The White House hasn't made any notable comments about the forced breakup of Microsoft over antitrust violations, but the Justice Department is taking such a hard-line stance that it looks like they'll push forward as is.]
"With the administration nearing its end, the lame-duck period has already begun. And with the upcoming election, President Clinton and the Democrats have no choice but to stay mindful of their more hardline supporters."
[Exactly. Investors understand that too, which is why they dumped Microsoft shares right after the first verdict—believing the breakup could actually happen.]
The rear seat offered plenty of space, so Seok-won crossed his long legs and continued.
"The stock keeps falling even in off-hours trading. Seems the shock really is significant."
[More than fifty-seven and a half billion dollars in market cap evaporated just during regular trading hours. The unemployment-claims shock hurt, sure, but Microsoft was the main culprit behind yesterday's Nasdaq crash.]
"Well, it's the largest company by market cap, and together with Cisco, it's one of the main engines of the dot-com boom. So that makes sense."
Adjusting his grip on the phone, Seok-won spoke calmly.
"How is Microsoft responding?"
[Chairman Bill Gates is personally fighting back, saying that forcing a breakup between Windows and the Office suite—including MS Word—would hinder development of the next-generation Windows OS and ultimately harm consumers.]
Seok-won gave a small nod, unsurprised.
"If Microsoft really were split, it would severely damage the company's competitiveness and overall value. They can't back down."
[But as you know, even Rockefeller's powerful Standard Oil and AT&T—founded by Alexander Graham Bell—were shattered by antitrust rulings. Microsoft will have a hard time avoiding the same fate.]
"That's true. And Microsoft really did bundle MS Word and the Office suite with Windows."
MS Word had rapidly overtaken the global market—everywhere except Korea—and Internet Explorer had pushed aside strong competitors like Netscape and other browsers largely because it came free with Windows.
[The market knows that too, which is why most expect Microsoft to be at a disadvantage even if it appeals.]
"Microsoft probably knows that better than anyone. They'll try to drag out the trial as long as possible."
[Even so, it won't be easy to turn things around when they're already on the defensive.]
But contrary to Landon's skepticism, Microsoft managed to delay the trial for almost two years and eventually reached a settlement with the Justice Department, avoiding a company split.
To evade the axe of a regulator that sharp… He's not just a computer genius. He's a master of survival too.
Well, that was exactly why Microsoft had been able to build such a massive IT empire in the first place.
Seok-won let his stray thoughts fade as he listened to Landon continue.
[…And because of that, places like Deutsche Bank and AIG — the firms that signed short-option contracts on Microsoft with us — have been calling nonstop since yesterday asking if we can terminate the options early.]
Landon's voice was filled with barely contained excitement, and Seok-won couldn't help but smile as he held the phone to his ear.
"So what did you tell them?"
[Heh. With the stock plunging on bad news, we can't play the fool and cancel their options early. I told them flatly that we aren't considering it at the moment.]
"Well done. Ignore all early cancellation requests until the stock drops below sixty dollars."
Landon sounded startled.
[Are you saying Microsoft's stock will fall that much?]
Their put-option strike price was 106 dollars a share. Sixty dollars would be almost a 50 percent plunge, so his reaction was understandable.
But Seok-won answered calmly, as if it were obvious.
"Yes. Microsoft is leading the drop because of the antitrust ruling, but with everything that's happened lately, doubt and fear about the dot-com boom are starting to spread. Soon the market will realize that other IT tech stocks were just as overvalued, and they'll tumble together."
[Given how shaken the once-solid belief in the dot-com rally has become, that does seem possible.]
Landon spoke as if he'd been convinced.
[Ah, and there's something else. The Wall Street Journal is planning to run a piece about you tomorrow.]
"Oh? What's it about?"
[Ha ha. Nothing negative, so you don't need to worry.]
Landon chuckled as he answered, noticing Seok-won's slight frown.
[With everyone else taking massive losses in this crash while we closed our positions early and went short, we made a huge profit instead.]
