"Chairman, how about temporarily reducing scientific research investment projects and investment amounts?"
"no."
"Chairman, can the fourth-generation LCD screen production line be suspended and funds for construction be diverted to where it is most needed?"
"No, this is a core project related to the company's development and cannot be cut."
"Chairman, alternatively, we should suspend the plan to build an eight-inch wafer fab, even if it is delayed. We can temporarily overcome the current extremely difficult financial situation and choose an opportunity to start again."
"Absolutely not. Now I just grit my teeth and take a breath. When I relax, it's all over."
"Chairman, you can consider shortening the front line in exchange for a certain amount of funds to survive the cold winter."
"This... can be considered."
"So?"
Li Jianxi's face twitched, knowing that his subordinates were asking which subsidiary was unlucky and could be cut off. He felt extremely sad in his heart, but this was one of the few options available at the moment.
Another way is to ask for government support. The key is to let banks loosen their purse strings. Under the current threat of a financial crisis that is rife with hunger, it is unlikely to be realized.
The government of the United States has many negotiations with international financial institutions, the U.S. government, and European governments, and begs the other side for help. It can be said that they even lose their skin.
Even so, he was still coldly rejected by the powerful European and American countries.
The only hope is that the international financial institution, the IMF, has given the other party an opportunity to take advantage of the situation.
The IMF has set out humiliating conditions for the crisis-ridden country: first, economic austerity, second, financial liberalization, and third, privatization.
These three fires sound reasonable, but in fact, they are completely humiliating killings without blood and are extremely cruel.
According to the results of negotiations between the Bangzi government and the IMF on December 3, 1997, the IMF promised to provide US$57 billion in aid to Bangzi country, but with two conditions attached;
One of them is to require the country to raise interest rates and implement tightening economic policies.
This move is very cruel. Raising interest rates means that companies that borrow money from banks will have to pay much higher interest rates.
In the following months, the loan interest rate in Bangzi Country was as high as 30%, causing already sluggish companies to close down because they could not repay the money.
According to statistics, a total of 25,000 companies closed down in Bangzi during this period, and the unemployed population reached 2 million.
The total working population of Bangzi country is only 20 million, which means the unemployment rate has reached 10%.
During the 1997 financial crisis, the second condition for the Bangzi country to accept IMF loans was financial openness. This actually meant exchanging a considerable part of financial sovereignty for loan assistance, so it was an extremely humiliating condition.
For this reason, the public in the country designated December 3, 1997, the day when the loan assistance agreement was signed with the IMF, as a "day of national humiliation."
The financial opening conditions prescribed by the IMF are completely "shock therapy", which caused the country's financial industry to be plundered by foreign capital at low prices.
Take the First Bank of Korea as an example. The bank lost US$1 billion during the financial crisis. After the financial industry was fully opened to the outside world, Newbridge Capital Private Equity Investment Fund of the United States stepped forward and was willing to provide 500 billion won (equivalent to 435 million won).
US dollars) to acquire 51% of Korea First Bank's shares.
After the success of this transaction, Newbridge Capital obtained all the management rights of Korea's First Bank, which was equivalent to acquiring the top three major banks at a bargain price. It made crazy money.
Why didn’t the Wang Group take action?
Because this is a gluttonous feast for European and American financial giants, the Wang consortium will never be allowed to reap the profits and get a share of the pie.
The reason why Hynix can be acquired is because no American or European giants like this company and think it has no acquisition value.
Micron, which was originally prepared to acquire the company at a bargain price, also backed down. No one, including local Samsung and LG, liked it, and no one wanted to save this mess. They only hoped that it would go bankrupt and then be taken advantage of by the Wang consortium.
Otherwise, there are no doors.
Looking back at the entire process, it is not difficult to find that the imf is completely playing a vanguard for the American financial giants.
The comprehensive opening up of Bangzi's financial industry has very serious consequences.
