The penniless son of the penniless ...

Chapter 107 Zhang Junfeng's unexpected proposal (more)
Although the current situation of the Elephant Group is not as high as that of top enterprises such as the Five Star Group and the Hyundai Group, which are burdened with debts several times their market value, it has been affected by the financial crisis. The food produced by the group has also become unsalable and its factories are facing the embarrassing situation of suspension of production.

Seeing that the situation was not much different from what he expected, Zhang Junfeng continued, "In this case, sister-in-law might as well discuss it with brother Zai Rong. Sister-in-law can come forward and open the food processing factory and branch of the Elephant Group to Longguo. Five Star Department Store will also send representatives to form an inspection team in the near future to go to Longguo to select a suitable area to open a company and shopping center."

Hearing Zhang Junfeng's proposal, the three people present were dumbfounded. Even Li Fuzhen, his wife, did not expect that her husband would make such a strange proposal at this time.

"Go to Longguo for inspection?! Junfeng, are you serious?" Li Zairong frowned and quickly analyzed the feasibility of Zhang Junfeng's proposal. In his impression, although Longguo has a large population, its economy does not seem to be very developed. Can opening a branch company or factory in such a place really bring profits? Will it be so bad that it can't even recover the cost? !

Li Fuzhen and Jin Shiling have similar impressions of Longguo as Li Jae-yong, and do not think that Zhang Junfeng's proposal is feasible.

Seeing that the three seemed a little hesitant, Zhang Junfeng explained confidently, "The situation in Longguo is much better than you think! Last year, Longguo's GDP reached 7.4 trillion RMB, and its foreign exchange reserves were 1400 billion US dollars! Whether in terms of economic output or foreign exchange reserves, Longguo is several times larger than Goryeo."

"Moreover, the most important point is that even though those international speculators launched financial sniping wars against many countries and regions in Asia, only Longguo was almost unaffected. And with the current dilapidated economic situation in China, a large number of factories have stopped production and those employees have been forced to lose their jobs. It is obviously impossible to expect them to buy goods."

……

After hearing Zhang Junfeng's analysis, Li Zairong, who was still a little puzzled, suddenly realized. If the situation in Longguo is really the same as what Zhang Junfeng said, then they will definitely have great potential to open a branch company or even a factory in Longguo!

According to the current situation, even if large companies like the Five Star Group receive aid from the International Monetary Fund (IMF) and resume production, it will take at least a year and a half or even longer to revive the collapsed economy.

According to the current situation, we should go to Longguo to find out the truth. If the situation there is really much better than that in Goryeo, then opening a factory and branch in Longguo may be a good idea.

……

In the end, Li Jae-yong and Jin Shiling agreed to Zhang Junfeng's proposal, and agreed that they would send personnel to Longguo for inspection next week together with the staff of the Five Star Group.

After watching Zhang Junfeng and Li Fuzhen leave, Jin Shiling, who was originally smiling warmly, couldn't help but ask her husband again, should we really agree to the proposal of our brother-in-law Zhang Junfeng? What if Zhang Junfeng has other plans to plot against them?
Li Zairong pondered for a moment, then said uncertainly, "There shouldn't be any problem. Since this is Zhang Junfeng's initiative, and people from the Five Star Department Store will go there, then we might as well send someone over to take a look."

After thinking about it for a while, Li Zai Rong was sure that Zhang Junfeng's move was purely a show of goodwill in the hope of deepening the relationship and establishing a certain cooperative relationship. Otherwise, if he invited them to his home, they would repay their kindness with hatred and plot against the couple. Once his father Li Jianxi knew about this, he would naturally not let them go easily. "But my father (Jin Changxu) may not be so easy to convince. The funds in the group's account are also very tight now, and there is no money to invest in Longguo to open a branch and factory..." Thinking of the company's situation that her mother accidentally revealed to her when she was chatting with her some time ago, Jin Shiling was a little embarrassed.

Regarding his wife's concerns, Li Zairong was quite calm. "Since this matter was proposed by Zhang Junfeng, if we encounter any problems with funds, we can also ask him for help. With his current financial strength, I think it should not be a problem for him to lend us 10 or 20 million US dollars to open a company."

Thinking about the fact that Zhang Junfeng had been visiting the company frequently in the past few days to discuss investment and acquisition matters, it was enough to show that he had sufficient funds, otherwise such an itinerary would not have been possible.

……

Li Fuzhen, who was sitting in the passenger seat of the red Ferrari driving on the road, asked, "Are you serious about what you said at Jae Rong's house just now?"

Zhang Junfeng, who was concentrating on driving, seemed to have expected Li Fuzhen to ask her, and smiled as he told her his plan, "Of course I am serious. With the current situation in Goryeo, it is not an exaggeration to say that the future is bleak. The overseas loans of hundreds of billions of US dollars will be like a bridle that ties Goryeo tightly. There is no hope of recovery in the next few years."

"If we want to expand the company's product market and revenue in a short period of time, shifting our target to Longguo is a good choice! And after we gain a foothold in Longguo, many of our subsidiaries can also set up branches there."

"Compared with the vast and populous Dragon Country, no matter how developed Goryeo is, its area and population are ultimately a weakness. The upper limit is so small. At best, it is only about the size of one or two provinces in Dragon Country! Even before the financial crisis, how much could it gain by competing with those companies in such a small area?"

……

After hearing Zhang Junfeng's comments, Li Fuzhen fell silent. Having studied in the United States, she knew that compared with those highly developed countries, Korea, a small Asian country that barely made it into the ranks of developed countries, had obvious shortcomings. Otherwise, those big companies and chaebols with foresight would not have gone abroad to open branches and offices one after another, trying to turn their own companies into large multinational companies.

It’s just that these predecessors seem to have chosen to move closer to European and American countries and regions, and have tacitly ignored these underdeveloped countries and regions in Asia.

Now it seems that their overseas expansion plan may have been a mistake in choosing a more difficult and bumpy road from the beginning, which emptied a lot of cash from the company and caused the company's debt ratio to be frighteningly high. When the financial crisis came, each of them could only struggle to support themselves, and some even declared bankruptcy without even the energy to resist!

(End of this chapter)