Still, I Will Live As The Son-In-Law Of A Conglomerate [EN]: Chapter 153

153. 44th. Breaking the Seal part.1 (7)

“We weren’t an exception either, but we never went this far. Tell me what you think we should do.”

As Bae Jae-hoon said, Haedong Group was quite moderate compared to other conglomerates. Perhaps sensing the intention behind Bae Jae-hoon’s question, the audit team leader of Haedong Corporation quickly responded.

“Most of the executives in management support and production should be cut. The executives who assisted them should also be disciplined. Instead…”

In addition to promoting deserving individuals from within Haedong Group, he recommended promoting many individuals who had good skills and attitudes but had been marginalized since the days of Shinseong Group and Taehyun Group.

Perhaps because he received the answer he wanted, Bae Jae-hoon nodded with a satisfied expression.

“We need to stick to the basics, especially in times like these. Haedong Oil, Haedong Petrochemical, and Haedong Fine Chemical are all new family members, so we need to show them what our way is. What about Director Lee?”

“Thanks to the foreign exchange crisis [the 1997 Asian financial crisis], the resistance to layoffs has weakened. If not now, we won’t have the opportunity to get rid of the dead weight and bring in people who will do the job properly.”

‘I only showed one claw, and they’re already cowering, haha.’

The two audit team leaders were stunned, not expecting such harsh words from such a handsome face. I continued with a cold smile.

“That’s not all. Maintenance should be handled by Haedong Heavy Industries and Haedong Construction from now on. They are our affiliates now, and we can’t stand seeing money flowing out to Shinseong and Taehyun.”

Internal transactions aside, I resented Taehyun and Shinseong for taking excessive profits by exploiting factory maintenance.

If Haedong Construction and Haedong Heavy Industries take over maintenance, we can reduce costs and accelerate the normalization of the petrochemical sector, so we need to cut them off decisively.

“That’s right. We can’t let those other guys rip us off when we have perfectly good affiliates. Anything else?”

“When we do a capital increase, we need to negotiate with creditors to readjust our debt. Lower interest rates, extend maturities… If necessary, we should threaten to sell to overseas companies to get some debt forgiveness.”

“Excuse me?”

I looked at the surprised audit team leaders with an indifferent expression.

“The foreign exchange crisis was caused by conglomerates that expanded their companies with loans they couldn’t afford, banks that lent them money, and the government that failed to control them. Even if we have a lot of money, we can’t just pay everything back, can we?”

“Still…”

“Right now, the guy with the most money is leading the game. And our Haedong has the most money in this game. We’re not lacking in connections either, so there’s no need to be intimidated.”

What the current Haedong Group employees lacked most was confidence. Instilling the confidence that they could become the number one company in the business world and dominate was the task of the group’s top management, including myself and Bae Jae-hoon.

“We shouldn’t be arrogant, but if we don’t make legitimate demands, we’ll be seen as pushovers. I can’t stand seeing our Haedong being taken advantage of.”

“I agree with Director Lee. If we don’t speak up even though we’ve grown in size, we’ll be easily underestimated. If we proceed with the negotiations as Director Lee suggests, what do you think will happen?”

The audit team leader of Haedong Corporation paused for a moment before quickly opening his mouth.

“We’ll have to adjust the specific conditions, but just readjusting the debt repayment terms will speed up the business normalization by at least a year.”

“That’s right, Vice Chairman. If we take over the maintenance work, Haedong Heavy Industries, Haedong Construction, and the petrochemical sector will all benefit even if we only receive half of what Shinseong and Taehyun used to get.”

“I understand.”

As the audit team leader of Haedong Heavy Industries joined in, Bae Jae-hoon, who had been nodding, spoke to the audit team leader of Haedong Corporation.

“Check the personnel files of the petrochemical executives, department heads, and union leaders, and pick out the good ones. Once you’re done, take them out for meals, drinks… Take good care of them and make them our people.”

“Yes, Vice Chairman.”

After hearing the response from the audit team leader of Haedong Corporation, Bae Jae-hoon turned to the audit team leader of Haedong Heavy Industries next to him.

