Chapter 134: A Risky Proposition

“Alright, now that we’ve introduced ourselves, let’s sit. Would you like some coffee? Or perhaps some domestic tea?”

“Just water, please. My throat’s parched.”

Loosening his tightly knotted tie, Lee Sang-soo let out a soft sigh.

Judging by the atmosphere, it seemed I should make myself scarce. This didn’t feel like a casual chat.

“Then, please continue your conversation. I’ll take my leave….”

“Do-jun. Wait a moment.”

Oh Se-hyun swiftly stopped me from leaving, turning to Lee Sang-soo with a question.

“Sang-soo, are you here for a personal matter? Or is it business-related?”

“Yes? Ah, a bit of both….”

“Be precise. Rushing to the office without any prior notice suggests it’s urgent, doesn’t it?”

“Why do you ask?”

“If it’s about work, then this friend should be included.”

Lee Sang-soo’s eyes flickered with surprise. He hesitated briefly before nodding.

“It’s work-related. However, it’s something that shouldn’t be disclosed outside….”

“Don’t worry about that. He’s more tight-lipped than I am. Do-jun, have a seat.”

I sat back down, studying Lee Sang-soo intently.

In ’94, he’d launched communication software that allowed sending faxes via PC without a fax machine, along with a PC communication emulator. This led to massive fundraising success, and he was now the president of a company soon to go public.

Yet here he was, the most talked-about venture capitalist in Yeouido, on the verge of striking it rich, rushing in for a confidential discussion. What could be the matter?

“Actually, our company plans to go public around summer.”

“Oh! Congratulations! Now you just have to sit back and enjoy the wealth. A pity, I should have thrown some money your way.”

As Oh Se-hyun patted his back in congratulations, Lee Sang-soo wore a bitter expression.

“What are you saying? You were the one who declined the investment. Haha.”

“A company founded by Seoul National University and KAIST graduates worrying about investors? You must have had a line of people with bags of money, picking and choosing, right?”

Lee Sang-soo scratched his head sheepishly.

After all, this industry was also a playground for the elite. Amateurs boasting about money and trying to invest would only earn ridicule.

“Truthfully, I wanted to invest, but this guy talked me out of it. You might know, but our Miracle only dabbles in a few early online game companies. We don’t touch venture capital investments.”

Lee Sang-soo asked with a puzzled look.

“Why do you avoid ventures? Is there a specific reason?”

“Aren’t ventures just small to medium-sized businesses? For a company of Miracle’s scale to jump into that market for pocket change is inappropriate. Miracle acquired Ajin Group and Dae-ah Construction. We have to maintain our ethics.”

I made it sound a bit arrogant.

Truthfully, I disliked this man.

If he had steadily grown his company based on solid technology, it would have remained a great enterprise. But blinded by quick riches, he chased after going public and ended up failing.

Because of that, hundreds of thousands of ordinary retail investors suffered. And no one took responsibility.

“Is that so? However, Soonyang Electronics extended a love call to us.”

My tone must have displeased him. He retorted immediately with a sulky expression.

“See? Our Miracle has no connection with Soonyang Group!”

Sensing the tense atmosphere, Oh Se-hyun interjected with a laugh.

“Alright, overflowing with investors and about to go public. With only good things ahead, what troubles our junior?”

“Actually, I’m a bit scared.”

His unexpected words startled both of us.

Scared, when it should be a celebratory atmosphere?

“Our company hasn’t escaped the red yet. We’re exploring monetization models, and the prospects look somewhat promising….”

“The core of venture IPOs is potential. It’s not new for companies to go public while still in the red. It’s not just one or two.”

That was true.

Companies with barely any visible potential have been going public since late last year. Moreover, their stock prices are soaring tenfold, twentyfold.

“We’re a bit different from those companies. I’m confident we won’t just be a flash in the pan.”

Seeing the glint in Lee Sang-soo’s eyes, something felt off. Was this not the person I knew?

“Actually, I’d like to go public after turning a profit, but the investors aren’t leaving me alone. They’re pressuring me to go public as soon as possible.”

Were there hidden circumstances? A forced IPO?

“Then resist. You started the company with two juniors, right? You still hold the majority of the management shares, don’t you?”

“Well….”

“What? Already?”

The IPO must be imminent. The founders’ shares had fallen below half.

“I currently hold 25%, and the two juniors who started with me have already exited.”

“What? Aren’t they the core developers? What happens if they leave?”

“They handed over their stock to the investors but remain with the company. Development isn’t an issue.”

“Then persuade the investors. Ask them to wait. You’ll see greater profits if they do….”

“They’re unyielding. They insist on pushing for the IPO by August at the latest.”

Lee Sang-soo glanced at Oh Se-hyun. The perceptive Oh Se-hyun didn’t miss it.

“What is it? It seems there’s another reason behind all this?”

“So… is this even possible? When the founder says it’s not ready, but the investors push forward….”

“It happens a lot.”

Oh Se-hyun stated firmly.

“The market’s hot right now, and they don’t want to miss this opportunity. Even if your company only does moderately well, it’ll be a tenfold return. A company’s future? What investor cares about that? What if the market crashes before the IPO? I’d be pushing for it too.”

“It’s not just pushing; it’s bordering on threats.”

“What?”