Let’s compare the data:
In the mid-1990s, before the outbreak of the Asian financial crisis, the proportion of foreign capital holdings in the country's financial industry was only 10%; but by 2004, this proportion rose to 44%. By 2008, the proportion of foreign capital holdings in South Korea's banking industry was actually
It has reached 73%.
The country's financial opening is not an isolated case. All developing countries must accept this condition to open their financial markets if they want to obtain loans from the IMF. Indonesia, Thailand, and Malaysia are all without exception.
Third additional condition; privatization.
In the 10 months after the Southeast Asian financial crisis, Western multinational companies carried out 186 mergers and acquisitions in Southeast Asia. This was the largest asset transfer in Southeast Asia in 50 years. The fruits of the economic development of Southeast Asian countries were completely stolen by Western multinational companies.
In the name of aid, the imf prescribes "prescriptions" of privatization and exchange rate freedom, and privatizes the important industries of finance, oil, electricity, minerals, telecommunications, etc. in target countries, which is equivalent to controlling the economic lifeline of these countries.
In this way, economic control is firmly in the hands of Western multinational companies, which can take whatever they want.
At such a difficult moment, the Wang Consortium stepped in hard again. Even a strong-willed person like Li Jianxi felt the pain of the collapse of the building and faced a difficult choice.
Li Jianxi knew that there was a third way, and he would not choose this way unless it was a last resort;
That is to choose one of the two: betraying US capital or surrendering to the Wang consortium.
Emotionally speaking, Li Jianxi would rather sell himself to American capital than bow to Wang Yaocheng, who is also of the yellow race, which would make him feel extremely humiliated.
As for surrendering to white people, it makes people feel a lot more comfortable. After all, Bangzi is used to kneeling and doesn't care if he does it once or twice more.
The atmosphere in the room was deathly silent.
Li Jianxi frowned and considered for a long time, which asset can be sold?
There are too many things to consider here, including equity and related family interests, the core scope of business operations, and some companies that cannot be sold at high prices, such as Samsung Securities, Samsung Corning, and Samsung Networks.
At the beginning of this century, when Samsung Group first started in the hands of his father, the symbolic companies CheilJedang and Cheil Textiles could not be sold, which would seriously hurt the feelings of employees.
There are also some companies that cannot be sold, such as Samsung Fire, Samsung Life Insurance, Samsung Life, Samsung Heavy Industries, Samsung Electro-Mechanics, etc. which are related to national security.
Excluding the core companies Samsung Electronics, Samsung SDI, and Samsung SDS, there are not many choices left.
Li Jianxi thought for a long time and said as if he was constipated: "Let's take Samsung Airlines, Samsung C&T and Shilla Hotel. You can tentatively contact companies from various countries that are interested in taking over and see their quotations."
Samsung C&T and Shilla Hotel?
Li Jinzhe's face couldn't help but twitch. Does Bangzi Country still have a real estate industry?
The wave of corporate bankruptcies is surging. Seoul is the hardest-hit area. Real estate has dropped so much that even grandma can’t recognize it. The real estate market in Fuso Country next door is not far away and is still falling.
At what price can these two companies be sold?
Samsung Airlines is a little better. From its corporate management to its fleet, it is good. Its aircraft are generally relatively new. It also owns 11.6% of the equity of Seoul International Airport. The key is that its audience is too narrow.
The only ones that can take over are airlines. Other American capital is ready to take advantage of the situation, and there are basically few good things.
No way.
This task was a hot potato, and Li Jinzhe wanted to shirk it, but when he saw Chairman Li Jianxi's usually resolute face looking as sad as an old Japanese melon, he couldn't help but soften his heart.
"Understood, Chairman, we will try our best to do it."
"Okay, please step back. I want to take a good rest. I'm really tired."
"Then...Chairman, please take care of yourself."
"Go! Eh..."
After a long sigh, Li Jianxi was like an old man whose bones had been removed, slumped on the armchair, and his expression was more than ten years older in an instant.