Chapter 210: Absorption
by xennovel“Can you explain exactly what you mean by that? The word ‘absorption,’ specifically.”
“Of course. It’s not that difficult.”
I could feel their eyes fixed on my lips.
“If Soonyang Card goes bankrupt, as you said, it would be a huge shock to the public. It would also be confusing. Merchants probably won’t accept other cards either, fearing they might not get paid for card transactions.”
“And that’s not all. If there are concerns about a chain reaction of card company bankruptcies, short-term bonds won’t circulate. The flow of funds will come to a complete halt.”
The director-general added the risks lurking beneath the surface of the card economy.
“I’m well aware. But wouldn’t this send the strongest possible message to the business world since the new administration took office? Especially coming from the Soonyang Group.”
“If the shock can be fully absorbed, then yes.”
The chairman spoke calmly. He wanted to hear my answer.
“We will have a company ready to immediately acquire Soonyang Card.”
“Acquire it?”
“Yes.”
“Right now, no one would take over a card company even if you offered them extra money.”
The director-general waved his hand dismissively, as if it were nonsense.
“Jin Do-jun.”
The chairman called my name again, his tone measured.
“Yes, Chairman.”
“Since you’re part of the Soonyang Group, I’ll be frank.”
He sighed deeply before carefully beginning to speak.
“If the government takes the lead in causing the bankruptcy of a Soonyang Group affiliate, our Financial Supervisory Service will face a barrage of attacks. There are many people in the media and government agencies who view Soonyang Group favorably.”
How many Soonyang scholarship recipients must there be for the head of the Financial Supervisory Service to be this worried?
“If we can quickly resolve the situation, the arrows of criticism will lessen. We shouldn’t be swayed by that, should we? This is the new government’s first power play.”
“It’s not as easy as it sounds. You know your grandfather’s influence, don’t you, Mr. Jin Do-jun?”
“Then, if I can handle that part, will you proceed?”
“If a swift resolution is possible, we can discuss it.”
The government writing off Soonyang Card, and then, before the shock spreads, finding a buyer to normalize it? Perhaps the card crisis could be stabilized quickly. Pressure and resolution could be unleashed simultaneously.
“Please provide your desired timeline. Consider that an acquisition can happen immediately upon Soonyang Card’s final bankruptcy date.”
“Will you be the one acquiring it, Mr. Jin Do-jun? Perhaps Soonyang Life Insurance?”
“It won’t be me.”
My answer left them looking perplexed. They assumed that no one but me would be willing to acquire the bankrupt Soonyang Card.
“What in the world are you doing? Everyone’s heads are in their hands because of the card companies. Who do you think would acquire a bankrupt one?”
The director-general pressed, as if scolding me.
“Excuse me for a moment.”
I took out my phone.
“Come in, Representative Oh.”
I smiled faintly as I ended the short call.
“This is the person who has bailed out bankrupt companies whenever the Korean economy faced a crisis.”
Just then, the door opened, and Representative Oh Se-hyun entered.
They were surprised to see Oh Se-hyun but looked like they were welcoming a reliable relief pitcher.
“Well, this dinner meeting is turning out to be quite long.”
The chairman smiled and extended his hand to Oh Se-hyun.
# # #
“As you know… although Miracle is foreign capital, isn’t it a model investment firm with a strict separation of ownership and management?”
“It was unexpected. We thought you’d acquire Ajin Group and quickly tear it apart for sale… We never imagined you’d nurture it like this.”
After a few beers, the chairman showered Oh Se-hyun, who was almost bragging, with praise.
“It’ll be the same this time. If we acquire Soonyang Card, we’ll introduce advanced American methods and transform it into a transparent and sound company without any mismanagement. We don’t have an owner family’s tyranny, after all.”
Oh Se-hyun chimed in with unnecessary banter, agreeing with the chairman.
“So, the acquirer is Miracle Investment?”
When the director-general asked cautiously, Oh Se-hyun quietly put down his beer glass and said.
“No. It’s a subsidiary of US Miracle… It will be a separate corporation. The powerful chaebols who are wary of our Miracle are keeping a close watch.”
“Just one question.”
“Yes, please ask comfortably, Director-General.”
“What’s the reason for acquiring a card company in these difficult times…? Could you be honest with me?”
“The biggest reason is automobiles. HW’s new car, you know it, right? Our
“Of course. My daughter even bought that car. I even guaranteed the loan, haha.”
This time, the chairman chimed in.
“Yes. Soonyang Capital initially handled the installment sales for that car, and now the card companies do. But look at the state they’re in. It’s not our fault, but sales have plummeted because of the card companies.”
“Hmm….”
The two nodded in understanding.
“We realized this couldn’t continue, so we decided to get involved in finance directly. Of course, HW Group and both US and Korean Miracle are in agreement. Frankly, isn’t finance our specialty at Miracle? We’re confident we can do better than anyone else in Korea.”
Oh Se-hyun looked back and forth between the two men and cautiously brought up his conditions.
“If you proceed, I’d like to finish it as quickly as possible.”
“You mean to hurry?”
“Yes. Seeing the sales figures drop day by day makes my blood boil. I want to acquire Soonyang Card before the first half of this year is over at the latest. No, if Soonyang is difficult, other card companies are fine too. We can’t be picky.”
He didn’t insist solely on Soonyang, in case they suspected something. But Soonyang Card is the current target.
No self-rescue measures, no efforts to improve, and a business model that completely disregards customers. They rely solely on the Soonyang name to act carelessly, so the government might want to teach them a lesson.
“Alright. I can’t give you any definite answers right now, but we’ll discuss it with the relevant departments and let you know our decision as soon as possible.”
