Still, I Will Live As The Son-In-Law Of A Conglomerate [EN]: Chapter 130

130. 38th. Individual Combat (2)

While Lee Sung-min and his group were raking in money with put options on the Hong Kong stock market, a state of emergency was declared in the main house’s study in Samcheong-dong.

“What did you say? Rights offering?”

Lee Dae-soo slammed his desk with both hands and jumped up after hearing Goh Seung-joo’s report. Goh Seung-joo, seeing Lee Dae-soo’s contorted face, replied,

“Yes, Chairman. Taehyun Group has announced to the stock exchange that they have conducted a 300 billion won rights offering targeting overseas investors.”

“That ruthless man… To think he’d even tap into his overseas slush fund to repay his debt to Brother Byung-ho…”

Lee Dae-soo couldn’t finish his sentence and gritted his teeth.

Now that October has begun, in this time of unstable exchange rates, conducting a 300 billion won rights offering targeting overseas investors means they intend to swallow Ado Motors and drive Shinseong Group out of the automotive market, doesn’t it? Even going so far as to use the slush funds they’ve stashed overseas.

Goh Seung-joo continued his report as he watched Lee Dae-soo slump back into his chair.

“That’s not all. Both Taehyun Group and Shinseong Group are issuing promissory notes [short-term debt obligations] to their subcontractors and tying up cash.”

“What? Promissory notes?”

Flames blazed in Lee Dae-soo’s eyes. Hedge funds will gleefully plunder Southeast Asia and then come to Korea, and they’re squeezing the most vulnerable small and medium-sized enterprises. What a pathetic sight!

Lee Dae-soo sighed and shook his head.

“They’re all crazy. Out of their minds. Big and small companies are collapsing, and they’re all willing to die together just to take over Ado Motors?”

Companies worth trillions of won are collapsing because they can’t cover promissory notes worth a mere 200-300 billion won, yet the two groups seem indifferent to the situation. Lee Dae-soo couldn’t help but sigh.

[Both sides will issue promissory notes and hoard cash. We need to acquire Taehyun Group’s promissory notes, Grandfather.]

‘That clever fellow…’

Lee Dae-soo, who had been tapping his fingernails on the desk in admiration of his eldest grandson’s insight, slammed his palm on the desk.

“This won’t do.”

Lee Dae-soo picked up the receiver and dialed a number.

“Hello, CEO Cho. How many promissory notes has Taehyun issued?”

Goh Seung-joo’s eyes widened at Lee Dae-soo’s question about Cho Young-chan. Was Lee Dae-soo following the Ado Motors acquisition scenario he had foreseen?

“Chairman?”

Goh Seung-joo swallowed hard and called out to Lee Dae-soo, unable to voice the question, ‘Why are you trying to help Standard Capital so much?’

Whether Lee Dae-soo knew Goh Seung-joo’s thoughts or not, he raised his hand to silence him and listened to Cho Young-chan’s reply from the receiver, nodding his head.

“…I see. Buy up 500 billion won worth of Taehyun Group’s promissory notes, starting with the ones due for redemption at the end of this month. Discount them by only 2 percent of the face value. And…”

“Chairman?”

Goh Seung-joo’s eyes widened. With the Bank of Korea’s base interest rate at 8 percent, wouldn’t buying Taehyun’s promissory notes at only a 2 percent discount on the face value essentially mean taking a loss?

Even as he watched the dumbfounded Goh Seung-joo, Lee Dae-soo continued to talk to Cho Young-chan on the phone, giving instructions.

“…Yes. Please do that. Have Myeong-dong [a major financial district in Seoul] spread the word.”

Hanging up the phone, Lee Dae-soo said to Goh Seung-joo,

“When those golden goblins [foreign investors] cross over from Southeast Asia to this land, the exchange rate will skyrocket. If we can acquire Ado Motors, wouldn’t it be worth tying up about 500 billion won for a while? It’s not like it’s money we’ll lose.”

“…Are you going all the way, Chairman?”

