Chapter 98: The President’s Suspicion

“The influence that Jungwoo Group has in Korea is undeniable, but we shouldn’t be too quick to reject foreign capital either.”

“Which is exactly why I’m asking Boss Han for help.”

“Boss Han must be in a tough spot. Who wouldn’t want to help? But taking over a company temporarily, especially with no guaranteed profit and so much risk involved… What investor would willingly do that?”

As I spoke in a pleading tone, Kim Hak-gwon’s expression relaxed slightly.

“You can’t pressure Boss Han like you do with the chairmen of our domestic companies. If he decides to pull out of Korea, that’s it. He came here with good intentions—do you really want him to leave with only bad memories?”

“Ahem.”

President Kim Hak-gwon cleared his throat, having his true thoughts exposed.

“The era of government control is over. Since the IMF stepped in, we’ve entered a new age of fierce competition. Domestic companies can be bought by foreign capital, and local capital can acquire overseas companies. The government needs to step back and take on more of an observer role now.”

“But the economy should still be under the state’s control.”

This was a clear reflection of President Kim Hak-gwon’s progressive views.

“The IMF situation is the result of reckless management under government control. Excessive intervention in a free-market era is not a cure, but a poison.”

Han Gyeong-yeong nodded slightly at my words.

Seeing Han Gyeong-yeong’s focused attention on me, Kim Hak-gwon quickly began trying to convince me.

“So, are you telling me we should hand Jungwoo over to Future Investments and foreign private equity funds?”

“Whether Future Investments or private equity takes over, the point is that the government shouldn’t intervene too much.”

“We can’t just let Jungwoo be torn apart. Absolutely not.”

It was partly for the sake of the national economy, but ultimately, it was a political decision.

“Then you should proceed with negotiations with Future Investments.”

“You sound just like the bureaucrats from the Ministry of Finance.”

“I believe it’s the best course of action.”

He let out a heavy sigh.

“Why do you think Dream High Investment has no interest in Jungwoo?”

“Oh, I’m sure they have interest. When I came here with Han, I had my suspicions. But the deal you proposed, Mr. President, just wasn’t acceptable.”

Kim Hak-gwon glanced over at Han Gyeong-yeong.

“Is that really true?”

With a blank expression, Han Gyeong-yeong slowly nodded.

“It wouldn’t be true to say we’re not interested, but Mr. President, no one knows the full extent of Jungwoo’s debt.”

“You need to tell us what terms you can offer Dream High. Only then can we negotiate.”

President Kim Hak-gwon frowned but didn’t argue.

A moment later, he called for his chief secretary.

“You called for me, sir?”

“What’s the exact debt situation at Jungwoo Group?”

The secretary glanced at me and Han Gyeong-yeong, hesitating to answer.

“Don’t worry about them. Just give me the facts.”

“…It’s estimated to be around 50 trillion won.”

The staggering amount of debt momentarily shook Kim Hak-gwon’s composure, but he quickly regained his calm.

“And how much of that debt is with domestic financial institutions, excluding overseas liabilities?”

“Approximately 27 trillion won.”

After a moment of deep thought, President Kim Hak-gwon spoke in a heavy tone.

“We can’t forgive the overseas debt, but we could try to alleviate the domestic debt as much as possible. However, would you be willing to own the company while leaving the management to a Korean?”

Han Gyeong-yeong pretended to consider the offer before replying.

“It’s hard to give you an answer right now. I’ll need to contact the U.S. first. I’ll get back to you with a decision as soon as possible.”

“Please do.”

And with that, the meeting with the president concluded.

It went just as I had expected.

* * *

After Han Gyeong-yeong and I left, President Kim Hak-gwon continued his conversation with the chief secretary.

“There’s something off about Kim Mu-hyeok. Have the National ntelligence Service Director look into him thoroughly.”

“Understood. But isn’t he just the heir to Chairman Cheon’s fortune?”

Kim Hak-gwon, deep in thought, shook his head.

