Chapter 296: Dividing the Spoils and a Sudden Raid
by xennovel“Anyway, keep a close eye on how Dong-gi responds. While they’re in an uproar, we need to solidify our subsidiaries.”
“Father, splitting the group will reduce it to less than half its size. What’s the point of being chairman if it’s only half the company?”
After delivering the new instructions, Jin Young-jun, left alone with his father, finally voiced his pent-up dissatisfaction.
“There are times when you need to take a step back. Now is that time.”
Vice-chairman Jin Young-gi didn’t get angry or scold his son for his grumbling.
“HW, backed by Miracle’s massive funds, has become the largest creditor of Soonyang Construction. I believe Miracle, HW Group, and even Do-jun are working together to put pressure on Construction. We can’t hold onto Construction.”
Even Jin Young-jun, who was over forty, understood the implications of failing to protect Construction. It meant losing control of Heavy Industries’ shares, which in turn meant losing control of Precision Machinery and Chemicals’ shares.
The cross-shareholding structure between subsidiaries, which makes the group easy to control, applies to anyone.
Grasping Construction and Heavy Industries is like pulling on a sweet potato vine—the other subsidiaries come along for the ride.
“I’ve confirmed that HW poured a staggering 10 trillion won into acquiring Soonyang Construction and Daehyun Construction.”
“T-ten trillion won?”
“That’s not all. They brought 10 billion dollars in emergency foreign exchange into the country to make the banks their allies… no, their obedient dogs. Because of that, the banks bowed their heads, and even the government is siding with them.”
It went without saying that this wasn’t HW Group’s money, but Miracle’s.
“There’s more. That bastard Do-jun deposited a large sum of money from Soonyang Financial subsidiaries into the banks. Not as an investment, just a simple deposit.”
“If they withdraw all that money at once…?”
“Exactly. The banks would be in chaos. That’s how they joined hands with Miracle.”
Jin Young-jun understood why his father had mentioned Jin Do-jun’s name.
Jin Do-jun was the face of Soonyang, HW Group was the executor, and Miracle was the financier.
It was a plan to seize a pillar of Soonyang through a perfect alliance, made possible by the financial crises in the US and the Middle East.
“Do you understand why I’m rushing the separation of affiliates? It’s to secure the company I’m passing down to you. If even one of our subsidiaries falters, I can’t guarantee it won’t end up like Construction.”
Faced with his father’s determination to lock down the subsidiaries he currently held, the son could no longer object.
“Electronics and Logistics are practically holding companies. No matter what, these two must not be damaged. We’ll secure them firmly this time. Then, we can expand again, just like Daewoo Motors Group. Ten years, by the time you’re in your fifties, making the group as big as it is now will be your responsibility.”
The number of subsidiaries wasn’t important. The key was securing a few core subsidiaries, and the father and son already possessed the core of the group.
In the give-and-take of a strategic battle, they were prepared to sacrifice a few pawns for the ultimate victory.
* * *
“Vice-chairman! The prosecution has arrived with a search and seizure warrant!”
“What?”
“It seems the Management Support Division is the target. They’re heading there directly!”
Vice-chairman Jin Dong-gi, who had been discussing self-rescue measures with his son, jumped up from his seat, and Jin Tae-joon hastily followed his father.
The Management Support Division office was already overrun with prosecution staff, who were collecting documents and computers.
“You bastards! Stop what you’re doing! Where do you think you are, daring to…!”
As Vice-chairman Jin Dong-gi trembled and shouted, a young man stepped forward.
“For someone who should know better, acting like this just shows how anxious you are, wouldn’t you say?”
“Who are you?”
“Ah, my apologies. I’m Kim Ji-hoon, a prosecutor from the Financial Investigation Department of the Seoul Central District Prosecutors’ Office.”
“Did the Chief Prosecutor order this? Are you just stirring up dust to make me surrender quickly?”
“Aren’t you Vice-chairman Jin Dong-gi, by any chance?”
Prosecutor Kim Ji-hoon tilted his head as if he didn’t understand what was going on.
“What? What nonsense is this guy spouting now?”
“Vice-chairman Jin Dong-gi isn’t the subject of our investigation. The prosecution isn’t interested in those who’ve ruined their companies. It’s not within our jurisdiction. So, I doubt our Chief Prosecutor is trying to make you surrender.”
“You, you little…!”
Jin Dong-gi, believing the prosecutor’s smirk was directed at him, trembled, unable to speak properly.
“Ah, there you are.”
Prosecutor Kim Ji-hoon pointed to Jin Tae-joon, who was standing behind Jin Dong-gi.
“You’re Jin Tae-joon, correct?”
“…Yes.”
“We have some questions for you. Would you mind coming with us? It’s a voluntary request, so you can refuse. But next time, we’ll come with an arrest warrant. Wouldn’t it be better to avoid the unnecessary hassle?”
The moment the prosecutor pointed out his son, Vice-chairman Jin Dong-gi turned his head. He saw his son’s eyes, shaking with bewilderment and fear. Just then, he heard Prosecutor Kim Ji-hoon’s almost threatening words.
“When we come with an arrest warrant, we’ll bring a lot of reporters. As you know, handcuffs are used during arrests. If you really want to see that in the newspapers or on TV, you don’t have to come now. What do you say?”
“What’s the reason? Why my son?”
Jin Dong-gi turned back and shouted.
“I hear he invested 60 billion won of company money in derivatives and lost it all. The father pulls in other people’s money for reckless ventures, and the son uses company funds to line his own pockets. No wonder the company is in such a state.”
At the mention of 60 billion won, Jin Tae-joon’s face turned ashen.
Seeing this, Jin Dong-gi squeezed his eyes shut.
