The Genius Grandson of the Loan Shark King - Chapter 96 (96/840)
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#96
The Choice of the Kim Hak-gwan Government
Even before the foreign exchange crisis hit, I began to gradually withdraw funds from the Myeongdong loan market, which had been operated haphazardly, and started to improve its structure.
I handed over all the bad debts and other uncollectible debts to the seasoned loan shark, Noh Eiksun, and had Kim Hosik take over the recoverable funds to collect them.
At the same time, I established Myeongdong Capital as a holding company and created three subsidiaries under it.
Since the high-interest lending law had not been established, there was no need to lend money at low interest rates. Instead, I focused on lending to those with collateral at high interest rates, gradually solidifying my position.
"Hyunseong, how's the work going?"
"Since Mr. Kim is handling most of it, there shouldn't be any major problems."
Feeling my gaze, Kim Hosik slowly spoke.
"I've assigned one business each to the loan sharks under me who I can trust. I've educated them that the era of operating like gangsters is over, so there shouldn't be any issues like before."
"Earning money isn't the most important thing. People with cash will gather in Myeongdong, just like in the Warring States period. Not just in Myeongdong, but in Seoul and throughout the country, lending companies will start to open branches."
Hyunseong and Kim Hosik nodded.
"Priority is to secure a foothold. Compete with lower interest rates than any other companies. We won't be outmatched in terms of capital."
Kim Hosik, who had a seat in the Myeongdong loan market, had stepped down and was now the executive vice president of Myeongdong Capital, with Hyunseong handling the practical work.
"Report everything to Hyunseong. You don't have to report to me, but Hyunseong must know everything."
"Yes, sir."
"How does it feel to be out in the open?"
Kim Hosik smiled slightly.
"I can now be a father my daughter won't be ashamed of. Thank you, sir."
"When this war ends, there won't be any more dangerous work. Don't go out alone; move with the Dongsup faction."
"Yes, sir."
Kim Hosik's face had become much softer. The venom he had accumulated to survive in the Myeongdong loan market seemed to have diminished.
"Your face looks much better. I hope you can live as Kim Hosik, the executive vice president of Myeongdong Capital, and not return to the shadows."
I sent Kim Hosik, who nodded, out.
Hyunseong, sitting in the office of Myeongdong Capital, now looked quite fitting.
"Once this is settled, find something you really want to do."
"I'm already satisfied."
"Are you okay physically?"
"Yeah."
Seeing my worried look, Hyunseong smiled and said calmly.
"Don't worry about me. I understand why you were so strict while I was learning."
"Really?"
"I didn't know before, but money is really scary. Listening to the stories from the executive vice president... "
Hyunseong shook his head, as if he didn't want to think about it.
"Since it won't be resolved quickly, contact me if any problems arise. Don't try to solve them alone."
"Understood."
"Let's go out for a meal. It's been a while since we ate together."
That day, I also visited Noh Eiksun's office nearby.
One of Noh Eiksun's subordinates, who was guarding the front of the office, greeted me.
Noh Eiksun came down in a slightly hurried manner, having received a call.
"Sir, you should have given me a call. If I had known you were coming, I would have been here."
"It's fine. Mr. Noh, it's been a while."
"Please come in."
Entering the office, I saw various documents scattered around.
Noh Eiksun, looking embarrassed, said:
"I didn't know you were coming, so I didn't tidy up. I'll clean it up now."
"No need. I won't be staying long, so just sit down."
Sitting in the main seat on the sofa in the center of the office, Noh Eiksun followed suit.
After the removal of Chunsuwan, he was clearly more cautious in front of me.
"Is it tough?"
"What? No, it's not."
"Since all the bad debts have been transferred to you, you must be busy, but once you've finished cleaning up, move your office to Gangnam."
Noh Eiksun's eyes widened.
"Gangnam?"
"Yes. Now, most of the loans to ordinary people in Myeongdong and other areas will be dominated by lending companies."
I added, seeing Noh Eiksun's puzzled look.