“No, it’s more than that. Boss Han is clearly paying attention to him. After all these years in politics, I can read these things. Kim Mu-hyeok must have some kindof hold over Han Gyeong-yeong, or maybe he’s connected to the real owner of Dream High. Reach out to the U.S. embassy as well.”

“Understood.”

“But don’t make it obvious. We can’t risk upsetting Boss Han right now. Focus on Kim Mu-hyeok, and investigate hi from top to bottom.”

“Yes, sir.”

Kim Hak-gwon, a veteran of the political scene, could instinctively sense that there was more to Kim Mu-hyeok than met the eye.

“Tomorrow, meet with the creditors and figure out the full extent of Jungwoo Group’s debt. We need to know how much we can forgive.”

“Are you planning to hand it over to Dream High?”

Kim Hak-gwon nodded.

“No matter how I look at it, Future Investments isn’t the right choice. Their funding sources are too unclear. There are rumors it’s backed by Hong Kong capital, but even the National Intelligence Service couldn’t verify it.”

“Yes, we discovered that the shares are divided between five different corporations. But because they’re all registered in tax havens, we couldn’t identify the actual owners.”

At this, Kim Hak-gwon let out a deep sigh.

“There’s no way to know if that money’s from China, Japan, or even North Korea’s slush funds. But Dream High is an American-based investment firm, isn’t it?”

It seemed like he was trying to reassure himself.

“Let’s wait for their response. In the meantime, we’ll prepare. I never expected Chairman Park to end up like this. Earlier this year, when he acquired Yong-sang Motors, he said Jungwoo was in the clear…”

They say you can read the depths of water, but not the depths of a person.

President Kim Hak-gwon couldn’t help but blame himself for his misjudgment.

* * *

“What do you think, brother?”

“About Jungwoo Group? You want my honest opinion?”

“Yeah.”

“Is there any point in acquiring a debt-ridden company? You can make more money just by investing in stocks and currencies. If we need a company, there are plenty of great ones in the U.S. Why bother with one in Korea?”

Han Gyeong-yeong didn’t fully grasp the power of Korean conglomerates.

Having spent more time in the U.S. than in Korea, he saw things from an American perspective.

“In Korea, being a conglomerate isn’t just about having money. Il-sung, Daehyeon—most of tthe conglomerates here are part of the elite class.”

“Yeah, but isn’t the IMF’s ultimate goal to dismantle the Korean conglomerates anyway?”

“It’s not that simple. It may look unfair to the U.S., but in Korea, conglomerates hold unshakable power. Unless Korea becomes like Japan after the war, where they had no choice but to break up, it won’t happen.”

“Hmm…”

“The title of a conglomerate carries a lot of weight in Korea. That’s what we should be aiming for.”

Han Gyeong-yeong nodded.

“Alright, if that’s what you think, let’s go for it. How much of that 50 trillion debt do you think we can write off?”

“Probably more than half. But I’ve been thinking—it might be better to take on all of the debt.”

“What? Why?”

“We can use the debt as an excuse to carry out a capital reduction and delist the core subsidiaries voluntarily.”

Han Gyeong-yeong, mentally calculating the plan, shook his head.

“…That’s going to be incredibly complicated.”

“We have experts. So what if it’s complicated? It’ll be cheaper in the long run. We’ll present it as part of the deal: we’ll voluntarily delist, but we won’t move the company overseas, and we’ll let one of Jungwoo’s original executives handle the management.”

“Even if it doesn’t meet the delisting requirements?”

“That’s right. I’ll try to secure as much of the stock as possible, but some people will hold out until the end.”

“If you exclude the shares held by Chairman Park and his related parties, domestic financial institutions probably own about 20-30% of the circulating shares, right?”

“It’s probably less. I already have a substantial amount, and so does Eva. The problem is the shares held by private equity funds, but that’s where you come in. Negotiate with them. Offer them a premium; you can probably buy them out at 15 times the value if we announce a capital reduction.”

To delist voluntarily, we needed to control 95% of the shares.