“As soon as you and your team have assessed the condition of the factory, take the blueprints and return to Seoul. Recalculate the maintenance estimates with the relevant department heads and send them to headquarters.”

With the skills of Haedong Heavy Industries and Haedong Construction, they would be able to efficiently calculate the maintenance costs. I couldn’t tolerate money being wasted on fake workers, fake labor hours, or inflated material costs, except for the costs for safety management.

“Understood.”

“Good work.”

The two audit team leaders, having exchanged answers with Bae Jae-hoon, left the office. A cold wind, sharper than the sea breeze, would operate on the Daesan Petrochemical Complex.

However, surgery alone would not be enough to speed up the recovery of Haedong Group’s petrochemical sector. More innovative rehabilitation and nutritional support were needed.

“I have one more thing to tell you, Vice Chairman.”

“Speak.”

“The measures we have decided on now are just emergency measures. Additional measures are needed.”

“Additional measures…”

In the gap where Bae Jae-hoon trailed off, I took out a document from my bag.

“What is that?”

“It’s a recovery plan for Haedong Oil. It doesn’t involve unnecessary salary cuts or layoffs, so you don’t have to worry, haha.”

I joked, seeing Bae Jae-hoon’s eyes sharpen at the mention of a recovery plan. Only then did Bae Jae-hoon relax his expression, turn the cover of the document I had given him, and examine the contents.

“Crude oil trading?”

“Yes. The economy of East Asia was devastated by what happened in the second half of last year. Exchange rates soared, raising gasoline prices at gas stations, so demand temporarily decreased, and crude oil prices inevitably fell.”

Oil majors such as Exxon, Mobil, and Chevron trade using scientific methods, such as identifying the components of crude oil extracted from oil fields around the world and linking them to the supply and demand trends of the petrochemical industry.

But for Haedong Oil, which doesn’t even have the capacity to repay its debts, it’s out of the question.

So the data I prepared was a macroeconomic outlook based on global oil supply and demand.

“Furthermore, the crude oil export sanctions imposed on Iraq after the end of the Gulf War will be lifted next year. When Iraqi crude oil, which has disappeared from the market, is released…”

Bae Jae-hoon gave an answer before I could finish speaking.

“Oil prices will plummet.”

“Yes. So we should only stockpile enough inventory for two months for the time being. We can’t just keep hoarding inventory that will continue to fall in value. At the same time, we need to preserve the value of our inventory and make a profit in the oil market by selling futures and buying spot [buying and selling commodities for immediate delivery].”

Steel mills, oil refineries, and chemical plants require enormous costs to restart, so they must be operated continuously 365 days a year. Naturally, crude oil must be continuously imported, but if oil prices fall, the value of the inventory decreases, resulting in a negative entry on the accounting books.

‘The current Haedong Oil can’t even tolerate the loss of inventory value. Crude oil trading is the answer to covering the losses and making money.’

For me, who is skilled at playing with money, Haedong Oil’s crude oil trading was the best recovery plan. If you sell crude oil futures first and then buy and repay the futures that are due at the time of settlement, you can make a profit to cover the loss of inventory value.

‘If we continue to trade with a short position [betting that the price of an asset will decrease] until November, we should be able to cover the losses. There will be a brief rebound in September due to winter demand, so we just need to be careful then… and we need to hoard everything in November.’

The plan is perfect. If we do this year’s farming properly, we can definitely save Haedong Oil.

Bae Jae-hoon, who had been silently examining the documents, put down the documents he was holding and looked at me with a firm gaze.

“The guys in the Middle East corporation also sent up a report forecasting a drop in oil prices, and I’ve been worried, but if you say so too, there’s no need to look any further. The trading division of the corporation will also start trading.”

“Thank you, Vice Chairman.”

‘I’ll get over this hurdle with this.’

If Haedong Oil makes money, Haedong Petrochemical and Haedong Fine Chemical, which are 100% subsidiaries of Haedong Oil, will also be able to breathe. A sigh of relief came out of me as I realized that I had put out the urgent fire.

***

After looking around the company, we went down to Jeonju, stayed overnight, and went to the textile factory early in the morning.

