Still, I Will Live As The Son-In-Law Of A Conglomerate [EN]: Chapter 113

113. 33rd. On the Boundary of Winter and Spring, Beginning and End (5)

During the break, Lee Myung-jin went outside, followed by Jang Ho-min. Lee Myung-jin entered the smoking room and lit a cigarette, with Jang Ho-min trailing behind to glare at him.

“Hey, Lee Myung-jin! Are you out of your mind?”

Unlike Jang Ho-min, whose eyes blazed with fury, Lee Myung-jin took a drag of his cigarette and responded with an indifferent gaze.

“What’s it to you?”

“Hango Steel! Are you saying we should save the subcontractors too? Are you trying to screw me over right now?”

“How can a major corporation function without subcontractors? You have to keep them alive! Did you jump in without that resolve? How pathetic!”

Lee Myung-jin’s retort, which countered Jang Ho-min’s shout, was genuine.

[Father, even if our family isn’t as perfect as Yuhan Corporation, I believe we should uphold human decency and minimal ethics. So…]

On the way to the Federation of Korean Industries [a major business organization in South Korea], Lee Myung-jin persuaded Lee Dae-soo and Go Seung-joo that several sound affiliates and subcontractors must be saved, based on ethical responsibility and business interests.

[If that’s what Vice Chairman thinks… Chief Go, what do you think?]

[Over the past few years, we have secured enough foundation to fulfill the late Chairman’s long-cherished wish. I believe we should expand our presence in the domestic market now, Chairman.]

According to the agreement of the three, Lee Dae-soo, the second generation of the Haedong Group, and Lee Myung-jin, the third generation, had just made a split (like in ‘blackjack’, splitting two cards of the same number to double the bet) in the conference room. It was to save the people who needed to be saved and to extract as much leverage as possible from Jang Ho-min, who was trying to stab Haedong Group in the back.

Lee Myung-jin put aside the memory of what had just happened and glared coldly at Jang Ho-min, exhaling cigarette smoke.

“From what I see, you’re planning to acquire Hango Steel. What are you going to do next?”

“What are you talking about?”

Jang Ho-min said without batting an eye, and Lee Myung-jin took another deep drag of his cigarette as he looked at Jang Ho-min.

“Hoo… Heavy plates can only be made from hot-rolled steel sheets produced in a blast furnace. You’re planning to build a heavy plate factory by setting up a blast furnace after acquiring Hango Steel and cut off our transactions, aren’t you?”

“Do you think I would do such a petty thing? Do you think I don’t know that we’ve only used Haedong Steel’s heavy plates so far?”

“With your personality, I doubt you’d be satisfied with just building a blast furnace and producing hot-rolled steel sheets, hehe.”

Jang Ho-min argued, a vein throbbing in his neck, but Lee Myung-jin scoffed and shook his head. Jang Ho-min then presented a hidden card to Lee Myung-jin.

“We’ll supply the hot-rolled steel sheets for your heavy plate factory. Shinseong Heavy Industries will handle the heavy plates made by Haedong Steel. How about it?”

“Pfft! Are you calling that an offer right now?”

Jang Ho-min’s eyes narrowed at Lee Myung-jin’s short burst of laughter. Lee Myung-jin, not caring about Jang Ho-min’s gaze, said quietly and coldly.

“At first, you’ll sell hot-rolled steel sheets to Haedong Steel and use us as a heavy plate processing subcontractor. Then, when the transaction between Daehan Steel and Haedong Steel is cut off, you’ll reduce the supply of hot-rolled steel sheets and lower the price of heavy plates. And if I can’t stand it, you’ll reluctantly offer a hand and take over our factory! Isn’t that right?”

Jang Ho-min felt a pang in his heart at Lee Myung-jin’s sharp questioning. How could he see through his plans after acquiring Hango Steel like the back of his hand?

“That’s ridiculous! Your company is good at heavy plate processing, what are you talking about!”

“That’s why you’ll covet it even more! We’re the best in the heavy plate business except for Daehan Steel and Taehyun Steel!”

