62: Chapter 62 Cooperation

The cooperation with Samyang came faster than Chairman Wang Shunyi had expected.

In mid-January, Zhang Junhao pushed the door open with a document in hand, his expression looking as if he had just found a wallet.

He placed the document on the table and said, "President, Samyang's stock price has fallen by twenty percent. Institutional investors are starting to run."

Chairman Wang Shunyi set down his coffee and picked up the document to flip through two pages.

Samyang, the second-largest instant noodle company in South Korea, had a market share of fifteen percent and a market capitalization of about one trillion.

The founding Park Samyang family held thirty-five percent of the shares, institutional investors held forty percent, and retail investors held twenty-five percent.

Performance was below expectations, and the stock price had been falling for a week.

"Who is selling?"

"Mirae Asset. They hold eight percent of Samyang's shares and are looking for a buyer." Zhang Junhao lowered his voice, "If we can secure this eight percent, we would become Samyang's second-largest shareholder."

Chairman Wang Shunyi didn't speak; he read the document again and placed it on the table.

"Eight percent is not enough. Only with more than fifteen percent will we have a say. Do you know that there is conflict within the Park Samyang family?"

"I know. Park Samyang's son, Jun-ho, is at odds with him. The old man wants to defend, while the son wants to attack. Little Park wants to enter overseas markets and create high-end products, but the old man won't allow it."

"Go and make an appointment with Little Park. The sooner, the better."

In early February, Chairman Wang Shunyi met Jun-ho at a cafe in Gangnam District.

He was thirty-eight years old, a graduate of the Wharton School at the University of Pennsylvania, had worked at Goldman Sachs for five years, and after returning to the country, had worked at Samyang for eight years, rising from the grassroots to become the Head of the Strategic Planning Office.

His father, Park Samyang, was seventy-three years old and still refused to relinquish power.

He was wearing a thin dark gray coat, an Hermès scarf, and when he spoke, he liked to tap his fingers on the table; his speaking speed was not fast, but every sentence was like a needle, hitting the mark.

"President Wang, Shunyi Foods went from zero to fourth in the industry in two years. I have proposed countless times at the board meetings that Samyang needs to do high-end, needs to innovate, but the old man won't listen."

He picked up his coffee, took a sip, and set it down; the cup clattered against the saucer, making a crisp sound.

"When you were in a price war with Nongshim, I said Samyang should follow suit, but the old man said 'Samyang doesn't lower prices; lowering prices is shameful.'"

"And the result? Samyang's market share dropped from eighteen percent to fifteen percent."

Jun-ho didn't respond. There was a moment of silence.

Chairman Wang Shunyi looked at him. "Mr. Park, what if our two companies cooperate?"

"How to cooperate?"

"Sunyi acquires fifteen to twenty percent of Samyang's shares, and Samyang also acquires a portion of Sunyi's shares. Cross-shareholding, strategic alliance. Sharing new product R&D, opening up channel resources, and integrating supply chains. You defend your mid-to-low-end base, and we attack the high-end. You have Samyang's advantages, and we have Sunyi's speed."

He paused, "On the board of directors, with one more ally, your voice will be different."

Jun-ho looked at him without speaking. Outside the window, someone was shoveling snow; the shovel scraping against the concrete ground made a harsh sound.

"I need time to persuade my father."

"I will wait."

Things dragged on for more than a month on Park Samyang's side.

The old man first said, "I don't cooperate with juniors," and then said, "Sunyi is too small and not worthy of Samyang."

Finally, Jun-ho slammed Sunyi's financial report on his table—revenue of 850 billion, net profit of 50 billion, overseas market coverage in five countries, and a growth rate three times that of Samyang.

The old man read it for a whole night, and the next morning he called Jun-ho, saying only three words: "Let's talk."

The negotiations in March were harder than expected.

Lawyers from both sides argued in the conference room for over a week, focusing on equity pricing and board seats.

Sunyi wanted to acquire fifteen percent of Samyang's shares, and Samyang wanted to acquire five percent of Sunyi's shares.

Chairman Wang Shunyi wanted to enter Samyang's board of directors, and Jun-ho wanted to enter Sunyi's board of directors.

The final price was set at 8,000 won per share, five percent higher than the market price, giving the other party plenty of face.

On the day of signing, Park Samyang did not come.

