Still, I Will Live As The Son-In-Law Of A Conglomerate [EN]: Chapter 135

135. 39th. Start of Settlement (4)

Lee Sung-min’s maternal family, whose base was GK Group’s headquarters in Yeouido, was also feeling the sting of the foreign exchange crisis. Like other major conglomerates, they were holding a meeting under a cloud of anxiety.

“Even if the government has applied for a bailout, Chairman, we don’t know when it will be finalized. There’s a limit to settling accounts with short-term capital [hot money]. All overseas financial institutions are demanding guarantees from our government.”

“If we can’t make it through this year, our overseas subsidiaries will collapse, and the impact will reverberate back to headquarters. It’s difficult to hold on unless stable funds come in.”

GK Group had sensed the brewing storm since the HanGo Steel incident and had been desperately trying to reduce its debt, but it couldn’t escape the fallout from the national foreign exchange crisis. Aside from the GK Refinery stake acquisition, their large size meant they carried a significant debt burden.

“Review next year’s investment plan and postpone everything that isn’t absolutely urgent. Please, everyone, hold on a little longer.”

“Yes, Chairman.”

With no other immediate solution than to cut unnecessary spending, all executives had to comply with Oh Hyun-moo’s instructions.

Shortly after.

In the now-empty conference room, only Oh Hyun-moo, his younger brother Oh Hyun-joon, CEO of GK Semiconductor, and the two brothers’ maternal cousin, Hae Soo-chan, head of GK Group’s finance division, remained.

“How was your trip to the United States, Hyungnim [older brother/term of respect]?”

Despite Oh Hyun-moo’s pleading eyes, Hae Soo-chan simply shook his head.

“I met with contacts in New York, but they just offered their regrets. Those Wall Street guys are clearly waiting to swoop in after the bailout starts.”

“Is it that serious?”

Seeing Oh Hyun-moo’s disbelieving expression, Hae Soo-chan shook his head with a bitter look.

“It’s more serious than you think. In New York, there’s even talk of using this opportunity to put the Korean economy in chains.”

Thanks to his MBA from Harvard, Hae Soo-chan had close ties with Wall Street and Washington D.C., and he knew the avarice of the American political and business elite all too well. Nevertheless, he had visited New York at the request of his cousin and head of the group, Oh Hyun-moo, but all he got was a confirmation of the pessimistic outlook.

“Hyun-joon, what about you?”

“It’s difficult. They said they also need money to pay parts suppliers and refused to extend payment deadlines.”

Oh Hyun-joon’s face, who had rushed to work straight from his flight the previous night, was pale. He had traveled across the United States and Europe trying to delay payments to semiconductor equipment companies, but he had met only with rejection and had trudged through the Gimpo Airport arrival gate feeling defeated.

Among the many men of the Oh and Hae families, the three men leading the group in the forefront fell silent. Hae Soo-chan broke the silence with a firm suggestion.

“How about contacting our in-laws?”

“…Are you talking about our Samcheong-dong in-laws?”

Oh Hyun-moo, after repeating Hae Soo-chan’s suggestion, quickly shook his head.

“I can’t do that. They included us in the last yen appreciation speculation, and they cleared all the debts our family owed during the 8.3 private loan freeze [a government measure to curb the underground economy] with just Father’s apology. How can I…”

Oh Hyun-moo had also considered reaching out to Lee Dae-soo.

Even though companies across the board were teetering, Haedong Group had a massive reserve of dollars, and even their lowest-level textile factories were running at full capacity. And that wasn’t all. Haedong Securities was seeing an increase in customer deposits as word spread that it was stable thanks to its investments in the US stock market, even as numerous merchant banks were collapsing.

However.

GK Group had only received help from Haedong Group twice before – 20 years ago and 3 years ago – and had not reciprocated in any way. It was an option he had dismissed because he was too ashamed to ask for help a third time in a row, but Hae Soo-chan’s suggestion was different.

“No, Standard Capital.”

“…Isn’t that where Sung-min is getting his start?”