“They say if I keep opposing, they’ll dig into everything about me. If they find even a speck of dirt, they’ll throw me in jail.”

Words failed me. With threats like that, there’s only one explanation.

“Did you perhaps receive funds from organized crime?”

At my careful question, he shook his head vehemently.

“Absolutely not. As I mentioned earlier, I was selective with investors.”

“But there is some ‘dirt’?”

“It would come out if they dug. I splurged a bit in the early days with the investment money.”

“Well, no one in that position doesn’t….”

Living off cup ramen and sleepless nights, then a lump sum of money comes in. Naturally, a sense of entitlement kicks in, and you spend without guilt. Isn’t that the ABCs of the venture market?

“Investors who resort to threats… this isn’t good….”

Oh Se-hyun frowned, and Lee Sang-soo said with a trembling voice.

“Do you have any insights? You’re a legend in this industry, sunbae-nim. You must have seen it all….”

“Some serious players are involved. If they’re threatening the CEO, it’s a sign of ultra-short-term capital. Once your company goes public, pump-and-dump schemes will follow immediately. I’m certain of it.”

Listening to their conversation, everything became clear.

I had stumbled upon the secret of New Data Technology, the unbroken myth of the Korean stock market that soared 600-fold in six months.

April of next year would be the 16th National Assembly election.

The current opposition party, having lost power, was sharpening its knives for a counterattack, while the ruling party was betting everything on a stable second half of its term.

It would be a bloodier battle than ever.

Fierce battles require ample ammunition. This year’s KOSDAQ frenzy was undoubtedly fueled significantly by their actions.

“You’re already on a tiger’s back. Be honest, how much company money did you use?”

Lee Sang-soo hesitated for a moment before lowering his head.

“A little over a billion won.”

“There’s no getting out now. If they sue, you’re facing jail time.”

Lee Sang-soo’s face turned ashen.

“The order is just changing. Just think of it easily. Once you go public, more funds will come in. Use that money to hire top talent and grow into a legitimate company. Your business idea isn’t just hot air, is it? Work hard and make it profitable.”

“You said there would be pump-and-dump schemes. And yet, you’re telling me to go public?”

“You’re not planning to sell at the peak and wash your hands of it, are you? You just need to focus on the business.”

This obvious advice wasn’t what this man was hoping for. The situation seemed much more dire.

“Excuse me, sunbae-nim. Oh, right. May I call you sunbae-nim?”

“Ah, now that you mention it, we’re university alumni. Feel free to call me that, hoobae-nim.”

Lee Sang-soo’s expression brightened slightly.

“It seems you haven’t said everything yet, sunbae-nim. If it’s because of me, I can leave.”

“No, it seems like you’ll find out anyway.”

He subtly observed Oh Se-hyun’s expression, who nodded as if it were a given.

“Would you consider investing in our company, sunbae-nim? Actually, that’s the request I came here to make.”

“What? Me?”

“Yes. Either personally or through your company. We’re discussing paid and free capital increases to raise capital. That would further increase their shares. If you became the major shareholder instead, wouldn’t the pump-and-dump groups give up?”

He was desperately trying to dilute the existing investors’ power, even if it meant taking on water.

“I’ll ensure you won’t lose money, sunbae-nim. I don’t mind giving you all my shares. Let’s postpone the IPO and take the legitimate path. I don’t want to disappear in the dot-com bubble.”

It seemed too late, or was it just me?

Oh Se-hyun stopped me from saying anything, blinking briefly before speaking quickly.

“Let me think about it. It’s not an easy decision. We don’t keep cash piling up in our deposit accounts either. I need to check if we have funds available, and I can’t ignore our investors’ opinions.”

Disappointment filled Lee Sang-soo’s face. Everyone in Yeouido knew that a company of Miracle’s scale could spare ten or twenty billion won like pulling cash from a wallet.

This was clearly a polite refusal.

“Sunbae-nim, if the conditions aren’t sufficient, please tell me. I’ll meet your demands somehow. I’ll transfer all my shares right now. Just keep me on as a professional manager. Let me prove myself by turning a profit and showing you our vision.”

“That’s why I’m saying I need to consider everything. It’s hard to give you a definite answer right now. I understand how urgent this is for you, so you don’t need to say more.”

Lee Sang-soo stood up with difficulty. Seeing his state, he was likely visiting every potential investor he could find.

This might be the last place left. Having realized there’s no getting off the running tiger, he was in despair.

As Lee Sang-soo left, Oh Se-hyun immediately started making calls.

After gathering information for a while, his sighs deepened.

“He’s completely caught, isn’t he?”

“Looks like it.”

“If they’re shaking him down about using company funds, isn’t that the power of the prosecution behind them?”

“Who do you think it is?”

“The guys on the west end of Yeouido, probably.”

Oh Se-hyun nodded.

“That’s the strong possibility.”

“Do you have any intention of investing?”

“Sang-soo knows too. Even if we invest, the existing investors would never accept it. They painstakingly set the banquet, would they just watch someone else come and grab a spoon?”

“He’s running around trying anything, isn’t he?”

“That’s right. Now he’s just going to be dragged around by the whims of those forces.”

“That’s a shame. After all that hard work, he’s going to end up in prison. Tsk tsk.”

“What? Prison? Why would that kid go to jail?”

Oops….

What a mistake…….”