Jun-ho signed the agreement on behalf of Samyang, and Chairman Wang Shunyi sat across from him; the two of them signed simultaneously across a long table.

After the signing was finished, Jun-ho stood up and extended his hand. "President Wang, happy cooperation."

Chairman Wang Shunyi shook his hand. "President Park, let's use first names from now on. Calling each other President back and forth is tiring."

Jun-ho smiled. That was the first time Chairman Wang Shunyi had seen him smile; it wasn't deep, but it was genuine.

The day after the news got out, Nongshim Foods' stock price fell by three percent.

The media reported overwhelmingly— "Sunyi and Samyang Strategic Alliance, Nongshim's Status Threatened."

Securities analysts worked through the night to produce reports; some said, "Sunyi and Samyang Join Forces, Nongshim's Dominant Position Shaken," and others said, "Alliance Does Not Equal Merger, Short-Term Impact Limited."

Chairman Wang Shunyi read all these reports and then threw them into the shredder.

At the board meeting in May, Minji reported the first-half performance.

The numbers on the big screen jumped out—total revenue of 550 billion, net profit of 40 billion, and market share jumped from fourth to second place.

The conference room was quiet for three or four seconds, and then Zhang Junhao clapped his hands, and the applause went from sparse to a roar.

Second place.

Three years ago, Shunyi Foods was still off the list.

Three years ago, when he was cooking ramen in a semi-basement, he couldn't even reach the last place in the industry.

Now, he was second.

Choi Jae-won sat in the front row, took off his glasses and wiped them after finishing his applause. "President Wang, you said you wanted to reach first place back then. Now you're second, still one step away."

"Mr. Choi, one step away is still away."

Chairman Wang Shunyi stood up, walked to the whiteboard, and wrote a number on it— "50%".

Nongshim Foods' market share, fifty percent.

Sunyi plus Samyang, thirty percent.

Twenty percentage points away.

"These twenty points cannot be caught up by alliance alone. It depends on the product."

He put down the pen, turned around to look at everyone, "In the second half of the year, release new products. Release things that Nongshim doesn't have. Release things that consumers want but Nongshim cannot give."

Lee Chang-ho sat in the back row, half his notebook already filled.

He had been at Sunyi for three years, a veteran who followed from the Kims; the light in the R&D kitchen had never gone out before midnight.

He raised his hand. "President, Black Truffle Noodles. Black truffle oil, imported from Italy, high cost, but there is no similar product on the market. Price it at 6,000, specifically sold to those who are tired of eating ordinary noodles."

Kim Soo-jin sat next to him and flipped through the marketing plan. "Zero-fat noodles. The fat content is close to zero, more extreme than low-fat noodles, suitable for people losing weight. Price it at 3,500, more expensive than ordinary noodles, but cheaper than meal replacements."

Lee Chang-ho flipped another page. "Eye-care noodles. Add lutein, no competing products on the market. Price it at 4,000, the target group is office workers who stare at computers every day."

Chairman Wang Shunyi finished listening without commenting.

He stood up, walked to Lee Chang-ho, took his notebook, and flipped through it.

The edges of the notebook were covered with sticky notes, densely packed with formula parameters and cost estimates.

He returned the notebook to him and said one sentence: "Make all three. Black Truffle Noodles in June, Zero-fat Noodles in July, Eye-care Noodles in August. Don't rush the schedule, but don't drag it out."

On the day the Black Truffle Noodles were launched in June, it was raining in Seoul.

Chairman Wang Shunyi went to a high-end supermarket in Gangnam District, where the Sunyi Select Black Truffle Noodles were placed on the top shelf, with matte black packaging and gold-stamped letters, next to Nongshim's Shin Ramyun Black version, but the price difference was almost double.

He stood there for ten minutes, and three people bought the Black Truffle Noodles; they were all women around thirty years old, who picked it up, took a look, and put it into their shopping baskets with very natural movements.

No hesitation, no looking at the price.

He later told Minji that this was consumption upgrading.

It wasn't that people changed, but that people's needs changed.

People who buy 6,000-won instant noodles don't do it because they are rich, but because they think it's worth it.

When the Zero-fat Noodles were launched, someone on social media did a review, comparing Sunyi's Zero-fat Noodles with Nongshim's low-fat noodles; Sunyi's fat content was 0.5 grams, and Nongshim's was 1.8 grams.

