Chapter 96: Political Maneuvering

Even before the foreign exchange crisis hit, I was gradually recalling funds from the chaotic private lending market in Myeong-dong, aiming to improve its structure.

I handed over all the bad debts, the ones that were nearly impossible to recover, to Viper Noh Ik-seon, while Kim Ho-sik ttook on all the recoverable funds.

At the same time, I established Myeong-dong Capital as a holding company and created three subsidiaries under it.

Since the loan sharking laws had yet to be established, there was no need to lend money at low interest rates. Instead, I began lending at high rates, primarily to those who could provide collateral.

“Hyeon-seong, how’s the work going?”

“With Manager Kim handling most of it, there shouldn’t be any major issues.”

Kim Ho-sik, noticing my gaze, slowly opened his mouth.

“I’ve assigned trustworthy loan sharks from my previous team to manage each business. The days of operating like gangsters are over; I’ve made sure to educate them, so that kind of behavior won’t occur again.”

“Making money isn’t everything. People with cash will flock to Myeong-dong, just like in the Warring States period. Not just in Myeong-dong, but all over Seoul, or even the entire country, companies that lend money will emerge.”

Hyeon-seong and Kim Ho-sik nodded in agreement.

“First come, first served. Compete with the lowest interest rates. We will never be outmatched in terms of financial power.”

Kim Ho-sik, who held a prominent position in the Myeong-dong loan market, had stepped down to work under Hyeon-seong as the executive of Myeong-dong Capital.

“Make sure to report everything to Hyeon-seong. You don’t have to inform me, but he must be aware of everything.”

“Yes, Boss.”

“How do you feel being out in the open?”

A faint smile crossed Kim Ho-sik’s face.

“I can finally be a dad my daughter won’t be embarrassed of. Thank you, Boss.”

“Once this war is over, there shouldn’t be any more rough business for you. Don’t go out alone anymore; move with the Dong-su faction.”

“Yes, Boss.”

Kim Ho-sik’s face had softened significantly. It felt like the malice that had built up from enduring the harsh Myeong-dong underworld was finally dissipating.

“Your face looks much better. Live as Kim Ho-sik of Myeong-dong Capital and not as Twin Blades Kim Ho-sik. Let’s ensure you never go back to the shadows again.”

I nodded and sent Kim Ho-sik out.

Hyeon-seong, sitting in the office of Myeong-dong Capital, now looked the part.

“Once this matter is settled, really find something you want to do.”

“I’m satisfied even now.”

“How’s your health? Are you okay?”

“Yeah.”

Seeing the concern in my eyes, Hyeon-seong chuckled softly and said,

“Don’t worry about me. While learning this business, I’ve understood why you were so fierce.”

“Is that so?”

“I never realized how terrifying money could be. Listening to the old stories from the Executive…”

Hyeon-seong shook his head, as if the memories were unwelcome.

“This won’t be a short-term issue, so if problems arise, contact me anytime. Don’t try to solve everything on your own.”

“Got it.”

“Let’s go grab a meal; it’s been a while since we ate together.”

That day, I also visited Noh Ik-seon’s office nearby..

One of Noh Ik-seon’s men, standing guaard outside the office, greeted me.

Perhaps he had received word, as Noh Ik-seon came down looking aa bit anxious.

“You could have at least called, Boss. If I had known you were coming, I would have been waiting outside.”

“It’s okay, President Noh. It’s been a while.”

“Let’s go inside first.”

Upon entering the office, various documents were scattered everywhere.

Noh Ik-seon awkwardly said,,

“I didn’t know you were coming, so I didn’t tidy up. I’ll clean it up now.”

“No need for that; I won’t be here long. Just sit down.”

I took a seat on the central sofa, and President Noh followed suit.

Ever since Cheon Su-man was removed, Noh Ik-seon had been noticeablyy cautious around me.

“Is it tough for you?”

“Huh? Not at all.”

“Since all the bad debts have transferred to you, I know you’re busy, but once everything is settled, move your office to Gangnam.”

Noh Ik-seon’s eyes widened in ssurprise.

“Did you say Gangnam?”

“Yes, private loans targeting ordinary citizens, including Myeong-dong, will soon be dominated by lending companies.”