To Oh Hyun-moo, it was where his beloved nephew had begun his career, but that wasn’t Hae Soo-chan’s focus. Hae Soo-chan calmly began to persuade Oh Hyun-moo, who was showing a reluctant expression.

“I found out in New York that Standard Capital has $13 billion in assets under management, excluding what they brought into Korea. How about asking them to lend us dollars in won-denominated bonds, with a high exchange rate?”

“Even if we do, the exchange rate could rise further. Would they agree to such a deal?”

“Once the IMF [International Monetary Fund] provides a bailout, the exchange rate will return to its original level. If we offer them a favorable exchange rate, we’ll be able to borrow dollars.”

Hae Soo-chan’s heart burned as he watched Oh Hyun-moo hesitate. As the person in charge of the group’s finances, he felt like grabbing Oh Hyun-moo by the collar and dragging him to the Standard Capital office right next door.

Nevertheless, he couldn’t ignore the family traditions of the two families that valued the eldest son, so Hae Soo-chan tried to sway Oh Hyun-moo again.

“Ask our in-laws to arrange a meeting with CEO Seon. If all the profits from investing in us go to Sung-min, wouldn’t that be beneficial for our in-laws as well?”

It was a compelling option. He could avoid directly asking his in-laws for help and overcome this crisis.

“It would be good to do as Soo-chan hyungnim says, Sung. You’ve been close to Maejae [Lee Sung-min’s nickname], haven’t you?”

When even Oh Hyun-joon urged him in his gruff voice, Oh Hyun-moo rose from his seat. Just then, the intercom rang.

“What is it?”

[Ch, Chairman…]

Annoyance surged at the employee’s stammering voice, but Oh Hyun-moo didn’t show it. Even in this difficult time, he spoke calmly, determined to maintain his dignity as a member of the prestigious Haeju Oh clan.

“Take your time. Catch your breath.”

[I’m sorry, Chairman. Standard Capital’s CEO Seon Hae-cheol and Director Lee Sung-min have arrived in the lobby of the headquarters.]

Oh Hyun-moo’s voice trembled as he listened to the employee’s report asking for forgiveness.

“I, is that true?”

[Yes, Chairman.]

“Quickly escort them to the chairman’s office! Prepare something to drink!”

As Oh Hyun-moo hurriedly gave instructions and put down the receiver, a ray of hope began to dawn on the faces of Oh Hyun-joon and Hae Soo-chan.

“Hyungnim?”

“Hyun-moo?”

“There’s no time for this! Let’s go to the chairman’s office right now!”

Unlike his usual self, Oh Hyun-moo disregarded decorum and everything else. Oh Hyun-joon and Hae Soo-chan hastily got up from their seats and left the conference room at Oh Hyun-moo’s hurried pace, a sight they hadn’t seen in a long time.

***

Seon Hae-cheol and I were heading to the GK Group chairman’s office, guided by two executive-level officers.

‘How difficult must it be for the executives to be guiding us…’ I couldn’t shake off the discomfort at the gracious treatment. To think that my maternal family, to whom I gave half of my blood, had fallen on such hard times…

We stepped through the doors that the two executives had opened wide on both sides and greeted Oh Hyun-moo, Oh Hyun-joon, and Hae Soo-chan, who had jumped up from their seats.

“Nice to meet you, Chairman Oh Hyun-moo. CEO Oh Hyun-joon, Head Hae Soo-chan. I’m Seon Hae-cheol, CEO of Standard Capital Korea.”

“I’m Lee Sung-min, Director of Standard Capital Korea.”

When I raised my head, Oh Hyun-moo approached us with a bright expression.

“Thank you for visiting, CEO Seon. Director Lee, it’s been a while. Let’s sit down and have a cup of tea.”

Oh Hyun-moo, Oh Hyun-joon, and Hae Soo-chan sat down on the sofa, watching Seon Hae-cheol and I take our seats.

“These days, speculators are running rampant in the foreign exchange market, but Standard Capital is not only refraining from speculation but is also increasing domestic investment. There’s no investment company as sound as Standard Capital, CEO Seon.”

