Korean TV series: King of Peninsula 1997

Chapter 647: The Secret of Military Industrial Enterprises

The next day, Li You arrived at the agreed location.

"Chairman Li," Liu Zhexiu, the commander of the 4th Division who had been waiting in the private room, stood up and greeted Li You.

This place is very close to the 4th Division’s base, and Liu Zhexiu is still wearing his major general’s uniform with two stars on his shoulders.

In fact, Li You does not often see this kind of uniform. Lieutenant General Yin Jijun, who has a close relationship with him, wears training uniforms most of the time.

"General Liu," Li You stretched out his hand and shook hands with him. Only from his hands could he tell that Liu Zhexiu in front of him did not look like a serious soldier.

The food was served quite quickly, but neither of them came to eat, and soon began to discuss the military-industrial enterprise "JY Defense".

Although there are actually quite a few military-industrial enterprises of all sizes on the Korean Peninsula, with a total of more than a dozen, there are only five that are the most important.

It is worth mentioning that in addition to being a private aviation company, Tianxia Aviation of Tianxia Group is also a semi-military enterprise on the Korean Peninsula and the largest defense enterprise on the Korean Peninsula, producing self-propelled artillery, tanks, and anti-aircraft missiles.
This is one of the reasons why Li You set his sights on the military-industrial enterprise in front of him called 'JY Defense'.

Instead of attacking World Energy, which has been affected by the wars in Iraq and Afghanistan for a long time, it is better to compete with World Airlines in this regard first. It just so happens that it is time for his American Dome Company to open a branch in the Korean Peninsula.

The army at this time is no longer the well-paid army of many years ago. Most of the military-industrial enterprises have senior military officers behind them to make money.

Li You has a close relationship with Lieutenant General Yin Jijun, so he naturally has an entry ticket and can be involved in the military industry.

At present, Liu Zhexiu has a background in 'JY Defense', which is not too small in the military industry. The second reason why Li You is eyeing it is because it mainly produces military electronic equipment.

In the production of electronic equipment, Kinmen Electronics ranks second, and no one on the Korean Peninsula dares to claim to be first.

"Why did Chairman Li suddenly want to enter the military industry?" Liu Zhexiu was actually curious about what Li You, who contacted him through his secretary a few days ago, was thinking. "In fact, the competition pressure on local military enterprises is getting greater and greater."

"The development of the Kinmen Group will inevitably intersect with various industries," Li You smiled calmly, "I can't just not do it because of the competition pressure."

"That's true," Liu Zhexiu laughed and echoed, "Knowing there's a tiger in the mountain, we still go there."

"This is also the spirit of our soldiers. It seems that President Li should be our partner."

In fact, Liu Zhexiu's view on the future of the military industry is wrong. In the future, the Korean Peninsula will be among the top ten arms exporters in the world, and the number and scale of military enterprises will continue to expand.

Li You didn't pay much attention to Liu Zhexiu's boasting about them, the division commanders, "So General Liu, what do you think of my cooperation with JY Defense?"

"That's certainly a good thing," said Liu Zhexiu, who is nearly fifty years old and still looks shrewd. "JY Defense's main business at present is to build communication equipment for various divisions. In terms of communication equipment, who in the Korean Peninsula doesn't know about Kinmen Electronics' technology?"

"If JY Defense is acquired by the Golden Gate Group, it will definitely become bigger and stronger."

Li You looked at his greedy face and smiled casually, "General Liu is indeed a man with a long-term vision."

"But let's talk business. I want to acquire JY Defense, so of course I can't let General Liu return empty-handed," Li You said frankly. "General Liu doesn't need to consider so many complicated things. He just needs to think about what this deal can bring him. I will try my best to help General Liu get it."

"Ha..." Liu Zhexiu had heard about Li You's style of doing things beforehand, so he was mentally prepared in advance, but he was still surprised by Li You's outspokenness.

After just a few words, the naked exchange of interests was laid out on the table. Who would negotiate business like this?
Even when entrepreneurs discuss cooperation and business, they both know that the other is full of evil intentions, but they appear to be friendly on the surface.

Not to mention that he is not a businessman, but a serious division commander.

Liu Zhexiu didn't dare to say anything, for fear that Li You was smiling but had a dagger hidden behind his smile. Was there any monitoring or recording equipment in this private room?

