Chapter 279: Subcontracting Schemes
by xennovel“Is this your sincere opinion? Is this the official stance of Soonyang Group? Or is this just something the Soonyang Construction staff squeezed out to get praise for doing a good job?”
“This is Vice-chairman Jin Dong-gi’s decision.”
“Is this a consortium? It’s just subcontracting! This is unbelievable!”
“Please calm down and hear the rest.”
The representatives from the three companies that had already formed a consortium immediately protested upon hearing the conditions presented by Soonyang Group.
“What more is there to hear? The conclusion is obvious. Soonyang is just throwing its weight around!”
“You’re saying that since you can’t associate with small fries like us, we should just take the money you give us and follow you around to do whatever you tell us to do, right?”
As the three companies voiced their discontent, the Soonyang representative cut them off.
“Frankly, everyone in the industry knows that the ₩2 trillion figure hyped up by the media is inflated. At best, you’ll secure about half of that.”
“So? Doesn’t Soonyang Construction embellish figures when making announcements? Everyone does it to boost stock prices. What’s so new about that?”
“My point is to be realistic. Even if the three companies win the bid for Dubai World, aren’t you just subcontractors anyway? European companies will handle the design and technology, leaving your companies to handle the grunt work on the construction site, right?”
The other company representatives couldn’t retort, their faces flushing at the Soonyang representative’s accurate assessment.
“What’s the difference between getting paid for manual labor by Europeans or by Soonyang? Wouldn’t it be better if we paid you more generously?”
It’s the fate of the weak to only choose between pride and practicality, and in most cases, they choose the latter, while subtly asserting their last bit of pride.
“We’ll pass this up the chain, but don’t get your hopes up. It wouldn’t be bad for us to split this among ourselves without Soonyang.”
The Soonyang representatives bowed their heads as the others stood up to leave. Showing consideration for their last bit of pride is the magnanimity of the strong.
“Please put in a good word so this can be finalized. Our necks are on the line too.”
However, as their counterparts left, their faces were filled with scorn.
“How much more did we offer them?”
“An extra 2%.”
“They should be grateful for that much.”
“They’ll pretend to deliberate for a good three days, and then they’ll call. Heh.”
* * *
The period of feigned deliberation by Seongho Construction and Namgwang Development wasn’t long. HW Group’s unconventional offer brought smiles to their faces.
“Soonyang will keep giving us promissory notes until the final payment for the Dubai project, right? An extra 2% doesn’t even match the bank interest rates.”
“If we support them from below, Soonyang’s bid results will double. Then Soonyang’s stock price will skyrocket. Aren’t we doing all the work while Soonyang reaps the benefits?”
When complaining, they tend to forget the advantageous parts. Chairman Lee Hak-jae listened to the two groups’ complaints before pointing out what they missed.
“But wouldn’t the total contract amount be double what we’d get if we did it ourselves?”
“What good is that? We’ll just be even more strapped for cash….”
As their complaints grew louder, Chairman Lee Hak-jae chuckled softly. This was a request for him to step in and secure more favorable terms.
“Then how about this?”
The eyes of the two group chairmen changed.
“HW will take on all the promissory notes that Soonyang issues. That should solve your cash flow problems, right?”
“Are you saying that Chairman Lee will discount the promissory notes for us?”
“Yes. Soonyang’s promissory notes are practically cash, aren’t they? You can immediately get them discounted at a bank, but what you two want is minimal interest burden, so HW will offer you a better rate than the banks.”
“How much better…?”
“Half should be enough, right?”
The faces of the two chairmen lit up.
“We might be reduced to Soonyang’s subcontractors, but I’ll take responsibility for the payments. Even if it’s dirty and unfair, what choice do we have? We need to expand our size with this opportunity. It’s too good to pass up, isn’t it?”
“As expected of Chairman Lee. You make bold moves.”
“If you can do that for us, we couldn’t ask for more. HW Group is on a roll; perhaps you have too much money to handle? Haha.”
“What company operates by hoarding cash? It’s just that Miracle, an investment firm, is our major shareholder. Since we have a lot of foreign capital, we plan to use some of it for this opportunity. Using foreign money is patriotism. We’re just pretending to be patriots.”
The two chairmen nodded, looking at Lee Hak-jae with envy.
How comfortable it must be to have a reliable money man who provides funds like an inexhaustible well. Although Lee Hak-jae was a professional manager on a salary, unlike them, the owners of their companies, he seemed to have a much better life.
“Then, assuming there are no objections, I’ll proceed with this. Let’s work hard together going forward.”
As the two chairmen chuckled and left, Lee Hak-jae’s expression instantly hardened.
“Do-jun, if your predictions are wrong, just you wait and see what happens.”
If Dubai doesn’t face a crisis, Soonyang, Namgwang, and Seongho will be singing praises. HW will only break even without significant profit.
He could almost hear the business circles mocking him as a pushover.
* * *
“Are you upset?”
“No, sir.”
“Don’t lie, it’s written all over your face. Hehe.”
Jin Dong-gi looked at his son and smiled approvingly.
“Everything Do-jun said is true. It’s natural for you to meet Do-jun’s subordinates. Vice President Jang Do-hyung? Yes, you’re on par with him.”
“I thought so too. But….”
“But what? That you’re equal because you’re cousins?”
“Yes. I was naive.”
“None of Soonyang’s executives take Do-jun lightly. Some even think Do-jun would have inherited everything at Soonyang if he were just a bit older. Myself included.”
“Ah, Father.”
