Still, I Will Live As The Son-In-Law Of A Conglomerate [EN]: Chapter 105

105. 31st. Meeting Another Giant (2)

We entered the Chase Manhattan Bank and met the representatives who were waiting in the conference room.

“Nice to meet you, Mrs. Lawrence, Mr. Sun, Mr. Lee. I am Ronald Wilson, the Vice President of Chase Manhattan.”

“Nice to meet you, Mr. Wilson. I am John Sungmin Lee from Haedong Group.”

In this meeting, I introduced myself using my given name as my middle name instead of my father’s baptismal name. I wore the mask of Haedong Group’s heir because I didn’t know where the butterfly effect [the idea that small actions can have large consequences] would lead if it was known that I was the owner of Standard Capital.

We shook hands, exchanged business cards, and sat facing each other across the conference table.

The representatives from Chase Manhattan Bank consisted of Vice President Wilson, along with two senior managing directors and two managing directors.

Considering that he greeted me last, it seemed that even the vice president was only there reluctantly because of Claire and Sun Hae-chul.

Well, how insignificant must I have seemed to them? Someone from a small Korean conglomerate, whose total market capitalization of its four domestic listed affiliates doesn’t even reach 1 trillion won [approximately $750 million USD], and not even the chairman but just one of the heirs. I had to be patient to make today’s work successful.

Wilson opened his mouth as he looked at me, who was forcing a smile for the sake of the meeting.

“I heard that Haedong Group wants to get a loan from our bank. Is that correct?”

“Yes. I don’t need to borrow it right now, but I would like to sign a loan agreement so that I can borrow $4 billion at any time.”

Unlike me, who easily uttered the words “$4 billion,” the representatives’ eyes widened. They looked at me as if I were crazy, perhaps implying that Haedong Group, which was so insignificant, couldn’t possibly handle such an amount.

Even after seeing their reaction, Claire opened her mouth without any change in her expression.

“I think the important thing is the collateral, Mr. Wilson. Shouldn’t you check the collateral first and then make a decision?”

At Claire’s gentle question, Wilson wore an awkward smile.

“That’s right, Mrs. Lawrence. What collateral would you like to offer, Mr. Lee?”

“The entire stake in Haedong Group held by my family members, including myself, and some shareholders.”

With those words, I placed the 007 briefcase I had brought into the conference room on the table and pressed both buttons. It was time to change masks.

***

I picked up the file labeled ‘Stock power of attorney’ at the top of the opened briefcase and handed it to Wilson.

“This contains the shareholder proxies received from Haedong Group’s major shareholders and the stock certificates of major shareholders, including myself. Please take a look.”

The file I handed over contained the powers of attorney for the stocks of my grandfather, Lee Myung-jin, my three cousins, and Ko Seung-ju, as well as three veteran CEOs, for each affiliate.

Since it was a highly confidential loan agreement, the stocks of current and former executives, excluding the group’s top management, were excluded, but even so, the collateral was sufficient, including 94 percent of Haedong Corporation’s shares and 95 percent of Haedong Merchant Securities’ shares.

Wilson, who was carefully examining the powers of attorney one by one, tilted his head.

“It’s easy to set collateral for the four listed companies, but Haedong Corporation and Haedong Merchant Banking are not listed. Haedong Corporation has acquired 60 percent of the shares of Australia’s North Limited, but it seems that it will take quite a long time to assess the collateral value.”

‘Take quite a long time? Where are you trying to sell drugs!’ I thought.

I wanted to shout, but I opened my mouth with a faint smile. I was going to bend those white guys’ stiff necks at a 90-degree angle, those who were still looking down on me for coming from a small country in the East.

“I understand, Wilson. However, Haedong Corporation is a holding company for domestic and foreign listed affiliates, and its liquid assets, including investment assets, amount to $2.15 billion in U.S. dollars and 1 trillion won in Korean currency. Its total debt is 1.3721 trillion won, all of which is denominated in Korean won.”

Wilson and the other executives’ eyes widened.

How surprised they must have been that a company with over $3 billion in pure cash had less than 1.5 trillion won in debt? It was the moment when Haedong Corporation’s extremely sound financial structure shone.

“I, is that true?”

