Chapter 214: Cold Words from Oh Se-hyun

The government officials snapped to attention at Oh Se-hyun’s cold statement.

The financial sector isn’t the only one responsible financially. Ordinary consumers who recklessly swiped their cards are in the same boat.

“Representative Oh, what are your plans for the delinquent cardholders?”

“Will the government be writing off their debts?”

“No, not yet. If it were household debt, we might consider options, but this involves credit cards. We’re wary of public criticism regarding moral hazard.”

“If the government won’t intervene, I’ll handle it myself. You don’t need to worry about it.”

The Blue House Economic Chief of Staff wore a troubled expression. If Oh Se-hyun attempted aggressive debt recovery, that would also be a burden.

“Are you perhaps considering selling the non-performing loans? To a company that specializes in that sort of thing?”

Those ‘specialized’ companies are the ones operating under the guise of ‘credit information’.

They buy up non-performing loans that card companies, commercial banks, mutual savings banks, and installment finance companies have given up on, typically for 10% to 30% of the original amount.

Then, they mobilize employees specializing in debt collection, pressuring debtors for money at a level comparable to loan sharks.

These credit information companies are currently in their golden age.

The number of credit delinquents is nearing three million, and the amount of bad debt already written off by card companies amounts to four trillion won, with over two trillion won more expected to be written off in the future.

The total delinquent amount for individual credit delinquents with debts under 100 million won reaches a staggering 44.7 trillion won, and the delinquent amounts for savings banks and installment finance companies alone exceed four trillion won.

South Korea in 2003 is a republic of delinquencies.

“Of course. Soonyang Card’s debt collection staff alone can’t handle it. I don’t intend to lose a single won on this deal. I plan to sell off the non-performing loans, matching the response of those whispering outside.”

This meant that if the financial sector holding the short-term bonds decided on a 30% recovery rate, he would sell all the delinquent amounts for 30%.

“Don’t get carried away by a false sense of victory. Soonyang Card is just the beginning. All eight card companies, with varying degrees of severity, are fighting tooth and nail with credit delinquents. If the current administration has made a bold decision, they must see it through to the end.”

Oh Se-hyun spoke, observing the officials’ flustered expressions.

“If you consider a policy to bail out delinquent payers with the next election in mind, you’ll be swarmed like hyenas demanding you take responsibility for tens of trillions of won in delinquent debts. Card companies and financial institutions, including myself, will turn into those hyenas.”

As the officials fell silent, financial sector representatives flooded into the conference room.

Seeing their grim faces, Oh Se-hyun spoke first.

“Before you announce the results, know this.”

All eyes in the conference room turned to Oh Se-hyun.

“The moment the acquisition of Soonyang Card is finalized, I will transfer all the non-performing loans to a credit information company. And I hope you all will recommend one.”

The eyes of the financial executives flickered. Greed began to seep in.

Secretly, banks own credit information companies. Former executives create them and hire fired bank employees as collectors.

Current executives also invest in these companies, making a hefty profit. If the recovery goes well, the bank’s loss becomes the credit information company’s gain.

They exchanged glances.

“Representative Oh, this is our decision.”

They handed Oh Se-hyun a folded memo.

“If you negotiate with us regarding debt collection, we’ll put in a little extra effort.”

Oh Se-hyun checked the memo and slipped it into his pocket.

“Prepare the contract. We don’t have much time left, do we? I’ll get it all done within that timeframe.”

As Oh Se-hyun abruptly stood up, the Director-general of Policy Planning said,

“What is it? You need to tell us how you determined the recovery rate.”

“Director-general, this is a trade secret between companies. There’s no need for me to tell you, nor for you to know. And isn’t the government only concerned about one promise?”

The Director-general looked embarrassed at Oh Se-hyun’s sharp retort.

“I will normalize all services of Soonyang Card within 48 hours. Isn’t that enough?”

Oh Se-hyun, about to leave the conference room, paused and turned back.

“Ah, I almost forgot something.”

He approached the Blue House Economic Chief of Staff and whispered.

“Keep a close eye on how I handle this Soonyang Card situation. If you’re satisfied, consider entrusting Daehyun Card to me as well.”

The Economic Chief of Staff, utterly unable to grasp Oh Se-hyun’s intentions, couldn’t even offer a greeting as he tried to determine if the man was friend or foe.

* * *

Vice-chairman Jin Dong-gi checked the documents in front of him several times, utterly speechless and dismayed.

“I figured I’d come see you rather than go through the formality of a shareholders’ meeting. Because, in truth, the only thing changing is that you, Vice-chairman, will have no connection to Soonyang Card.”

Oh Se-hyun’s voice was devoid of any emotion.

It held no arrogance of a victor, no hint of apology for taking over the company—it felt as dry and detached as the numbers on the documents.

“Then why bring this to me? There’s no need to tell me. You just need to report the change in major shareholders….”

“There are a few things I’d like to discuss.”

“Discuss? You just said I have no connection to Soonyang Card!”

“There’s still one thing left. The name, Soonyang.”

At first, he didn’t understand. But he soon realized that they didn’t want to abandon the Soonyang name.

“Let’s get straight to the point. What do you want?”

“How about joining hands with me?”

“What?”

Vice-chairman Jin Dong-gi’s upper body, which had been leaning back in his chair, shot up like a spring. What did this mean now?

“As you know, Miracle holds 16% of the group’s shares. Ah… of course, we’ll have to double-check. I’m not aware of how the two Vice-chairmen have modified the share structure in the meantime. But I estimate it to be at least 15%.”

