Chapter 286: A Favor and a Lucrative Opportunity

Witnessing Jin Tae-joon’s desperation, my mouth dropped open.

“Sixty billion won?! Wow… Hyung, you really do have a lot of money!”

“Are you making fun of me? You’re the real wealthy one here. What’s with the act?”

“I’m not rich enough to just throw away sixty billion won.”

“Hey! Stop rubbing it in!”

He snapped, frustration evident in his voice at my amused reaction.

“Have you asked Young-joon hyung for help? Soonyang Electronics could probably pull out sixty billion won in slush funds, couldn’t they?”

Jin Tae-joon waved his hand dismissively.

“Are you crazy? You know what that guy is like. He’d never help anyone. Instead, he’d dangle the possibility just to mess with me.”

“Is that really the only reason? It’s not because you’re afraid that if you told Young-joon hyung, the news of you losing sixty billion won would eventually reach our second uncle’s ears, is it?”

“Are you turning into Young-joon hyung? Stringing me along, stomping on my pride… do you really enjoy seeing me squirm?”

That was the limit of Jin Tae-joon’s patience. Despite the massive sixty billion won blunder, a brief request was all he could manage. It was hard to expect the persistence of an ordinary person, someone who would swallow their pride and relentlessly plead.

“Do you see me as just a blood relative, hyung? Do you really think of me as your cousin?”

“What are you talking about?”

“Are you really asking? You know I’m constantly bickering with our second uncle over shares. We’re not exactly on good terms to ask for favors, are we?”

Jin Tae-joon, who had been scowling impatiently, turned serious.

“Does the fact that I’m this desperate answer your question?”

He needed the money within the month. He’d been delaying payments to business partners or using promissory notes to keep things afloat. He’d managed to hold on for months, but he couldn’t stall any longer.

If he delayed any further, the news of him losing sixty billion won would reach everyone, cornering him completely.

“What about Myeong-dong? With Soonyang’s credit, it shouldn’t be a problem, right?”

“That news would reach Father’s ears instantly. Does that answer your question too?”

I observed his serious expression for a moment before chuckling.

“Six months. No interest, but you have to meet the deadline.”

Jin Tae-joon’s face lit up.

“Do-jun.”

“Forget it. Just buy me dinner sometime.”

I waved him off and picked up the receiver.

“Vice President Jang, please prepare for a withdrawal of sixty billion won.”

As Jin Tae-joon let out a long sigh of relief, I spoke to him.

“Hyung, get Soonyang Construction promissory notes ready for me.”

“Huh? Ah… right. You need a loan certificate, is that it?”

“Isn’t that the most reliable way to ensure you meet the deadline? And wouldn’t promissory notes be better for you too, Tae-joon hyung? No need to worry about getting caught for misusing company funds.”

His complexion flushed.

“I forgot how sharp you are.”

“Don’t worry. Your secret’s safe with me. At least, we don’t dislike each other enough to rat each other out.”

I winked at him.

I actually felt a sense of goodwill toward my cousin for giving me a sixty billion won time bomb as a gift.

* * *

As candlelight vigils against the import of American beef, led by high school students, began to gather momentum, the 18th general election took place.

The opposition party, which had seemed weak and ineffectual for the past year as the ruling party, predictably suffered a devastating defeat.

The voter turnout was only 46.1%, the worst in the history of national elections, but the ruling party and its supporters secured control of the parliament.

The true tsunami of the financial crisis had not yet hit Korea, but while the nation was preoccupied with politics, the financially weaker provinces began to collapse.

With their fragile financial health, they couldn’t withstand even a slight tightening of the banks’ purse strings. And the big companies greedily devoured the empty spaces left behind.

“People’s greed is endless. Isn’t it?”

Chairman Lee Hak-jae shook his head as he returned from the first dinner with business leaders and the new president.

“Are you referring to Vice-chairman Jin Dong-gi?”

“Including him.”

“Didn’t you like the food at the Blue House? You seem quite disgruntled. Hehe.”

“They’re all clamoring to get into the apartment construction business in the provinces and want regulations eased.”

“Why the sudden fuss? It’s not like the regulations stopped them before. Big company apartments have sprung up all over the provinces, haven’t they?”

“All the scenic spots and prime locations are greenbelt areas. If those restrictions are lifted, it’s a goldmine. Since they’re development restricted areas, land prices are dirt cheap, and the profit margin from building apartments is incomparable to the capital area.”

“So, what did the Blue House say?”

“Actively reviewing it. Which means they’ll do it. The provincial economy is struggling, so they’re going to use that as a stimulus package…”

“That’s good. People in the provinces value apartment brands, don’t they? Soonyang and Daehyun, those two names won’t be pushed around anywhere.”

Chairman Lee Hak-jae recognized the true intention behind my words and smiled slyly.

“You’re determined not to miss this opportunity.”

“It’s an opportunity that won’t come again. You spoke with our second uncle, didn’t you?”

He nodded.

“Yes. The Burj Dubai, which was recently completed, has elevated Soonyang Construction’s status to the point where it’s overshadowing Daehyun. It’s the tallest building in the world, after all. The stock price has also jumped considerably. Jin Dong-gi doesn’t want to miss this opportunity.”

“What they want is for our HW Construction to handle the construction, right?”

“Yes. The money from Dubai won’t come in for a while, and they’ve poured all their existing funds into Dubai. They’re in a dire situation. The Blue House is strongly pushing for it too.”

“Since Soonyang Construction will eventually be mine anyway, we might as well grant their wish.”

“Well… something interesting happened. There’s no need to rush the decision.”

“Interesting? How so?”

“Daehyun made the same offer.”

“What?”

