Still, I Will Live As The Son-In-Law Of A Conglomerate [EN]: Chapter 23

7th. The 300 Million Dollar Task (2)

“Chairman?”

Sun Hae-cheol and Park Tae-jin looked at Grandfather with surprised expressions.

“Starting this year, I plan to focus our family business on promising opportunities. The Gangnam Terminal construction will be the first project where we concentrate all of Haedong’s capabilities. Secretary Ko, inform them.”

“Yes, Chairman.”

Ko Seung-ju acknowledged Grandfather’s command and then looked at us, saying,

“While you were in the United States, Shinseong Group withdrew from the Gangnam Terminal construction project.”

“What are you saying, Hyung [older brother/term of respect]? We even signed lease agreements for Shinsegae Department Store and Korea Hotel, so why would they back out?”

“That’s right, Secretary. Moreover, Shinseong Construction had a major accident in Busan last year, which led to a sharp decline in work for Shinseong Corporation. Why…?”

Sun Hae-cheol asked, puzzled, but Ko Seung-ju continued with a calm expression.

“It was a trap. Chairman Jang Ho-geon and Vice Chairman Jang Ho-min told Chairman Shin Ho-jin that unless they received 50 percent of the Gangnam Terminal shares in exchange for half of the construction cost, they would call off the deal.”

“So, that’s why it fell through?”

“You could say that. Shinsegae hesitated but eventually decided to maintain the contract, but starting the Gangnam Terminal construction will be difficult. All the banks that were going to invest in the project did so because of Shinseong’s reputation. Because of that, Chairman Shin ended up in a difficult position.”

Only after hearing Ko Seung-ju’s explanation did Sun Hae-cheol and Park Tae-jin nod, but I already knew this would happen.

The Shinseong Group’s attempt to seize the Gangnam Terminal was the first and last project where the three siblings, Jang Ho-geon, Jang Ho-kyung, and Jang Ho-min, worked together.

The problem was that Jang Ho-kyung, dissatisfied with the division of the Gangnam Terminal shares to be seized from Shin Ho-jin, defected, creating the opportunity for the project to be restarted.

Later, Taehyun Construction took over the Gangnam Terminal construction, but Shin Ho-jin, unable to tolerate the delays, completed it by using the construction company he had established.

In the end, the failure to seize the Gangnam Terminal turned the three Jang siblings into complete enemies, which was why I became Jang Ho-geon’s son-in-law and made my aunt and uncle kneel before me.

“So, there won’t be a better opportunity for our Haedong to grow its construction business.”

Unlike Grandfather, Ko Seung-ju spoke with a concerned expression.

“However, even if Haedong Construction’s financial structure is sound, we can’t ignore the construction ranking, Chairman. Even if we bought land last year, we can’t afford to engage in business where we earn now and lose later, can we?”

“That’s right, Chairman. If a dumping issue arises from this, we could clash with other groups.”

“More than anything, clashing with other groups will expose our private loan funds. Even though we erased the traces last year, it’s still risky.”

The concerns of Park Tae-jin and Sun Hae-cheol, following Ko Seung-ju’s lead, were also valid.

Haedong Construction’s current construction ranking is 15th.

Considering this, if we want to win the project over top-tier construction companies like Taehyun Construction or Daeju Corporation’s construction division, low-price bidding is the easiest method.

However, given our family’s history of providing private loans to other groups, even if we erased our family’s traces in Myeongdong, we need to be careful, making it the worst possible option.

Unlike the three people who looked like they were holding a hot potato, Grandfather wore a mischievous smile.

“So, I said I would give 300 million dollars to Seong-min as tuition if he brings that project. Aim for a profit margin of 5 percent. What do you think, Grandson?”

Ko Seung-ju, taken aback by the terms of the deal Grandfather revealed, quickly stepped forward.

“That’s impossible, Chairman. Last year, Haedong Construction’s profit margin was 3 percent, so 5 percent is…”

It’s the same in other industries, but a 2 percent profit margin in the construction industry is a huge number. To achieve that figure, you would have to give up creating slush funds [secret funds for bribes or illegal activities] and practically grind down the employees and subcontractors. Yet, he’s ordering us to do that…

“Hyung is right, Chairman. 5 percent is impossible.”

