Chapter 291: The Creditors’ Meeting: A Battle for Supremacy

Chairman Lee Hak-jae requested a meeting with the creditor banks. The banks, ever cautious of the colossal power wielded by Soonyang and Daehyun, eagerly rushed to attend. It was an offer they couldn’t refuse, someone volunteering to bell the cat.

However, the words Lee Hak-jae uttered at the meeting sent a chill down their spines.

“I’m not known for my generosity. Why should I consider the plight of those who’ve exploited me for free?”

His declaration to dump all the promissory notes he held caused the bank presidents to vehemently wave their hands in protest.

“Chairman Lee, we’re well aware of the financial situations of Soonyang Construction and Daehyun Construction. If you dump all those notes, we can’t stop it. Bankruptcy is inevitable.”

“Chairman, if they go bankrupt, recovering the loans becomes impossible. It could take years to normalize things.”

“I thought we gathered here to find ways to recover the loans, not to shut down two major companies, did I misunderstand?”

Chairman Lee Hak-jae shook his head at the alarmed bank presidents.

“What deserves to fail, should fail. Those rotten to the core, are we already forgetting what happened when we tried to coddle them just because they were big?”

The memories of a decade ago were still vivid for the bankers. Wasn’t that the beginning of the end for banks that thought they were untouchable?

“Besides, it’s fine if I don’t get the money back, or rather, can’t get it back. Instead, I’ll enjoy watching those two companies close their doors and their people end up on the streets, leaving me to laugh at their misery.”

Everyone knew the unrecovered funds amounted to at least trillions of won. They also knew where he got the audacity to discard such sums. He had a solid money man backing him, allowing for such brazenness.

But banks were different.

The moment bankruptcy was declared, loan recovery went out the window. Furthermore, the domino effect on the numerous subsidiaries tied to the two construction companies was a foregone conclusion.

The banks would suffer massive losses again, and some of the presidents present would lose their prestigious titles.

The scariest prospect was the government considering the possibility of pushing out or merging failing banks. The surviving banks would become twice as large.

However, wasn’t it the unspoken rule of the industry to help each other out, even if it meant a smaller slice of the pie for everyone, rather than seeing some starve while others feast?

They all desperately tried to appease Chairman Lee Hak-jae and dissuade him, but he remained unyielding. He even brought along someone who shared his intentions.

When the other figure entered the room, the bank presidents knew there was no stopping them.

* * *

“You all have a significant amount of debt to this friend of mine,” Chairman Lee Hak-jae announced, introducing me to the bank presidents.

“Debt? What are you talking about…?”

One of the bank presidents sputtered, as if the notion was absurd, but it wasn’t entirely wrong.

“Isn’t my money lent to the bank? Isn’t that why the bank consistently pays interest? If it’s not a loan, then it’s an investment, and when do investors receive interest?”

Every depositor was essentially a creditor, and their bankbook was a loan certificate. They cleverly masked it with terms like ‘entrusting funds’ or ‘depositing,’ but the accurate term was ‘borrowing’.

That was why they created a variety of financial products to lure in their creditors, the depositors. They had to entice them with the sweet talk of higher returns to avoid having to repay the borrowed money.

Since I was a simple depositor and not invested in any financial products, I was indeed a creditor.

“I’ve lent a considerable sum of money to your banks. Now, if that money is going to be used to bail out companies destined to fail, I have no choice but to act.”

The bank presidents’ complexions turned ashen, anticipating my next words.

“I want the full amount that Soonyang Financial Group has lent, and the money I’ve lent personally, returned in full. I will be making withdrawals tomorrow morning when you open for business.”

Faced with Lee Hak-jae’s threat to dump the promissory notes and my demand to withdraw all my deposits, the bank presidents were speechless.

They realized that pleading wouldn’t work and that they needed to understand our true intentions. They were also aware that neither of us was foolish enough to act on mere stubbornness.

After a moment of silence, they cautiously began to speak.

“Um, Chairman Lee, and Director Jin, are we perhaps missing the main point here?”

“Is the purpose of this meeting not to discuss measures against Soonyang and Daehyun’s bankruptcy, but rather, a way to acquire them?”

We couldn’t help but smile.

“HW Group poured in nearly ten trillion won. I’ve lent trillions of won to your banks. Converting that to time, it’s costing you hundreds of billions per second. It’s about time we stopped wasting this golden opportunity with meaningless chatter.”

“So, you’ve spent all that money just to acquire the two construction companies?”

“Please, call it an investment. I expect to not only recoup my capital but also make a substantial profit, so there’s no need for anyone to be alarmed.”

The bank presidents’ collective sigh was one of relief.

The fear of restructuring due to bad debt vanished, along with the threat of losing their positions, provided this acquisition went smoothly.

“However, before we proceed with the formal acquisition process, you need to tell us how much of the existing debt you’re willing to bear.”

“What do you mean…?”

The old men were feigning ignorance, typical of bankers who never wanted to take a loss.

“Are you playing coy? When reviving a bankrupt company, the banks need to contribute as well. To what extent are you willing to reduce the debt of the two construction companies?”

My direct question silenced them all.

“An amount that everyone would deem reasonable. That’s the burden the banks must carry. Anyone who isn’t willing to agree to any debt reduction is free to leave. It would imply your bank is so robust that losing my deposits wouldn’t matter.”

Silence descended once more.

“Oh, and just in case anyone’s considering it, forget about the government offering a bailout. The Blue House isn’t answering any calls from the two construction companies. Even the aides of National Assembly members in Yeouido are avoiding their calls.”

Not a single person left their seat.

