Chapter 212: Salvation
Ahsung Motors Emergency General Shareholders’ Meeting.
Hundreds of reporters and investors flocked to the headquarters auditorium.
Contrary to the intense interest, the results came out much faster than expected.
From the beginning, only one agenda item was proposed, and the outcome was already predetermined.
“As a result of the emergency shareholders’ meeting, Mr. Hong Chung-ki has been appointed as the new CEO.”
As soon as the chairman of the board announced, murmurs arose from all sides.
Reporters flashed their cameras continuously.
“Isn’t Hong Chung-ki the Head of External Cooperation at Dojin Group?”
“I heard he recently left the company. Was this the reason?”
“So… does this mean Dojin Frontier has acquired a stake in Ahsung Motors?”
Amidst rampant speculation, CEO Hong Chung-ki took the stage.
Naturally, countless eyes focused on him.
[Hello, I am Hong Chung-ki, the newly appointed CEO of Ahsung Motors.]
As soon as his brief greeting ended, reporters bombarded him with questions.
“Mr. Hong, is the merger with Dojin Frontier true?”
“Has Dojin Group secured a stake in Ahsung Motors?”
As questions poured in, Hong Chung-ki raised his hand to stop the reporters.
[Let me make this clear. My appointment as CEO of Ahsung Motors has nothing to do with Dojin Group.]
“But, Mr. Hong, until recently, you were the Head of External Cooperation at Dojin Group. Are you saying there’s truly no connection?”
Despite the persistent questions, Hong Chung-ki’s expression remained unwavering.
[Regardless of my background or past work, what matters now is that I am the CEO of Ahsung Motors. As you all know, the company is in a very serious situation. I plan to focus solely on restoring normal operations and recovering the stock price.]
Taking a brief pause, he continued.
[To achieve this, I plan to implement aggressive restructuring. Unprofitable divisions will be cut, and unnecessary assets will be sold. These are unavoidable measures for survival.]
The room stirred.
Reporters raised their hands again, flooding him with questions.
“Can you disclose the overseas asset management firm that acquired Ahsung Motors?”
[Acquisition is the wrong term. This share transaction was merely an exchange between some shareholders and is separate from company management.]
The reporters’ questions continued, but Hong Chung-ki’s responses remained firm.
The press conference concluded shortly after.
『CEO from Dojin Group』
『Vice Chairman Cheon Jun-young and CEO Moon Yong-wook Step Down』
『Change in Major Shareholders』
These could have been seen as positive news, but contrary to expectations, the market’s reaction was cold.
└So, there’s no connection between Dojin and CEO Hong Chung-ki, right?
└The one paying Hong’s salary isn’t Dojin, but the overseas asset management firms that acquired the shares.
└Damn… so the merger between Dojin Frontier and Ahsung Motors is off?
└Let me tell you this. Sell your Ahsung Motors stock now.
└What do you mean?
└Those asset managers will do anything for profit.
└You don’t think they’ll tear Ahsung Motors apart and sell it off, do you?
└That’s how M&A specialist funds make money.
└What about our shares?
└If you hold onto them stupidly, they’ll turn to scrap paper.
└…….
As negative market reactions poured in, the stock price plummeted again the next day.
And a few days later.
CEO Hong Chung-ki appeared before the media once more.
The atmosphere in the press conference room was even heavier and more tense than at the shareholders’ meeting.
[What I am about to announce today is a decision essential for Ahsung Motors’ survival.]
Hong Chung-ki’s calm voice filled the room.
[Ahsung Motors is currently facing a liquidity crisis and severe damage to its brand image, making normal business operations virtually impossible. As a result, we have decided to implement emergency restructuring and sell off core business divisions.]
Camera flashes went off incessantly.
As reporters raised their hands, he stopped them, saying he wasn’t finished speaking yet.
[The target of this restructuring is the electric vehicle division, which has been incurring the largest losses.]
In an instant, gasps of surprise erupted throughout the room.
The electric vehicle division was once Ahsung Motors’ future and its most focused growth engine.
The announcement of selling it off entirely was an unexpected shock even to the reporters.
[The decision to sell the electric vehicle division was not only due to the deficit but also because of the government’s recently announced ‘Enhanced Safety and Design Standards for Electric Vehicle Batteries.’]
CEO Hong Chung-ki displayed a press release from the Advanced Industrial Policy Bureau on the screen.
《Enhanced Safety and Design Standards for Electric Vehicles》
※Source: Advanced Industrial Policy Bureau
(1) Mandatory cell-level thermal runaway detection and shutdown system
-Install independent temperature and pressure sensors inside each battery cell, and equip circuits that can immediately disconnect electrically if thresholds are exceeded.
