Breaking Up Is Better Than Divorce

Negotiation

“If you take over Cinema First, you don’t mean that you will monopolize all movies with distribution rights, right?”

Han Jeong-ah did not have a timid voice, nor did she show any signs of concern, and she asked in a very calm manner.

I don’t know if it’s because of her background or because she has a proper managerial temperament, but she was so calm that she couldn’t even think of a woman in her early thirties even to the shocking news.

“I do not know. It hasn’t been decided yet. First of all, it will be decided by the management after acquiring CinemaFirst. But if necessary, can’t we be aggressive?”

“Of course it is. I might make that kind of judgment for the growth of the newly acquired company. However, since Cinema First has only 800 screens, wouldn’t it be difficult to make a proper box office success?”

Instead of being pressured by her own background, she came up with a logical solution first.

Of course, just because Eugene is the number one chaebol group in Korea right now doesn’t mean that he can’t put pressure on him.

Above all, her attitude is so natural.

“Sometimes the growth of the theater is more important than making a profit from distribution.”

“That’s right. But if you do, shouldn’t you be mindful of being checked by other distributors?”

Her style, which still asks questions step by step, is not bad.

There is no doubt in her words. The Korean theater district is dominated by three major distributors and five foreign direct distributors.

Among them, Korean films are almost exclusively monopolized by three major distributors.

If you want to put a Korean movie in a theater, it will be difficult if the relationship with those three is broken.

And the most prestigious of the three majors is the cinema section of KF Entertainment.

The other is a subsidiary of Samho Group, which has a multiplex and distributor like KF Entertainment.

If Eugene screens a movie with distribution rights exclusively on Cinema First, it is obvious that she will have a deal with two major domestic distributors.

Moreover, unlike other countries, Korean films have a higher market share than Hollywood films.

In the past, it was because of the screen quota, but now it means that the level of Korean films has risen that much.

Therefore, there is no guarantee that Eugene’s strategy of exclusively screening Hollywood films that Eugene acquired Cinema First and secured distribution rights will be successful.

“What. If it becomes a problem, the distributor will also take over. I have an eye for movies, so I think it might be a good idea to invest in Korean movies.”

“Are you for real?”

Unlike before, Han Jeong-ah looked at Eugene with a slightly tense expression.

“I haven’t even thought about it that far. But you can’t.”

“Now I’m getting more and more curious.”

She quickly found her composure and asked.

“What?”

“What the hell are you thinking? The film industry is not even related to the Daeyang Group. You are talking as if you are going to eat up the entire Korean film industry.”

“Well. First of all, my business in Korea is not limited to fields related to the Daeyang Group.”

Han Jeong-ah nodded at Eugene’s words.

“And the Korean film industry is a very attractive place. Even now, almost the only production in the world that can compete with Hollywood, and the future development potential is even greater.”

In terms of market size, China and Japan are larger, and in terms of the number of productions, Indian films cannot be ignored.

However, such countries are unable to produce films that the world can relate to, perhaps because their markets are large.

On the contrary, considering that the Hong Kong film industry had global competitiveness in the past, the size of the domestic market may not be conducive to development.

“That’s right. In the past 10 years or so, the Korean film industry has developed rapidly. It’s an achievement that filmmakers and everyone else have achieved together.”

She seemed a little embarrassed. There is no doubt that KF Entertainment, which she runs, has a significant stake in the development of Korean films.

However, Eugene, who appeared out of nowhere, declared that he was greedyly targeting the Korean film industry.

Any other person would have laughed.

As the head of KF Entertainment, which has more than 40% of the screen share and has an equal influence in the Korean film production field, there is no one to fear because she is a subsidiary of Korea’s number one conglomerate.

But Eugene was different.

Now, he is undoubtedly the world’s richest person, and he is also the person with the same influence and great insight in Hollywood.

“Yes. It’s something we all accomplished together. But right now in the Korean film industry, aren’t some unusual things happening? To be honest, the screen monopoly problem can only be seen as a harm of monopoly.”

KF Entertainment and Samho Cinema Service stood at the center of the problem.

It is always a problem for an affiliate of a company to take charge of the investment, production, distribution, income, and even theatrical screening of a movie, and to drive the screen to a movie it produces so that only a specific movie can be a box office hit.

