Chapter 97: The Hyenas’ Dream

Il-sung Daehyeon and many cconglomerates began holding endless meetings to discuss the acquisition of Jungwoo Group’s key affiliates.

“What synergy could we gain by taking anything from Jungwoo?”

In the conference room gathered by the executives of Il-seong Group,,

the heads of various affiliates all tried to express their opinions in response to Chairman Seo Yong-geon’s remarks.

“If acquiring Ahsin Motors is difficult, we should consider acquiring Jungwoo Motors instead. The synergy would be significant.”

It was the statement from Ha Seong-hoon, the president of Il-sung Motors. Seo Yong-geeon, who had been listening intently, interrupted.

“How could you talk about acquiring another automaker when we can’t even grow Il-sung Motors properly? Thhe entire group is shaking because of it!”

“But…”

“I jumped into the automotive industry out of greed, but do you think I don’t know how Il-sung Motors has fared thhese past few years? I’ve kept you in that position out of our long-standing relationship.”

Il-sung Motorss

was a sore spot for Il-seong Group..

They had entered the automotive industry with great ambition in 1995, and only this year did they finally start producing mass-market cars, but the market response was poor.

Since the previous chairman had long desired this venture, Seo Yong-geon, a car enthusiast, had jumped in without proper market research.

It was a strategic choice to grow through Daehyeon, but it couldn’t be considered a success.

“So wouldn’t acquiring Jungwoo Motors be a better option? We’re just starting out, but Jungwoo is already a well-known company abroad.”

“I know, but now is the time for selection and concentration. Jungwoo Motors’ troubles are well-known. Let’s think about this after we get through this crisis; for now, focus on maintaining our current status.”

Seo Jae-hoon, who had been listening to the conversation between Seo Yong-geon and Ha Seong-hoon, spoke up.

“If we have to choose and concentrate as the chairman says, I believe acquiring Jungwoo Electronics would be a good idea. There would be synergy with Il-sung Electronics too.””

“Jungwoo Electronics, huh?”

“Yes, regardless of your capital, we cannot overlook the existence of their production facilities spread across the globe.”

While the quality of Jungwoo’s electronics was inferior to Il-sung’s products, they booasted durability.

Most importantly, they had factories in various locations, including Eastern Europe, and were performing quite well in Europe.

“Jungwoo Electronics…”

Noticing Seo Yong-geon’s somewhat skeptical demeanor, Seo Jae-hoon quickly added,

“We had planned to build a factory in Europe, which fell through due to the foreign exchange crisis, right? If we can acquire Jungwoo Electronics at a low price, we can make use of their facilities. This is the consensus of everyone in the restructuring division, including myself.”

“The consensus of the restructuring division, you say?”

“Yes, while we all agree on reducing the group’s size, we believe our main business, electronics, needs to continue growing.”

Seo Yong-geon nodded in satisfaction.

“Alright, then let’s have Executive Seo think of a plan to concentrate the group’s capabilities on acquiring Jungwoo Electronics.”

“Thank you, Chairman!”

Though Seo Yong-geon rarely smiled during the board meetings, he was generous with his successor, Seo Jae-hoon.

“How is the restructuring going?”

“We plan to lay off over 30% of employees across the affiliates. The foreign exchange crisis has posed liquidity issues, but it also presents an opportunity to get rid of high-salaried workers.”

“Right, don’t hesitate to proceed.”

“Understood.”

Looking at Seo Jae-hoon with a pleased expression, Seo Yong-geon shifted back to his usual impassive face and surveyed the affiliate heads one by one.

“This is an emergency, you understand? You could be ousted from your position at any time. Consider everything coming down from the restructuring division as my orders, got it?”

“Yes, Chairman!”

The executives responded in a booming chorus.

After the meeting, Seo Jae-hoon moved to the chairman’s office with Seo Yong-geon.

“Director Lee.”

“Yes, Chairman!”

“How is the restructuring of the governance structure coming along?”