I added, looking at the slightly bewildered Noh Ik-seon,,

“Target wealthy individuals in Gangnam who are starting ventures and need quick cash. Even with high-interest rates and compound interest, there will be plenty of borrowers.”

The venture boom that started in the U.S. was now beginning in Korea.

However, there were still no genuine venture investors, so those in urgent need would have to rely on loan sharks.

In a few years, individual loan sharks would be pushed out by lending companies and flock to Gangnam.

It was still too early for loan sharks to establish themselves; we needed to plant our flag in the unclaimed territory of Gangnam first.

“That doesn’t matter whether the loan shark laws come into effect or if interest restrictions are reinstated. This market doesn’t follow the rules; there will be many people looking for short-term loans.”

Wealthy real estate investors wanting to lower taxes.

Or venture companies needing to pay their employees’ salaries.

They will have no choice but to seek out loan sharks.

“Understood.”

Noh Ik-seon nodded obediently..

Without dragging it out, he stood up and asked,

“How’s the debt recovery going?”

“It’s not as good as expected; given the current economy, there are many who just refuse to pay.”

“It can’t be helped; just don’t overdo it.”

Bad debts were typically like that, with recovery rates often below 10%.

Even loan sharks would hand over debts they deemed unrecoverable to specialized collectors for a fraction of their value.

This was Noh Ik-seon’s specialty, so I ccould only trust him with it.

“I believe in you, President Noh.”

“Don’t worry, Boss.”

* * *

“I have news from Kobe.”

“Yeah.”

In front of others, Lee Yong-hyun often appeared arrogant, but now he was bowing his head to a Japanese man.

“This time, we must ensure we can dominate the Korean lending market without any failures. The abolition of the Interest Limitation Act has led not only us but also day laborers to intrude, which is very troublesome.”

The Japanese man looked much younger than Lee Yong-hyun, yet there was no trace of respect in his gaze.

“What can I do to help?”

“We will also do our part, but please create a lending law as soon as possible, similar to Japan. It’s better to have interest restrictions. Maintain a high-interest rate of around 48%, and once all competitors are eliminated, then you can revise the law.”

Lee Yong-hyun nodded politely.

“I received your message from Kobe, but I didn’t expect you to come in person.”

“We want you to know how serious we are about this matter. The government is also reluctantly putting pressure on us. We cannot proceed with further business back home…”

“Yes, I understand, Watanabe-san.”

Watanabe Saoru, the son of the head of Yamaguchi-gumi.

This was the name of the man standing before Lee Yong-hyun.

“This is another opportunity to seek assistance from the Great Japanese Empire. We must mobilize all our resources. Do you understand?”

“Yes, I understand.”

Watanabe Saoru’s eyes sparkled.

“It seems you still haven’t dealt with the old man who kept obstructing our plans. Are we expecting too much from you, Rino?”

While his tone was even, Lee Yong-hyun sensed a sharpness in Watanabe’s voice.

Cold sweat ran down his back.

“I apologize; it has been difficult to resolve everything at once. We’ve been preparing for so long…”

“It seems everything you’ve prepared has been ruined.”

“…I have no excuses.”

As Watanabe showed his displeasure, Lee Yong-hyun lowered his head deeply.

“Is there nothing else prepared?”

“I don’t think we can act right now,” he replied.

“Then leave it be. We’ll handle that matter ourselves. For now, focus on your legislation to ensure our establishment in Joseon goes smoothly. That’s all you need to do.”

“Understood.”

With that, Watanabe stood up as if concluding the conversation, prompting Lee Yong-hyun to rise and bow his head as well.

“Remember, repeating the same mistakes could sever the ties built over generations. Do you understand, Mr. Rinoiye?”

“Yes.”

With those parting words, Watanabe exited Lee Yong-hyun’s home.

After seeing him out, Lee Yong-hyun returned to his room, gently caressing a cherished piece of pottery as his thoughts drifted.

‘Missing the presidential election and failing to manage the Myeong-dong situation properly, I have no excuses left.’

In Lee Yong-hyun’s mind, there was no vision for Korea’s future. He only thought about gaining recognition from Japan and wielding the power they offered.

* * *

A new government had taken office, but the Jungwoo Group’s accounting scandal overshadowed everything.