Bae Jae-hoon and I, wearing dustproof suits and masks like the other employees, looked around the factory and talked.

“This is your first time here, but this place is the spiritual home of our Haedong Group. The Chairman also visits here from time to time.”

“I see. But… what is that?”

When I pointed to the looms that were diligently rolling the fabric that the balls of yarn were diligently spinning, Bae Jae-hoon’s face filled with pride.

“That’s spandex fabric. We were the first in Korea to succeed in localizing it in March 1996. The Hosung Group guys were left chasing after us like dogs after a chicken, haha.”

“Excuse me?”

Unlike Bae Jae-hoon, who was chuckling, my voice involuntarily rose.

I didn’t know because I could only access the textile material research institute data among Haedong Corporation’s internal data, but we were the first to localize spandex? Originally, Hosung Group would have been the first to localize it in 1997…

‘Is it because of the butterfly effect…’

There was no other way to explain it.

We protected our family’s assets during the financial real-name system [a system requiring all financial transactions to be conducted under real names], and we made huge profits from the yen appreciation speculation two years ago, which gave us the financial leeway to invest.

‘That’s right. We also acquired the Busan North Port cargo terminal around that time, and we even got a stake in the New Port cargo terminal…’

Seeing me drawing my own conclusions while reviewing my past businesses, Bae Jae-hoon chuckled.

“What are you so surprised about, Director Lee? It’s a work that came out thanks to you protecting the group’s assets four years ago and making money two years ago, which allowed us to increase the budget significantly.”

“I see, haha.”

My assumption about the butterfly effect was correct. I just laughed along with Bae Jae-hoon.

Making money isn’t always a bad thing. Doesn’t its value change depending on whether you think of money as a means or an end? I protected money and made money while considering money as a means, so I tasted a good reward.

After looking around the factory, we headed to the research institute, which is the core of this factory. There, I opened my mouth when I saw the black rope ball in my hand.

“You were… researching this?”

The rope ball was carbon fiber. I thought they were only researching functional materials for clothing, so I came up with a plan, but my worries were unfounded.

“Haha, our Director Lee is very surprised.”

“I also thought that the textile material business would only be sustainable if we researched advanced materials such as carbon fiber, Vice Chairman. Please take a look at what I have prepared, haha.”

I smiled broadly and immediately took out the documents from my bag and handed them to Bae Jae-hoon.

“Oh, really? I’ll have to see how much our Director Lee has prepared.”

Bae Jae-hoon’s eyes widened as he looked at the documents he received from me.

“Even aramid [a class of heat-resistant and strong synthetic fibers]? How did you know about this?”

“What do you mean, Vice Chairman?”

“The textile material research institute has been pursuing three core projects for the past 10 years. One was the localization of spandex, which was completed early last year, and the other two were carbon fiber and aramid… Our Director Lee is very interested in growing the group’s wealth, haha.”

Unlike Bae Jae-hoon, who burst into a hearty laugh, I couldn’t laugh. Everyone has been working hard for a long time without knowing it, but didn’t I, in my previous life, abandon my family and the group by only looking at what was revealed?

‘I will definitely succeed in this life. Definitely!’

Seeing me reaffirming my determination, the director of the research institute wore a gentle smile.

“Thanks to the increased budget since two years ago, we were able to complete the spandex localization research earlier than expected, Director. We are now focusing on carbon fiber and aramid research.”

Bae Jae-hoon waved his hand at the director of the research institute.

“The researchers here are working hard. If these friends succeed in localizing carbon fiber and aramid, they will be able to protect the jobs at the Jeonju factory.”

‘Protect jobs? It will increase several times!’

I only screamed silently at Bae Jae-hoon, who was speaking with a proud expression.

Carbon fiber and aramid are both materials with endless uses.

Because of their light weight, strength, and low risk of fragmentation in the event of an explosion, they are widely used in automobiles, aerospace, bulletproof helmets, building materials, and fuel tanks, and are called ‘dream advanced materials’.

If we only produce carbon fiber and aramid, our factory jobs will increase, and other companies’ jobs will increase. I, who had been intoxicated with a rosy future, shook off my intoxication and asked the director of the research institute.

