The Genius Grandson of the Loan King - Chapter 97 (97/840)
< The Hyenas' Different Dreams. >
#97
The Hyenas' Different Dreams.
Il Sung, along with many other conglomerates such as Daehyun, began to review the acquisition of core subsidiaries of Joongwoo Group, and they were holding meetings one after another.
"What would be the best synergy effect if we take over from Joongwoo?"
In the meeting room where the executive directors of Il Sung Group were gathered, each subsidiary president expressed their opinions in response to Chairman Seo Yong-geun's question.
"If acquiring Ashin Motors is difficult, I think acquiring Joongwoo Motors would be better. It would also have a good synergy effect."
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 make Il Sung Motors grow properly, what are you talking about acquiring a car company? The entire group is already shaking because of Il Sung Motors."
"But... ..."
"I know I jumped into the car business out of my own greed, but do I not know how Il Sung Motors has been over the past few years? I've kept you in that position because of our long-standing relationship."
Il Sung Motors.
It was a sore spot for Il Sung Group.
In 1995, they entered the automotive industry with great ambition and started mass-producing cars this year, but the market response was not good.
It was also a long-standing wish from the previous chairman, and 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 Joongwoo Motors would be better. We are just starting, but Joongwoo is already a well-known company abroad."
"I understand. But now is the time to choose and focus. Isn't Joongwoo Motors' financial instability well-known? Let's think about it after this crisis is over. For now, you should focus on maintaining the current situation."
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 acquiring Joongwoo Electronics would be better. It would also have a synergy effect with Il Sung Electronics."
"Joongwoo 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.
"Joongwoo Electronics... ..."
Seeing Seo Yong-geun's rather harsh attitude, Seo Jae-hoon quickly appealed.
"Although it was canceled due to the foreign exchange crisis, we were planning to build a factory in Europe, weren't we? If we can acquire Joongwoo Electronics at a low price, we can use their factories as they are. This is the opinion of everyone in the restructuring department, including me."
"The opinion of everyone in the restructuring department?"
"Yes. While everyone agrees on reducing the size of the group, they say that our main business, electronics, should continue to grow."
Seo Yong-geun nodded with a satisfied look.
"Good. Then, Seo Executive Vice President, think about a plan to concentrate the group's resources on acquiring Joongwoo Electronics."
"Thank you, Chairman."
Chairman Seo Yong-geun, who rarely smiled in the executive directors' 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's also an opportunity to get rid of high-salaried employees."
"Good. Don't hesitate and proceed."
"Understood."
Seo Yong-geun, who had been looking at Seo Jae-hoon with a pleased expression, returned to his usual expressionless face and looked at each subsidiary president one by one.
"This is 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 executive directors answered in loud voices.
After the meeting, Seo Jae-hoon moved to the chairman's office with Seo Yong-geun.
"Manager Lee."
"Yes, Chairman."
"How is the restructuring of the governance going?"
"We are devising a plan with all the secretariat members. Thanks to the foreign exchange crisis, we can make it favorable for Executive Vice President Seo Jae-hoon at a low cost."
Chairman Seo Yong-geun, who had heard the report from the head of the secretariat, nodded and smiled at his son.
"Keep it up like this. Il Sung will be in your hands. The time will come when we don't have to consider the government's stance. Then, our Il Sung must be at the top of South Korea."
"Yes, Father."
It was a warm atmosphere.
However, the head of the secretariat's words that followed poured cold water on it.
"Chairman Cheon's shares in Pyeongchang-dong are a problem."
"Ha... That old man isn't going to go bankrupt."
"He has lent a large amount of convertible bonds to get urgent dollars this time. The problem is not just the convertible bonds, but the stocks of core subsidiaries are also pledged as collateral. They may face restrictions on voting rights due to litigation."
Frowning and thinking about something, Seo Yong-geun suddenly asked.
"Most of the stocks have gone to Kim Mu-hyuk, right?"
"Yes."
"That old man didn't even 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?"
"Miss Ji-soo is in charge of the hotel with Miss Hee-kyung. Miss Ji-soo is quite capable. The hotel 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.
Seo Jae-hoon, who was watching closely, slightly frowned, but no one noticed.
"Ji-soo was always smart. Tell Hee-kyung to handle the hotel and bring Ji-soo to 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."