Chairman Lee Hak-jae spoke, addressing them all.

“As the largest creditor, I’ll take the helm. You all just need to row diligently in the direction my hand points. No objections, I presume?”

* * *

Chairman Joo Tae-shik of Daewoo Motors Group groaned as he read the morning paper.

The media incessantly covered the Dubai crisis, amplifying the troubles of Soonyang and Daehyun by highlighting the plunging stock prices.

The fact that Daehyun Group and Soonyang Group couldn’t suppress the news articles meant they were in dire straits.

As Chairman Joo Tae-shik put down the newspaper, he noticed his younger brother slumped on the sofa, his head bowed low.

“Is it just Dubai?”

“Huh?”

“Will fixing that solve everything?!”

Joo Min-shik, the third son of the late Chairman Joo Young-il who inherited the construction division, couldn’t answer. The apartment complexes and redevelopment shopping malls he’d started in the provinces were all funded by debt.

It was a poorly kept secret that everyone knew: they were plugging holes with pre-sale income.

“The financial sector knows the government is turning a blind eye. You have to fix this.”

“Eldest brother, if HW calls in the promissory notes, we can’t avoid bankruptcy. The only way is for the group to step in…”

Joo Min-shik barely managed to speak, but he was met with his elder brother’s cold response.

“The group? Weren’t you the one going around calling it Daehyun Construction Group? I’m the head of the Motors Group, remember? We’re not one family anymore. If it’s a group matter, then the Construction Group can handle it.”

“Brother, that’s not what I mean.”

“I know that’s not what you mean. But are we running a corner store here? We have tens of thousands of mouths to feed. I can’t let us starve just to save you. We’re different from Soonyang. We’ve even split up our subsidiaries. Daewoo Motors Group won’t be affected by your downfall.”

“Brother! Construction is the foundation of Daehyun! Killing it is like betraying our late father…”

“Enough with the bullshit! Since when have you cared about Father’s honor? How dare you bring Father into this, you bastard! Get out!”

Chairman Joo Tae-shik chased his younger brother out and continued to fume.

His anger wasn’t directed at Daehyun Construction’s crisis, but at his late father for entrusting the group’s foundation to such an incompetent fool.

As he calmed down, his secretary quietly knocked on the door.

“Chairman, it’s time for your meeting with Chairman Lee Hak-jae. Shall we depart?”

“Let’s go. We can’t keep that man waiting.”

* * *

“Oh, Hyung-nim, it’s been too long!”

Lee Hak-jae beamed, warmly clasping Joo Tae-shik’s hand.

“Chairman Lee, you look remarkably well for someone who’s sunk a fortune. Still got plenty stashed away, eh? Ha ha.”

“Don’t mention it. I’m dying here. Just holding onto a pile of worthless promissory notes, giving me a headache.”

The two men, having shared a firm handshake, exchanged bright smiles.

After a brief exchange of pleasantries and inquiries about each other’s well-being, they delved into the purpose of their secret meeting.

“Chairman Lee, if we resolve this crisis, are we sure things will return to normal?”

“Absolutely. The US government has already poured in an astronomical amount of money. We can recover the funds tied up in Dubai in about two years, generously speaking.”

“I hear HW Construction is stuck in Dubai.”

“Yes. If I didn’t believe in its recovery, I would have pulled out too.”

“If Dubai recovers, HW’s situation will drastically improve. I doubt they’ll abandon a company that stood by them in their time of need.”

“Those guys are businessmen. If there’s no profit, loyalty means nothing. Haha.”

Joo Tae-shik, holding his teacup, gazed at Lee Hak-jae with envious eyes.

Leading a group with a reliable financial backer as the major shareholder allowed for long-term vision. He was capable of the same, but the impending succession battle among his children left him with no room to maneuver.

He briefly entertained the idea of someone like Lee Hak-jae, a professional manager, running Daehyun.

“Anyway, Hyung-nim, you’re certain you have no intention of saving the construction company?”

“That’s right. I won’t be foolish enough to pour astronomical sums into saving it. As you know, the Motors Group also owns Daehyun Industries, a construction firm. It’s better to use that money to strengthen my own company.”

“Then I’ll take that as acceptance of my proposal.”

“Isn’t that why we’re here, smiling and talking, Chairman Lee?”

Now it was Lee Hak-jae’s turn to fulfill Joo Tae-shik’s request.

“Then, tell me which companies you desire.”

Joo Tae-shik pulled a neatly folded piece of paper from his pocket.

“My kids insisted I secure these. Take a look.”

He unfolded the paper, revealing a list of company names and their estimated values.

Daehyun Civil Engineering, Daehyun Cement, Daehyun Development—all subsidiaries of Joo Min-shik.

“This is too much. Are you saying I only get the construction companies?”

“Don’t misunderstand. These are the companies that Daehyun Industries desperately needs. I haven’t just picked the profitable ones. And we’re handing over Daehyun Construction’s valuable subsidiaries as well.”

“Of course, we should receive Daehyun Construction’s subsidiaries. We’re the ones who spent the money and appeased the Blue House. The banks are in our pocket. This is too stingy, isn’t it?”

“Come now, Chairman Lee. Our father built this. If I were determined, I could protect even Daehyun Construction. I’m giving that up. How much more do you want? Are you expecting half?”

“Hyung-nim, the fairest way in these situations is to split it down the middle. Even little kids know that rule, don’t they?”

Chairman Lee didn’t actually expect to get half. When dealing with the greedy Joo family, the strategy was always to make an aggressive initial demand and then concede a little.

This time was no different; securing a couple more would make it a satisfactory negotiation.