Chapter 115: The Money Pit

Dojin Industries Conference Room.

“CEO, KTalk and Ani-pung have surpassed 3 million downloads in just one month since their release.”

Han Yu-ju’s voice rang out cheerfully.

“Quantum has sold approximately 2.5 million units cumulatively, so the download numbers are quite impressive.”

The 3 million downloads included both the A-Phone and PC versions, but the spread was undeniably rapid.

“Market response has been explosive.”

Seong-hwan, brimming with excitement, explained what he had observed.

“Thanks to KTalk, more users are saying they no longer need to send texts, and even middle-aged and older users who’ve tried Ani-pung are quickly switching to Quantum.”

Everything was unfolding just as I had initially envisioned.

‘Platforms and content truly dominate the market.’

Even before my regression, during my time at Ahsung, after moving to the mobile division of Ahsung Electronics,

I employed a similar strategy to make Titan successful.

Although Ahsung didn’t directly develop KTalk back then, I witnessed firsthand how these elements completely reshaped the market.

That’s why I understood the importance of platforms better than anyone.

“What are Quantum’s sales figures?”

“Weekly sales jumped from around 150,000 to 200,000 units to over 300,000 last week.”

This meant monthly sales could exceed 1 million units.

But…

“The domestic market alone has its limits. We need to expand overseas as quickly as possible.”

Pintech & Curetech, which I acquired, primarily operated in the domestic market,

so their overseas sales network wasn’t well-established.

However, to achieve the top spot in global mobile sales,

penetrating overseas markets was absolutely essential.

“We’re already working on that.”

Executive Vice President Hong Chung-ki continued the report promptly.

“We’ve begun negotiations with North American carriers and are exploring partnerships with major telecom companies in the UK, France, and Germany for Europe. For Asia, we’re preparing to enter the market starting with Japan and Southeast Asia.”

I nodded lightly at Hong Chung-ki’s report.

“How are you preparing sales strategies for each region?”

“For North America, we plan to focus on early market dominance by prominently featuring KTalk and Ani-pung. Both are already fully prepared in English versions, and A-ple has expressed willingness to join our marketing efforts.”

It wasn’t a bad plan.

After all, the mobile market wasn’t something I could monopolize alone.

So, it made sense to secure the platform while A-ple was cooperative.

‘We need to penetrate as deeply as possible now, while people still don’t understand the importance of messengers like KTalk.’

Once we establish ourselves,

it becomes impossible to dislodge us later.

Just like Neiver or Gogel.

“For Europe and Japan, localization is especially crucial. Ensure the content and advertising are thoroughly tailored to appeal to local audiences.”

Hong Chung-ki, seeming to understand, responded immediately.

“In Europe, we’re pursuing sponsorships with Premier League football clubs, and in Japan, we plan to collaborate with popular idol groups for ads and events.”

It was a seasoned strategy, as expected,

and he clearly grasped the importance of localization.

“What’s your marketing approach for Southeast Asia?”

“The standard of living there is much lower than elsewhere, so immediate entry might be challenging.”

In countries where monthly salaries are less than 200,000 to 300,000 won,

selling a Quantum for over 1 million won seemed like a stretch to me too.

“Then, let’s develop a mid-range model to enter the Southeast Asian market.”

I decided on Quantum’s development direction on the spot.

The currently released Quantum would be designated as the Ultra Series, named Quantum1-S,

and the upcoming mid-range model would be labeled the A Series, named Quantum1-A.

“With that, we can definitely target the Southeast Asian market.”

“Senior Hwang Chil-bong will take charge of developing the mid-range model.”

As I turned to look at Chil-bong,

he nodded.

“I’ll develop it as quickly as possible.”

Given Quantum’s overwhelmingly positive reception,

the team leaders in the meeting looked very cheerful and confident.

Just as the meeting was about to wrap up in a pleasant atmosphere,

Han Yu-ju suddenly entered the room with a grave expression.

“CEO, there’s a problem.”

“What’s the issue?”

“Malicious rumors about KTalk and Ani-pung have started spreading online.”

“Malicious rumors?”

As I expressed confusion, Han Yu-ju paused to catch her breath before continuing.

“Unfounded rumors are rapidly spreading that KTalk collects users’ personal information without consent and that Ani-pung causes violence and addiction in teenagers.”

The absurdity of the claims made me chuckle.

“Is it Ahsung?”

“…There’s no concrete evidence, but it’s highly likely.”

After a brief silence, I calmly spoke up.

“What are the specifics?”

“Rumors are circulating that we secretly collect chat content from customers and sell it to other companies. For Ani-pung, there are claims that its excessive addictiveness negatively impacts teenagers.”

It was a typical smear campaign, mixing in plausible details.

For the average consumer, it’s hard to immediately discern the truth,

and once it spreads, it can stir anxiety.

“How should we respond?”

As I surveyed everyone in the room,

Executive Vice President Hong Chung-ki cautiously spoke up.