“It is not without its aspects, but there are things that cannot be helped in Korea, where the market size is not large.”

For the first time, Han Han-ah answered, a little dazed.

It is true that he has made a great contribution to the film industry, but it is an undeniable reality that he created such a bad habit.

It is happening every year that good movies are killed due to this screen monopoly problem, and conversely, low-profile movies succeed at the box office.

Moreover, in front of the accusation of depriving the audience of the choice to watch a variety of movies, he simply responds with silence.

“In the United States, it was concluded that it was already illegal 70 years ago. But in Korea, there is no sign that it will be resolved.”

In the past, even in Hollywood, several major studios had a monopoly on the film market, with production, distribution, and even theaters as vertical affiliates.

Hana The U.S. Department of Justice filed a lawsuit under the antitrust law, and the Supreme Court ruled that such actions would ultimately cause harm to consumers.

Of course, the outcome of such a judgment is controversial, but it is meaningful enough that the US judiciary constantly monitors and mace the monopoly of giant corporations.

But Korean courts will never rule against large corporations.

“But just because Eugene takes over Cinema First and runs a distribution company, doesn’t that solve the problem? Rather, it is just one more dinosaur just like us.”

“Right. And it’s still not illegal in Korea.”

Eugene said with a smile as if it was funny.

“But if I really did, it would probably be very different from what it is now. I have no intention of making a profit in the film industry. As someone who just likes movies, I plan to invest in the development of the Korean film industry. So, Cinema First will show a wider variety of movies. These are films that have been difficult to get in theaters because they have not received investment from the three major distributors.”

“ah!”

Unlike before, Han Jeong-ah could not easily refute Eugene’s words.

This is because, compared to the assets Eugene is known to possess, the profit he will really make in the Korean film industry will be very small.

No, without going there, the profits of the films he invested in and succeeded in Hollywood alone cannot be compared with the Korean film industry.

If you are not really interested in profits as he said…

“Are you serious?”

“Until now, I have never been told a lie. Moreover, in front of the most influential person in the Korean film industry.”

“Then it will be really difficult.”

Han Jeong-ah said with a bitter smile.

Although everyone has no objection to the development of Korean films, there has always been a lot of criticism against the structure of the film industry, which revolves around a few companies.

Therefore, as Eugene said, if we do not really care about profit and open the theater to non-mainstream production companies for the development of Korean films, it is clear that we will receive a considerable response.

What’s more, it was clear what would happen if Hollywood blockbusters were exclusively screened in the same theater.

“At least for us, KF Entertainment and Samho Cinema Service, it must be a lightning bolt.”

“I don’t think so, but I don’t really care about it either.”

“Don’t think that we will raise the white flag easily.”

Han Jeong-ah, who seemed to have lost her spirit for a moment, quickly regained her courage.

“If that’s really what Eugene’s plan is… it would have worked out better. I know now.”

Even in front of the world’s most wealthy man, she was not discouraged. Rather, it shows fighting spirit as if he met an opponent.

“It’s a great fight. We look forward to good competition in the future.”

“I will do my best to live up to your expectations. I’ll show you that I’m not a good match.”

Han Jeong-ah said with a proud smile.

It seems that the negotiation is over and the fight starts now.

“By the way, can I say a few things to CEO Han Jeong-ah?”

As she was about to stand up, Eugene spoke again.

“yes? What?”

Han Jeong-ah asked as she sat down again.

“Since I’m seeing CEO Han Jung-ah, I have something I want to say to you, but I’m afraid it might be rude.”

“it’s okay. If it’s something someone like Eugene is saying, it’s definitely helpful to me as well. My father also talked about Eugene many times. A person born of the century. You said that you would like to meet and talk in person at any time. He said there must be something to learn.”

“It is not such an honor to hear such words from a giant in the Korean economy. I’ll have to make time to visit them sometime.”

“Do by that way. Your dad will love it. And if you have something to say to me, please do not hesitate to say it.”

“All right. Then, even if it is difficult to hear, please listen.”

“yes.”

Han Jeong-ah looked at Eugene with twinkling eyes and answered.

“I can’t. So now.”

Eugene makes a strange noise.

“yes? What do you mean by that?”