"Also, Seo Executive Vice President, when Ji-soo joins the group, nurture her to be one of your people. Blood is unreliable, but it's also the only thing we can trust. Do you understand what I mean?"
"Yes, Father."
Seo Jae-hoon had other thoughts, but he didn't show them in front of his father.
"Let's take over 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.
The same thing was happening at all major conglomerates in the top 10 of the business world.
What could they acquire that would benefit them? Their minds were filled with the idea of acquiring Joongwoo 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 car to go to the Blue House, I explained today's plan to Han Kyung-yeong.
"Come in."
Kim Hak-gwon, who was in the office, greeted Han Kyung-yeong and me with a smile.
"Is everything 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.
"Mr. Han, what do you think of Joongwoo Group?"
"Joongwoo Group?"
"Yes."
"Although 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, haven't they? Especially Future Investment seems to be considering acquiring the entire Joongwoo Group. It's a good option, Mr. President."
I was carefully observing President Kim Hak-gwon's expression while listening to their conversation.
The president's mask had not yet broken.
"Joongwoo Group cannot be handed over to foreign capital, can it?"
"Aside from the debt, Joongwoo 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 of a company in Korea are not their concerns. They move only for profit."
President Kim Hak-gwon slightly smiled at the words that hit the nail on the head.
"Mr. Han, there are only a few companies that can acquire the entire group. Future Investment is the best choice. Alternatively, some good subsidiaries could be transferred to Korean conglomerates. If that happens, who would be interested in Joongwoo Group...?"
"The thoughts of the Ministry of Finance and the advisors are the same."
"If I had the funds, I would have acquired Joongwoo Group. Despite the debt, it can grow if it overcomes the liquidity crisis."
Seeing Kim Hak-gwon nod, I added.
"It will take a long time, but it would be good for the president to prevent the dismantling of Joongwoo Group, whether by foreign or domestic capital. However, the injection of public funds should be avoided."
"By injecting public funds, it could avoid dismantling and enter an emergency state."
Kim Hak-gwon muttered as if lamenting.
I shook my head.
"We can't let good companies with insufficient dollars go bankrupt to save Joongwoo Group. Especially, the U.S. won't sit idly by, using the IMF as leverage."
The words I was saying probably aligned with the opinions of the economic bureaucrats and advisors, including the Ministry of Finance.
The president, who heard the answer, seemed to ponder for a moment before asking Han Kyung-yeong.
"What kind of investment firm is Future Investment?"
"It's a solid investment firm. So far, it has focused on real estate, but considering its interest in acquiring Joongwoo Group, it seems to know how to take advantage of Korea's crisis. They might make long-term investments. However, the source of their funds... ..."
"That's not the important thing right now. We need dollars immediately. No, we need to save Joongwoo Group."
"I understand."
"Do you have any plans to acquire Joongwoo Group?"
"Me?"
"Yes, I wish Dream High Investment could acquire it."
"Hmm... ..."
Han Kyung-yeong showed a contemplative attitude, as I had instructed.
Because Han Kyung-yeong didn't answer immediately, President Kim Hak-gwon, who seemed frustrated, frowned.
"You are a Korean-born Korean, even though you are an American. Please, if we help you acquire it at a good price after overcoming the crisis, what do you think?"
"Joongwoo Group has too much debt. The amount lost due to fraudulent accounting, embezzlement, and breach of trust is also significant. While I enjoy aggressive investments, the risk is too high."
"Just take it over temporarily."
Han Kyung-yeong's polite refusal made President Kim Hak-gwon act as if he had entrusted his money to someone.
"Take it over... Mr. President, I'm not a charity worker, am I?"
"..."
"If I were to enter the Joongwoo Group acquisition, I would do so with the intention of making it the best company in the world. I wouldn't enter just to resell it at a good price. But isn't Joongwoo Group less attractive than good companies in the U.S.?"
This was the problem with South Korea.
Apart from the collusion between government and business, the government's intervention in corporate affairs was too deep.
The upcoming business swap was no different.
The government forcibly transferred the companies of conglomerates to companies that suited their taste.
This was the same during the military regime and even after democratization.
"If you want me to acquire Joongwoo Group, make an attractive offer to me as an investor. Money has no feelings. I do have affection for Korea, but it's too much money to bet on patriotism."
Han Kyung-yeong's behavior, which was completely different from that of other conglomerates, broke the mask that Kim Hak-gwon was wearing.