“We’ve deployed all personnel from the secretariat to strategize. Thanks to the foreign exchange crisis, we should be able to do it at a low cost favoring Executive Seo Jae-hoon.”

Hearing the report from the secretary, Seo Yong-geon nodded, smiling at his son.

“Just keep it up like this, and Il-sung will be in your hannds. Soon, we’ll be in an era where we don’t have to worry about the government’s scrutiny. By then, Il-sung must be at the pinnnacle of Korea.”

“Yes, Father.”

The atmosphere was warm.

However, the secretary’s following words doused the warmth.

“The shares of Chairman Cheon from Pyeongchang-dong are problematic.”

“Ah… that old man isn’t going to go down easily.”

“He has recently transferred a considerable amount of convertible bonds in exchange for urgent dollars. The issue is not only the convertible bonds but also that the stocks of key affiliates have been pledged as collateral. There’s a chance they might face restrictions on voting rights due to lawsuits.”

With a furrowed brow, Seo Yong-geon pondered something suddenly.

“Most of the shares have passed on to Kim Mu-hyeok, right?”

“Yes.”

“That old man didn’t care about Ji-soo or Ji-soo’s interests…”

“Isn’t it because of Cheon Su-man?”

At the mention of Cheon Su-man, Seo Yong-geon clicked his tongue.

“Though he arranged a political marriage for his son, I never liked that brat from the start. How could he marry my daughter to a mere family of gamblers? What about Hee-kyung?”

“Miss Ji-soo is managing a hotel with her. She has shown remarkable abilities, with over 100% growth compared to last year.”

Hearing about Ji-soo, a smile returned to Seo Yong-geon’s face.

Seo Jae-hoon, who had been observing intently, slightly furrowed his brow, but no one noticed.

“Ji-soo was always smart; let Hee-kyung handle the hotel and call Ji-soo to join the group.”

“Yes, Chairman!”

“Once Chairman Cheon passes away and we file a lawsuit, we can reclaim a significant portion of Kim Mu-hyeok’s assets. Prepare i advance; if we can negotiate to only acquire Il-sung’s shares, we shouldd do so.”

“Understood.”

“And Executive Seo, when Ji-soo joins the group, nurture her to become one of your trusted four. Blood relations may be unreliable, but they are also the only ones you can truly trust. Do you understand what I mean?”

“Yes, Father.”

Seo Jae-hoon had other thoughts, but he didn’t show it in front of his father.

“Let’s take this opportunity to surpass Daehyeon. That’s why I jumped into the acquisition war for Ahsin Motors—inflate the acquisition price as much as possible.”

The rivalry between Daehyeon and Il-sung had been longstandiing, akin to that of cats and dogs.

Similar situations were unfolding among the top ten conglomerates.

What could they acquire that would benefit them? The minds of the companies were filled with thoughts of how to acquire Jungwoo Group at a bargain price, away from government scrutiny.

* * *

At that moment, while each company was engaged in discussions,

“Don’t give me a proper answer.”

“Okay.”

“Whatever I say, just say you’ll think about it.”

As we drove toward the Blue House, I explained today’s plan to Han Gyeong-yeong.

“Come on in.”

Kim Hak-gwon, who was in the office, welcomed Han Gyeong-yeong and me with a smile.

“Is everything going well with your work?”

“Yes, Mr. President.”

As Kim Hak-gwon casually inquired about our recent activities, he quickly got to the main point with some urgency.

“What do you think about Jungwoo Group?”

“Are you talking about Jungwoo Group?”

“Yes.”

“They have a lot of debt, but they’re still a good company. It happened due to reckless expansion. If it were in the U.S., Chairman Park Dae-ho would be spending his retirement in prison.”

“Hmm…”

“Haven’t Future Investments and various private equity funds expressed interest in acquiring them? Especially Future Investments seems to want to take over the entire Jungwoo Group. Looks like a good opportunity has presented itself, Mr. President.”

I listened closely to the conversation between the two, carefully observing President Kim Hak-gwon’s expression.