“You flatter me, Chairman. I was also impressed by the Chairman’s efforts to reduce debt, unlike other groups.”

While Seon Hae-cheol and Oh Hyun-moo were exchanging compliments, Oh Hyun-joon and Hae Soo-chan were looking at me with expectant eyes. I smiled at my two maternal uncles, and their faces brightened even more, as if they understood the meaning behind my smile.

After a round of praise, Seon Hae-cheol took a sip of tea and began to speak.

“The reason I came to visit GK Group today is because of Chairman Lee Dae-soo in Samcheong-dong, and Director Lee next to me.”

“What do you mean?”

“I came to this meeting at the request of the Chairman and Director Lee, haha.”

The gazes of the three men towards Seon Hae-cheol and I became warmer at Seon Hae-cheol’s embarrassed smile. It was a warmer gaze than when I entered Seoul National University as the top student in the humanities, so a strange feeling arose, but I didn’t show it and simply smiled.

In the meantime, Seon Hae-cheol stopped smiling and opened his mouth with a serious expression.

“We at Standard have a proposal prepared, and considering the relationship between the three of you and Director Lee, we’ll have Director Lee reveal it. Director Lee.”

“Yes, CEO. We at Standard Capital are willing to acquire up to $800 million in corporate bonds to be issued by GK Group. What do you think, Chairman?”

Maintaining a professional tone, I addressed Oh Hyun-moo by his title, but I tried to create a more relaxed atmosphere by using the expression ‘we’. Perhaps because of that effort, or perhaps because of the substantial amount of money they were willing to invest, Oh Hyun-moo’s expression brightened.

“Thank you for the offer. What conditions are you considering?”

“If you issue dollar-denominated corporate bonds with an annual interest rate of 5 percent and a maturity of 10 years, that would be ideal, Chairman.”

It was a generous condition that Jang Ho-gun would grind his teeth over if he knew, but it was an offer designed to repay even a small part of the kindness shown to my deceased parents and me.

The three men stared at me with wide eyes, surprised by the favorable conditions I had proposed.

“I don’t understand. You’re saying you’ll buy dollar-denominated bonds when the exchange rate is soaring like this.”

Even as Hae Soo-chan voiced his doubts, Seon Hae-cheol maintained his smile.

“The US headquarters believes that this crisis will be temporary. If we weather the storm, the exchange rate will stabilize, so issuing bonds in dollar terms will be beneficial in the long run. Of course, I had to persuade my wife, the board of directors, and the investment committee at the headquarters, emphasizing that GK Group is the maternal family of Director Lee, who is like my nephew, haha.”

“Still, you can’t do business based solely on affection, can you, CEO Seon? Other groups will not look kindly on the transaction between our GK and Standard Capital. Would that be acceptable?”

Seon Hae-cheol nodded at Oh Hyun-moo’s concerned question.

“That’s why I’m bringing this up… I’d like you to issue the corporate bonds through Haedong Securities.”

“That’s a matter of course. It’s only right to do so in light of our relationship with our in-laws and Director Lee. If you have any other conditions, please feel free to tell us.”

Oh Hyun-joon and Hae Soo-chan also nodded in agreement with Oh Hyun-moo’s polite suggestion. However, it was doubtful whether the next proposal that Seon Hae-cheol was about to make would be accepted so readily by the three men.

“I hope you won’t be upset with Chairman Lee or Director Lee even if we sell the petrochemical affiliates of Shinsung Group that we acquired this time to Haedong Group. We had to take them over against our will, and there’s no other entity that can absorb them besides Haedong… haha.”

Unlike Seon Hae-cheol, who wore an embarrassed smile, all three men, including Oh Hyun-moo, nodded without hesitation.

“Since CEO Seon has come all this way thanks to our in-laws, how can we refuse? We can also cooperate through joint crude oil purchases, so it’s actually reassuring, haha. Is there anything else?”

Seeing Oh Hyun-moo’s amiable demeanor, Seon Hae-cheol spoke cautiously.

