Chapter 118: Saving to Protect
“What do you mean NeoChips is having issues?”
When I arrived at the company, Senior Executive Vice President Hong Chung-ki was waiting for me with a grave expression.
“NeoChips was denied loan extensions by four of its main banks earlier this week.”
“Denied loan extensions? Why?”
NeoChips wasn’t in bad shape, so I didn’t understand at first.
“It seems someone exerted pressure.”
“Pressure? You don’t mean… Ahsung again?”
Hong nodded.
“As you know, the MPS modules supplied by NeoChips are critical for the Quantum smartphone. Without them, there are no alternative components for power management and communication module control.”
MPS (Mobile Power Synchronizer) modules are essential components for high-end smartphones.
Currently, only NeoChips can produce them.
“From what we’ve gathered so far, Ahsung seems to have pressured NeoChips’ four main banks simultaneously.”
Hong’s voice was low but serious.
“How so?”
“An anonymous tip was filed with the Financial Intelligence Unit (FIU) under the Financial Services Commission, alleging money laundering. Despite being anonymous, it included specific internal transaction details.”
As soon as Hong spoke, I realized this was a setup.
His next words confirmed it.
“As soon as the FIU requested an audit, the banks denied the loan extensions as if they’d been waiting. Ahsung Life is also moving to acquire NeoChips’ loan bonds in the market.”
It was a sophisticated and meticulous move, but their intentions were transparent.
FIU tip → Loan recall → Liquidity pressure → Bankruptcy threat → Asset acquisition at a bargain.
However, the situation wasn’t simple.
Without MPS modules, I couldn’t produce the Quantum.
“That’s not all.”
“What else is there besides the loan issue?”
Hong turned his laptop to show me the screen.
“Ace Silicon, NeoChips’ main raw material supplier, suddenly raised its contract price by 35%.”
“By 35% at once?”
This was unprecedented.
“It turns out 12% of Ace Silicon’s shares were transferred to Ahsung Electronics last month.”
This confirmed Ahsung was behind it all. They were pressuring me through banks, partners, and raw materials—every channel.
“NeoChips’ CEO is running around, but there’s no sign of resolution. If this continues, they could soon face court-led restructuring.”
Not just a possibility—if this persisted, bankruptcy was likely.
“They’re shaking both the financial and supply chains to force self-destruction without giving us time to act.”
“Simple but effective.”
I knew this tactic well.
I’d used similar methods at Ahsung to crush countless competitors.
“And this isn’t confirmed yet, but rumors say Ahsung Electronics has formed a due diligence team to acquire NeoChips. They’re also trying to access core technical data.”
If that happened, our core technology could fall into their hands.
I turned to Chilbong.
“How much of the MPS module circuit design for the Quantum has been shared with NeoChips?”
“Only partial data has been transferred. Core algorithms are known only to our internal developers.”
That was a relief.
But the problem wasn’t solved.
“What should we do, sir?”
Hong and the other team leaders in the meeting room looked at me.
After a moment’s thought, I spoke slowly.
“If Ahsung’s strategy is to kill and acquire, ours should be to save and protect.”
Hong’s eyes widened.
“Save and protect? What do you mean?”
The room stirred.
Executive Director Oh Seong-hak, the first to grasp my intent, spoke urgently.
“You mean… help NeoChips?”
“Yes.”
Oh frowned at my smile.
“Sir, you know our situation. Beyond NeoChips, we have the Quantum A-series development costs, pop-up store expenses, and smartphone production line expansion. We’re stretched thin.”
The $2 billion from New York was keeping us afloat, but it wasn’t enough to help NeoChips.
“We could get dragged down too.”
Except for Seong-hwan, the others looked at me skeptically.
Dojin Tech’s official liquidity was insufficient, and building the Pang Pang shopping app required every penny.
I looked around slowly.
“If we can’t produce the Quantum, all our efforts so far will be wasted. If NeoChips falls, Quantum production stops. You all know that.”
“We know, but helping NeoChips requires significant funds.”
Hong added,
“$2 billion from New York isn’t nearly enough.”
