Chapter 311: Chapter 1

No one could have predicted that the self-immolation of a young fruit vendor in a small Tunisian town square on December 17, 2010, would ignite a fuse that would topple dictators in Tunisia, Egypt, and Libya, and shake the regimes in Syria, Yemen, and Bahrain.

News of the young man’s desperate act sparked protests that spread like wildfire. Exactly 28 days later, Tunisia’s president fled to Saudi Arabia, bringing an end to his 23-year reign of tyranny. This spirit of resistance would soon manifest as Mexicans stood against the terror of drug cartels, Greeks marched against their irresponsible leaders, and Americans gathered on Wall Street to protest income inequality.

2011 would begin and end with protests, and Time magazine would name “The Protester” as its Person of the Year, but the world wouldn’t change so easily.

The Korean economy, which had been faltering since the previous year, faced a grim forecast in the media: for the first time since industrialization, Korea’s economic growth rate was predicted to fall below the global average.

The government was concerned, and the people were worried, but my interests lay elsewhere.

“There’s no better tool for managing public image. It has far more impact than the traditional media. Post a message every day. Our goal is to make people eagerly anticipate my daily updates.”

“Like a celebrity?”

“The target numbers are celebrity-level, but the content must maintain decorum. In particular, ordinary people will bombard me with questions about which stocks to invest in. We must completely ignore those.”

The full-fledged era of social media had arrived. Until now, I’d felt a pang of guilt about the exorbitant salaries paid to PI experts relative to their work, but now it was time to earn that money.

“As I said before, even if I become an economic offender, public opinion must be in my favor. Keep that in mind.”

Entertainers and politicians belong to the same career category. Now, the era of business tycoons joining that group was dawning.

An age where they drove around with packs of camera reporters, where every word they uttered had societal impact. Being a chaebol wasn’t easy anymore.

“Are you a celebrity? What’s with all the grandiose showmanship?” Chairman Lee Hak-jae said with a chuckle as he received New Year’s greetings.

Chairman Lee Hak-jae said with a chuckle as he received New Year’s greetings.

“It’s worth the show. I saved 30 trillion won, didn’t I?”

“Do you put on such a show even at home?”

“Excuse me?”

“You must have given New Year’s greetings to the elders at home, right? Did you put on a show then, pretending to be the dutiful youngest?”

“I’ve changed from a dutiful youngest to a fearsome one. Everyone’s been cautiously watching my every move. Though, I haven’t had the chance to see my eldest uncle’s family.”

My aunt, past her sixtieth birthday, was trying to flaunt her youth to avoid being forced into retirement. Her three sons were fawning over me like never before, hoping to get control of a hotel.

My second uncle, Jin Dong-gi, pretended to be detached but still showed interest in the group’s internal affairs. Jin Tae-joon treated me like his direct superior, which was almost embarrassing.

My perpetually ignored third uncle had clearly changed his tune. He was unusually close to my father, singing praises of his younger brother.

This was because his only son, Jin Kang-jun, whose leg I’d broken as a child, wanted to get into the entertainment business.

“Sucking up to powerful and wealthy relatives is the same whether it’s a chaebol family or an ordinary one,” Chairman Lee Hak-jae remarked, shaking his head.

Lee Hak-jae shook his head.

“Enough with the pleasantries, shall we get to work?”

He tossed a folder of documents onto the table.

“This summarizes the key projects for this year that you need to be aware of. Review it and let me know your thoughts.”

“If you’ve already approved it, Chairman, let’s just proceed.”

“I’ve only included the ones that are somewhat ambiguous for my approval, so take a look. And this is Vice-chairman Jin Young-gi’s year-end stock holdings and list of assets from last year. You can consider his personal holdings completely cleared out.”

This was more interesting than the business plans.

I meticulously examined the documents he’d handed me.

I had a rough idea of the asset transfer routes, but there was an unexpected detail.

“He established a foundation?”

“Yes, he created it rather suddenly at the end of last year. You can assume all of Vice-chairman Jin Young-gi’s personal assets went into it. The chairman of the foundation is…”

“He’s passing it down to his second son, Kyung-joon, this way.”

“It’s too blatant. Usually, they make some noise about social contribution and put on a show like you, subtly transferring things over, but this time, he did it completely under the radar. Not a single article about it.”

“Isn’t this a clear statement that he won’t pay gift tax?”

“There’s more. Most of the real estate went to the foundation, but the cash amount is only 70 billion won. From what I know, he should have at least 300 billion won in cash…”

This was proof that my uncle was on edge.

Either he kept it aside as a contingency fund or didn’t transfer it to the foundation to secure more shares.

If the foundation buys stocks with that money, it’s as good as his second son owning them.

“Kyung-joon must be grinding his teeth again.”

“The angrier he gets, the better it is for you. Heh.”

“Internal strife is always welcome. So, all that’s left is the transfer of subsidiary shares.”

“Yes. It’ll give you a headache.”

“A perfect ownership structure won’t emerge, will it?”

“No. If the reliable support of what we call friendly shares falters even slightly, his heart will sink.”

“Do you anticipate any potential countermeasures?”

“Electronics and Logistics are too big to touch, so they’ll have to play tricks with the subsidiaries that hold shares in those two key companies.”

“They’ll further solidify the subsidiary’s ownership structure to prevent me from launching individual attacks?”

“That’s right. Until they find a groundbreaking method, that’s all they can do.”