Jang Ho-min shouted, trying to maintain a straight face, but Lee Myung-jin didn’t back down either.

While other guys were busy increasing their size, Haedong Group focused on research and development and improving production efficiency. Although Haedong Steel was small, its technology and productivity were excellent, so Jang Ho-min could only glare at Lee Myung-jin without saying a word.

“I’ve bet everything on this game too, Jang Ho-min. If you take the steel mill, we’ll take everything from construction, shipbuilding, energy, to pharmaceuticals.”

“What?”

Jang Ho-min’s voice rose at Lee Myung-jin’s declaration of war.

Even if it was other affiliates, Haedong Group taking Daedong Shipbuilding in addition to Hango Group’s Hango Steel meant that they would stand against him. Unable to contain his anger, he shouted at Lee Myung-jin.

“Hey! Are you saying you’re going to cut off all deals with me? Are you going to build a blast furnace soon? Ha!”

“So, I’m telling you to calculate your abacus well. If you don’t want to turn our family into an enemy.”

Jang Ho-min’s eyes widened at Lee Myung-jin’s unexpected answer. Was he hinting that there was room for negotiation?

“Lee Myung-jin?”

“Think carefully about what will be beneficial, Jang Ho-min. I’m leaving.”

With those words, Lee Myung-jin looked at Jang Ho-min, dropped the cigarette butt he had sucked to the end of the filter on the floor, stomped on it with his shoe, and left the smoking room, exhaling a long stream of smoke. Jang Ho-min glared at Lee Myung-jin’s back and began to rack his brain.

***

After the meeting at the Federation of Korean Industries, Lee Dae-soo, Lee Myung-jin, and Go Seung-joo went straight to Samcheong-dong [an affluent district in Seoul].

“Seeing you today, you’re really my son, eh he he.”

Lee Dae-soo, who was drinking black tea in his study, looked at Lee Myung-jin and laughed heartily. It was because of the performance that his son, who always seemed simple-minded and only delved into technology, had shown at the Federation of Korean Industries.

“No, Father. I still have a long way to go, haha.”

Even though he was in his fifties this year, praise from his parents was always welcome. While smiling modestly, Lee Myung-jin’s face was radiant.

“So, you scratched Jang Ho-min well?”

“He went crazy because I said I was going to eat everything. But I threw the bait appropriately, so he’ll be wondering whether to bite or not, haha.”

Lee Myung-jin laughed heartily with a relieved expression. How refreshing it was to mercilessly crush the nose of the guy who always looked down on him!

Lee Dae-soo let out a light hum as Lee Myung-jin told him what had happened in the smoking room.

“Hmm… What do you think, Seung-joo?”

“Given Jang Ho-min’s personality, he’ll be wondering which of the cards Myung-jin threw is the real intention. Jang Ho-min’s current funds can’t keep up with our group’s exposed financial power.”

“Excluding the $4 billion loan, right?”

“If we show him that, Jang Ho-min won’t be able to keep up, will he? Hehe.”

“That’s right. To fleece a sucker, you have to save the hidden card until the end and run the race, eh he he.”

As Go Seung-joo said, the $4 billion loan agreement between Haedong Group and Chase Manhattan Bank was their own hidden card that no one in Korea knew about. Lee Dae-soo, who was laughing heartily, took a sip of black tea and said to the two.

“Eat Hango Steel later. If Jang Ho-min bites, make a deal appropriately and only take Hango Construction, Hango Energy, Daedong Shipbuilding, and Sangha Pharmaceuticals. Prevent equity dilution as much as possible.”

“Yes, Chairman.”

Hango Construction has a total of 50,000 *pyeong* [approximately 40 acres] of land in Songpa and Gangnam [districts in Seoul], and Hango Energy holds a 27.5 percent stake in the Kovykta gas field in Irkutsk.

Daedong Shipbuilding has the Jinhae Shipyard, and Sangha Pharmaceuticals is also making a profit. All four companies were good assets to moderately increase the size of the group at this point without offending other groups.

