Il Sung, Daehyun, and many other conglomerates were repeatedly holding meetings, starting to review the acquisition of core subsidiaries of Jung Woo Group.
“What would be the best synergy effect if we take over from Jung Woo?”
In the meeting room where the presidents of Il Sung Group gathered, Chairman Seo Yong-geun’s question was met with opinions from each subsidiary president.
“If acquiring Ashin Motors is difficult, I think it would be better to acquire Jung Woo Motors. The synergy effect would also be good.”
This was the statement of President Ha Sung-hoon of Il Sung Motors. Seo Yong-geun, who had been listening attentively, interrupted.
“While you couldn't even properly grow Il Sung Motors, what are you talking about acquiring a car company? The entire group is already shaking because of Il Sung Motors.”
“But...”
“I did jump into the car industry out of my own greed, but do I not know how Il Sung Motors has been over the past few years? I keep you in that position because of our long-standing relationship.”
Il Sung Motors.
It was a sore thumb for Il Sung Group.
In 1995, they entered the automotive industry with great ambition and only this year began producing mass-produced cars, but the market response was not good.
It was also a long-standing wish from the previous chairman, but Chairman Seo Yong-geun was particularly a car enthusiast. He had jumped in without proper market research.
It was a strategic choice to grow by stepping on Daehyun, but it couldn't be called a success.
“That's why acquiring Jung Woo Motors would be better. We are just starting, but Jung Woo is already a well-known company abroad.”
“I understand. But now is the time to choose and focus. Isn't Jung Woo Motors known for its poor financial health? Let's think about it after this crisis. For now, you should focus on maintaining the status quo.”
Seo Jae-hoon, executive vice president, who had been listening to the conversation between Seo Yong-geun and Ha Sung-hoon, spoke up.
“If we need to choose and focus, as the chairman said, I think it would be better to acquire Jung Woo Electronics. There would also be a synergy effect with Il Sung Electronics.”
“Jung Woo Electronics.”
“Yes. Aside from capital, we can't ignore the existence of their production plants spread around the world.”
While the quality of Il Sung Electronics' products was inferior, they were known for their durability.
Thanks to the factories they had set up in various places, including Eastern Europe, they were doing quite well in Europe.
“Jung Woo Electronics...”
Seo Yong-geun, who seemed quite interested, quickly added.
“Didn't we plan to build a factory in Europe, which was halted by the foreign exchange crisis? If we can acquire Jung Woo Electronics at a low price, we can use their factories as they are. This is the opinion of the entire restructuring department, including me.”
“The opinion of the entire restructuring department?”
“Yes. While everyone agrees on reducing the group's size, they say that our main business, electronics, should continue to grow.”
Seo Yong-geun nodded with a satisfied look.
“Good. Then, Executive Vice President Seo, think about a plan to concentrate the group's resources on acquiring Jung Woo Electronics.”
“Thank you, Chairman.”
Chairman Seo Yong-geun, who rarely smiled in the president's meeting, was lenient with Seo Jae-hoon, his successor.
“How is the restructuring going?”
“We plan to lay off more than 30% of the employees in the subsidiaries. While the foreign exchange crisis has caused liquidity issues, it also provides an opportunity to lay off highly paid employees.”
“Good. Don't hesitate to proceed.”
“Understood.”
Seo Yong-geun, who had been looking at Seo Jae-hoon with a warm gaze, returned to his usual expressionless face and looked at each subsidiary president one by one.
“It's an emergency. Do you understand? You can be dismissed from your position at any time. Treat all instructions from the restructuring department as my orders. Got it?”
“Yes, Chairman.”
The presidents answered in loud voices.
After the meeting, Seo Jae-hoon moved to the chairman's office with Seo Yong-geun.
“Director Lee.”
“Yes, Chairman.”
“How is the restructuring of the governance going?”
“We are devising a plan with all the secretariat staff. Thanks to the foreign exchange crisis, we can structure it to Seo Jae-hoon's advantage at a low cost.”
Chairman Seo Yong-geun, who had heard the report from the secretariat director, nodded and smiled at his son.