When even Sun Hae-cheol stepped in to dissuade him, Grandfather said sternly.

“There will be no slush funds created in this project. Haedong Steel, Haedong Cement, and Haedong Heavy Industries’ receivables from construction will be acquired by the merchant bank. The funds needed by the merchant bank will be covered by my personal wealth.”

“Chairman?”

Ko Seung-ju, Sun Hae-cheol, and Park Tae-jin looked at Grandfather with expressions as if they had been hit in the back of the head. The grandfather, who loved money so much, was saying that he wouldn’t create slush funds and would even use his personal wealth to start a business. Not only them but I also couldn’t believe it.

“So, all that guy has to do is win the project, hehe.”

Unlike Grandfather, who was laughing while pointing at me, we suddenly became awkward. Didn’t the homework suddenly decrease?

“What do you think? Isn’t it worth trying now?”

Grandfather had given up on creating slush funds and even used his personal wealth to cover the 2 percent, so I couldn’t complain any further. If I can’t bring a project that only requires me to win it, do I have the qualifications to be the successor?

Rather, I had to give him an even better gift. Trust deepens when the giving and receiving, like an escalator, gets bigger.

“It would be even better if we kicked out Shinsegae and put in our department store, right?”

When I said I would accomplish one more task, a low exclamation flowed from Grandfather’s mouth.

“Hoo… you’re saying you’ll race this old man?”

“It’s a 300 million dollar task, so you have to keep what you said last time, haha.”

You have to laugh when things are tough. I was someone who was recognized even by the Shinseong Group employees who aimed for the top, although not anymore.

If it were the old days, I wouldn’t have, but now I wanted to show boldness and confidence in front of Grandfather. To score points with Grandfather, who values ‘likeness,’ I had to show a ‘manly’ and ‘successor-like’ appearance.

Whether the laughter worked or not, Grandfather slammed the desk and laughed heartily.

“Euhahaha! As expected of this old man’s eldest grandson. You must keep what you said in this room, hehe.”

Ko Seung-ju looked at me with a disgusted expression for racing against Grandfather, but I had my own thoughts. Should I go for a Han River outing for the first time in a while?

***

“How did he seem?”

“I was a little, no, very surprised, Chairman.”

“So were you. I don’t think he looked into my heart, but how did he study like this…”

Lee Dae-soo, after sending the three away, revealed his inner thoughts when Ko Seung-ju expressed his honest feelings. He gave them homework not to do useless things, but suddenly they received the homework, so they were just embarrassed.

“Give what Seong-min brought to Bae Jae-hoon and Tae Jae-ho, and have them select smart and tight-lipped guys to review it. The two friends will be eager to help with resource development and distribution business.”

“Yes, Chairman. Among them, resource development stands out in the Australian business. The zinc mine in Queensland is good, but the mining company in Western Australia also seems good.”

“Are you talking about that company in Perth?”

“Yes. If you look at page 21 of the report, it says that Rio Tinto pays royalties of 1.5 to 2.5 percent of sales and leases the iron ore mine with development rights to that company to mine iron ore. At this rate, it’s practically a bargain, Chairman.”

Lee Dae-soo put on his magnifying glasses and opened the page Ko Seung-ju mentioned. His eyes, looking at the report through his glasses, gleamed like a beast that had discovered a delicious prey.

“As expected of those Westerners. They’re not going to do business without profit.”

“I think so too. We need to check with the residents of the Australian corporation, but considering the mining scale and China’s economic growth, the long-term investment value will be sufficient.”

“Have Bae Jae-hoon handle that company and the zinc mine in Queensland well. If we get our hands on it, it will be our group’s food for decades.”

Lee Dae-soo wore a relieved expression after solving the homework his grandson had given him.

“Now, we have to watch whether our eldest grandson will do the homework I gave him.”

“Still, wouldn’t it be too much, Chairman? The Gangnam Terminal project won’t be easy.”

Even when Ko Seung-ju suggested caution, Lee Dae-soo shook his head.

“He should have started at that age. I did, and Seong-min’s father did too. Myeong-jin is brighter in technology than business, so he started by touring the factory and construction sites.”

