Chapter 299: A Clash of Interests

Vice-chairman Jin Young-gi was beaming, clearly pleased about something.

“Come on, let’s wrap this up quickly and grab a drink. We’re all family here; a little compromise will do the trick, right? Chairman Lee, who Dad trusted most, his cherished grandson, and me, his eldest son. Honestly, working together would have been ideal…”

His words definitely held a hint of sincerity.

Provided, of course, that Chairman Lee Hak-jae remained the dutiful secretary, just as he had been for Grandfather, and that his bright nephew continued diligently managing his personal funds.

“Forgive me, but I’ve never once imagined us working together.”

Chairman Lee chuckled, but the smile vanished from Uncle’s face in an instant.

“Do you always have to phrase things so antagonistically?”

Sparks flew in the air between the two men.

Whether Chairman Lee intended to provoke Uncle or if he genuinely meant it, things were already off to a rocky start.

“Let’s stop this. Just state your terms and let’s finalize the agreement quickly.”

Chairman Lee ignored Uncle’s glare. Getting emotional would only make him reluctant to concede even the smallest point.

“Alright… let’s get this over with. What multiple are you asking for?”

The shares of Electronics and Logistics held by the Construction and Heavy Industries branches were worth significantly more than the shares of Construction and Heavy Industries held by the Electronics and Services branches.

Uncle started by addressing this difference in value. If they agreed on this disparity, the deal would proceed smoothly.

“Let’s start at double the current market price.”

“What?”

“Soonyang Electronics’ stock price continues to rise, while construction stocks are steadily declining.”

Soonyang Construction and Heavy Industries’ stocks were in the 10,000 won range.

Soonyang Electronics’ stock was nearing one million won. The market price difference was already 100-fold. Asking for double that was 200-fold.

Suggesting one share of Electronics for 200 shares of Construction would naturally leave Vice-chairman Jin Young-gi speechless.

Even the 10,000 won price was a slight increase due to the news of Soonyang Construction’s stabilization. However, the overall decline in construction stocks persisted.

“What exactly are you trying to pull here? Are you aiming to profit from this stock swap? Isn’t the goal to reclaim our respective shares? Double the market price? That’s outrageous!”

“Shouldn’t the representatives of leading companies in a market economy base their decisions on market prices? If you’re not comfortable with this, Vice-chairman, please suggest your desired ratio.”

“Chairman Lee, let’s just exchange all the shares and I’ll give you an additional sum. Just name the amount. Forget about absurd figures like 200 times.”

“I believe I mentioned that 200 times is just the starting point?”

“What?”

“Construction stocks are experiencing a brief surge before declining again. Miracle Corporation anticipates them staying around 5,000 won for the foreseeable future.”

Chairman Lee frowned, seemingly frustrated by Vice-chairman Jin Young-gi’s lack of understanding.

“The longer we delay the stock swap, the more favorable the exchange ratio becomes for me. Hence, it’s just the beginning.”

Each side knew the other’s shareholdings intimately.

Vice-chairman Jin Young-gi had calculated the additional cost and was reeling from the exorbitant amount.

They were transitioning from feature phones to smartphones. Not just in Korea, but globally, massive investments were being made to adapt production facilities to the smartphone era. The group’s available funds weren’t abundant.

Chairman Lee Hak-jae employed the most common and effective tactic to derail the deal.

The numbers didn’t align.

No matter how favorable the other terms, a deal crumbles if the finances don’t make sense. Negotiation is the process of aligning the financials, and an agreement is reached only when both parties accept the figures.

“Vice-chairman, no matter how crucial it is to regain your company’s stock, the finances must work. I’m not asking for more; I’m simply proposing market value. If you’re hesitant, does that imply you’re not interested in a deal?”

Chairman Lee turned his gaze to me, signaling for my input.

“Frankly, I have no interest in Soonyang Construction or Heavy Industries stock.”

My dissenting opinion further contorted Uncle’s expression.

“I’ve already bought a significant amount of Soonyang Construction and Soonyang Heavy Industries stock. Heh.”

“What?”

Both men turned to look at me simultaneously.

“Why wouldn’t I buy stocks when they’re at their lowest? I’m looking at a one-year timeframe.”

“One year?”

Uncle questioned.

“Won’t they normalize in about a year? Then they’ll easily surpass their previous price of 30,000 won. An investment that yields five to six times the return in a year isn’t common. Soonyang Securities has also been making considerable purchases.”

Institutional investors struggle with profitability. They need to show returns even in the short term, making long-term investments difficult. However, with me, the owner, discouraging a focus on short-term gains, they’ve started making stable long-term investments.

“Furthermore, I don’t particularly covet the Soonyang Financial Group shares you both hold.”

Uncle, realizing the deal was dead, bit his lip.

“The individual investors holding even a single share of Soonyang Financial Group already support me. They aren’t foolish enough to drive out Korea’s rising investment prodigy. Since I took over the Financial Group, the stock price has tripled. With the individual investors backing me, the friendly shares are more than enough to defend against any takeover attempts.”

I glanced between the two men and shifted the responsibility.

“Since you two can’t agree, there’s no need for my involvement. Settle your differences, and we can reconvene. However, I won’t offer market price for the shares. I want a premium that includes the long-term investment potential.”

The deal was broken. Only one person was truly disappointed, so bringing the three of us together wouldn’t lead to a resolution.

“Please continue your discussion. It seems you need more time.”

I excused myself before Uncle could grab me and launch into a lengthy explanation.

* * *

As Chairman Lee Hak-jae entered the conference room, dozens of people leaped to their feet.

Chairman Lee walked to the head of the table and sat down. The others carefully reseated themselves, trying to avoid even the sound of their chairs scraping.

