The Genius Grandson of the Loan King - Chapter 91 (91/840)
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#91
It was a great help.
When I said I was going to take over the Jungwoo Group, President Yun only laughed hollowly.
"You know, just because you have a lot of money doesn't mean you can take over a large corporation, right?"
"Yes, I know. But if it weren't for the economic sovereignty being handed over to the IMF now, there would be no opportunity."
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 over the years connected the chaebols.
Like the royal families of medieval Europe.
It was difficult to wedge oneself into their circle just because one had a lot of money.
"The Jungwoo Group is a large corporation, but it is not a chaebol. President Park Daeho has a unique personality, and it has not yet been bound by blood relations."
Not every large company is a chaebol.
Due to the strong influence of Japan, Korean large corporations had many similarities with Japanese large corporations.
Of course, after World War II, the United States forcibly split the Japanese zaibatsu into over 100 companies.
Korea, however, was preoccupied with rapid growth, and the people who seized power created the chaebols themselves.
Over time, the power of the chaebols continued to grow. The military regime collapsed, but the chaebols survived.
"I understand. Let's give it a try. But in return, there must be solid support from the media, the IMF, and the United States. Of course, the tacit approval of the president-elect is also necessary."
"Yes, let's set the day after the presidential inauguration as D-Day. The media's feature articles will come out first on that day."
President Yun nodded.
"After the prosecution moves, the IMF and other foreign capital will demand the dismantling of the Jungwoo Group."
It would be a burden for the incoming government.
It was asking to tear apart a Korean company and hand it over to foreign capital. It was not something that could be easily accepted.
However, once the results of the prosecution's investigation were announced, the government would find it difficult to hold out.
They would judge that it would be better to let Han Kyungyeong acquire it rather than let it be devoured by hyena-like foreign speculative capital.
"The government will hand over the Jungwoo Group directly. Your role is crucial. This is all about timing."
President Yun did not answer but seemed to be pondering the repercussions, rubbing his chin.
"It will also be a good thing for you. After your term as prosecutor general, I will make it look like your achievement."
"Is that so?"
"You need to think about what happens after you retire. You're still young to return to being a commoner."
President Yun soon nodded and began asking about the detailed plan.
* * *
At the time when Kim Muhyuk was talking with President Yun.
A car arrived at the hotel where the transition team of President-elect Kim Hakkyun was located.
The person getting out of the car was President Park Daeho of the Jungwoo Group.
"His Excellency is waiting for you."
"Is that so? Please lead the way."
One of Kim Hakkyun's secretaries led President Park Daeho to the top floor of the hotel where President-elect Kim Hakkyun was.
Kim Hakkyun, who was discussing with his advisors, stood up to greet President Park Daeho as he entered the room.
"President Park, it's been a while."
"His Excellency, congratulations on your election."
"Hehehe. What's this 'His Excellency' nonsense."
They shook hands warmly and sat down.
"You all, go out. Take all the documents with you. We'll discuss the details later."
"Yes, Mr. President-elect."
President Park Daeho 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 the list.
After the advisors left, Kim Hakkyun and Park Daeho began their conversation in the hotel room.
"Listen, President Park. I don't know much about the economy. My advisors are standing up, saying that the things the IMF is demanding are absurd. What do you think? Is it possible without the IMF's help?"
President-elect Kim Hakkyun frowned and rubbed his temples, as if his head was throbbing.
Park Daeho nodded.
"You should comply with the IMF's demands. There's a term, 'global village.' A country cannot survive if it is isolated. Even if you refuse, it will take a long time to overcome the current crisis."
"Hmm..."
"But what will you do after overcoming it? If you tear up the agreement with the IMF, what can South Korea do on the international stage again?"
"My advisors are talking about default."
"Absolutely not. We are not a country in Africa, but the 11th largest economic power in the world. To talk about default..."
President-elect Kim Hakkyun looked at President Park Daeho with a puzzled expression.
President Park Daeho 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 South Korea? It's absolutely impossible."
"Hehehe."
"The economic advisors are saying this because they don't understand the real world. Businesspeople like me who manage companies on the ground will all oppose it."
Kim Hakkyun, who had been chuckling, sighed deeply.
"Then what should we do? Should we just hand over economic sovereignty to the IMF?"
"The only option is to comply with their demands and repay the money received 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 becoming the president-elect, Kim Hakkyun received a lot of data from the current government.
It was the moment he realized the reality of South Korea, which he didn't fully understand during his candidacy.
"Our foreign exchange reserves are depleted. We need to repay the money, but we don't have it. How did our country 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 the country, causing liquidity issues."
"Hmm..."