But just as he thought about it, he felt something was wrong. This location was clearly chosen by him, and it was very close to the Fourth Division.
"General Liu, you are worrying too much," Li You knew what he was thinking by the change in his expression, "There is no recording or video equipment here, so don't worry."

Liu Zhexiu smiled awkwardly, "It's really because of what Chairman Li said that I don't know how to continue."

"I'm sorry for making things difficult for General Liu," Li You said with a chuckle, "but my words above are all valid. General Liu really needs to think carefully about what you need."

"Money?" Li You smiled. "After the Jinmen Group acquires JY Defense, it will definitely expand its scale. Although the shares that General Liu has someone else hold on his behalf will shrink, the returns will only be higher, not lower."

"Or does General Liu want to move up a level?" Li You looked at Liu Zhexiu, who looked a little nervous. "Although I don't often move around in the military, I still have some connections. If you count the years, some generals will retire soon. I heard that the positions that are vacant one by one can be obtained if you are willing to pay a certain price."

When Liu Zhexiu heard what Li You said, his breathing became faster.

Even though he is a major general and a division commander, he is ultimately an outposted person and is naturally at a disadvantage in terms of promotion.

As a division commander, he should be a corps commander at the level of lieutenant general. However, a division commander cannot be promoted directly to a corps commander. He must go to the core power layer of the army to "gild" himself. In the final analysis, being sent abroad is to increase his resume.

"Chairman Li is really capable." Liu Zhexiu's eyes were filled with excitement.

"General Liu should know that I have a good relationship with General Yin," Li You said with a smile.

"Yes," Liu Zhexiu responded quickly, "Lieutenant General Yin was my senior in the military academy, and I am always learning from him."

Ignoring Liu Zhexiu's flattery of Yin Jijun, Li You said to himself: "He has been the deputy chief of the army staff for a while. This year he will be sent out to increase his resume. Maybe he will be transferred to the Third Field Army as a corps commander."

Liu Zhexiu swallowed and nodded repeatedly.

The 4th Division is under the jurisdiction of the Third Field Army, which is his immediate superior.

"If General Liu performs well," Li You paused and said softly, "it is not impossible for General Yin to transfer you to the headquarters to work with the Army Chief of Staff."

It is easier for people around the leader to get promoted. Liu Zhexiu certainly knows this truth. If he could hang around the Army Chief of Staff every day, he would not have to worry about his path to promotion being blocked.

He has reached the end of his career in the military over the years. On the one hand, the money provided by JY Defense can no longer meet the appetite of his superiors. On the other hand, he started out with money and is not looked down upon by many superiors who claim to be professional soldiers.

But if we rely on Yoon Jijun's faction, maybe the road will be much easier.

Liu Zhexiu and Li You stayed in the private room for almost half an hour.

After Li You confirmed Liu Zhexiu's intention to cooperate, the two quickly walked out of the private room.

Although he was still laughing and chatting along the way, Liu Zhexiu's attitude was indeed much lower.

After bowing and seeing Li You's car off, Liu Zhexiu took a deep breath and called his adjutant.

"Unity," the adjutant saluted. Liu Zhexiu waved his hand casually, and then he stood with his hands behind his back.

"Call Representative Sun and tell him to do it," Liu Zhexiu said, taking a sip of wine to suppress his joy, "ask him to cooperate with Chairman Li in the acquisition of JY Defense."

"Yes, division commander."

As the car moved forward, Li You lowered his head and thought about how to transfer the benefits.

Li You acquired JY Defense not because he needed its profits or was optimistic about its prospects, but purely to establish Dome Company on the Korean Peninsula to absorb it, save the development of infrastructure and basic business, and use it as a springboard to enter the military industry.

The American Dome Company has already shared a variety of aerospace technologies from Bezos' Blue Origin and Musk's SpaceX through huge amounts of money and mutual shareholdings. The Korean Dome Company will use these technologies to "fight" with Tianxia Aviation in the military industry first.

There are too many things that need to be done to bring down the Tianxia Group, which is far beyond what a mere large camp of ocean can accomplish in the past two years.

This means that Li You also needs a lot of connections, and Liu Zhexiu is just one of them. How to deliver enough benefits to these connections has become a new problem.