Chairman Lee surveyed the room, remaining silent for a moment, seemingly overcome with emotion.

These individuals had bowed their heads to him for a long time. However, their gazes were always directed towards Chairman Jin Yang-cheol behind him. Today was different. Their eyes were solely on him.

“It’s been a while. Many familiar faces.”

The word ‘familiar’ was ambiguous.

Whether it was a welcome from the heart or a forced pleasantry, the meaning varied for each person.

“First, thank you for your active cooperation during the acquisition process. And for now, we will retain the Soonyang name. But beyond the name, many things will change.”

The people in the conference room were pleased about keeping the name but uneasy about the impending changes.

Because the first change would involve personnel. It meant a reshuffling of the workforce.

“First, we will re-evaluate all subsidiaries from the ground up. Subsidiaries that drain resources without a clear purpose will be eliminated, and any instances of corruption uncovered in the process will be reported to the authorities.”

Some individuals already looked pale.

“The parent company is no exception. The audit team will thoroughly investigate those responsible for the company’s vulnerabilities. Furthermore, anyone in an undeserved position due to loyalty to the owner’s family, rather than competence, will vacate their desk immediately.”

This meant that many executives, particularly those close to Vice-chairman Jin Dong-gi, would be losing their jobs.

“I am the chairman of HW Group, yet I don’t own a single share of HW Group stock. I am a purely professional manager. You will become the same. Once the group’s personnel changes are finalized, evaluations will be based solely on performance—revenue, profit, stock price, and so on. I won’t be revisiting this building for routine operational matters.”

The main conference room of the Soonyang headquarters was filled with a mix of elation and disappointment, fear and anticipation. The emotions of those being ousted and those poised to take their place mingled in the air.

While Chairman Lee Hak-jae was playing the role of conqueror in the main conference room, the son of the dethroned king sat in my office, looking anxious.

“How was it? How many days were you in the detention center?”

“Not long. But the investigations continued.”

“Deferred prosecution, right?”

“Yeah. It seems the conclusion was reached once Father surrendered to the creditor banks.”

Jin Tae-joon appeared to have accepted reality. He wasn’t angry with me, nor did he display any resentment.

“You’ve heard everything from Uncle, haven’t you?”

“Yeah. I know your true colors now too.”

If he knew, he should be showing some respect, but his eyes, perhaps due to his father losing the company, were vacant.

“Then tell me your thoughts and plans, not Uncle’s. I’ll make it happen as you wish.”

“Are you serious about the promise you made to our father?”

“About keeping you in your position? Yes, I am.”

“Without any conditions?”

“No, there are conditions.”

Jin Tae-joon’s listless gaze sharpened.

“All business reports will be submitted only to me and Chairman Lee Hak-jae.”

“That means our father is to keep his mouth shut about company matters.”

“Isn’t that obvious?”

“And?”

“The most important thing: do your job well. Very well. I have high standards. If I think you’re not up to par, you’re out.”

“Anything else?”

“Not from me. But Chairman Lee Hak-jae might have some.”

He was no longer a third-generation chaebol. Being the cousin of a chaebol was his privilege.

He had easily obtained a position that most people would spend considerable time and effort to achieve. But the way to keep it was the same: demonstrate the ability to match the role.

A fair evaluation without special treatment. Jin Tae-joon had never experienced this, but now being judged by others would become his daily reality.

He stood up, his expression firm, and spoke.

“I should meet with Chairman Lee Hak-jae first.”

“Let me know how the interview goes.”

“Alright.”

I called out to him as he headed for the door.

“Tae-joon, hyung.”

He slowly turned around.

“From now on, you’ll have to say something you’ve never said before, just like ordinary people. If you can’t think of those words, your interview with Chairman Lee is pointless. You won’t pass.”

He stood there for a moment, surprised by my unexpected words.

He wasn’t unintelligent. He remembered the words he had forgotten his entire life and gave a faint smile.

“Thanks, Do-jun. For giving me a chance….”

At that level, he wouldn’t be deemed completely incompetent.

* * *

“How is he? Tae-joon, hyung?”

“Composed? He’s the type who grew up without causing trouble, so I never really paid him much attention.”

“Do you think he can handle the work?”

“Honestly, there are plenty of people like him. Is there a special reason besides him being family?”

“Vice-chairman Jin Dong-gi asked, so I agreed, but if you’re not comfortable with it, Chairman, I’ll keep him with me. There are plenty of positions equivalent to a finance director.”

“No. He hasn’t done anything particularly wrong, so I should honor my promise. Let’s observe him a bit longer.”

Chairman Lee also seemed hesitant to be too harsh, considering Vice-chairman Jin Dong-gi’s feelings.

“But, Do-jun.”

“Yes?”

He lowered his voice suddenly, scrutinizing my expression.

“There’s a group holding 2.8% of Soonyang Corporation’s stock. I’ve made contact… What do you think?”

“Do you even need to ask? We absolutely must acquire it. Who is it?”

“Korea Land & Housing Trust Corporation.”

Korea Land & Housing Trust Corporation is a subsidiary of the Korea Land & Housing Corporation under the Ministry of Land, Infrastructure and Transport, specializing in comprehensive real estate investment and finance. However, since the new administration took office, they’ve been accelerating privatization by transferring the Housing Corporation’s shares to the private sector.

“Since they have close ties with domestic apartment construction, they’re likely aiming to build a good relationship with us now.”

HW Group had become the top player in the construction industry after acquiring Soonyang and Daehyun. Korea Land & Housing Trust Corporation’s reaction was natural.

“But they want to meet with you.”

Huh? Why me? Construction isn’t my area.