Chapter Index

    “How was America?”

    “Fine.”

    “You were there quite a while, right? Was it something to do with the recent crash of the US stock market?”

    “Yes, it was. Oh, but it’s not like the US stock market crashed because of me.”

    “You’re not influential enough for that. You’re just a prince in the boondocks. Heh.”

    Chairman Lee Hak-jae’s expression wasn’t entirely bright as he spoke with a laugh. Was something wrong?

    “The Korean stock market is a mess too. If there’s anything I absolutely need to know, tell me. Don’t blame me later for not knowing.”

    “There will be liquidity issues, but I’ll make sure they don’t become a problem.”

    “For someone running a business, having a reliable money man to solve funding issues means the game’s over. So, I can stop worrying about it?”

    “Yes. But is something wrong? You seem down.”

    Chairman Lee Hak-jae got up from his office desk and sat on the sofa next to me.

    “Vice-chairman Jin Young-gi is likely to cause a major incident. No, it’s certain.”

    A major incident? A sigh escaped me. What was he planning this time?

    “Is he plotting something with the holding company again? It won’t work unless my and Vice-chairman Jin Dong-gi’s joint voting rights agreement approves it, will it?”

    “No. This time it’s about succession.”

    “What? Succession?”

    Chairman Lee Hak-jae nodded.

    “I heard they’ve started the process of passing down shares to their son. The guys in their group’s planning department are working on it secretly.”

    “What? To Older Brother Young-joon?”

    “Yes. You know that passing down shares isn’t the same as passing down a house. It takes a long time to prepare slowly, so it’s not too early. Young-joon is already forty.”

    I hadn’t seen him in a while, so I had completely forgotten. That guy is already forty.

    “I can’t make a quick judgment. Since it’s Chairman’s shares being transferred, it doesn’t seem like it’ll be a significant variable, right?”

    Chairman Lee Hak-jae didn’t answer easily. That meant it was a complicated issue.

    “Let’s think about it this way. Just like you use Miracle, what if Jin Young-jun establishes a corporation, and Vice-chairman Jin Young-gi sells a portion of his shares to that company?”

    “The shares he sells would be in an unlisted company, right?”

    “Exactly. And that unlisted company would hold a significant amount of Soonyang Group’s shares, right?”

    “Then the value of that newly established corporation would skyrocket.”

    “That’s right. The problem is that even if Jin Young-gi only holds 51% of those shares, his control over the group remains. By funneling work to that newly established corporation or just taking a cut in the middle, its performance will soar….”

    “And if they list that corporation, they’ll make a huge amount of money again. Because they only need to release 49% to the stock market.”

    This is how they make money while just holding shares. Using Soonyang Group, which directly earns money, countless obscure companies are born just to hold shares.

    “With the money they make, they’ll definitely start the second phase. Because that’s the method I used.”

    Issuing convertible bonds and allocating warrant bonds at low prices are the second phase.

    “Isn’t there a possibility that their shares will increase?”

    “It’s hard to say for sure. They might be able to strip the assets from very low-tier subsidiaries, leaving only the shell. Those subsidiaries are quite far removed from the influence of controlling shares.”

    His tone lacked confidence.

    “I don’t think that’s all of it.”

    “Honestly, I’m not sure. If a really smart guy found a loophole, they might use a new method. It’s been a long time since I stepped away from that side of things. The laws will have changed a lot too… In times like these, one brilliant idea can be a huge variable.”

    Many thoughts raced through my mind.

    It might be better if Jin Young-jun gets the shares. Jin Young-jun is an easier opponent than his father. Rich families tend to get more unpleasant and less patient with each generation. They’ve grown up that way.

    But if something unexpected happens, as Chairman Lee Hak-jae said, that would be a disaster too.

    Should I stop it?

    “Chairman, when we can’t predict what might happen, isn’t it better to stop things at the beginning rather than watching and waiting to see how things unfold?”

    “You’re going to stop the succession? How?”