“Perhaps we should immediately release a clarification, emphasizing that KTalk has international certifications for encryption technology and personal information protection, and highlighting that Ani-pung’s heart system is designed to prevent addiction.”

It was a decent idea, but…

Given that the opponent was Ahsung, a short-term response wouldn’t be enough.

We needed a fundamental and effective strategy.

“Have you traced the source of the rumors?”

Han Yu-ju answered right away.

“IP tracking revealed that some accounts actively spreading the rumors are linked to Ahsung Group’s PR partners.”

It wasn’t just likely that Ahsung was behind it—the evidence confirmed that Ahsung was the source of the rumors.

“They’re desperate to prevent a drop in Titan sales, it seems.”

Seong-hwan reacted immediately.

“Then, we shouldn’t just take this lying down. Shouldn’t we counterattack even harder? Like spreading similar rumors about Ahsung’s products…”

If we set our minds to it, we could do it.

But…

“If we respond the same way, consumers will just think we’re no better than them.”

Such a mudslinging fight would only damage our brand image.

“Then, what should we do?”

Seong-hwan asked, sounding frustrated.

After a moment of contemplation, I looked around the room and spoke up.

“I plan to avoid getting dragged into their rumors and take a direct approach instead. We’ll counterattack in the areas where Ahsung is most confident.”

“The areas where Ahsung is most confident would be…”

“Their offline distribution network and brand trust.”

My words surprised Hong Chung-ki and the other team leaders.

“Ahsung holds a overwhelming advantage in those areas, right? Especially with offline stores, we’re at a significant disadvantage.”

“True, but I plan to neutralize Ahsung’s stores through superior service quality and experiential marketing.”

Seong-hwan looked puzzled.

“Can we really neutralize them with offline stores? We only have about 20% of Ahsung’s store count…”

Ahsung was a company nearly 50 years old,

while Dojin Tech and the recently acquired Pintech & Curetech were only 5 years old.

In terms of offline store numbers, we couldn’t compete.

“I’m not planning to compete on store numbers. Instead, we’ll render Ahsung’s stores irrelevant through service quality and experiential marketing.”

Instead of placing stores where consumers are, we’ll make consumers come to our stores.

“Experiential marketing means letting consumers try Quantum firsthand and feel the difference, right?”

“Exactly. We’ll open Quantum-exclusive pop-up stores in major cities nationwide, allowing people to fully experience the unique services available only on Quantum, including KTalk and Ani-pung.”

“Pop-up stores?”

The term was still unfamiliar to Han Yu-ju and others, who looked puzzled.

“Pop-up stores are temporary stores that operate for a limited time, like events.”

Seong-hwan, understanding my intent, exclaimed in admiration.

“If we do that, consumers will quickly see that the online rumors aren’t true.”

“Of course.”

If a simple puzzle game like Ani-pung causes addiction,

most online games currently in service should have been banned already.

“When consumers see and experience it for themselves, the rumors spread by Ahsung will naturally lose their power.”

I gave instructions to Hong Chung-ki, who agreed with me.

“Select major city candidates nationwide and prepare a pop-up store operation plan as soon as possible.”

“Understood. I’ll get started right away…”

Before Hong Chung-ki could finish,

Executive Director Oh Seong-hak cautiously but with concern in his voice, interjected.

“CEO, our financial situation isn’t that comfortable.”

I knew this would come up.

As soon as finances were mentioned,

the room fell silent.

“How much funding are we short?”

“Of the 5 trillion won you secured overseas last time, nearly half was used to acquire Cheongun Electric and Pintech & Curetech. The acquisition terms for Pintech included assuming all debts, so an additional 1 trillion won was used for debt repayment.”

Executive Director Oh Seong-hak continued,

listing the 300 billion won spent on developing our proprietary OS, Lunar,

the ongoing 150 billion won deficit from Pintech’s existing mass production lines,

650 billion won for expanding battery and display lines,

250 billion won for overseas marketing,

and an additional 1.5 trillion won invested in equipment and production lines for Quantum development and smartphone manufacturing.

“So, in total, how much is that?”

“Excluding the acquisition costs for Cheongun Electric and Pintech, the additional expenses amount to approximately 3.85 trillion won.”

It was certainly a concerning amount, as Executive Director Oh Seong-hak had pointed out.

I had anticipated this to some extent,

and there were still many areas requiring funding.

“This includes all profits from camera module, battery, and display sales, right?”

“Without those, our operating funds would have run out long ago.”

Thanks to the continuous liquidity provided by camera modules and other components,

we were able to launch Quantum without issues.

“It’s definitely not easy making and selling finished products like mobile devices.”

Perhaps due to our overwhelming technology, I had somewhat underestimated the challenges.

Until we reached a certain level of stability, it was a real money pit.

Anyway, for the pop-up stores

and to secure additional funds for overseas marketing and promotions,

I needed to make a trip to New York.