“Just keep doing what you're doing. Il Sung will be in your hands. The era when we have to watch the government's moves is coming to an end. When that time comes, our Il Sung must be at the top of South Korea.”
“Yes, Father.”
It was a warm atmosphere.
But the secretariat director's words that followed poured cold water on it.
“The shares of Chairman Cheon in Pyeongchang-dong are a problem.”
“Huh... That old man isn't going to go bankrupt.”
“He has handed over quite a lot of convertible bonds to borrow urgent dollars this time. The problem is not just the convertible bonds, but also the shares of core subsidiaries are pledged as collateral. There could be restrictions on voting rights due to litigation.”
Seo Yong-geun, frowning and thinking about something, suddenly asked.
“Most of the shares have gone to Kim Mu-hyuk, right?”
“Yes.”
“That old man didn't care about supporting Ji-soo, but...”
“Isn't it because of Cheon Su-man?”
At the mention of Cheon Su-man, Seo Yong-geun clicked his tongue.
“Although I made them marry strategically for his sake, I never liked that guy from the beginning. Marrying my daughter to a family that just plays with money. How is Hee-kyung doing?”
“She is in charge of the hotel with Ji-soo. Ji-soo has considerable ability. It has grown by more than 100% compared to the previous year.”
At the mention of Cheon Ji-soo, a smile returned to Chairman Seo Yong-geun's face.
Executive Vice President Seo Jae-hoon, who had been watching closely, slightly frowned but no one noticed.
“Ji-soo was always smart. Tell Hee-kyung to handle the hotel and bring Ji-soo into the group this time.”
“Yes, Chairman.”
“If we sue after Chairman Cheon dies, we can take a significant portion of Kim Mu-hyuk's assets. Prepare in advance. Tell him that if he transfers Il Sung's shares through negotiations, we will take care of it.”
“Understood.”
“And, Executive Vice President Seo, when Ji-soo joins the group, nurture her to be one of your people. Blood is something you can't trust, but it's also the only thing you can trust. Do you understand what I mean?”
“Yes, Father.”
Seo Jae-hoon had other thoughts but didn't show them in front of his father.
“Let's surpass Daehyun this time. That's why we entered the Ashin Motors acquisition. Try to inflate the acquisition price as much as possible.”
The relationship between Daehyun and Il Sung, passed down from the previous generation, was like that of a dog and a cat.
At the same time, all major conglomerates in the top 10 were thinking the same thing.
What could they acquire that would benefit them? Their minds were filled with the idea of acquiring Jung Woo Group at a low price from the government.
* * *
At the same time, as each company was holding meetings.
“Don't give a proper answer.”
“Okay.”
“Whatever I say, just say you'll think about it.”
While moving to the Blue House by car, I explained today's plan to Han Kyung-yeong.
“Come in quickly.”
Kim Hak-gwon, who was in the office, greeted Han Kyung-yeong and me with a smile.
“Are things going well?”
“Yes, Mr. President.”
After asking about our well-being as a formality, Kim Hak-gwon quickly moved to the main topic, a bit impatiently.
“President Han, what do you think about Jung Woo Group?”
“Jung Woo Group?”
“Yes.”
“While it has a lot of debt, it is a good company. It got into this situation due to reckless expansion. If it were in the U.S., Chairman Park Dae-ho would have spent his life in prison.”
“Hmm...”
“Future Investment and several private equity funds have shown interest in acquiring it. Especially, Future Investment seems to be considering acquiring the entire Jung Woo Group. It's a good option, Mr. President.”
While listening to their conversation, I was carefully observing President Kim Hak-gwon's expression.
The president's mask had not yet broken.
“Jung Woo Group cannot be handed over to foreign capital.”
“Regardless of the debt, Jung Woo Group is too big. It's beyond what can be handled domestically.”
“What do you think?”
Kim Hak-gwon shifted the target to me.
I calmly smiled and gave the prepared answer.
“Private equity funds are risky. Their priority is profit. The potential, growth, and status