Lee Dae-soo nodded at Goh Seung-joo’s cautious question.

“Jin-ho started the race, so we have to respond in kind, right? The promissory notes we hold will become a dog collar around Jin-ho’s neck, hehe.”

Lee Dae-soo, who had been grinning darkly, blinked his eyes.

“I need to call one more person.”

Goh Seung-joo knew who Lee Dae-soo was referring to as ‘one more person.’ He held his breath and watched Lee Dae-soo, who was tapping the desk with his fingernails while holding the receiver to his ear.

“Ah, Chairman Myung? This is Lee Dae-soo. We’re going to buy up Taehyun Group’s promissory notes…”

After exchanging operational plans with Myung Se-ho, Lee Dae-soo chuckled.

“Your brother is going to be hopping mad. Do a good job, hehe.”

Hanging up the phone in an instant, Lee Dae-soo’s face looked more sinister than a demon’s smile. Goh Seung-joo flinched without realizing it, and Lee Dae-soo chuckled as he looked at him.

“Does this old man look that scary? Hehehe.”

“I apologize, Chairman.”

Goh Seung-joo bowed his head, never having seen Lee Dae-soo look so frightening as he did today. A man who had always disliked conflict was now creating a conflict to the death and trying to get what he wanted?

That’s not all. He was buying up the promissory notes held by small and medium-sized enterprises at face value, tightening the noose around Taehyun Group’s neck, and even creating a foundation to garner public support?

Lee Dae-soo took a light breath with a relieved expression.

“Now, all we have to do is watch how much our eldest grandson earns, hehehe.”

Although he hadn’t made a single phone call to Hong Kong, Lee Dae-soo chuckled, believing that his eldest grandson would seize a great opportunity this time as well.

***

From the day after Lee Dae-soo’s instructions were given, employees of Haedong Merchant Bank’s main branch and metropolitan area branches were walking among the people who had been waiting since dawn.

“Okay, everyone! Line up! Line up!”

Haedong Merchant Bank employees shouted at the top of their lungs, handing out numbered tickets to the people.

The customer waiting area, where the numbered ticket dispenser was located, was packed with people who had come to discount Taehyun Group’s promissory notes. Concerned about the congestion, the employees were handing out handwritten numbered tickets.

“Customer number 101!”

“Yes!”

At the female employee’s call, a middle-aged man jumped up and walked towards the counter as if he were running.

“How much did you say it was?”

“500 million won. I don’t care how much you discount it, just give me cash. Please!”

The man, who handed over the promissory note as soon as he sat down in the chair, was a subcontractor who supplied automobile parts to Taehyun Precision.

Even though the promissory note was due in October, the man had visited Myeong-dong’s private loan market for the first time in his life because even commercial banks wouldn’t discount the note. There, he heard unexpected words.

[If it’s a Taehyun Group promissory note, go to Haedong Merchant Bank instead of us. You don’t want to get involved with us, you see.]

So, the man was now sitting in this seat, looking at the counter employee with a desperate heart. Perhaps his desperation was conveyed, as the female employee, who had been looking at the man with a troubled expression, tapped on her calculator and said,

“That’s 490 million won. Where do you need to make the payments?”

“Yes?”

The man couldn’t believe it. Even though the base interest rate was 8 percent, he was only discounting the promissory note by 2 percent of its face value?

Seeing the man’s bewildered expression, the female employee smiled brightly.

“I’m sorry, but we cannot provide the full amount in cash, customer. Instead, if you create an account with us and provide the account information of your business partners, we will transfer the money to your business partners from our side. Is that okay with you?”

The man nodded his head vigorously, and the female employee handed him paper and a pen.

“If you fill out the required information in the marked areas, we will send it right away.”

The man quickly filled out the necessary information on the form and handed it over along with the promissory note. The female employee, who received the form and the promissory note, typed on the keyboard for a long time and then handed over a receipt.

“It’s been processed, customer. Thank you for visiting us again when you need it.”

“Thank you! Thank you so much!”