Someone in the comment section said, "What's the use of such a small difference," but a fitness blogger replied, "Eat one pack a day, that's 480 grams of fat difference in a year, you calculate it yourself."

The Eye-care Noodles were launched in mid-August.

Lee Chang-ho added lutein ester to the formula, extracted from marigolds, with a faint yellow color, making the noodles look more appetizing than ordinary noodles.

Sales were average in the first week of launch, but in the second week, a moderator of a mom forum posted— "My son plays games every day, his eyes are dry, so I bought him eye-care noodles, and after eating them for two weeks, he said his eyes feel much more comfortable."

The post was forwarded hundreds of times, and in the third week, sales of the Eye-care Noodles tripled.

In September, Park Samyang officially announced his retirement.

Seventy-three years old, he had worked at Samyang for forty-five years.

The retirement resignation letter only contained one sentence— "I have handed Samyang over to someone younger."

On the first day Jun-ho took over as CEO, he called Chairman Wang Shunyi; the other side of the phone was noisy, with people knocking on tables and applauding.

"President, from now on, I have the final say at Samyang."

"Congratulations. When will you treat me to a meal?"

"When are you free?"

"Anytime."

On the last day of October, Chairman Wang Shunyi and Jun-ho had a meal at a Hanwoo restaurant in Yeouido.

Jun-ho drank three glasses of soju, his face flushed, but his eyes were clear.

He put down his glass and looked at Chairman Wang Shunyi. "The day my father retired, he told me that the ally you chose is the right one."

Chairman Wang Shunyi didn't respond.

He finished the drink in his glass and poured another one.

"What will Samyang and Sunyi do in the future?" Jun-ho asked.

"Each do their own thing, but meet more where there is intersection. R&D, channels, overseas markets, share everything that can be shared. Nongshim has been the sole dominant player for too long, not because it is strong, but because no one dared to follow. Now we dare."

Jun-ho stared at him for a few seconds and then smiled.

This time he smiled openly, showing his teeth.

On the last day of the year, Minji reported the full-year data at the board meeting.

The numbers on the big screen jumped out—total revenue of 1.02 trillion, net profit of 72 billion, market share stable at second place.

The applause in the conference room was louder than last year, but Chairman Wang Shunyi did not stand up.

He sat in his chair looking at those numbers, thinking of the dim yellow light in the semi-basement three years ago.

He stood up, walked to the window, looked at the bustling streets below, and didn't speak for a long time.

After the meeting, Choi Jae-won walked over to shake his hand.

The old man was wearing a dark blue coat with a light gray scarf around his neck, looking a bit older than last year, but his spirit was still good.

"President, you are second now. When will you be first?"

"Three years. At most three years."

Choi Jae-won smiled without speaking, turned around, and left.

The door closed, and his light footsteps came from the hallway, unhurried, like an old gentleman.

At night, Chairman Wang Shunyi sat alone in his office.

On the table were three packs of noodles—Black Truffle Noodles, Zero-fat Noodles, Eye-care Noodles.

The packaging was more exquisite than the last; he picked them up and looked at them repeatedly, then put them aside.

His phone lit up; it was a text message from Kim Dong-hyun.

"Second place. Congratulations."

He stared at that text message for a long time.

Three years.

Kim Dong-hyun sent a text message every last day of the year, and the word count decreased year by year.

The first year he wrote, "Congratulations on Sunyi's listing," the second year he wrote, "Congratulations on fourth place," and this year there were only four characters— "Second place. Congratulations."

He replied with two characters: "Thank you."

Minji pushed the door open, holding a hot Americano in her hand, and placed it on his table.

She was wearing a beige sweater, her hair loose, looking very relaxed.

She sat down across from him and looked at him.

"President, do you really want to rush for first place next year?"

"Not rush. It's to sit on it."

"Look, Sunyi, Samyang, Kims, the three companies combined, the market share is already thirty-two percent. Nongshim is forty-five percent. Thirteen points difference. Next year, this gap will become a single digit. The year after, wiped out. The year after that, overtake."

She didn't speak.

Snow began to fall outside the window; the snowflakes were small, drifting in the wind, illuminated into golden yellow by the streetlights.

He stood up, turned off the lights, and walked out.

The sensor light in the hallway came on, then went off.

Footsteps sounded in the empty hallway, one by one, very steady.