“It might hurt your pride, but watch and learn. Even if you have to bow your head, follow the direction he’s moving in.”
Jin Dong-gi patted his son’s shoulder.
“And maybe it’s because you pleaded with Do-jun, but HW Group’s consortium accepted all our conditions. They’re coming under us and going to Dubai with us. Thanks to that, our financial burden has significantly decreased.”
Jin Tae-joon asked in surprise.
“Are you saying Do-jun asked Chairman Lee Hak-jae for a favor?”
“I don’t know. Anyway, the timing was perfect. Even if it’s a coincidence, people will think it’s because of you. They’ll think you had a good negotiation with Do-jun. The executives are already praising you for putting the company first and bowing your head to your younger brother.”
The wealthy son didn’t think that was the case. Jin Do-jun wasn’t the type to be that sentimental.
“Now that you’re used to working at headquarters, take some time to meet with Do-jun often. He’s betting everything on US financial products right now. I looked into it too, and I don’t know what kind of financial derivatives there are so many of.”
“Why are you looking at financial products when the company doesn’t have money?”
“Even if the company doesn’t have money, I have personal funds. You need to grow that diligently so you can provide emergency funding when needed. Casually ask him about it. It’s awkward for me to ask in detail since I’m your uncle, but it’s different for you. If it seems promising, invest your own money. The more bullets you have, the easier it will be later when we’re working on the share inheritance.”
“Understood.”
There’s nothing easier than freeloading off someone who makes good money. It’s even better if you can siphon off some of it.
“I’ll make sure we have drinks often. Do-jun doesn’t like the other cousins, but he doesn’t feel that way about us brothers. If we all get together and hang out, we’ll get closer.”
Jin Dong-gi looked at his son, who understood him well, with satisfaction.
* * *
“The consortium terms are great, aren’t they? Seongho and Namgwang will definitely make money, and we’ll have plenty of Soonyang promissory notes in our hands. Soonyang will be begging for mercy in front of the Chairman. Isn’t this the best-case scenario?”
“HW Construction will go bankrupt before that. They have to pay Seongho and Namgwang regularly, and they’ll have over ₩1 trillion to collect. How will they survive without going bankrupt?”
Unlike me, who had a bright expression, Chairman Lee Hak-jae’s face was deeply furrowed.
“I’ll work hard to fill the holes in our finances.”
“HW isn’t a small corner store. Our financial plan is tight. You need to be well-prepared to avoid any mishaps.”
“Yes, sir. That’s why I’m planning to go to the US. I need to make money.”
“What? The US?”
Lee Hak-jae’s eyes widened, and he shouted.
“Hey! Didn’t you say the US was going to collapse? What money are you going to make in a dying place? This kid… is he going to cause a huge accident?”
“You get bigger rewards for achievements in a falling camp. Similarly, those who find opportunities in crises make enormous amounts of money. Think about the IMF crisis ten years ago.”
He spoke to Chairman Lee, who still looked unconvinced.
“Ah, if you happen to have any personal assets invested in US-related financial products, you should liquidate them quickly. They’ll plummet starting in the second half of this year.”
“Do I look like I have enough money to invest in such things?”
“Who would believe you if you said you were broke?”
“I’m just a salaryman. My salary is fixed….”
Seeing his flustered expression, I could guess.
“It’s land or buildings, then. The safest investments. Hehe.”
“Stop talking nonsense and go do your job. If things go wrong even slightly, you’ll be so disgraced you won’t be able to show your face.”
“That will never happen, so make the Dubai project as big as possible. This might be the last chance to take over Soonyang’s construction and heavy industries divisions.”
Worried that he might become passive due to anxiety, I urged him once more and started preparing to leave for the US.
* * *
Jin Tae-joon personally knocked on my office door early in the morning, holding takeout coffee cups in both hands.
“Tae-joon hyung, you’ve been coming around a lot lately.”
“Don’t worry, I’m not here to ask for money. I just came for a cup of coffee. Oh, and we formed a consortium with HW Group. Thanks to you, many problems have been resolved. I shouldn’t forget to thank you.”
“Ah, I heard. Chairman Lee Hak-jae made that decision; I didn’t get involved. Anyway, I’ll pass on your thanks.”
Judging by how he kept looking at me, it seemed he hadn’t come just to say this.
“I heard you’re going on a business trip to the US?”
“Yeah. I parked some of our financial group’s funds with investment firms on Wall Street, and I’m going to check on them.”
“I heard money from all over the world is flocking to US financial products. Are they really that good?”
“Why? Are you planning to invest in them too, hyung?”
“Well, I looked into it, and people say they’re good.”
“Don’t trust other people’s words; investment is about making your own judgments and decisions. Be careful.”
He didn’t come just to say hello. He rushed over because I’m going to the US. He didn’t miss what my second uncle mentioned the other day.
“I know, but my heart is leaning towards it. That’s why I wanted to hear your opinion. Can you tell me?”
Should I give these people from that family one last gift before they’re kicked out of Soonyang?
“Most of the hyped-up derivatives right now are based on US mortgage-backed securities. People reliably repay loans secured by their homes. Otherwise, they get evicted. Even if there are bad loans, there’s solid collateral in the form of houses, so they’re safe.”
“So, they’re safe?”
“I told you not to trust other people’s words! You have to make the judgment yourself. Who knows? Maybe a massive wave of bad debts will be exposed and everything will collapse?”
This is all I need to say.
The word ‘safe’ has already stuck more than the word ‘collapse’.