I’d forgotten. Daehyun had also gone all-in on Dubai, and their financial situation was similar to Soonyang’s. The Daehyun Group was also divided among several sons, each waiting for an opportunity, their knives sheathed but ready. Ready to stab and take what they could.

“If I had to choose one, it would be Daehyun. If your prediction about Dubai’s collapse is correct, Daehyun Construction is going bankrupt. They have 2.8 trillion won tied up in Dubai. How will they survive?”

“Why Daehyun and not Soonyang?”

“It’s a cold business assessment. Soonyang Construction isn’t on the same level as Daehyun yet.”

“Then how about acquiring both? It would create a mega-construction company. Unless the management would be too overwhelming.”

Chairman Lee Hak-jae wasn’t particularly surprised. As I said, with so much cash on hand for an opportunity that wouldn’t come again, acquiring bankrupt companies was a piece of cake.

“Judging by your confidence, you must have made a lot of money in the US.”

“I made some. Enough to acquire both construction companies.”

Chairman Lee Hak-jae’s gaze sharpened.

“I’ll start reviewing it. Acquiring both companies and then selling off or reorganizing the overlapping parts would be a good move.”

“But can HW Construction handle all of this? Aren’t the manpower and equipment severely lacking?”

“If you provide the funds, there are plenty of companies willing to work under us. With the current state of the construction industry, we’d be a lifesaver.”

“If we could control the weather with money, it wouldn’t just be a lifesaver, it would be a downpour.”

We laughed as we discussed the acquisition of the two companies.

Meanwhile, two massive American corporations on the verge of collapse were desperately pleading with Rachel Arieff, the CEO of New York Miracle.

* * *

“Let’s just admit it. These mortgage-backed securities are worthless. Isn’t it common knowledge in this industry that if the default rate exceeds 15%, it’s over? It’s over 60% now and still falling endlessly.”

“It’s not that we’re denying it. We’re just asking for a little more time.”

“That sounds like you’re asking for time to liquidate your remaining assets and pocket a huge severance package. Am I wrong?”

The two lawyers representing Merrill Lynch and AIG Insurance hesitated at Rachel’s sharp retort, while the senior accountants from the two companies, who had accompanied them, simply stared into the distance.

“Do I look like a fool to you? I know Merrill Lynch’s losses are over $50 billion. Our Miracle’s swap agreement is for $2.3 billion. It’s obvious you can’t handle $50 billion. Do I look stupid enough to just watch you sink?”

“Rachel, let me be honest. Merrill Lynch is currently in negotiations with Bank of America. They’re definitely going to acquire us. The greater our actual losses, the more disadvantageous the negotiation becomes. Bank of America, not us, will pay Miracle’s $2.3 billion.”

As Merrill Lynch’s lawyer spoke hastily, Rachel snapped her fingers.

“Oh right, we also have over $1.9 billion to receive from Bank of America. We should hurry. Before they acquire Merrill Lynch with its $50 billion in losses. Definitely!”

As Rachel’s eyes narrowed, the men began to sigh again.

“If it were up to me, I would have delayed the swap claims considering your situation. I also want to minimize the shockwaves, if possible. The collapse of Wall Street is not good for Miracle either, that’s a fact.”

A glimmer of hope appeared in the men’s eyes at her somewhat promising words. However, her expression turned even sharper.

“Chairman Stan O’Neal officially resigned yesterday, didn’t he?”

“Yes. We’re currently under a temporary board of directors operating system.”

Merrill Lynch’s representative replied.

“How much severance did he receive?”

“Excuse me?”

“With $50 billion in losses, he should have been fired, not resigned! Isn’t that right? But he received an honorable retirement, so he must have received a severance package!”

The representative became speechless again.

“He pocketed a whopping $160 million in severance, didn’t he? Shouldn’t he be held responsible for the $50 billion loss and forced to return his $45 million annual salary from his time in office? Yet, he’s getting paid over three years’ worth of his salary separately? What are you people doing? How can you ask me for a grace period while engaging in such unethical behavior! Aren’t you ashamed?”

The CEO who received an annual salary of $50 million caused losses of $50 trillion, but he was walking away without any accountability, having secured a severance package approaching 200 billion won.

“Do you know that the price for hundreds of families losing their homes, their jobs, and even their retirement funds is that $160 million severance package?”

Her anger then shifted to AIG.

“Isn’t it the same for you? AIG has nearly $200 billion in losses. Yet, instead of being fired, President Joseph Cassano has taken on the bizarre role of a consultant who does nothing but enjoys himself?”

“Th-that’s… Chairman Joseph Cassano took responsibility for this crisis and resigned, and until the very end….”

“Until the very end, he was trying his best? Is that why that man is flying to his Bahamas villa on a private jet? While receiving over a million dollars a month in consulting fees?”

AIG’s losses were too enormous for any company to acquire.

A credit default swap is a type of insurance, and as the world’s largest insurer, AIG had entered into massive swap agreements. No one was as exposed to the risks of the subprime mortgage crisis as AIG.

But the principle of Too Big To Fail would undoubtedly come into play. If $1.8 trillion in losses were to materialize, the impact would be irreversible. Ultimately, injecting emergency bailout funds to revive AIG would be the last act of the Bush administration.

“I feel like my mouth is getting dirty just by talking more, so I’ll stop here. Everyone, leave. And don’t you dare forget. If our money isn’t in our account by the start of business tomorrow morning, we will proceed with legal action immediately.”

The men broke out in cold sweat at the word ‘lawsuit’.

Bank of America wasn’t foolish enough to acquire a company facing a lawsuit. And neither was AIG. If they were in the middle of a lawsuit, it was obvious that Congress would block any attempt by the government to inject emergency bailout funds.

The two companies scrambled to their feet and left in a hurry. They needed to secure the funds quickly and stop that vicious Rachel’s next move.