In the Haedong Group, there was a tradition that successors had to experience the bottom, whether it was business or technology. If they refused that tradition, they couldn’t even dream of participating in management.

“Come to think of it, Myeong-woo also ran the fruit and vegetable auction in Garak-dong [large agricultural market in Seoul] at Seong-min’s age.”

“You did too. Hae-cheol and Tae-jin did too. The hangover soup we ate after the dawn auction with you guys was excellent.”

“At first, I didn’t know why you asked us to go, but later I went because of the hangover soup, haha.”

During his college days, Ko Seung-ju used to go to the Garak-dong Agricultural and Marine Products Market with Lee Myeong-woo and Sun Hae-cheol from dawn. There, they examined the fish, vegetables, and fruits in the crates one by one and signaled to the auctioneer whenever the items they had marked came up.

The hot and spicy hangover soup they bought with the money they received from selling the auctioned items to the merchants was also excellent, but the auction experience became a nutrient for them as businessmen. The amount is different, but isn’t the basic of business betting at the right timing?

The two men wore warm smiles at the naturally emerging old memories.

“But… we’ll have to skip Seong-min.”

“Is it because of Korea Mobile Telecom?”

Lee Dae-soo nodded.

“He won so many chips in the first game. He’s not going to be satisfied with winning small change.”

“That’s right, Chairman. The times are changing, so we need to send him to bigger waters.”

Ko Seung-ju also thought the same way. The Garak-dong Agricultural and Marine Products Market was too small of a gambling den for Lee Seong-min, who had grown so quickly.

“So, I’m saying… let’s have him manage half of the money to be used in Standard.”

“Yes?”

Unlike the startled Ko Seung-ju, Lee Dae-soo didn’t even twitch an eyebrow.

“I have a feeling… that company and that guy, their relationship is not ordinary.”

“Then…?”

“Seong-min entrusted Hae-cheol with money around August, right?”

“…Ah!”

Ko Seung-ju’s face turned red in an instant.

Listening to Lee Dae-soo’s words, the timeline almost matched. The timing of Lee Seong-min entrusting the money and the founding of Standard Capital.

“It seems like that guy colluded with those two and told lies… it’s commendable that he’s not trying to bleed the family dry, euhehe.”

Ko Seung-ju was also curious about how much Lee Seong-min would grow and how high and big a tower of wealth he would build.

In this family where money with clean labels and no strings attached is rotting, 150 million dollars for successor verification is not expensive for tuition. Lee Dae-soo’s successor has to be responsible for wealth and many people that make that money look ridiculous.

If the company to entrust that tuition to is Lee Seong-min’s, it would be interesting to watch how it grows. Isn’t it the company that will be grown by Lee Seong-min, the eldest grandson of this family who has come to his senses, and who has increased 20 billion to over 60 billion with the Korea Mobile Telecom investment?

Unable to resist his animalistic curiosity, Ko Seung-ju asked Lee Dae-soo for permission.

“May I investigate that company, Chairman?”

“Standard Capital?”

“Yes, Chairman.”

Lee Dae-soo looked at Ko Seung-ju and nodded.

“Do so. Just find out and don’t make it obvious. How is Myeong-jin doing?”

“He said he has been preparing since hearing the news at the end of last year. He has selected only the aces from construction, cement, steel, and heavy industries, so you can look forward to it.”

Lee Dae-soo wore a satisfied smile at Ko Seung-ju’s report.

“Hehe, that guy’s tail is properly on fire. He’s full of energy because of the department store he’s building in Eunpyeong-gu.”

“If this goes well, he’ll have 250 billion won [Korean currency] of money without strings attached, haha.”

Lee Dae-soo had also told Lee Myeong-jin that if he won this project, he would hand over 250 billion won of slush funds.

Due to the unwritten rule that group slush funds should only be used for the company, they cannot be used privately, but the more money, the better. Lee Myeong-jin was also pouring all his energy into this project.

“That’s right. I can’t exploit my children for free, can I? There’s no such thing as a free lunch, euhehe.”

Lee Dae-soo, who was laughing heartily, unfolded the report Lee Seong-min had given him once again.