“Yes, Wilson. In addition, Haedong Corporation owns 50 percent of ‘Kazakhmys,’ which owns a copper mine and smelter in Kazakhstan, and 100 percent of the ‘New Century’ zinc mine in Queensland, Australia. As a result of commissioning Deloitte headquarters to evaluate the value of the shares, they came out to be $2 billion and $1 billion, respectively, and among them, Kazakhmys will continue to acquire copper mines locally.”

The total amount invested in the two places was $550 million.

It had inflated more than five times in just over a year since the investment, and it was expected to grow even bigger, so Jang Yong-jae, who had dinner with me, must have been in pain, and the white guys in front of me were bound to have their mouths open.

After finishing the explanation, I handed over a copy of Haedong Corporation’s domestic account, debt status data, and a confirmation letter from Deloitte headquarters and returned to my seat.

“My God…”

Wilson, who was checking the documents as if golden light was leaking out as the wrapping paper was unwrapped, smacked his lips as if he had forgotten we were there. Wilson and the executives were bound to show greed as I presented such solid collateral.

‘Well, it won’t be easy to change their attitude because of face-saving,’ I thought.

So, I showed Wilson and others data on Haedong Corporation’s logistics and distribution businesses, real estate such as resorts in Byeonsan, Yeosu, and Jungmun, and other assets, dangling carrots so that they could change their attitude.

“…If you combine these domestic and foreign assets with the North Limited shares, the value of all the shares we have offered as collateral will be close to $10 billion.”

Wilson and the Chase Manhattan Bank executives swallowed dry saliva and looked at me. With just Haedong Corporation’s dollars and the shares of the two mines worth $5.4 billion, it seemed like they would give us a loan right away.

When my turn was over, Claire provided supporting fire.

“If Haedong Group has difficulty repaying the loan, Standard Capital will provide a joint guarantee.”

“What are you talking about, Mrs. Lawrence? Why is Standard Capital providing a joint guarantee for Haedong Group?”

Wilson and the bank executives’ eyes widened. How absurd must it have sounded to them to hear that Standard Capital, a third party, would provide a joint guarantee for Haedong Group?

Claire smiled at them.

“Our Standard Capital maintains a close relationship with Haedong Group in Korea.”

“A close relationship?”

“Yes, Wilson. John Sungmin Lee here is one of the heirs of Haedong Group, but he is also a director of Standard Capital’s Korean subsidiary. Sun, my husband next to me, is the CEO of Standard Capital’s Korean subsidiary and is like a son to the chairman of Haedong Group.”

When Claire reached out and pointed, Sun Hae-chul lightly bowed his head, then raised his head and opened his mouth.

“Because of this, our Standard Capital has easily entered the Korean market. We have also preempted billions of dollars in investment projects that may be linked to Haedong Group’s Australian iron ore development in the future, haha.”

The Chase Manhattan executives made a sound of swallowing as they listened to Sun Hae-chul’s words. It was as if Sun Hae-chul was boasting to them, who were only making money from loans due to the Glass-Steagall Act [a law that separated commercial and investment banks], that he had secured a way to make money, so how could they not be upset?

However, Wilson, as experienced as the wrinkles on his face suggested, did not change his expression unlike the other executives.

“So that’s why Mrs. Lawrence came to this meeting. We would welcome it if Standard provides a guarantee.”

Wilson was relieved by Standard Capital’s guarantee. I looked at Wilson and the executives with a confident expression and asked.

“How is it, Wilson? Is $4 billion difficult?”

“No, Mr. Lee. It’s possible at any time, haha.”

Wilson threw away his arrogant attitude from the beginning like an old shoe and wore a welcoming smile. Unlike before, wasn’t it now a loan that could be recovered unconditionally? Haedong Group’s $4 billion loan.

Seeing the executives nodding, I handed Wilson a file with the title ‘Loan agreement’ on the cover. I rested my chin on my clasped hands and said to Wilson.

“As you can see, it must be possible to borrow at any time, interest accrues from the start of the loan, and the entire principal and interest must be repaid in a lump sum five years later.”

Wilson nodded as he looked at the documents, as if he could accept that much. Seeing Wilson’s positive response, I breathed a sigh of relief inside.

‘I’ve overcome one hurdle… Shall I take out the core?’ I thought.

The reason why I offered $10 billion in collateral for a mere $4 billion loan was because of the core condition I was about to bring up. I told Wilson the core condition.