The chairman said with a smile, and the director-general quietly asked for what he needed.
“Representative Oh, could you prepare materials on the acquisition conditions for Soonyang Card and the management plan after the acquisition?”
“Of course.”
The Financial Services Commission’s intentions were clear.
To finish it quickly, thorough preparation is necessary. Preparation that leaves no justifiable reason for anyone to oppose it. Asking Oh Se-hyun for the materials first meant they intended to check the parts they needed to revise or supplement themselves.
“I ask again. I want everything completed by the first half of the year.”
“While I can’t give you a definite answer, as I said, we’ll quickly finalize a positive review.”
They ended the dinner meeting with smiles.
As the two from the Financial Services Commission left, Oh Se-hyun let out a long sigh.
“Are you sure about this? Acquiring a card company riddled with debt?”
“This is a long-term play. It’ll take a few years to normalize, but it’ll be a cash cow. And Uncle will cover any losses.”
“Uncle? Who? Vice-chairman Jin Dong-gi?”
“No. Vice-chairman Jin Young-gi.”
“What? Why would he do that?”
“He’s blinded by his desire to secure shares. He’s willing to pay a premium of 800 billion won to take over the acquisition rights for Soonyang Card.”
“Craz… crazy…. They’re swimming in money.”
“It’s only possible because they really are swimming in it.”
Only then did Oh Se-hyun seem to fit all the pieces together, slapping his forehead.
“Acquire Soonyang Card before maturity and pay off the debt…?”
“Yes. 800 billion won comes in for free, the card company is in our hands, and the shares are in our hands too.”
“Was this the plan from the beginning?”
“The planning was there, but the 800 billion won in free money wasn’t part of it.”
“This is insane, haha. Even if the card company is a mess, isn’t it like swimming with a life jacket if 800 billion won comes in for free?”
“We need 400 billion won just to restart services, so we’re good.”
“This is like hitting two birds with one stone and getting 400 billion won as a bonus….”
“It’s too early to celebrate. This is only possible if the government makes a decision. And I have to hand over the acquisition rights to Vice-chairman Jin Young-gi tomorrow. If I don’t hand them over by tomorrow, he said he’ll consider me someone aiming for the Soonyang Group chairman position and won’t just stand by and watch.”
“Tomorrow? Then if we can’t get Soonyang Card…? Oh, no!”
“Instead of hitting two birds with one stone, it’ll be a complete wash. We’ll just break even.”
Suddenly, Oh Se-hyun jumped up.
“We don’t have time for this. Let’s go, we need to prepare the materials for the Financial Services Commission.”
* * *
“That’s right. It wouldn’t make sense if it wasn’t a deal with double the profit.”
Vice-chairman Jin Young-gi greeted me with a beaming smile.
“Honestly, I feel a bit sorry.”
“Sorry? No, it’s fine. What’s there to be sorry about when family members are exchanging money?”
“I mean towards my second older brother. I should have told him first, but I couldn’t bring myself to.”
“It’s fine. It’ll be easier for me to tell him than for you. I’ll be the one to deliver the bad news.”
“Yes.”
My uncle patted my shoulder as he saw my stiff expression.
“I said it’s fine. More importantly, let’s prepare the contract quickly.”
“There’s a standard contract, so I’ll prepare it and bring it by tomorrow morning. The lawyer review….”
“Review what? Just make it quickly and bring it. I’ll stamp it and deposit the money right away.”
“Yes.”
As I left the vice-chairman’s office, a sense of unease lingered.
Having met with the Financial Services Commission people last night, Grandfather should have called me by morning at the latest. That’s the norm.
No matter how new the administration is, the civil servants remain the same. If they put Soonyang Card on the meeting agenda, someone would have rushed to report to Grandfather, ask for his opinion, and get his permission.
Since they would have also reported that this plan came from me, Grandfather should be looking for me.
But my phone hasn’t rung, making me incredibly anxious. Is it possible that he absolutely won’t tolerate a Soonyang affiliate going bankrupt?
It’s better to eliminate any sources of anxiety as soon as possible, before signing the contract to hand over the bonds.
I headed straight to the parking lot from the vice-chairman’s office.
* * *
“Why? Are you so anxious because you think I might interfere?”
He really does know everything.
“Are you alright with this?”
“With what?”
“It’s like tarnishing the Soonyang name.”
“Look at this guy. You’ve already done it all and now you’re watching my reaction?”
“I apologize. Things moved so quickly that I couldn’t tell you beforehand.”
“These things need to be done at lightning speed. It’s fine.”
He spoke as if it were nothing, which was a relief.
Then, cautiously observing Grandfather’s expression, I asked.
“Who contacted you?”
“That fellow who’s the Blue House Economic Chief of Staff called me as soon as day broke. He said it was the Financial Services Commission chairman’s proposal. He mentioned several times that you were the initial proposer. He figured it out too. That this is a family squabble.”
“The Blue House must have been reluctant to get involved in our family feud?”
“It’s a good opportunity for them too. Didn’t you say it? It’s the perfect chance to give the big corporations a warning.”
“Yes.”
“They’ve only been in power for two months. They’re at their peak popularity, and the media is being cautious, calling it a honeymoon period. They probably want to flex their muscles. You created that opportunity for them, so they must be thrilled. The timing is perfect.”
It was a bit ambiguous whether it was praise or an assessment, but his expression remained gentle.
“But Do-jun.”
“Yes.”
“Are you confident you can revive a card company that’s in such a terrible state?”
He hasn’t skipped the most important question. He’s still sharp.
“If I’m not confident, what should I do?”
“Discard it.”
Hearing Grandfather’s clear answer made me feel like I could fly.