Seok-won relaxed his expression, already guessing the type of article it would be.
[And considering you warned of a bubble collapse before the crash in that Wall Street Journal interview, the story will get even more attention.]
"The scale and reputation of the Eldorado Fund are bigger than they used to be. A bit of spotlight is unavoidable."
He shrugged, unconcerned.
[And there's one more thing.]
"Go ahead."
[Rodney, the CIO, resigned and left the Quantum Fund.]
Seok-won's eyes sharpened with interest.
"Is that true?"
[Yes. The rumor has already spread all over Wall Street, and since there's no denial coming from Quantum Fund, it seems to be true.]
"Is it because of the losses they took in this crash?"
Landon answered in a way that suggested agreement.
[What else could it be? Losing more than thirty percent is huge. For the Quantum Fund, which had never once posted a loss since its founding, it must have been a massive blow to their pride.]
Seok-won, who had anticipated this outcome, asked calmly:
"Do they know who's taking over the fund?"
[That part hasn't been revealed yet. But with the market in such bad shape, they won't leave the seat empty for long. We should hear something soon.]
"Most likely."
After a bit more conversation, they ended the call.
Seok-won slipped his phone into the inner pocket of his jacket and murmured:
"Rodney has finally stepped out of the cage called the Quantum Fund."
***
The Rolls-Royce Phantom carrying Seok-won glided to a gentle stop in front of the main entrance of the Namsan Hilton Hotel, which he had acquired the previous year.
The deep gloss covering the entire body and the sheer weight of the car gave off an unmistakable sense of authority.
As if he had been waiting for this exact moment, the doorman in white gloves hurried forward the instant the car stopped and opened the rear door.
The interior, finished in luxurious brown premium leather, came into view as Seok-won stepped out, extending his long legs onto the pavement.
General Manager Yoon Byung-seop, who had been waiting after receiving word of his arrival, bowed deeply with a tense expression.
"Welcome, Chairman."
Seok-won didn't respond verbally. He simply gave a short nod, then asked in an unhurried tone:
"Has our guest arrived?"
"Yes. He arrived a little earlier and is currently in a private room at the Korean restaurant."
"All right."
Without further delay, he began walking. Manager Han Jiseong, who had come with him, followed right behind.
"I'll guide you."
General Manager Yoon quickly moved ahead to lead the way.
The lobby, designed by a famous Korean architect at the request of former Daekwang Group Chairman Yoo Chunseok, was striking. Its high ceiling, glossy bronze-colored tiles, and marble accents created an elegant, dignified atmosphere.
Seok-won briefly surveyed the well-maintained lobby, then stepped into the elevator and headed up to the hotel's Korean restaurant.
Because the hotel owner was visiting, the employees would normally have come out in full to greet him. But instructions had been given in advance to avoid actions that would attract attention, so only the general manager greeted him.
Standing stiffly with nervous tension, Yoon bowed so deeply it looked as if his forehead might touch the floor, then straightened.
"This way, please."
It was past lunchtime, so the large Korean restaurant with its floor-to-ceiling windows facing Namsan Tower had only a few occupied tables and felt fairly quiet.
Yoon guided them to a private room, ensuring they didn't cross paths with regular guests, and folded his hands respectfully.
"Right this way."
He knocked lightly, slid open the door to the side, and then stepped back.
"Manager Han, please wait outside for a moment."
"Yes, sir."
As Seok-won stepped alone into the private room, the stout middle-aged man already seated at the table rose to his feet.
With a friendly smile, he extended a large hand for a handshake.
"Thanks for coming on such short notice."
The solidly built man, with the physique of a former wrestler, was Jung Yong-gil, the second son of Hyunwoo Group's honorary chairman Jung Tae-ho.
Born in 1915, the elderly Jung Tae-ho's health had deteriorated rapidly, and the two brothers—Jung Yong-gil and Jung Jae-won—were now serving as co-chairmen, jointly running Hyunwoo Group, the number-one conglomerate in the country.
On the surface, nothing seemed amiss, but inside the group, people were unsettled by the honorary chairman's decision.