The man, who got up from his seat, bowed several times and then took the Haedong Merchant Bankbook and left the customer waiting area with a face that seemed like he could fly.

“It seems difficult, Assistant Manager.”

A senior female employee sighed at the troubled expression of the female employee who had just served the man, as she watched his back.

“Merchant banks and banks are all struggling because they don’t have money. We’re really blessed. Thanks to the CEO and Director’s investment in the United States, we’re not even budging, right? There’s no bank run either.”

“That’s right. I have to keep working here until I get kicked out of the company.”

The two female employees, who had finished their short conversation, began to receive customers again. Not only the two of them, but all the employees sitting at the counter and working had expressions that showed they thought they were lucky.

***

A week later. Saturday, October 25th.

Myung Se-ho, who was in the chairman’s office of Taehyun Motors, was receiving a phone call.

“Yes, Brother. I’ll start moving now too.”

As soon as Myung Se-ho heard the news from Lee Dae-soo that he had acquired 500 billion won worth of Taehyun Group and Shinseong Group’s promissory notes, he went to Myung Jin-ho’s residence in Cheongun-dong.

“I will transfer the Taehyun Motors shares that I and my son have to Seon-gu, Brother.”

Myung Jin-ho was surprised by the words his younger brother threw out as soon as he sat down on the living room sofa.

“What did you say?”

“I said I’m going to hand over Taehyun Motors to Seon-gu. The eldest son must be strong for the family to stand upright, right?”

Myung Jin-ho wore a satisfied expression as he saw Myung Se-ho’s faint smile.

“Thank you, Se-ho. You’ve also grown the automobile business, and you’re the first among your brothers to make concessions, so I’ll give you whatever you want.”

Myung Se-ho felt like his insides were turning upside down at the words ‘grown the automobile business.’ Grown it? Grown it!

Myung Se-ho, who was suppressing his anger inside, swallowed hard and asked,

“Do you really mean those words?”

“Myung Jin-ho, a man, doesn’t say two things even though he doesn’t have much time left until he turns eighty. Should I write a memorandum and stamp it with my thumbprint? Hehehe.”

No sooner had he finished speaking than Myung Jin-ho brought paper, a pen, and an inkpad, quickly scribbled with the pen, and then pressed the inkpad stained on his thumb next to his name and handed it over.

“Write your name first, stamp it with your thumbprint, and then say what you want. I’ll hand it over as long as it’s not unreasonable.”

Myung Se-ho was bothered by the words ‘as long as it’s not unreasonable,’ but he wrote his name under his older brother’s name and then stamped the fingerprint of his reddened thumb next to it.

“What do you want?”

“Give me the cement, oil refining, and petrochemicals under oil refining that Seon-gu has in Taehyun Development. Also, give me the Yongsan Station development rights on the land managed by Taehyun Development.”

“What did you say?”

Myung Jin-ho’s face hardened in an instant.

“You’re going to take everything that’s still doing cash business? The Yongsan Station development rights on the land held by Taehyun Development alone…!

“What do you mean, ‘still’? The installment finance profits from Taehyun Motors alone are several times the annual business of cement. And what are you worried about when we also have shipping, trading, life insurance, marine insurance, and securities?”

Myung Jin-ho was dumbfounded and speechless at his younger brother’s retort, which was the first time he had ever interrupted his words. He was planning to give away one or two cash cows each when his children branched out!

Thick, long lines were forming on Myung Jin-ho’s forehead, but Myung Se-ho opened his mouth as if he had decided to see it through to the end.

“At some point, you met with the president and bank presidents, Brother, but I had to go to Samcheong-dong and rub my palms together [ingratiate myself with powerful figures]. But I still brought in more money. That was the case when building the automobile factory and when asking domestic businesses for guarantees during the Jubail barge transportation.”

Even though Myung Jin-ho glared at him with his eyes wide open at the old stories from decades ago, Myung Se-ho couldn’t back down. He had always brought money from the Lee Dae-soo family when money circulating in the shadows was bigger than in the light, so he had nothing to be ashamed of.