It didn't take long for Li You to finalize the basic plan. He called Chen Yajun who was still working at Kinmen Securities.

"How come our president has time to click on my sign?" Chen Yajun teased.

"I'm not clicking on your brand," Li You said calmly, but Quan Jae-jun in the front row pretended he didn't hear anything.

"You need to set up a company in Cayman."

When Chen Yajun heard what Li You said, he knew that this was a preparation for some kind of interest transfer, and that a shell company needed to be set up.

The Cayman Islands is a British overseas territory in the Americas and a famous offshore financial center and tax haven.

Simply put, this is a free international financial market with free trade and no regulation.

"Name?" Chen Yajun has been the head of Kinmen Securities for many years and is accustomed to such things.

"You can pick any one," Li You said, "and choose security as the registered industry."

"it is good."

Just use a shell company to transfer equity income to them in the name of "military consulting fees."

Li You decided to do this for the time being.

As for who will hold the shares?
That is the business of the beneficiaries themselves. The bold ones will put the money under the name of their children, while the less courageous ones will go further and find some seemingly unrelated confidants to hold the money on their behalf, but this will also increase the risk on another level.

Li You did not drag it out and immediately went to JY defense.

JY Defense’s headquarters building is not far away, within Gyeonggi Province.

The ringtone started halfway through the journey. Li You leisurely took out his cell phone and glanced down at the caller ID.

The strange number at this moment could only be the representative director Sun Junjiu of JY Defense.

Li You answered the phone, and a man's respectful voice came from the other end of the phone, "President Li, I am Sun Junjiu, the representative director of JY Defense."

"I know," Li You said slowly, "General Liu asked you to contact me?"

"Yes," Sun Junjiu whispered, "General Liu told me to cooperate with Chairman Li."

"As the representative director of a military-industrial enterprise that cooperates with the military, you listen to General Liu very much. Are you willing to let JY Defense be acquired?" Li You pointed at him.

"Yes," Sun Junjiu hesitated for a moment, "The acquisition is inevitable. Cooperating with Chairman Li will actually allow me to gain the most benefit."

"You are quite sensible," Li You said calmly, "I will be at JY Defense soon, and I will need to trouble Representative Sun to show me around then."

"No trouble, President," Sun Junjiu said, "Then I will wait for your arrival at JY Defense."

After hanging up the phone, Li You put the phone back.

Sun Junjiu's words were both true and false.

The acquisition is inevitable, but it is true that cooperating well with Li You can get the greatest benefit.

But despite saying this, Sun Junjiu was really willing to let JY Defense be acquired.
This is questionable.

If it was just a simple transfer of benefits, Liu Zhexiu and Sun Junjiu should not have acted like superiors and subordinates.

An entrepreneur obeys the orders of a division commander and follows his instructions on business conduct.
You have to know that the current political and business relations on the Korean Peninsula are completely different from the military and business relations.

Currently, politics and business are still in a situation of two-way penetration. The economic policies implemented by politicians are closely related to the chaebols, and politicians cannot be separated from the support of the chaebols during elections. This is an explicit power transaction network that focuses on the exchange of economic and political interests.

If someone tries to control both sides, they will be hit.

The most obvious example is Cho Tae-seop, who was a big politician himself and tried to control the source of money. So in the end, Lee Woo and other parties forced him to resort to the self-torture tactic.

But the interaction between the military and business
However, unlike the traditional relationship between politics and business, after entering the millennium, due to the reduction of politicians' power and the fact that several presidents have not imposed restrictions on the chaebols, the military has gradually formed a unilateral dependence on military-industrial enterprises. Compared with the open transfer of interests between politics and business, military-business cooperation is often rationalized in the name of "national security" to avoid public supervision.

Although they are all covered up with the excuse of "national security", there is no doubt that the defense industry, arms procurement, and technology research and development on the Korean Peninsula are inseparable from these military-industrial enterprises, and they are deeply bound through the defense industry monopoly.

The relationship between Liu Zhexiu and Sun Junjiu seems to be the opposite.

Li You threw his phone up and down, but his eyes were on Quan Zaijun, "After I meet this Sun Junjiu, go check the relationship between him and Liu Zhexiu, and then check the personnel arrangements of JY Defense from its establishment to now."

"There is something very wrong between these two people."

"Yes."

(End of this chapter)