Everyone assumed Chairman Jung Yong-gil, who had flawlessly taken over the role of the eldest son after his older brother's tragic death, would naturally inherit the group. But suddenly, the two brothers ended up in a succession rivalry. No wonder things feel tense.
Clearing the brief thought from his mind, Seok-won smiled and clasped Jung Yong-gil's outstretched hand.
"It's been four months since I last saw you at the New Year's luncheon at the Blue House."
"Already? When I was younger, time didn't move like this. But now it feels like it flies."
"I'd say that just means you're living a very busy life."
"Hahaha! That's one way to look at it."
Chairman Jung let out a deep, hearty laugh that matched his large frame.
"Please, have a seat."
"Sure."
Once the two sat facing each other across the table, a server came in to place fragrant tea before slipping back out.
When the door closed and the two men were alone, Jung Yong-gil fixed his gaze on Seok-won and spoke in a slightly subdued voice.
"I'm not the type to beat around the bush, so I'll get straight to the point."
"Please do."
"I understand that Bluehole Venture Capital holds a significant stake in our group, including construction and heavy industry."
Since it wasn't exactly a secret, Seok-won gave a small nod.
"They're solid companies. I simply invested surplus capital into dependable assets."
Chairman Jung Yong-gil leaned forward, his expression turning serious.
"Soon, something big is going to happen within the group. When it does, I'd like your support."
Seok-won held his gaze for a moment before lifting his teacup and taking a sip of the warm tea.
Setting the cup down with a calm gesture, he asked:
"You're planning to enter a management dispute with your younger brother?"
Chairman Jung answered in a firm, resolute tone, as if his decision had already been made.
"I intend to reclaim the rights that should have been mine from the beginning—as the eldest son of the Hyunwoo family."
TL/n -
Hyunwoo = Hyundai
+++
In the late 1990s, Microsoft dominated the PC market through Windows, which ran on more than 90% of personal computers.
The U.S. government argued that Microsoft used this dominance to crush competitors, especially Netscape (the leading web browser before Internet Explorer).
What Microsoft was accused of
The Department of Justice and 20 U.S. states said Microsoft:
Bundled Internet Explorer with Windows
Microsoft made Internet Explorer part of Windows, so every new computer already had Microsoft's browser.
This made it very hard for Netscape to survive as a separate product.
Blocked computer makers from promoting other browsers
Microsoft pressured PC manufacturers not to pre-install Netscape or other browsers.
Tried to control how software developers built their programs
Microsoft pushed developers to use Microsoft-friendly tools so competitors couldn't build rival platforms.
Acted to protect its Windows monopoly
The government said Microsoft's behavior was aimed at keeping Windows at the center of the tech world and preventing new technologies (like Netscape's browser) from becoming a threat.
What the courts decided
In 2000, a federal judge ruled that:
Microsoft had a monopoly in PC operating systems. Microsoft used that monopoly illegally to hurt competitors. Microsoft should be broken up into two companies:
o One for Windows
o One for everything else (like Internet Explorer and Office)
This was the same kind of remedy used in the Standard Oil and AT&T breakups.
What actually happened
Microsoft appealed, and in 2001 the breakup order was overturned.
Instead of splitting the company, the government and Microsoft reached a settlement:
Microsoft had to:
Stop punishing computer makers for installing competing software
Share certain technical information so developers could build software that worked with Windows Allow more user control (like setting non-Microsoft defaults)
Microsoft did not have to:
Split into separate companies
Remove Internet Explorer from Windows
Why it mattered
Even without a breakup, the case changed the tech world:
Microsoft became more cautious
They avoided aggressive behavior for years because they were under government supervision until 2011.
It gave room for new competitors
Companies like Google, Firefox, and later Apple and Android grew during Microsoft's "quiet period."
It set the blueprint for modern antitrust cases
The logic used in the Microsoft case is now used against:
Google (search dominance) Apple (App Store rules) Amazon (marketplace control) Meta (social media acquisitions)