"Target the people starting venture businesses in the Gangnam area and the wealthy in Gangnam who need large sums of money urgently. Even with compound interest, upfront interest, and high interest rates, there will be many people willing to borrow."
The venture boom that started in the U.S. has also begun in Korea.
But since there are no proper venture investors yet, they will have to borrow from loan sharks.
In a few years, individual loan sharks, who have been pushed out by lending companies, will move to Gangnam.
It's still a time before loan sharks have firmly established themselves in Gangnam. We need to plant our flag first.
"Whether the high-interest lending law is established or the interest rate limit is reintroduced, it doesn't matter. It's not a market that follows the law. Many people will need short-term, urgent loans."
Real estate tycoons who need to pay taxes.
Or venture companies that need to pay their employees' salaries.
They will have no choice but to seek out loan sharks.
"Understood."
Noh Eiksun nodded readily.
Without prolonging the conversation, I stood up and asked:
"How is the debt collection going?"
"The recovery rate is not as good as expected. Given the economic situation, many people are saying they can't pay."
"Can't be helped. Don't push too hard."
Bad debts are like that. The recovery rate is often less than 10%.
Even among loan sharks, if they feel a debt is uncollectible, they often sell it at a low price to a company specializing in debt collection.
Since Noh Eiksun is an expert in this, there's no choice but to trust him.
"I trust you, Mr. Noh."
"Don't worry, sir."
* * *
"A message from Kobe."
"Yes."
Lee Yong-hyun, who was always arrogant in front of others, was bowing to a Japanese man.
"You are to ensure that we can take over the Korean lending market without any failure this time. The abolition of the interest rate limit has made it difficult for us and the day-traders to get involved."
The Japanese man, who looked much younger than Lee Yong-hyun, showed no sign of respect in his gaze.
"Yes, what should I do?"
"We will also use our own resources, but try to establish a lending law similar to Japan's as soon as possible. It's better to have an interest rate limit, but maintain a high interest rate of around 48%. Once the competitors are eliminated, you can repeal the law later."
Lee Yong-hyun nodded respectfully.
"I received a call from Kobe, but I didn't expect you to come in person."
"I hope you understand how serious we are about this. The government is also pressuring us. It's difficult to expand our business on the mainland... "
"Yes, I understand, Mr. Watanabe."
Watanabe Satoru, the son of the leader of the Yamaguchi-gumi.
That was the name of the man in front of Lee Yong-hyun.
"This is an opportunity to receive help from the Empire of Japan again. We need to mobilize all our resources. Do you understand?"
"Yes, I understand."
Watanabe Satoru's eyes gleamed.
"You still haven't dealt with the old man who has been obstructing our work... Have we placed too much hope in you, Lee?"
Though his tone was even, Lee Yong-hyun felt a blade in Watanabe's voice, causing cold sweat to run down his back.
"I apologize. It has been difficult to resolve immediately, and I have been preparing for a long time... "
"You've messed up the preparations as well."
"......I have no excuse."
Seeing Watanabe's displeasure, Lee Yong-hyun bowed deeply.
"Is there anything else you've prepared?"
"It will be difficult to move immediately."
"Then leave it. We will handle it ourselves. For now, start with the legislation to ensure we can establish ourselves in Korea without any inconvenience. That's all you need to do."
"Understood."
With that, Watanabe stood up, and Lee Yong-hyun followed, bowing.
"Remember, if you repeat the same mistake, the long-standing relationship will be severed. Do you understand, Mr. Lee?"
"Yes."
With that, Watanabe left Lee Yong-hyun's house.
After seeing him off, Lee Yong-hyun entered his room, stroking a cherished piece of pottery, lost in thought.
'Lost the presidential election, couldn't handle the Myeongdong situation, and now, I have no excuse.'
Lee Yong-hyun's mind was not on the future of the Republic of Korea. He only thought about receiving recognition from Japan and wielding the power they gave him.
* * *
A new government was in place, but the Chungwoo Group's accounting fraud scandal had taken center stage.
Starting with Eva's Future Investment, large U.S. private equity funds declared hostile M&A intentions toward the Chungwoo Group.