“I’d like you to accept Standard’s purchase of 14.99 percent of the shares of GK Electronics, GK Chemical, and GK Corporation in the open market. You can also allocate 10 percent of the new shares to us through a rights issue for a total of $600 million, based on the post-issuance standard. If you do a rights issue, I’d like you to have Haedong Securities as the lead manager. What do you think?”

With history diverging after the yen appreciation speculation, the three companies were now acting as GK Group’s holding company. Even though dollars were invaluable, I was concerned that this would weaken the group’s control over my maternal family, but none of the three men showed any signs of displeasure.

“What’s the reason for making such a generous offer, CEO Seon?”

“It’s because I believe in GK Group’s solidity and tenacity.”

“Solidity and tenacity… That’s an excessive compliment, CEO Seon.”

Even as Oh Hyun-moo waved his hand dismissively, Seon Hae-cheol continued to speak, determined to shower him with praise.

“No, Chairman. GK Chemical is investing in lithium batteries without resting on its laurels, and GK Electronics’ washing machines, vacuum cleaners, and refrigerators are also receiving favorable reviews both at home and abroad, aren’t they? GK Corporation is also one of the leading general trading companies in Korea.”

“That’s true, but…”

Oh Hyun-moo trailed off, his expression softening under Seon Hae-cheol’s persistent flattery. I exchanged glances with Seon Hae-cheol and continued the persuasion.

“We at Standard are planning to prepare a long-term project after completing the acquisition of Ado Motors in partnership with Haedong Corporation, Chairman. It’s a request based on the decision of the headquarters’ board of directors and investment committee that the project will be successful if we do it with GK Group, so I hope you’ll accept it.”

In other words, it was a request based on my decision, but Oh Hyun-moo, unaware of this fact, was still hesitating. In response, Seon Hae-cheol met my eyes, nodded, and played his last card.

“If you accept the offer, I promise that we will become a friendly shareholder of GK Group.”

“A friendly shareholder…”

“Even though this crisis is temporary, the aftereffects will be significant. In times like these, having an investment company like our Standard as a friendly shareholder will provide reassurance in many ways, whether it’s defending management rights or attracting investment. We’ll even write you a memorandum if you want.”

I sincerely hoped they would accept it. I wanted to see my maternal family’s future take off from this point forward, not just when my maternal cousin became chairman decades later.

After a moment of silence, Oh Hyun-moo spoke with a determined gaze.

“I understand. I don’t know what that project is, but as the chairman of GK Group, I promise to cooperate with that project. You don’t have to write a memorandum, haha.”

My most reliable partners for my project have been secured. The future will be mine, ours.

***

“You, you were too lenient with your maternal uncles, weren’t you?”

“Blood is thicker than water, isn’t it? Hehe.”

After returning to the company, Seon Hae-cheol smiled at my answer.

“I thought so. Otherwise, why would you use such precious dollars like that?”

The cunning Shinseong had to be deceived with tricks, and the stubborn Taehyun had to be suppressed with force, but my maternal family, GK Group, was the best partner – capable of compromise and mutual consideration because they understood their limits. They’ll likely cause one or two more major incidents in the future, but I’ll just have to prevent them.

“I let you off the hook because you took care of your own interests appropriately. If you had handed over the corporate bond issuance and rights issue management to them, I would have overturned that foolish contract.”

I smiled at Seon Hae-cheol, who was grumbling.

“Thank you, Uncle. I’ve saddled GK Group with heavy debt through this deal, so the long-term project will be easier to implement, hehe.”

“Speaking of which, what is that long-term project? I invested in those two companies, including GK Corporation, to create a smokescreen as you suggested, but… is there really something concrete in mind?”

Seon Hae-cheol still didn’t seem to fully understand. Unlike him, I spoke with a confident expression.

“Uncle, do you know about the car racing manga that’s popular in Japan these days?”

“What?”

Seon Hae-cheol stared at me with a dumbfounded expression at the sudden question. I can only imagine what he’ll say when I explain it to him.