“This guy wants to change the Eunpyeong branch to a discount store… what do you think?”

“I think it’s a good idea. Eunpyeong-gu is not a neighborhood with high purchasing power, so a discount store is more advantageous than a department store. It would be good to enter the discount store business this time.”

Lee Dae-soo, who was contemplating for a while at Ko Seung-ju’s opinion, nodded.

“How far has the construction progressed?”

“I know that the underground parking lot construction has been completed.”

“You, review this report with CEO Tae and make a decision. Looking at the situation in the United States, it seems that discount stores will be the trend in the distribution sector.”

Lee Dae-soo, who was stroking his chin, made a decision with a light breath, and Ko Seung-ju answered immediately. Even though he had put down company work for more than 10 years, Lee Dae-soo had an amazing sense of money before that.

“Yes, Chairman.”

“Now, we just have to watch whether they win the Gangnam Terminal. I’m curious about how skilled my son and grandson will be, hehe.”

Lee Dae-soo’s face was full of expectations for the two.

***

After leaving Samcheong-dong, I returned to the Itaewon house with Sun Hae-cheol and Park Tae-jin and was drinking coffee.

“I lied, but I feel like I’m committing a sin, hehe.”

“Thank you, Uncle.”

It’s a ridiculous lie, but Grandfather will look favorably on it. It’ll be much better than trying to bleed the family and group dry.

Sun Hae-cheol, who was leisurely drinking coffee, cautiously looked at me and asked.

“But you, are you really going to do what the Chairman ordered?”

“I have to even if he tells me to crack chestnuts with my forehead. It’s something Grandfather asked for. What do you think, Hyung?”

Park Tae-jin, who was contemplating for a while, raised his head.

“Bidding for the Gangnam Terminal construction won’t be easy.”

“Why?”

“As I said in front of the Chairman, all the conglomerates with large construction companies like Taehyun or Daejeong will rush in. Isn’t it a large-scale project with a site area of 18,000 pyeong [unit of area, approximately 59,504 square meters]? Financing is key, and they will be ahead of us.”

“You mean ‘too big to fail’?”

“Yes. Moreover, Haedong Construction has never done a super-large building construction beyond the two group headquarters buildings on Teheran-ro. We will be far behind in terms of experience.”

In fact, the measures taken by Grandfather were only to raise the stakes enough not to be pushed back in the competition with other groups. If he didn’t even do that, we could never win the project.

I nodded at Park Tae-jin’s words and said to him.

“Then… we have to compete in non-price factors.”

Grandfather covered the money issue. Park Tae-jin cautiously asked at my words that the company should show that it can do the job well.

“Do you have a way, Doryeonnim [young master]?”

“Do you have any cards to play?”

“We can increase Haedong Construction’s capabilities, right?”

Did I say it too easily? Park Tae-jin and Sun Hae-cheol stared at me with stiff expressions again.

“Is that even a word! Do you think it’s easy to increase the capabilities of a construction company in an instant?”

“Doryeonnim, business is not a joke. Please speak more carefully.”

I saw disappointment in the eyes of the two, but there was a way to change that disappointment into expectation and admiration.

“I spoke carefully enough, Hyung. First, let’s go get some fresh air by the Han River.”

“In this weather? Are you trying to get a stroke?”

Sun Hae-cheol looked at me with a dumbfounded expression, but it was absolutely necessary to receive the 300 million dollar tuition.

“It’s not just about showing the capabilities of a construction company by building buildings, right? Hyung, bring the telescope in my room.”

***

After leaving the house, we arrived at the riverside near the Han River and set up the telescope we brought from home.

“Aigo [expression of annoyance], it’s cold. A telescope in broad daylight… what are we doing?”

Sun Hae-cheol grumbled while exhaling his breath after getting out of the car.

“Just wait a moment, Uncle. Hyung, adjust it over there.”

I pointed to the middle of the bridge with my finger, and Park Tae-jin adjusted the end of the telescope to the middle of the bridge with me.

“I’ll check first.”

I put my eye to the eyepiece of the main telescope and checked, and what I wanted was visible in my eyes.

Showtime, let’s begin.