Hong and Oh thought the $2 billion from New York was our maximum, but they didn’t know Dojin Capital’s full capabilities.
Dojin Capital already had over $10 billion in cash assets, and I was ready to use it if needed.
＊＊＊
Ahsung Group Chairman’s Office – Mujinwon.
With a serene lake in the background, Chairman Cheon Ho-tae stood by the window, a peculiar smile on his lips.
“How’s the NeoChips situation?” he asked.
Director Kim Seong-jae bowed respectfully.
“It’s progressing faster than expected. All four main banks denied loan extensions, and liquidation proceedings will begin this week due to liquidity pressure.”
“What about the bonds?”
“Ahsung Life has completed preparations to acquire them. The legal team has dispatched due diligence staff, and we’ll soon receive key MPS patents and design information.”
Cheon turned to Kim.
“Do you think Dojin didn’t know?”
“Unlikely. But even if they did, they couldn’t respond.”
Kim answered confidently.
Though Dojin was earning from camera modules, batteries, mobile displays, and the Quantum, their liquidity was tight due to numerous simultaneous projects.
However, Cheon, having been wronged by Dojin before, couldn’t relax.
“How much would NeoChips need to resolve this?”
Kim flipped through a thin report in his hand. Bold numbers were printed at the bottom.
“Including loan principal, interest repayment, short-term liquidity, and core material costs… at least 380 billion won, roughly $270 million.”
“That’s more than I thought.”
Kim nodded.
“Even if Dojin wanted to help, they couldn’t afford it in their current state.”
Cheon Jun-young added,
“They’re already overextended. How could they help others?”
Externally, Dojin was seen as precarious.
Though dominant in camera modules and successful with the Quantum, they’d poured astronomical funds into unprofitable projects like their OS, KTalk, and Ani-pung.
On top of that, they’d aggressively invested in numerous projects, including acquiring Cheongun Electric and Pintech for trillions of won.
“How can they afford all this without even being listed?”
Expanding smartphone production facilities alone cost a fortune, yet Dojin was branching into OS development, KTalk, Ani-pung, and more.
The bigger issue was that everything they touched was succeeding.
“Thanks to Baek Moo-jin from the National Future Alliance, they secured loans, but not enough to help NeoChips.”
“This might be our last chance. Once the Quantum is established, Dojin could become a formidable competitor in the mobile market.”
Though Dojin had already surpassed Ahsung in smartphones, in the broader mobile market, they were still far behind.
“Don’t worry too much.” Kim reassured Cheon.
“Ahsung Life is already negotiating with 64% of NeoChips’ bondholders. If we push them into court-led restructuring and hold a shareholders’ meeting, securing management rights won’t be difficult.”
Cheon Jun-young added confidently,
“After that, halting MPS module supply will force Dojin to step back in the smartphone market.”
If the Quantum disappeared, Titan sales would rebound, but Cheon added one more instruction for certainty.
“The Titan 2 under development will use Lunar, right?”
“Yes, so consumers can use KTalk and Ani-pung.”
Though he disliked Dojin’s OS, it was open-source.
More importantly, Lunar was essential for using KTalk and Ani-pung on smartphones.
“Prepare for the fastest possible launch.”
“Understood.”
Just as they were about to end the meeting, confident in victory, Strategic Planning Head Bong Sang-min rushed in, pale-faced.
“Chairman… there’s… breaking news.”
“What is it?” Cheon asked irritably.
Bong urgently held out his laptop. The screen showed a bold headline.
[Breaking News] US Private Equity Firm SafeBridge Capital Invests Urgently in NeoChips
- $270 million deployed to resolve liquidity crisis.
- Management restructuring consulting, all executives retained.
- Removed from FIU audit list… Loan principal repaid early.
- Terminated Ace Silicon as core supplier, secured alternative materials.
Swiping the screen revealed more details.
[SafeBridge Capital, based in the US East Coast, specializes in restructuring and emergency investments for distressed companies. They claim this NeoChips investment is a “purely financial decision” and will respect the company’s autonomy and existing clients…]