The president’s mask remained unbroken.

“We can’t just hand over Jungwoo Group to foreign capital, can we?”

“Setting aside Jungwoo Group’s debts, its size is just too massive. It’s beyond what we can handle domestically.”

“What are your thoughts?”

Kim Hak-gwon shifted his focus toward me.

I smiled nonchalantly and delivered the prepared response.

“Private equity funds are risky. Their main priority is profit. They don’t care about a company’s growth potential or its status in Korea. They only move for their own gain.”

Kim Hak-gwon smirked slightly at my pinpointed remarks.

“As you said, there aren’t many who would acquire the entire group. Future Investments is likely the best choice. However, there are options to sell some solid companies to Korean chaebols. If that happens, who would really be interested in Jungwoo Group…?”

“The Ministry of Finance and my advisors share the same view.”

“If I had the funds to acquire it, I’d buy Jungwoo Group. Sure, it has a lot of debt, but if we can navigate through the liquidity crisis, growth is always possible.”

Seeing Kim Hak-gwon nodding, I added,

“It would take a long time, but it would be in your best interest to prevent the dissolution of Jungwoo Group. Whether it’s foreign or domestic capital, it doesn’t matter. However, you should refrain from injecting public funds.”

“If public funds are injected, we might not have to dissolve it but revert to an emergency status instead,” he muttered sadly.

I shook my head.

“We can’t let Jungwoo Group collapse by jeopardizing solid companies just because they lack dollars. Especially with the U.S. leading the charge, they won’t just sit back and watch.”

What I said likely aligned with the opinions of the economic bureaucrats and advisors, including those from the Ministry of Finance.

After hearing my response, the president seemed to ponder for a moment before asking Han Gyeong-yeong,

“What kind of investment firm is Future Investments?”

“As far as I know, it’s a pretty solid investment firm. So far, they’ve seemed focused on real estate, but considering they’re looking into acquiring Jungwoo Group, they must know how to take advantage of Korea’s crisis. They might consider long-term investments. However, the source of their funds…”

“That source isn’t what’s important right now. We need dollars immediately. No, we need to save Jungwoo Group!”

“I understand that.”

“Are you considering acquiring Jungwoo Group?”

“Me?”

“Yes, I hope Dream High Investment can take over.”

“Hmm…”

As I spoke, Han Gyeong-yeong showed signs of contemplation.

Seeing Han Gyeong-yeong hesitate to respond, President Kim Hak-gwon frowned in frustration.

“You are an American by nationality, but you were born in Korea. I’m making this request because you’re Korean. If we can navigate this crisis, the government will help ensure a good acquisition price. What do you think?”

“The debts of Jungwoo Group are too massive. The amounts lost to accounting fraud and embezzlement are significant. While I enjoy aggressive investments, the risk is just too high.”

“Just hold on a moment.”

When Han Gyeong-yeong politely declined, President Kim Hak-gwon finally acted like someone who was placing money into a trust.

“Please take it on… Mr. President, I’m not a philanthropist, you know?”

“…”

“If I were to enter the bidding for Jungwoo Group, I would do so with the aim of making it the world’s top company. I have no intention of jumping in just to flip it for a good price. However, Jungwoo Group isn’t as attractive as the quality companies in the U.S., is it?”

This was the fundamental issue in Korea.

Apart from the collusion between politics and business, the government’s interference in corporate affairs was far too deep.

The upcoming business exchanges were no different.

Forcing conglomerates to sell their companies to firms that suited the government’s taste was routine.

It was the same during the military regime and still persists in this era of democracy.

“If you want me to acquire Jungwoo Group, then present me with an attractive offer as an investor. Money has no emotions. While I care for Korea, my patriotism isn’t enough to justify such a hefty bet.”

Seeing Han Gyeong-yeong’s demeanor, which was completely different from how other conglomerates treated him, the mask Kim Hak-gwon wore began to crack.

Noticing the president’s furrowed brows, I decided to speak up.

“Mr. President, may I say something?”