His son’s expression was clear evidence that the prosecutor’s words were true.
“Make a decision quickly. We want to go home too.”
At the prosecutor’s words, now devoid of any hint of a smile, Vice-chairman Jin Dong-gi addressed those around him.
“Call the lawyers. All of them, without exception.”
“Yes, Vice-chairman.”
As the staff took out their cell phones, Jin Dong-gi spoke to his son.
“You keep your mouth shut and don’t say a word. Wait for the lawyers to arrive.”
“…Yes.”
Jin Tae-joon barely managed to reply, and Prosecutor Kim Ji-hoon shook his head.
“The right to remain silent is fine. But don’t you know that remaining silent is generally considered an admission of guilt? Oh well… Thank you for your cooperation.”
Prosecutor Kim Ji-hoon addressed the prosecution staff carrying boxes.
“Let’s drop these off and go home.”
As the prosecution staff with boxes were leaving, Jin Tae-joon leaned in and whispered something in his father Jin Dong-gi’s ear.
Jin Dong-gi’s expression gradually contorted.
* * *
“They took everything?”
“Yes, Chief of staff. Executive Director Jin Tae-joon also went along willingly as a witness.”
Assistant Manager Kim Yoon-suk looked rather excited.
“Willingly?”
“Yes. The prosecutor threatened to come back with an arrest warrant, so he tucked his tail between his legs, I hear.”
Kim Ji-hoon seems to be good at his job. His skill in handling arrogant chaebols is remarkable.
“Good work. Keep a close watch on their movements and continue to report.”
“Yes, Chief of staff.”
“Oh, and on your way out, have two cups of tea prepared.”
“Two cups?”
“A guest will be arriving. Tell them not to stop him.”
There was no time to prepare tea or even inform the outside that a guest was coming.
The guest had already barged through the door, shouting angrily.
“You little bastard! How dare you touch my son?!”
It seemed the second uncle couldn’t see Assistant Manager Kim Yoon-suk. He abandoned all pretense of decorum and spewed out crude language.
“Assistant Manager Kim, you can leave now.”
After nodding to him, I stood up from my seat.
“Please, have a seat. Would you like some tea…?”
As expected, you shouldn’t mess with family. My always rational uncle grabbed my collar.
“You little bastard! Do you think I’ll just give up because of this?”
I didn’t say anything.
I looked into his eyes and waited for him to calm down.
His son’s embezzlement was just the trigger for his resignation. He had already given up and was broken. Accepting that fact meant realizing he couldn’t save his son with his own power.
He must have frantically made calls everywhere, but everyone either avoided him or refused, leading him to rush to my office and demand that I release his son.
As time passed, the glare in his eyes faltered, and the hand gripping my collar loosened.
“Please, have a seat now. Calm down while you drink some tea.”
Vice-chairman Jin Dong-gi slumped onto the sofa. He sat there blankly for a while before gulping down some water, his throat parched.
“First, let me clear up a misunderstanding. I advised against the derivatives investment. I said the risks were too high, even though there was a chance of making a lot of money. And I lent him 60 billion won of my own money to cover the losses. I warned him against doing something foolish and even lent him money. You may want to blame someone else, but… this happened because of the greed of both my uncle and Tae-joon hyung.”
“This is a trap you set. Naive Tae-joon would have fallen for it.”
“That’s right.”
“What?”
Sparks flew in Jin Dong-gi’s eyes, which had been vacant a moment ago.
“I said it was a trap. I warned him that he would die if he fell into it. But he jumped in anyway. Is this still my fault?”
“Are you saying he’s not just naive, but stupid?”
“No. Didn’t I just say? His greed was excessive.”
The second uncle fell silent again.
The tedious standoff would end when he asked me to send his son home using my influence.
“Are you so happy to hand over Soonyang to others? Or do you hate me that much? Just because Construction is faltering now doesn’t mean it’s a light company you can just toss to someone else.”
I hesitated for a moment, but then made up my mind.
To make him completely give up and bow his head to me, I needed a more powerful blow.
“Why would I give it to others?”
“……?”
“Everything my second uncle has will end up in my hands. Don’t you know how much I respected and loved grandfather? Do you think I would let even a single part of Soonyang fall into someone else’s hands?”
“If the creditor banks take over Construction and seize the shares of the subsidiaries, you won’t be able to get them back. Do you think you can buy back those shares with the money you have? Even if you offer a fortune, they won’t sell—that’s controlling stake. Lee Hak-jae will never give up those shares. Miracle is targeting our Soonyang.”
Hasn’t he noticed yet?
Well, it’s too much to expect him to see through everything with just a few words when he’s in such a distraught state.
“That’s not it. The largest shareholder of HW Group is me. No, it’s Miracle. And the largest shareholder of Miracle is me. Everything you just said is correct. The controlling stake will never be sold to others, and they are indeed targeting the entire Soonyang Group.”
Vice-chairman Jin Dong-gi, utterly shocked, gaped, unable to speak.
Was that a powerful enough blow?
“Soonyang Automobile wasn’t taken from us; I made it bigger with my own hands. I acquired Ajin Group and took over Dae-ah Construction. All of those companies can bear the Soonyang name. Has anyone in our family ever taken something that belonged to someone else, like grandfather did? While everyone else was busy inheriting and preserving, I took what belonged to others.”
“Y-you…?”
“There was a good reason why grandfather favored and cherished me the most. It was because there was no bloodline as suitable for Soonyang’s chairman position as mine. The only thing my two uncles did to become vice-chairmen of Soonyang and inherit the company was to be born as grandfather’s sons.”
I told the still-stunned man an important lesson.
“What’s easily gained is easily lost.”