Beginning with Eva’s Future Investments, major U.S. private equity funds declared hostile M&As against the Jungwoo Group.

Unlike in history, the stock market saw a drought for Jungwoo Group affiliates.

Under Kim Mu-hyeok’s orders, Eva had aready secured a substantial number of shares and requested extraordinary shareholder meetings for all affiliates starting with Jungwoo Co., but the group was stalling.

Senior officials in the Ministry of Finance, influenced by Eva’s lobbying, continued reporting to the President that to save the Korean economy, they needed to abandon the Jungwoo Group.

Meanwhile, in the Blue House’s presidential office, Kim Hak-gwon was holding an emergency meeting with three close aides, long-time political partners.

“We need to cut ties with Chairman Park. Is there any other way?”

“Mr. President, Chairman Park has not had a bad relationship with us. He was one of the first to support the gold collection campaign without seeking profit for himself…”

Despite the defense from Kwon Seong-jin, the floor leader of the Progressive Party, others remained cold.

“But there’s no solution. Pressure is already coming in from the U.S., and the IMF is delaying the funds they promised. Are we saying we should sacrifice the entire nation to save Chairman Park?”

Kim Mu-saeng’s comment about the President becoming a burden led Kwon Seong-jin to fall silent.

Various opinions were voiced, but ultimately, the consensus was to abandon Chairman Park.

The decisive blow came from Park Won-seop’s statement.

“We haven’t even reviewed all the accounting ledgers, but the amount of fraudulent accounting is staggering—over 25 trillion won. There’s absolutely no way to save this. If this comes to light, all the private equity firms that are currently considering acquisition might pull out.”

Everyone in the meeting, including President Kim Hak-gwon, fell silent as they absorbed this grim reality.

“The firms interested in acquisition are all solid companies. But if they scatter into different places, it will negatively impact our economy. They’re just hyenas looking for profit.”

Park Won-seop said this with visible frustration.

“Future Investments has expressed interest in acquiring the entire Jungwoo Group, but what happens after the acquisition is uncertain. Especially with Eva Zhu’s significant lobbying power. There are suspicions that she has brought in finance ministry personnel as outside directors to manipulate the ministry’s actions.”

The Director of the National Intelligence Service, Lee Chan-jong, added.

“It’s not just suspicion. Most of the finance ministry has been influenced by Future Investments’ lobbying, big or small. The pressure from high-ranking officials is substantial.”

“So what are we supposed to do? Stop complaining and propose a plan!”

Frustrated, Kim Hak-gwon raised his voice.

No one could provide a clear answer.

Finally, Park Won-seop spoke up.

“You should ask Han Gyeong-yeong for help. Compared to other foreign capital, they tend to be more favorable to us. It would be wise to present the government’s position and request an acquisition of the entire Jungwoo Group.”

President Kim Hak-gwon already knew there was no other way.

“While they are friendly, isn’t it the same as relying on foreign capital? Do you trust Chief Park?”

“There are no domestic conglomerates with the capital to acquire the entire Jungwoo Group. We have no choice but to rely on foreign capital’s strength.”

“Sigh… It’s going to be rocky from the start. Contact Han Gyeong-yeong and have him come in.”

“Yes, Mr. President.”

“And also have Kim Mu-hyeok come in. Han Gyeongyeong said he would consider the young man’s opinion on Korean matters.”

As expected, the Blue House had no options left.

They couldn’t abandon other large corporations that were stubbornly holding on while not knowing how much public funds would need to be invested to save the Jungwoo Group.

* * *

“Yes, yes, understood.”

After hanging up the phone with the Blue House, Han Gyeong-yeong looked at me with wide eyes.

“Mu-hyeok is moving as you predicted. He asked if he could come in tomorrow.”

I nodded with a smile.

“There’s no choice but to narrow the options. Most of Jungwoo Group’s debts are short-term foreign loans.”

Just then, my phone rang.

“Hello?”

This is the Blue House secretary’s office. Is this Kim Mu-hyeok?

“Yes, it is.”

The President wishes to meet with you. Could you come to the Blue House tomorrow at 2 PM?

“Understood.”

It seems the Blue House is in a hurry.