When I said I would take over the Jungwoo Group, President Yun only laughed hollowly.
"Do you know that just because you have a lot of money, you can't take over a large corporation?"
"Yes, I know. But if not now, when the economic sovereignty has been handed over to the IMF, there won't be another chance."
The chaebols were people who had led Korea's economy from the Japanese colonial period to the present.
Apart from just money, a web of relationships formed by accumulated connections and marriages linked the chaebols.
Like the royal families of medieval Europe.
It was difficult to wedge your way into their circle just because you had a lot of money.
"Jungwoo Group is a large corporation, but not a chaebol. Chairman Park Dae-ho has a unique personality, and the group is not yet bound by blood relations."
Not all large corporations are chaebols.
Due to the strong influence of Japan, many of Korea's large corporations were similar to Japanese ones.
Of course, after World War II, the United States forcibly dismantled Japan's zaibatsu into over 100 companies.
But Korea, obsessed with rapid growth, had its own government create the chaebols.
Over time, the power of the chaebols only grew. The military regime collapsed, but the chaebols survived.
"I understand. Let's give it a try. But we need solid support from the media, the IMF, and the United States. Of course, the president-elect's tacit approval is also necessary."
"Let's set the day after the presidential inauguration as D-Day. The media will publish planned articles at that time."
President Yun nodded.
"After the prosecution moves, the IMF and other foreign capital will demand the dissolution of the Jungwoo Group."
It was a burden for the incoming government.
It was a request to tear apart a Korean company and hand it over to foreign capital, something that couldn't be easily accepted.
But once the results of the prosecution's investigation were announced, the government would find it hard to resist.
They would likely decide that it was better for Han Kyung-eui to take over than to let it be devoured by hyena-like foreign speculative capital.
"The government will hand over the Jungwoo Group directly. Your role is important. Timing is everything in this matter."
President Yun didn't respond, but seemed to be pondering the repercussions, stroking his chin.
"It will be a good thing for you too. After you retire, I'll make sure it's recognized as your achievement."
"Is that so?"
"You need to think about your future after retirement. You're still young to return to being a civilian."
President Yun soon nodded and began asking about the detailed plan.
* * *
At the same time that Kim Mu-hyuk was talking with President Yun.
A car arrived at the hotel where President-elect Kim Hak-gwon's transition team was located.
The person getting out of the car was Chairman Park Dae-ho of the Jungwoo Group.
"His Excellency is waiting for you."
"Is that so? Please lead me in."
One of Kim Hak-gwon's secretaries led Chairman Park Dae-ho to the president-elect, who was on the top floor of the hotel.
Kim Hak-gwon, who had been discussing with his advisors, stood up to greet Chairman Park Dae-ho as he entered.
"Chairman Park, it's been a while."
"His Excellency, congratulations on your election."
"Hehehe. What's with the 'His Excellency'?"
They shook hands warmly and sat down.
"Everyone, please leave. Take all the documents with you. We'll discuss the details later."
"Yes, Mr. President-elect."
Chairman Park Dae-ho looked at the list of large corporations among the scattered documents on the table. Of course, the name of the Jungwoo Group was also on it.
Once the advisors had all left, Kim Hak-gwon and Park Dae-ho began their conversation.
"Listen, Chairman Park. I don't know much about the economy. My advisors are standing up and saying that the things the IMF is demanding are absurd. What do you think? Is it possible without the IMF's help?"
Kim Hak-gwon frowned and rubbed his temples, as if his head was aching.
Park Dae-ho nodded.
"We should comply with the IMF's demands. There's a saying, 'the global village.' If a country isolates itself, it cannot survive. Even if we refuse, it will take a long time to overcome the current crisis."
"Hmm..."
"But what will happen after we overcome it? If we tear up the agreement with the IMF, what can Korea do on the international stage?"
"My advisors are talking about default."
"Absolutely not. We are not a country in Africa, but the 11th largest economic power in the world. How can they talk about default?"
Kim Hak-gwon looked at Chairman Park Dae-ho with a puzzled expression.
Park Dae-ho had a particularly strong reaction to the word 'default.'
"Declaring default by a country is entirely different from an individual going bankrupt. If trust in the country is broken, who will invest in Korea? It's absolutely unacceptable."
"Hehehe."
"The economic advisors don't understand the real world. Businesspeople like me who manage on the front lines will all oppose it."
Kim Hak-gwon, who had been chuckling, sighed deeply.
"Then what should we do? Should we just hand over economic sovereignty to the IMF?"
"The only way is to comply with their demands and repay the money we receive from the IMF as quickly as possible."
"I've received reports that companies are going bankrupt one after another. Not just large corporations, but hundreds of small and medium-sized enterprises are closing their doors every day."
After being elected, Kim Hak-gwon received a lot of information from the current government.
It was the moment he realized the reality of Korea, which he hadn't fully understood during his candidacy.
"Our foreign exchange reserves are depleted. We need to repay the money, but we don't have it. How did Korea end up like this...?"
"This is all due to the machinations of countries like Japan and the United States. They simultaneously withdrew the funds they had invested in Korea, causing liquidity issues."
"Hmm..."
Park Dae-ho spoke with a slightly agitated voice.
"Especially, Japan triggered this crisis. 40% of our debt was to Japan. Their refusal to help us was a significant factor. It's a mistake of the current government."
"But still..."