“How long will it take to localize both?”

“We plan to complete it by next year at the earliest, and by 2000 at the latest, Director.”

“Is it possible?”

“It is possible if more researchers are hired and funds are supported.”

After hearing the director’s confirmation, I asked the next question.

“What is the quality of the carbon fiber? Based on Japan’s Toray Industries standard.”

The director of the research institute looked at my eyes and flinched. It may have seemed too blatant, but after receiving Bae Jae-hoon’s nod, the director opened his mouth.

“We can have a lineup up to the T1000 grade that Toray has secretly developed.”

“T1000 grade?”

My eyes almost popped out. T1000?

###

According to the internal standards of Toray, which is the leading company in the carbon fiber industry in the world, it is classified as follows.

T300/T500: Golf clubs, tennis rackets, bicycles, etc.

T700: Automobile parts and fuel storage tanks

T800/T1000 or higher: Aerospace materials

###

So T1000 was a high value-added material that could be used to make aircraft fuselages.

‘Hosung Group couldn’t even make T1000 grade carbon fiber until 2020…’

I was only now realizing that such a super-special project was underway… I could only smile helplessly at the feeling of being a fool.

“Our Director Lee seems to be in shock. Haha.”

I wanted to grab Bae Jae-hoon by the collar, who was laughing heartily. Shouting, ‘Do you know how I feel after going through the future?’

Anyway.

Thanks to that, I came to my senses and said to Bae Jae-hoon.

“We need to develop it as soon as possible, Vice Chairman. We also need to have a large-scale production line. We need to have facilities that can produce at least 20,000 tons per year.”

“20,000 tons?”

Bae Jae-hoon’s eyes, looking at me, changed to eyes looking at a madman.

“Are you out of your mind? It costs more than 500 billion won [approximately $400 million USD] to have a line that produces 20,000 tons every year? Even if we have the facilities, how are we going to digest that amount?”

“You’re right, Vice Chairman, Director. There aren’t that many uses for such high-quality products.”

Not only Bae Jae-hoon but also the director of the research institute tried to stop me, but I couldn’t see anything in my eyes right now. Isn’t money something you can earn?

“I’m not saying we should have a 20,000-ton facility all at once, Vice Chairman. We need to install a test line first and train the field staff.”

As I calmed down and started to explain the plan, the expressions of Bae Jae-hoon, the director of the research institute, and the researchers became lighter. I looked at them and continued to tell them about my plan.

“Nevertheless, T1000 grade is definitely an item that will make money. Even if we can’t have it all at once, the expansion of the production line should be steadily promoted.”

I emphasized the expansion of the production line and gritted my teeth.

‘I’m going to cut off the Japanese guys’ livelihood, no matter what.’

Toray secures a total of 17 trillion won [approximately $13.6 billion USD] in sales from 2006 to 2024 by signing an exclusive carbon fiber supply contract with Boeing. We have to take that rice bowl.

Bae Jae-hoon, who was looking at me, asked with a serious expression.

“You think this carbon fiber is an item that will make money?”

“Of course, Vice Chairman. If you support me, I will bring customers like Boeing and Airbus.”

“Bo, Boeing?”

“Airbus?”

Perhaps because of the two companies that came out of my mouth, Bae Jae-hoon and the researchers, including the director of the research institute, opened their mouths wide. I looked at them and asked.

“You’re developing such good materials, but you haven’t thought about those kinds of customers, have you?”

“Th, that’s not it, but…”

Seeing everyone hesitating, I said again with emphasis.

“Honestly, I’m ignorant of science and technology, so I don’t know anything. However.”

I paused for a moment and said to them.

“As a person from a merchant family, I think it is my duty to sell the products that our family members have made well. I ask you not to worry and concentrate on your research to produce better results.”

The research guidelines for materials such as polyketone [a family of strong, solvent-resistant polymers] are included in the plan I handed over, so I should leave the rest to these people.

If it’s this much, they’ll do well on their own, so I should prepare to start running sales step by step. Should I start buying Boeing and Airbus shares after the new millennium?