Lee Dae-soo, who gave the order, and Go Seung-joo and Lee Myung-jin, who answered, knew that the gambling game that had opened this time was just the beginning.

They didn’t know how much more money they would win in the future, but the feeling that it would be a gamble that would change the fate of the Haedong Group, and in a very good way, was heating up their blood.

***

Back at the company, Jang Ho-min was repeatedly discussing with executives in the conference room.

“Is negotiation the top priority?”

At Jang Ho-min’s stern question, one of the executives opened his mouth with difficulty.

“Yes, Vice Chairman. Our current financial power is no match for Haedong Group.”

“Haedong Group’s available cash is at least $1.7 billion for Haedong Corporation, $800 million plus 400 billion won [approximately $300 million USD] accumulated by the heavy industry affiliates. If we add the $1 billion and 1 trillion won [approximately $750 million USD] that Haedong Corporation is using to take on the credit letters of its customers… there’s no chance of winning.”

“…Damn it.”

The expressions of Jang Ho-min and the executives were sour. He was trying to pick up Hango Steel at the lowest possible price, but he didn’t know that the guys who were distracted by overseas business would step in…

“Then, what should we do? A way to get Hango Steel as cheaply as possible.”

“Based on what Vice Chairman Lee Myung-jin said, Haedong Group seems to be aiming for Hango Construction, Hango Energy, Daedong Shipbuilding, and Sangha Pharmaceuticals. We need to prepare for negotiations with this in mind.”

The other executives nodded at the suggestion of the youngest executive who came up with the idea of a $1 billion loan, but Jang Ho-min still didn’t seem satisfied.

“We’re facing a civil war. Then, wouldn’t it be better to bring Haedong Group to our side?”

“If it goes according to the Vice Chairman’s words, it would be the best-case scenario. But to do that, we have to give something more on our side…”

Jang Ho-min sighed and said, looking at the youngest executive who was slurring his words.

“I’ll promise to receive steel materials and cement only from Haedong Steel and Haedong Cement for the next 10 years. If we eat Hango Steel and build a blast furnace, we’ll give priority to supplying hot-rolled steel sheets to Haedong Steel for 10 years. I’ll also hand over the Hango Steel Busan plant.”

“Vice Chairman?”

The executives’ eyes widened. Is Jang Ho-min, who is so greedy, going to give up his chariot and horse [make significant concessions]?

“Instead of giving priority supply rights, we have to tell them to sell it cheaply. The money we get from selling the factory will be laundered when building the blast furnace. Isn’t that right?”

“Ah…!”

The executives all exclaimed at once.

Securing cheap materials and inflating construction costs to create slush funds. Securing Shinseong Electronics and Shinseong Corporation shares under borrowed names with the slush funds. The executives were ashamed and couldn’t raise their heads because it was an idea that they, the staff, should have come up with.

“There’s no need to be discouraged. I have the decision-making power, right? I have to take responsibility too.”

The executives were greatly relieved by Jang Ho-min’s consolation. If it had been Jang Ho-geon, wouldn’t there have been all sorts of personal attacks, starting with the roar of ‘Can’t you even think of that?’?

However, Jang Ho-min was by no means a person who would just let the executives go.

“We’ve set the big picture, so you guys should work out the details. Find an appropriate balance. Got it?”

“Yes, Vice Chairman!”

After hearing the answer, Jang Ho-min got up from his seat and left the conference room. He knew his situation well enough, so there was someone he had to meet to know the enemy.

***

Seon Hae-cheol was facing Jang Ho-min, who had come to the company without a phone call.

“About Haedong Group?”

“I just want to acquire Hango Steel and build a blast furnace, but it seems that the Chairman and Myung-jin have misunderstood. What a pity.”

Seon Hae-cheol snorted inwardly at Jang Ho-min’s lies, which he brazenly rattled off without changing his expression. Who would believe the successor of the greedy Jang family, but Seon Hae-cheol took a sip of black tea and organized his thoughts.