“So?”

“Soonyang Card is now completely separated from the group. If the group orders it to leave the headquarters, you’ll have to pack up your things. If they tell you not to use the name, you’ll have to change it.”

“You don’t want to change the name or move out?”

“Yes. I’d like to stay here. The company’s employees are also afraid of change. They’ll feel at ease if the name Soonyang remains the same and their workplace doesn’t change. In fact, what does it matter to the common people who the king is? As long as their livelihood remains the same, they don’t pay much attention to who the major shareholder is.”

Vice-chairman Jin Dong-gi’s eyes gleamed.

“Does that mean there will be no changes in management either?”

“I’m trying to avoid a large-scale shake-up. However, some of the idiots who took the credit card situation lightly will be dealt with.”

Only the major shareholder will change.

Even if Vice-chairman Jin Dong-gi had retained control of Soonyang Card, he would have had to fire some of the management responsible for this crisis anyway.

“Then what do you mean by joining hands with me?”

“Didn’t your 7% stake go to your older brother, Vice-chairman Jin Young-gi, because of this incident? Your support base within the group must be significantly weakened. I’ll support you so you don’t waver.”

“So, you’ll protect me with Miracle’s 16%?”

“Not 16%. It’s 23% now. I’ll recover the shares you put up as collateral.”

Vice-chairman Jin Dong-gi squeezed his eyes shut.

He had lost both the company and his shares, and he’d forgotten that this man before him was picking up both.

Himself with 26%, Miracle with 23%….

He had now risen to an equal footing with him.

Jin Dong-gi abruptly opened his eyes after a long pause.

This wasn’t just about keeping the name and not moving.

If Miracle backed him, he would secure 49% of the shares in one go. Just 2% short of a majority.

He could pull in a few executives to reach that. It was an instant reversal of the situation. And wasn’t there his niece?

If Jin Do-jun’s 10% sided with him, he could kick his older brother out right away.

“Hey, Representative Oh. Transfer the voting rights of those shares to me. I’m not asking for the shares themselves. Just the voting rights….”

Jin Dong-gi had to stop speaking because Oh Se-hyun was smiling and raising his hand. It was a clear sign of rejection.

“When I said let’s join hands, I meant something different. I only meant I’d help maintain your current position, Vice-chairman. If we join hands, can’t we prevent Vice-chairman Jin Young-gi from seizing control of the entire group?”

Anxious, Jin Dong-gi pleaded.

“Representative Oh, frankly, isn’t our older brother unqualified as a manager? Do you even know how many companies he’s ruined? It’s more than ten, though it’s been hushed up.”

Vice-chairman Jin Young-gi was once nicknamed ‘Midas of Doom’ because everything he touched went bankrupt. Fortunately, after he got older, he stopped creating or expanding new companies.

It was due to Chairman Jin’s strict order to focus on protecting the existing healthy companies.

“Vice-chairman, those words mean nothing to me. I don’t care how foolish or reckless Vice-chairman Jin Young-gi was in the past. I only look at the present.”

Oh Se-hyun coldly rejected the pleading Jin Dong-gi.

“Look closely at the current management indicators. There’s nothing to criticize. Soonyang Electronics is making enormous amounts of money.”

“Isn’t that just because the market conditions are good? Even if you put a scarecrow in his place, those results would still come out!”

Jin Dong-gi believed that Chairman Jin’s words about crisis being an opportunity applied to the current situation. He was desperate because seizing this opportunity would reverse the entire power dynamic.

“I prefer a scarecrow like Vice-chairman Jin Young-gi.”

“What?”

“If it were you, Vice-chairman, you would have certainly started new businesses based on Soonyang Electronics’ massive operating profits. Because that’s what a capable manager does. Endless expansion and growth—isn’t that the ultimate goal of chaebol conglomerates?”

“But why?”

“I’m a shareholder. Stability is more important than adventure. I prefer stable dividends over uncertain growth.”

“Representative Oh….”

“Let’s stop here. My mind won’t change. More importantly, just tell me whether you’ll accept what I’ve offered or not.”

There was no other choice.

Oh Se-hyun smiled at Jin Dong-gi, who nodded weakly.

“Then please inform the management of Soonyang Card of this fact. I’ll be going now….”

Vice-chairman Jin Dong-gi asked Oh Se-hyun, who was about to stand up, a very important question.

“Representative Oh, since we’ve joined hands, I’m asking. What is our Do-jun’s position within Miracle? Perhaps… ?”

He couldn’t bring himself to finish the sentence. He was afraid of the answer to the question of whether he was the largest shareholder.

“Do-jun? Hmm…. He’s invested a considerable amount of capital, and his shares aren’t insignificant. Why do you ask?”

“Ah, no, it’s nothing.”

Oh Se-hyun chuckled and said,

“If you’re wary of your nephew, you don’t need to be. Do-jun has different pursuits. Different goals.”

“What are his goals?”

“Well, I don’t know exactly, but he probably has grander ambitions than becoming the chairman of Soonyang Group. Haha.”

Oh Se-hyun left after uttering cryptic words.

Jin Dong-gi sat blankly for a while before rising to his feet.

He had overcome the crisis of being ousted by his older brother. Now, he had to seize the opportunity.

He would despair if there were no opportunity, but a concrete opportunity existed. That man who just left was the opportunity. If he could bring that man over to his side, he could shake the entire Soonyang Group to its core.

Jin Dong-gi moved towards the Soonyang Card president’s office to carry out the task that the opportunity had indicated.