Furthermore, Lee Dae-soo and his father had even given him, who was apologizing in place of his older brother who was celebrating the August 3rd Private Loan Freeze [a government measure to curb private lending], *makgeolli* [Korean rice wine] and boiled pork slices, comforting him by saying, ‘You’re suffering because of your brother.’

Unlike the Lee family, the older brother was stingy about giving him even a few household items, even though he had conceded Taehyun Motors, the pillar of the Taehyun Group, so he was confused about who was family and who was a stranger.

Myung Jin-ho, who had been making sounds of contemplation, glared at Myung Se-ho with a hardened expression and said,

“I understand. I’ll give you Taehyun Development with oil refining, petrochemicals, and cement attached. The same goes for the Yongsan Station development rights and the land of Taehyun Development.”

“Brother…”

Myung Se-ho’s eyes wavered as he threatened to ask for something he knew was an unreasonable request because he was worried about his children. However, the reason Myung Se-ho’s eyes wavered was instantly reversed by Myung Jin-ho.

“But from today, you are a stranger. You are also a stranger to the Taehyun Group. Don’t ever set foot here again.”

“Brother!”

The blood drained from Myung Se-ho’s face as he shouted, but Myung Jin-ho wrote down the affiliates that Myung Se-ho had asked for in the memorandum.

“I’ve given you what you wanted, so come to the company tomorrow morning and sign a formal contract with Seon-gu. I’ll separate the affiliates within a week. The newspaper articles will be published nicely, so keep that in mind. This is my last consideration.”

Having finished speaking, Myung Jin-ho grabbed the armrests of the sofa with both hands and stood up before entering the room with a whoosh. Myung Se-ho could only stare at the tightly closed door with empty eyes.

***

Several weeks later. Saturday, October 25th.

Lee Dae-soo was drinking morning tea while looking at an article published in Hanyang Daily.

[Chairman Myung Jin-ho’s Big Decision. Chairman Myung Se-ho’s Beautiful Retirement]

“Hehe, really.”

Lee Dae-soo, who was looking at the headline on the front page of the newspaper, burst out laughing in vain.

The fact that Myung Jin-ho and Myung Se-ho had turned their backs on each other because of the separation of affiliates was a story that everyone in the business world knew. Nevertheless, he was dumbfounded by Hanyang Daily’s blatant role as a mouthpiece for the Taehyun Group.

“We’ve tied up Taehyun Group’s feet with this, haven’t we? Hehe.”

Goh Seung-joo, who was sitting across from him, wore a smile.

“That’s right, Chairman. Taehyun Group has spent more than 400 billion won in cash due to this separation of affiliates.”

“Their bonds must be tied up while exchanging shares, right?”

“Yes, Chairman. The total amount of bonds that Chairman Myung Se-ho’s affiliates have tied up in Taehyun Group is…”

Lee Dae-soo shook his head as he heard the detailed information from Goh Seung-joo.

“That ruthless old man… He hated giving Se-ho so much, tsk.”

It was too much, even for him.

Since the chaebols [large family-owned conglomerates] don’t have much money in their own names, it’s a matter of course to process the value difference in the share exchange process with bonds. However, tying up the bonds to the point where it’s even difficult to pay the interest is simply a mindset of taking them back.

“I guess there’s no choice. We’ll have to pay off Se-ho’s debt instead.”

“It seems like we can bring in Taehyun Oil Refining and Taehyun Petrochemical while paying off the debt on our side.”

Lee Dae-soo chuckled as he looked at Goh Seung-joo, who was laughing softly.

“I like it. It’ll be quite a sight to have the oil business and the metal business in addition to the automobile business.”

All of this was a sub-scenario of the Ado Motors M&A scenario.

It was an added plan because he had revealed his friendship with Myung Se-ho in the process of giving his approval, but Lee Dae-soo was only satisfied with his eldest grandson, who had devised a plan to kill several birds with one stone.