“The annual interest rate should be the Federal Reserve interest rate plus 3 percent. Acceptance of early repayment and loan extension up to a maximum of 5 years, and the resulting reassessment of collateral value, is also essential. And…”

I paused for a moment and set the most important condition.

“In any case, Chase Manhattan must compensate $2 billion if it violates the contract.”

Wilson and the other executives’ faces immediately hardened.

Things were going well, but wasn’t this the most difficult condition, or rather, an absurd condition? It was like bullying Chase Manhattan, one of the leading commercial banks in the United States.

“Mr. Lee, that’s…”

“You don’t have to do it if you don’t want to, Wilson. I think the Federal Reserve interest rate will remain in the 5 percent range no matter how much it falls. The margin will be sufficiently secured, right? Isn’t that right, Mrs. Lawrence?”

Unlike the beginning, the situation had been reversed. Wilson’s face wavered as I showed my intention to cancel the contract if things went wrong. Seeing that face, Claire nodded at my words, and I began to persuade them in a calm voice, not begging.

“Besides, money is pouring into investment banks rather than commercial banks in the U.S. financial market. In that situation, wouldn’t a $4 billion loan be a big deal?”

The U.S. stock market was a black hole for money itself, with the S&P 500 index [a stock market index that tracks the performance of 500 large companies] rising more than 30 percent in a year.

Banks that make a living by lending out customers’ deposits are in a situation where their business capital is constantly running out, so their wrinkles are bound to increase. Touching on that situation, Wilson and others’ expressions wavered as if Chase Manhattan was no different.

“M, Mr. Lee?”

‘I’m above you, you white bastards. In 10 years, I’ll make you lift your right leg and pee like a dog if I tell you to,’ I thought.

If they thought I was just a naive heir from an insignificant Eastern conglomerate, they were sorely mistaken. Their arrogance was a great help to me, who had come up the river of death and was making Wall Street another battlefield.

Wilson, his face as red as if it would explode, opened his mouth.

“Let’s meet again in 10 minutes.”

“Alright.”

I looked at their backs as they left the conference room, slightly raising one corner of my mouth.

***

Wilson, who entered the conference room next door, shouted.

“That damn brat!”

Thump!

Wilson’s fist, which slammed down on the desk, trembled. He couldn’t suppress his anger because of the Eastern brat who was spouting such crazy things without a care in the world against one of the leading commercial banks in the United States.

“Do you think he’ll really do that?”

“Excuse me?”

Wilson glared at the executive who asked back at his question and shouted.

“That he’ll blab to the other guys if we refuse the loan!”

At Wilson’s outburst, one of the executives opened his mouth hesitantly.

“Seeing that the brat came with Claire and Sun, I think he’ll definitely do as he says, Vice President.”

“Who are Claire and Sun? Aren’t they the ‘Witch of Wall Street’ and the ‘Curtis LeMay of Wall Street’ [a reference to a ruthless and effective military figure]? If those two blab, our Chase Manhattan’s prestige will fall to the bottom. If that happens…”

Wilson bluntly continued the words of another executive who couldn’t finish.

“The other guys will look down on our Chase Manhattan. We’ll lose customers too!”

Wilson couldn’t stand to see that terrible sight. If the deposit balance was already decreasing because money was being sucked into the stock market, and even loans were taken away, wouldn’t Chase Manhattan’s stock price fall?

“In that case, it will be difficult to avoid Rockefeller’s wrath, Vice President. We have to tell the bank president.”

“That’s right, Vice President. The collateral is sufficient with just the account copy that guy presented and the value of the mines confirmed by Deloitte.”

“That’s right, Vice President. $2 billion in damages, isn’t that money we don’t have to give if we give him the loan? The repayment capacity and payment guarantee are also sufficient. Rather, if we give a large loan that is sure to be recovered, our Chase Manhattan’s stock price will rise.”

The remaining executives were also urging the loan. Even if the arrogant attitude and various toxic clauses were secondary, if they gave a loan with certain collateral and repayment possibilities, they could use this to raise the stock price. Of course, they would also preserve their positions.

After thinking for a while, Wilson picked up the receiver and pressed the phone number. While waiting for the call to connect, Wilson gritted his teeth. As if he was chewing on the arrogant brat monkey in the next room.