Even with a public tender offer, it wouldn’t be easy to gather enough shares, as most of the stock in Jungwoo Group’s core subsidiaries was held by institutions.

“Set the acquisition price at 100 won, with the condition that we assume all the debt. The details can be worked out with the experts.”

“Got it.”

As we gazed out at the Blue House growing smaller in the distance, both Han Gyeong-yeong and I fell into deep thought.

After two weeks of intense discussions with accounting experts from both the U.S. and Korea, Han Gyeong-yeong decided to proceed with the acquisition, taking on all the debt.

Jungwoo Group’s debt had already exceeded its capital erosion point, so Han Gyeong-yeong believed debt relief was inevitable.

“You handle it. The experts will know better than I do.”

― I’ll contact you once the negotiations with the government are wrapped up.

After finishing the call with Han Gyeong-yeong, I glanced over at Manager Ma and smiled.

“How many people have arrived?”

“We’ve got one team here for administrative duties and as an immediate protection detail.”

“Only one team?”

“Yes, ten men.”

I tilted my head.

“Isn’t that a bit too few?”

“This team is specifically assigned to your personal protection. The members are all elite operatives from the Black Bear group. As for your grandmother’s security, we’re hiring local personnel. We felt it would be better to have Korean staff rather than foreigners.”

It did make sense not to entrust my grandmother’s security to foreigners, as Manager Ma had mentioned.

“When will the local team be ready?”

“The job posting is already out. We’ve also received referrals from some of our connections. Once the first team arrives, the team leader will personally conduct tests and select the final candidates. Everything should be ready within a month.”

I nodded in agreement.

“For now, your team is handling security, right?”

“Yes, they’re stationed next door. To avoid causing any discomfort, they’re keeping their distance while maintaining surveillance.”

“No suspicious activity so far?”

“There’s been nothing unusual since that incident.”

“Stay alert. They’re already in the country by now, I’m sure of it.”

“Understood.”

I was confident in my financial resources, but I couldn’t predict what they might do.

If they were cornered, they could resort to targeting the people around me. I had to be fully prepared.

“Did you look into whether there’s a Yakuza group in Japan led by a Korean-Japanese boss?”

“We sent staff to investigate. Most of them are affiliated with the Yamaguchi-gumi. It’s a long-standing organization with strong political connections, so it would be difficult to challenge them directly.”

“Hmm…”

As I pondered the situation, Manager Ma spoke up.

“Rather than trying to recruit a Yakuza group with a Korean-Japanese leader, how about we provoke a split within the Yamaguchi-gumi itself?”

“Is that even possible?”

“It’s a massive, old organization with many factions. We’ve received reports that some of the deputy leaders aren’t on good terms with the current boss. What if we support one of them?”

I fell silent, deep in thought.

‘Stirring up internal conflict, huh?’

Suddenly, an idea came to mind.

A few years later, the Yamaguchi-gumi would split into two.

“Let’s go with that. Find out which faction we should back to ensure a complete break from the current boss. I’m sure there’s already tension over the succession issue.”

“Shall I make contact?”

“Won’t that be dangerous?”

“In Japan, everything can be solved with money.”

“Don’t worry about the money. Just make sure they split.”

“Understood, boss.”

If we provided the funds, they’d likely act sooner, increasing our chances of success.

“You’ll handle this personally, Manager Ma. No matter the cost, make sure it happens. We’re planning to bleed Japan dry.”

Japan was already on the brink of collapse.

Old companies were going bankrupt, and both securities firms and banks were failing.

Though they had temporarily avoided disaster, thanks to abundant dollars and U.S. support, their situation remained precarious.

Just then, my phone rang.

“Hello, this is Kim Mu-hyeok.”

― Kim Mu-hyeok? It’s a pleasure tofinally speak with you.

“Who is this?”

― This is Watanabe Saoru.

The voice on the other end spoke in English.

I instantly recognized the name, but I feigned ignorance.

“I’m not familiar with that name.”

― I’ve recently started a new business in Myeong-dong. I’d like to meet you sometime.

What kind of game is this guy playing now?