“Do you have any cards to offer in the negotiation?”

“I’m willing to hand over the four affiliates of Hango Group to Haedong Group cleanly. We’re satisfied with just eating steel.”

“That alone won’t move them. Is there anything else?”

Jang Ho-min’s eyebrows twitched slightly at Seon Hae-cheol’s lukewarm reaction. How dare he act that way in front of anyone!

However, he had to be patient to get Hango Steel at a low price. Jang Ho-min took a sip of black tea, calmed the anger rising from within, and said.

“I’m thinking of giving a priority supply contract to Haedong Steel and Haedong Cement for 10 years. I’m also thinking of giving priority to supplying hot-rolled steel sheets to be produced at Hango Steel in the future to Haedong Steel, and selling the Hango Steel Busan plant at a lower price than the market price.”

Seon Hae-cheol’s eyes widened at the card Jang Ho-min threw.

Even he, who only plays with money, thought it was a generous condition. However, he was conscious of Jang Ho-min, who knew his relationship with Haedong Group, and composed his expression.

“With that much, you can’t help but be tempted. However…”

“Is there any problem?”

Seon Hae-cheol, who was slurring his words, opened his mouth, rubbing his chin with his finger at Jang Ho-min’s question.

“It seems like the selling price of the Hango Steel Busan plant is the problem… I think it would be better for the Vice Chairman to meet and negotiate that part directly.”

“I hope Representative Seon can arrange a meeting with Myung-jin. Of course, it would be even better if you could persuade him to make the negotiation go well.”

Seon Hae-cheol made a counter-proposal to Jang Ho-min’s request.

“Okay. Instead, let’s take out the $1 billion loan now.”

“Representative Seon?”

“Matchmakers also get paid for their introductions. We’re doing this to make money, so we have to get a commission. You have to borrow $1 billion anyway, so are you stingy?”

Jang Ho-min’s expression hardened, but he wasn’t wrong. His request was for something other than the loan agreement, and he would have to spend $1 billion anyway, right?

“Okay. Instead, make sure the negotiation is successful when you meet Myung-jin.”

“Okay. If the negotiation falls through, we’ll start receiving loan interest from next year.”

Seon Hae-cheol smiled confidently at Jang Ho-min, but Jang Ho-min didn’t know that the smile hid the meaning that he would have to cut off one of his limbs.

***

After Jang Ho-min left, I sat on the sofa and listened to Seon Hae-cheol’s story across from me.

“How is it?”

“Uncle, I think you would have become a con man if you hadn’t become a stockbroker.”

“What, you little punk?”

I laughed as I watched Seon Hae-cheol get angry.

“But Uncle. I think I would have scammed you even if I were your uncle.”

It was a perfect scam.

From the moment he started the loan, Jang Ho-min pledged all of Shinseong Oil, Shinseong Petrochemical, and Shinseong Fine Chemical’s shares to us. The thought of shaking off Hango Steel by submitting additional collateral made me feel thrilled just thinking about it.

“If the negotiation is successful, Haedong Steel and Haedong Cement will have enough sales for 10 years. Haedong Steel’s cash will be enough to acquire the Busan plant.”

“It would be even better if we could acquire Hango Construction, Hango Energy, Daedong Shipbuilding, and Sangha Pharmaceuticals.”

Due to grandfather’s management philosophy, which emphasizes overwhelming dominance, those four companies will disappear into history. Haedong Corporation, Haedong Construction, and Haedong Heavy Industries will absorb the decent executives and all the assets of those four companies, and liquidate the companies that are left with only shells.

Those who like to say the right things will say it’s the tyranny of the *chaebol* [large, family-controlled industrial conglomerates], but it’s the same level of nonsense as saying that cancer cells are also life. Why should we leave them alone when we’re not running a charity?

The shareholders will welcome Haedong Group’s decision even more if the asset acquisition price is appropriate. They’ll regret it with tears of blood in about 10 years.

I enjoyed a cup of black tea with Seon Hae-cheol, dreaming of the day to come.