What was the caliber of talent gathered around Vice-chairman Jin Young-gi? What kind of plans were they formulating to defend their fortress and protect their master?

“Chairman, how about we poke them a little before the succession is finalized? As a New Year’s gift, perhaps. Just to see what kind of countermeasures they come up with… A good jab will draw blood, and we can distinguish those who ignore the bleeding from those who try to help.”

We need to target those hiding behind the facade of friendly shares who are willing to turn a blind eye. They are merely friends to whoever benefits them.

“Poke them?”

“Yes. We can introduce a white knight to gauge their strength.”

“A white knight… Who? Miracle?”

“Yes. Since they also own shares in Soonyang Group, they are qualified. However, I’m thinking of bringing in the US branch of Miracle.”

“The headquarters?”

“Yes. Rachel has considerable recognition in our country and is quite amicable, isn’t she? She’s been hinting at retirement, so we should give her one last exciting task before she goes.”

Chairman Lee counted on his fingers and clicked his tongue.

“What do you mean retirement already? How old is she, not even fifty?”

“The turnover rate is high in that industry. And Rachel has lasted a long time considering her less aggressive nature. I heard she’s already bought a winery in Napa Valley and is steadily preparing for it.”

At the mention of a winery, Chairman Lee said enviously.

“Damn, should I move to the countryside and start making makgeolli?”

“Someone born a carnivore can’t become a herbivore. If you want, I can set up a brewery for you, so you can visit it like a weekend farm. Don’t dream about rural life. You wouldn’t last a day out of boredom… Heh.”

Herbivores in the countryside, carnivores in the city.

This was the modern jungle.

＊＊＊

“And I just love threatening people.”

Rachel Arieff, who had flown to Korea without much fuss despite my sudden call, smiled with sparkling eyes. She looked like she’d found a very interesting game.

“Seriously, this isn’t a game. We need to maintain appropriate boundaries. If things go wrong, the government could get involved. Soonyang Electronics is that important to Korea.”

“If it’s such an important company to Korea, why is your family controlling it with such a minuscule share?”

I had no intention of debating corporate ethics with her, as she couldn’t possibly understand the reality of Korean corporations where management disregarded shareholders for their own benefit, unlike normal stock companies where management worked for the shareholders’ interests.

“That’s how I can get my hands on Soonyang Group. Isn’t the US the right place to apply moral standards?”

She shrugged and didn’t pursue the topic further.

“So, are you going to publicly announce a hostile M&A?”

“No. An M&A is impossible right now anyway. We’ll leak it through unofficial channels.”

“Unofficial channels meaning the media?”

“Yes. All the major Korean news outlets will be lining up for an interview with you, Rachel. And in that interview, you can share your thoughts on Korean corporations.”

Her expression immediately turned disappointed.

“What? You call that a threat?”

“You know that what you consider a normal and desirable corporation is the exact opposite of Korea’s chaebol conglomerates.”

“This is just criticism.”

“Just use Soonyang Electronics as an example when you criticize. Then, the reporters’ speculations and imaginations will turn that criticism into a threat.”

Rachel, having grasped the overall plan, chuckled.

“You’re a tough one to deal with. You have a subtle way of tormenting people.”

“That just shows how formidable my family is. It’s too difficult to strike directly.”

It was hard to tell what she was thinking just by looking into her eyes. But one thing was clear.

She pitied me, someone who had reached the envious position of being one of the world’s wealthiest individuals but was still struggling to get what I truly wanted. She probably knew that the ability to live comfortably was something you were born with.

＊＊＊

“Could you please state the purpose of your visit to Korea?”

“There’s nothing particularly special. It’s part of the routine work of reviewing the management performance of HW Group, in which Korea Miracle is the major shareholder.”

Reporters gathered at the joint press conference relentlessly fired questions, hoping to scoop a story from the woman who commanded vast sums of money.

“Miracle seems to have a special affection for Korea. From the emergency support of 10 billion dollars when foreign currency reserves were low to its aggressive acquisitions of Korean companies.”

Rachel’s eyes sparkled at this question.

“The foundation of Korean companies is very weak. That’s why their corporate value is undervalued. And that makes them easily vulnerable to external shocks.”

“Could you elaborate on what you mean by that?”

“It’s as I said. It means there are many opportunities to acquire good companies at a low price.”

“What is the basis for your assessment that they are undervalued?”

Rachel smiled at the reporter who was showering her with the exact questions she needed. She suspected that Jin Do-jun had planted this reporter.

“For example, Soonyang Electronics. I saw the news that its stock price recently broke the $1,000 mark. However, about a dozen US companies that are about 30% the size of Soonyang Electronics have already surpassed $1,000 a long time ago. Soonyang Electronics’ stock price should be at least double its current value. Of course, certain prerequisites are required.”

Soonyang Electronics, and double.

These words became fodder for the reporters.

“To be recognized for their true corporate value, they need to ensure management transparency and guarantee shareholders’ rights. It’s hard to deny that the current Korean chaebol conglomerates have bizarrely irregular governance structures.”

The reporters wracked their brains, trying to figure out what questions to ask to elicit even more shocking statements.

“Do you have any intention of acquiring Soonyang Electronics?”

The same reporter asked, as if he had been waiting for this moment.

Rachel paused briefly and then grasped the microphone.

“Excellent companies are always on the M&A list. Soonyang Electronics can’t be an exception, can it?”

Rachel wondered if this was the answer Jin Do-jun wanted as she ended the interview.