Park Daeho spoke with a slightly agitated voice.
"Especially, Japan triggered this crisis. 40% of our debt was to Japan. Their cold rejection of our request for help was a significant factor. It's a mistake of the current government."
"But still..."
"You shouldn't be trapped in the past and neglect the present. I am also frustrated by what Japan did to South Korea. But it's a country that is both far and close. Japan is a country that cannot be separated from us. You need to create a reconciliatory atmosphere and make them invest in our country."
President Park Daeho's words were true.
Kim Hakkyun knew that if the Japanese government had accepted South Korea's request, they wouldn't have had to accept the humiliating demands of the IMF.
"Ah... 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 happened to me during the military regime?"
"Yes, Mr. President."
"How about the Jungwoo Group?"
"We are solid. We were the first to call for globalization and invested in Eastern Europe and other places. There's no big problem."
"Are you sure? The advisors say differently."
Park Daeho smiled, feigning ease.
"Hahaha. It's just the voices of scholars who don't understand the real world. There's no business without debt. There's only a short-term liquidity issue, which we can overcome soon."
Kim Hakkyun nodded at his words.
Park Daeho 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 Hakkyun stared at Park Daeho, who pretended not to know, and sighed.
"We need to sell the gold we collect. No one wants to accept our currency, but they might buy gold."
"Our Jungwoo will take the lead in this."
"Jungwoo Group?"
"Yes. We won't make a profit. We'll take the lead in exporting gold to earn dollars."
Seeing Kim Hakkyun's slightly interested expression, Park Daeho added enthusiastically.
"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 top contributors to South Korea's growth. Among them, Jungwoo Trading was a legend in South Korea.
"Are you doing this without profit?"
"Isn't it a national crisis? Large corporations like us need to help."
"Haha. If all large corporations were like you, how great it would be."
"Large corporations will continue to go bankrupt. Without public funds, it's a problem of lacking dollars."
"I heard the threshold of Chairman Cheon's house is worn out. Have you been there?"
"Chairman Cheon Taesan?"
Kim Hakkyun nodded.
"I've heard the rumors. But we're not in such a desperate situation that we need to resort to loans."
"Still, it's true that they have a lot of dollars. It shows how desperate 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, we'll give you tax benefits. Can you handle it responsibly?"
"Yes, Mr. President. I won't let you down."
"I'll make sure large corporations can put out their urgent fires as soon as the money from the IMF comes in. You wait and see. Large corporations must not fail."
"Thank you, Mr. President."
President Park got everything he wanted from his meeting with Kim Hakkyun.
The right to sell the gold collected through the gold collection campaign and public fund support.
President-elect Kim Hakkyun 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, have a healthy new year."
"Hehe. You too."
Grandfather had met many large corporation presidents over the past month.
Despite the hard work, he looked energetic, as if he was a man of the field.
"I lent everything except the dollars in the basement. Most of the top 20 groups, including Daehyun and Ilseong, borrowed."
"What were the conditions?"
"Convertible bonds. What can people who don't have money do? Ilseong in electronics, Daehyun in automobiles, and Goldstar in semiconductors."
I nodded.
Grandfather added,
"Most of what you suggested has been accomplished. Get the documents from Myunho later. You can convert them into stocks after one year. The maturity is 10 years."
Grandfather was indeed remarkable. Although I had asked, he had negotiated and achieved more than I had wanted.
"Ah, I also took the stocks of each subsidiary as collateral. Is there a need for this? Collateral is just collateral, after all. As long as they don't fail..."
As Grandfather said, the stocks of the subsidiaries taken as collateral had little meaning. They wouldn't give stocks instead of money unless they were crazy.
However, considering the unique circular investment structure of Korean chaebols, the situation was different. I planned to limit their voting rights through litigation with the collateralized stocks.
"Grandfather, thank you. It was a great help."
"Hehe. It was fun for the first time in a long time. The large corporation presidents were so restless, looking at me as if their feet were on fire."
Aside from the exchange rate of 2000 won, dollars themselves were hard to come by.
They needed dollars urgently, and Grandfather was the only one who could provide them.
"How was President 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."
President Song was in a much better situation than other companies. Although there was a liquidity crisis, he would survive thanks to the priority in public fund injection by betting on Kim Hakkyun.
"It seems you're planning to enter the Ashin Motors acquisition battle. To think of growing the company in such a situation..."
I tried to dissuade him, but President Song eventually showed his intention to participate in the acquisition of Ashin Motors.
Ilseong, Daehyun, and Jungwoo, the top three chaebols, were all eyeing Ashin Motors.
"The company that acquires Ashin will face the winner's curse. Now is not the time to grow the company..."