“It means that you shouldn’t be in a situation where you want to fight me.”

Eugene said to her as if giving advice.

At his words, Han Jeong-ah looks at Eugene blankly for a moment.

“It means that it is time to think about ways to work more closely together. To make them allies, not enemies.”

“With me… and Eugene? Didn’t you just declare war on me?”

“It may have sounded that way. But what I said was just a general theory. In short, it’s ideal. If my strategy was like this, the answer would have come quickly that there was no way for KF Enter to fight me and win in the current state. Then, Jung-ah should have thought about what could be of the utmost benefit from there.”

Contrary to what he had said before as the CEO of Han Jeong-ah, this time he changed the title to Mr. Jung-ah and said.

“What can be of the greatest benefit to me?”

Han Jeong-ah asked a little defiantly.

“As I said a little while ago, it’s about working with me.”

“But you said you wouldn’t do that, didn’t you?”

“It was. So that’s where the negotiation starts.”

“Well······.”

“Mr. Jeong-ah Han probably has never negotiated with someone on the same level as you.”

“ah!”

“Isn’t it usually a negotiation in a situation where Jung-ah had the upper hand? And in fact, most of the negotiations have been left to the working-level staff.”

Han Jeong-ah could not easily answer Eugene’s words.

because it was true. Although she is said to be leading KF Entertainment as the representative, negotiation and the like were usually the work of the working group.

What she does is to lead the big direction of the business, and to choose and decide among the various plans presented by the working group.

Eugene quickly realized that the dignified attitude she felt toward her at first was actually because she had no proper experience.

It is unavoidable. It’s probably not just her.

By the age of three in large corporations, this is usually the case.

It is different from the people who built large companies. They met and negotiated with thousands of people, negotiating themselves to get what they wanted, and sometimes they had to humble themselves.

The second generation of Korean chaebol families are not so different from each other in that they are, in fact, public servants who have built a business together with the founder. In reality, they were negotiators and fighters just like the founders.

But by the age of three, things change a lot.

Having been supported by everyone since they were young, they joined the affiliate without any difficulties, rose to an executive position by the time they were in their mid-twenties, and when they reached the age of 30, what kind of hardships did they experience?

Where else was there to negotiate?

That’s the way Eugene felt.

He’s bold and rational, but he doesn’t know what the real deal is.

Moreover, as the youngest member of such a great person, he has lived with the love of his family, so it will be even more so.

“Was it possible to negotiate with me and Eugene?”

From Han Jeong-ah, who asked her out of breath, Eugene could sense that she hadn’t even thought of the possibility of a negotiation in the first place.

“Sure. Negotiation is open to anyone. Even the South and North and the US and the Soviet Union negotiated.”

Eugene said it like a joke, but she couldn’t laugh easily.

“Then how do we negotiate?”

“It’s Jung-ah’s job. I just wanted to say that I was sad.”

“Well······.”

Han Jeong-ah thought for a moment.

“So… it would be great if we, KF Entertainment, could also participate in Eugene’s plan.”

After a while she opened her mouth.

“Of course, it doesn’t mean that we, KF Entertainment, will follow the same path as Eugene until we give up our profits. But there must be ways we can help each other.”

She looked at Eugene as if asking if she had given the correct answer.

“Any help?”

“If movies produced and distributed by KF Entertainment are screened without any discrimination at Cinema First, and movies distributed by Eugene are screened under the same conditions, both companies will be able to occupy a much larger market share than they are now.”

Basically, she was a smart woman. She realizes the point Eugene is trying to make.

Rather than making enemies of the two companies that dominate the Korean film industry right now, Eugene realized that he intended to make one enemy and the other into a cooperative relationship.

If Eugene and Cheil Group join hands, Samho Group, a powerful distribution company, will also be helpless.

If only Samho is in check, Cinema First, which has the 3rd largest share of theaters, can quickly increase its market share and rise to 2nd place, and KF Enter can further solidify its position in the 1st place.

“Did you think so from the beginning?”

“I do not know? We keep it a secret.”

“I was impatient.”

“I think that’s right.”

“I am still very inexperienced.”

“That’s a good attitude. If you can admit that you’re not good enough, you won’t make the same mistake again next time.”

Eugene said with a smile.