"You can't be stuck in the past and neglect the present. I am also aggrieved by Japan's actions. But they are a country that is both far and close to us. We cannot sever ties with Japan. We need to create an atmosphere of reconciliation and encourage them to invest in Korea."
Chairman Park Dae-ho's words were true.
If the Japanese government had accepted Korea's request, they wouldn't have had to face the humiliating demands of the IMF, and Kim Hak-gwon knew this.
"Phew... I understand. I'll visit Japan after the United States. We need their investment."
"You've made a good decision, His Excellency."
"Stop calling me 'His Excellency.' Do you know what I went through under the military regime?"
"Yes, Mr. President."
"How about the Jungwoo Group?"
"We are solid. We were the first to advocate globalization and have invested in Eastern Europe and other places. There's no big problem."
"Are you sure? The advisors say differently."
Park Dae-ho smiled, feigning ease.
"Hehehe. They are just scholars who don't understand the real world. No business can operate without debt. We just have a short-term liquidity issue, which we can soon resolve."
Kim Hak-gwon nodded at his words.
Park Dae-ho subtly changed the subject.
"I've heard that there will be a gold collection campaign for the public. Is that true?"
"Heh, where did you hear that?"
"It's already a rumor in the business community."
"Hehehe, they say bureaucrats are the mouthpieces of the chaebols. It seems to be true."
Kim Hak-gwon stared at Park Dae-ho, who pretended not to know, and sighed.
"We need to sell the gold we collect. No one wants Korean money, but they might buy gold."
"Our Jungwoo will take the lead in this. We won't make a profit. We'll export gold to bring in dollars."
Kim Hak-gwon, who seemed a bit intrigued, nodded.
"Jungwoo Trading has offices all over the world. We can sell gold at good prices. Isn't that my expertise?"
"That's true. Your exploits are famous. There's even a rumor that you sold ice in the Arctic."
Trading companies were the first-class contributors to Korea's growth. Among them, Jungwoo Trading was a legend in Korea.
"Are you doing this without expecting any profit?"
"Isn't it a national crisis? Large corporations like us need to help."
"Hehe. If all the large corporations were like you, it would be great."
"Large corporations will continue to go bankrupt. Without public funds, it's a problem of lacking dollars."
"I heard that Chairman Cheon's house is swarming with people. Did you go there too?"
"Chairman Cheon Taesan?"
Kim Hak-gwon nodded.
"I've heard the rumors. But we're not in such a desperate situation that we need to resort to usury."
"Still, they have a lot of dollars. It shows how desperate the large corporations are."
"Our Jungwoo is fine, Mr. President."
"That's a relief. I understand. You'll be in charge of the gold collected in the gold collection campaign. In exchange for not making a profit, I'll give you tax benefits. Can you handle it responsibly?"
"Yes, Mr. President. I won't let you down."
"I'll help the large corporations as soon as the money from the IMF comes in. You wait and see. We can't let the large corporations fail."
"Thank you, Mr. President."
Chairman Park got everything he wanted from his meeting with Kim Hak-gwon.
The right to sell the gold collected through the gold collection campaign and the support of public funds.
Kim Hak-gwon, the president-elect, didn't realize how foolish this choice was.
* * *
A few days after the meeting with President Yun.
The new year of 1998 was dawning.
"Grandfather, I hope you stay healthy in the new year."
"Hehe. Thank you."
Grandfather had met many large corporation chairmen over the past month.
Despite the challenges, he looked vibrant, as if he thrived in such situations.
"I lent all the dollars I had, except for those in the basement. Most of the top 20 groups, including Daehyun and Ilseong, borrowed them."
"What were the conditions?"
"Convertible bonds. What else could they do without immediate cash? Ilseong for electronics, Daehyun for automobiles, and Goldstar for semiconductors."
I nodded.
Grandfather added,
"Most of what you suggested has been accomplished. Get the documents from Myunghoon later. You can convert them into stocks after one year. The maturity is 10 years."
Grandfather was indeed remarkable. I had asked, but he had negotiated and achieved more than I had hoped.
"Ah, I also took the stocks of each subsidiary as collateral. Is there any need for this? Collateral is just collateral, after all. As long as they don't fail."
As Grandfather said, the collateralized stocks of the subsidiaries had little meaning. They wouldn't give stocks instead of money unless they were insane.
But considering the unique circular shareholding structure of Korean chaebols, the situation was different. I planned to limit their voting rights through litigation using the collateralized stocks.
"Grandfather, thank you. It was a great help."
"Hehe. It was fun for the first time in a long while. The large corporation chairmen were so restless, looking at me as if their feet were on fire."
Aside from the exchange rate of 2,000 won, dollars themselves were hard to come by.
They needed dollars urgently, but only Grandfather could provide them.
"How was Chairman Song?"
"Hehe. Do you think that man would grovel to me? I lent him the money out of obligation, but he's a boring man."
Chairman Song was in a much better situation than other companies. Although a liquidity crisis was inevitable, he would likely survive thanks to the priority in public fund injections due to his bet on Kim Hak-gwon.
"It seems you're planning to enter the Ashin Motors acquisition battle. You're thinking of growing your company even in this situation."
I tried to dissuade him, but Chairman Song eventually revealed his intention to participate in the Ashin Motors acquisition.
Ilseong, Daehyun, and Jungwoo, the top three chaebols, were all eyeing Ashin Motors.
"The company that takes over Ashin will face the winner's curse. Now is not the time to grow your company..."