(2) Redundant high-voltage shutdown circuits
-In addition to the BMS, include at least two redundant high-voltage connection shutdown devices in the design, with mandatory interrupter functionality for automatic isolation in overvoltage and overcurrent situations.
(3) Active cooling and thermal isolation channels
-Liquid…
(4) Cell-level history logging and anomaly…
(5) Secondary battery accident prevention…
(6)…….
CEO Hong Chung-ki explained each standard one by one, looking around at the reporters.
[While these standards were announced as ‘guidelines,’ the Ministry of Industry has stated they will be fully mandatory within three years. However, Ahsung Motors currently lacks the capability and finances to meet these requirements.]
“Are you saying the sale is unavoidable?”
[Correct. To ensure Ahsung Motors’ survival, the electric vehicle division will be sold externally, and the internal combustion engine division will be reorganized to focus on profitability and operated independently.]
As the room stirred again, reporters continued their questions.
“Has the buyer for the electric vehicle division been specifically decided?”
[Nothing has been decided yet. We are currently in contact with several domestic and international companies. We will select the optimal partner by considering technological capabilities, financial resources, and employment succession plans to meet government standards.]
Another reporter raised their voice.
“Is Dojin Frontier also on the candidate list?”
Instead of answering, Hong Chung-ki simply smiled quietly and nodded slightly.
[That’s all I can say today. I ask for your understanding, reporters.]
.
.
.
That night.
The news portal comment sections heated up once again.
└Among domestic car companies, is there anyone besides Dojin who can meet the government standards?
└ㅋㅋㅋㅋㅋ There’s Future Motors, but they don’t seem interested in expanding electric vehicles yet.
└Complying with the Advanced Industrial Policy Bureau guidelines requires an additional investment of nearly 3 trillion won.
└That much?
└ㅇㅇ Because cell-level thermal detection systems and redundant high-voltage shutdown circuits need to be modularized, the entire production line has to be overhauled.
└Liquid cooling systems also need to be newly installed, so redesigning the equipment and processes, along with certification, will cost at least hundreds of billions, right?
└New safety testing equipment is also mandatory.
└Wow… no wonder Ahsung Motors gave up.
└I’ll tell you something interesting.
└What?
└Dojin has already completed all certifications for EV-Nova.
└But even if Dojin acquires Ahsung’s electric vehicle division, they’ll still need to install the equipment, right?
└Instead, they can save time. A lot of it.
＊＊＊
“What is the agreed purchase price?”
In response to my question, Executive Vice President Oh Seong-hak handed me a document.
At the top of the document was the title, ‘Agreement for the Transfer of Ahsung Electric Vehicle Division (Draft).’
“1.35 trillion won. We significantly reduced it from Ahsung’s initial demand of 1.8 trillion won.”
I flipped through the document, carefully reviewing its contents.
It included the entire electric vehicle production line and equipment, all research personnel, certification testing facilities, and all patent and intellectual property rights.
‘With this, we can advance EV-Nova production well ahead of schedule.’
Two things caught my eye in particular.
“Are we taking over the entire Battery Management System (BMS) development team?”
“Yes, both the battery design team and the control software team will be transferred to us. All team members have agreed.”
“The reaction wasn’t bad, I see.”
“They were initially surprised, but once word spread that we were taking over, the atmosphere became welcoming. CEO Park Cheol-jin was also relieved, saying his worries were resolved at once.”
In the electric vehicle sector, the talent pool is small, making it difficult to find people.
Acquiring Ahsung’s entire research team, known for its talent, seemed like a significant achievement to me.
“What about the internal combustion engine division?”
“We plan to completely separate it from the electric vehicle division, bundle it with parts affiliates, and reorganize it to focus on profitability.”
I’m not happy about it, but for now, I intend to keep the company name as ‘Ahsung Motors.’
“What’s the likelihood that our acquisition of Ahsung Motors will be exposed?”
“Since both the share transfer and general meeting attendance were done through hedge fund representatives, it will be difficult to establish a connection.”
“Good. Let’s wrap up the Ahsung Motors deal like this.”
As I put down the document, Executive Vice President Oh Seong-hak cautiously added,
“Uh… CEO, what are your plans regarding the merger with Ahsung Motors?”
“I don’t plan to rush the merger.”
Ahsung Motors’ stock price, having lost trust, continued its downward trend.
With further restructuring announced, the decline was likely to worsen.
“Are you planning to wait until the stock price falls enough?”
“If we’re going to merge, it’s better to minimize Frontier’s share dilution.”
And if necessary, we can absorb only the best parts, as we are doing now.
There was no reason to push for a merger under the spotlight.
I quietly looked out the window and continued.
“When the stock price has fallen enough, and all market expectations have vanished. That’s when we’ll step in… and people will see it as ‘salvation.’”