    I smiled at Chairman Lee Hak-jae, who looked at me with surprise.

    “Chairman, could you make one last appearance at the Prosecutor’s Office?”

    “What?”

    “This time for a different reason than in the past. You’ll be a witness, not a suspect. Instead of consistently saying you don’t remember or don’t know, you’ll explain everything in detail as you remember it. As a witness.”

    “What in the world are you talking about?”

    He looked like he was having a fit at the mention of the Prosecutor’s Office. I quickly waved my hands to calm him down.

    “Think of it as paying back taxes. If we have to pay taxes on the inheritance Grandfather gave me according to the law, what kind of expression would Vice-chairman Jin Young-gi make?”

    “You don’t mean… ?”

    Chairman Lee Hak-jae already understood my plan.

    “I plan to reach a reasonable agreement with the National Tax Service. But since Vice-chairman Jin Young-gi is going through two rounds of succession, the taxes will be double, right? Of course, as he struggles to avoid paying taxes, shady dealings will keep surfacing….”

    “You might end up having to pay trillions of won in taxes yourself.”

    “Isn’t that how it’s always been? When problems arise, we issue a half-hearted apology at a press conference and donate a few hundred billion won in the name of social contribution instead of paying fines. But if I say I’ll pay the taxes, it’ll be more impactful, don’t you think? I’m even considering donating around 500 billion won.”

    Even if it’s the same amount of money, donating in the name of social contribution is better than paying taxes.

    Taxes set a precedent and become an obstacle for future succession processes. Also, it will constantly cause noise about tax issues compared to other chaebol families’ successions.

    The precedent should be that chaebols don’t pay inheritance and gift taxes.

    “So? What do you gain from this?”

    “I gain a lot. First of all, public acclaim.”

    “What are you going to do with that? Become the first third-generation chaebol celebrity?”

    “Of course not. Public acclaim puts pressure on politics. And pressure on politics moves public officials.”

    Chairman Lee Hak-jae chuckled.

    “The National Tax Service won’t be able to sit still. Heh.”

    “The timing is also important. I’ll hold the press conference at the most opportune moment. I’ll show the public my commitment to the national duty of paying taxes voluntarily.”

    “And that opportune moment is when Soonyang Group’s coffers are dry, isn’t it?”

    “Yes. It won’t be long now. When the US financial system collapses, Soonyang will also face a drought.”

    * * *

    People who handle money are not only shameless but also vicious villains. Conversely, the general public is foolishly naive.

    It was the same during the IMF crisis ten years ago, and they’re still being deceived now. While the US was losing 5 trillion dollars due to the subprime mortgage crisis and the number of tents for the homeless in New York’s Central Park was increasing, Korea’s KOSPI index surpassed 2,000, reaching an all-time high.

    It was a way of showing that the Korean economy was sailing smoothly until investment firms and financial companies could pass their bombs onto ordinary people. The media and politicians all spoke with one voice, selling securities with expired lifespans to naive people.

    Moreover, with the presidential election just around the corner in Korea, it was the perfect time to hide the financial crisis from the US.

    It was the common people who firmly believed in the candidate who promised to revive the struggling economy, which had never been good.

    Without even mentioning the US financial crisis, the candidate who promised 7% economic growth and the creation of 3 million jobs received overwhelming support from these common people and was elected president.

    In January 2008, before that president even took office, international oil prices (WTI) on the New York Mercantile Exchange surpassed $100 per barrel for the first time, and prices began to soar, but the news was dominated by the arson at Sungnyemun Gate.

    Before the president’s inauguration oath, “I do solemnly swear to faithfully execute the office of President…,” even the US dollar plummeted.

    Korea began to feel the effects of the US financial crisis when the bankruptcy of Bear Stearns, the fifth-largest investment bank in the US, became known.

    Those who get information quickly were the wealthy.

    Jin Tae-joon burst into my room, trembling to his fingertips, but he tried to appear calm.

    “Having a tough time these days? I should help you out during times like these, but I don’t have much to offer?”