Unlike in the original history, the stock prices of the Chungwoo Group's subsidiaries had plummeted in the stock market.
Eva, following Kim Mu-hyuk's instructions, had already secured a significant number of shares and requested emergency shareholder meetings for all subsidiaries, starting with Chungwoo Co., Ltd. However, the Chungwoo Group was stalling.
High-ranking officials in the Ministry of Finance, who had received lobbying from Eva, continued to report to the president that the Chungwoo Group must be abandoned to save the Korean economy.
Meanwhile, in the Blue House, President Kim Hak-gwan was holding an emergency meeting with his chief of staff and three close political allies.
"We need to abandon Chairman Park. Is there any other way?"
"Mr. President, Chairman Park has always been on good terms with us. He was the one who led the gold collection campaign and promised to help the government without seeking personal gain... "
Representative Kwon Sung-jin of the Progressive Party, who was defending Chairman Park Dae-ho of the Chungwoo Group, received a cold response from others.
"Still, there's no other way. Pressure is already coming from the U.S., and the IMF is delaying the promised funds. Are you suggesting we sacrifice the entire nation to save Park Dae-ho?"
Kim Hak-gwan, who had become president, could not bear the burden of the presidency, as Kim Mu-saeng, who had returned to being a private citizen, had said. Kwon Sung-jin could not say more.
Despite various opinions, the conclusion was to abandon Chairman Park Dae-ho.
Park Won-sub, the chief of staff, delivered the final blow.
"We haven't even reviewed all the accounting records, but the amount of the fraud is enormous, already exceeding 25 trillion won. There's no way to save it. If this is revealed, the private equity funds that have declared their intention to acquire might pull out."
President Kim Hak-gwan and all the participants in the meeting fell silent.
"The private equity funds that have declared their intention to acquire are all high-quality companies. But if they are split up, it will have a negative impact on our economy. They are hyenas who only care about money."
Park Won-sub said, sounding frustrated.
"Future Investment has expressed an intention to acquire the entire Chungwoo Group, but it's unclear how it will change after the acquisition. Especially, Eva, the representative, has significant lobbying power. There are also suspicions that they have recruited Ministry of Finance officials as outside directors and are using them to influence the Ministry of Finance."
Lee Chan-jong, the director of the National Intelligence Service, added.
"It's not just a suspicion. Most of the Ministry of Finance has been influenced, to some extent, by Future Investment's lobbying. Both current and former high-ranking officials have a significant influence."
"Then what should we do? Stop making vague statements and suggest a solution."
Kim Hak-gwan raised his voice, frustrated.
No one could provide a clear answer.
Finally, Park Won-sub, the chief of staff, spoke.
"Ask President Han Kyung-kyung for help. He is more friendly to us than other foreign capital. It would be good to explain the government's position and ask him to acquire the entire Chungwoo Group."
President Kim Hak-gwan already knew there was no other way.
"He may be friendly, but he is still backed by foreign capital. Do you trust him, Mr. Park?"
"There is no domestic capital that can acquire the entire Chungwoo Group. We have no choice but to rely on foreign capital."
"Indeed... It's been tough from the start. Contact President Han and ask him to come in."
"Yes, Mr. President."
"Also, ask Kim Mu-hyuk to come in. Mr. Han said he would consider the young man's opinion on Korean matters."
As Kim Mu-hyuk had predicted, the Blue House had no choice.
They couldn't abandon other major corporations that were holding out to save the Chungwoo Group, whose required public funds were unknown.
* * *
"Yes, yes, I understand."
After hanging up the call from the Blue House, Han Kyung-kyung looked at me with surprise.
"Mu-hyuk, you were right. They asked if I could come in immediately."
I nodded with a smile.
"There's no other choice. The majority of the Chungwoo Group's debts are short-term foreign debts."
At that moment, my phone rang.
"Hello."
- This is the Blue House secretary's office. Is this Kim Mu-hyuk?
"Yes, it is."
- The president would like to meet you tomorrow. Can you come to the Blue House at 2 PM?