    “I’m going crazy. I haven’t been able to do anything for a long time. You know? Soonyang Investment and Securities are completely shrinking back.”

    “I heard rumors. They say all the employees have used up all their vacation time?”

    “Yeah. What’s the point of working? Everything plummets if you touch it.”

    “But compared to other groups, your performance hasn’t been bad, has it? Losses are small, and you’ve defended your stock price well.”

    “Isn’t it ironic? I figured if I stayed still, I’d at least break even, so I’ve been playing around since the third quarter of last year. But we’re number one in the industry. Not because I’m good, but because the other guys are worse. Haha.”

    Jin Tae-joon kept watching my reaction as he listened to my laughter.

    “But Tae-joon, do you have something you want to tell me? You don’t look so good.”

    He swallowed hard and finally opened his mouth.

    “Actually, I have some investments that are causing trouble.”

    Vice President Jang Do-hyung reported that Jin Tae-joon had dumped a significant amount of his holdings when the funds were pouring out last September. Of course, it goes without saying that he suffered enormous losses.

    “What kind of investments? Don’t tell me it’s financial derivatives? No…. Wait a minute.”

    Jin Tae-joon’s eyes widened as I picked up the receiver.

    “Who are you calling?”

    “The president of Soonyang Investment. I need to see your transaction history….”

    “D-Do-jun. Hang up. They don’t know anything there.”

    Just as I thought. Now the truth comes out.

    “Huh? You used a different company besides Soonyang?”

    “It’s not that…. I diversified. I sold everything I entrusted to Soonyang. But around October last year, when the stock price went up, I invested again. Soonyang had a negative outlook, so I traded with another company.”

    He sold at a loss, and then the stock price went up. He desperately wanted to recover his losses, so he jumped back in. Typical.

    My usually reliable older brother Tae-joon had acquired a taste for gambling. They say gambling gets more exciting when you lose?

    “Now, not only are you not getting your principal back, but no one’s even willing to buy them at rock-bottom prices, right?”

    Jin Tae-joon nodded weakly.

    How much money did he actually lose, and where did that money come from?

    He came to me knowing I’m not someone he can trust, so he must have embezzled company funds.

    He needs to cover it urgently, but there’s no way to get the money, so he came seeking a straw to grasp.

    “Tae-joon, I understand you’re desperate, but there’s nothing I can do to help. Right now, all financial products and funds are garbage. Think of it as selling scrap metal and get rid of them quickly. Later, you won’t even get scrap metal prices.”

    “I know. I wouldn’t even think of passing that on to you.”

    “Then?”

    “Lend me some money. Not as a company, but as an individual.”

    I quickly racked my brain. If I lend him money, is there anything I can get back from this guy?

    If I leave him alone, it’ll be revealed that he embezzled company funds, and there will be another uproar….

    “Why don’t you use a bank? I don’t know how much you need, but I’m not comfortable with private money lending.”

    “Do you think banks are lending right now? They’re all too busy putting out their own fires to even consider it.”

    His complexion grew darker.

    “How much is it? Did you sink tens of billions of won into it?”

    He couldn’t say it easily, so it must be hundreds of billions of won.

    “Tell me. That’s the only way to find a solution.”

    “I need 60 billion won urgently. That’s all I need.”

    60 billion won urgently? This guy embezzled 60 billion won from the company.

    Of course, I have to lend it to him. 60 billion won is like a grenade when trying to bring down Soonyang Construction.

    And the more bombs, the better.

    Chapter Summary

    Do-jun returns from the US and discusses the financial crisis with Chairman Lee Hak-jae, who reveals Jin Young-gi is preparing for succession. Do-jun plans to disrupt this by encouraging Lee Hak-jae to cooperate with the National Tax Service, potentially exposing Jin Young-gi's tax evasion. Meanwhile, Jin Tae-joon seeks Do-jun's help after losing a significant amount of company money through risky investments, unknowingly providing Do-jun with leverage against the family.

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