Still, I Will Live As The Son-In-Law Of A Conglomerate [EN]: Chapter 164

164. 47th. Dirty, Sexy Gold (2)

[Didn’t the President-elect say he would start restructuring the general trading companies as soon as he took office? Shinsung, Taehyun, GK, and SG will all be selling gold. It would be good if we could just take down one house with the gold we collect… What do you think?]

Cho Young-chan swallowed hard, feeling a chilling aura from Lee Dae-soo’s low voice on the phone.

‘The Chairman seems to be planning a bloodbath.’

Cho Young-chan wondered if the ‘one house’ Lee Dae-soo mentioned was the same one he was thinking of.

“…Chairman Kang of Daejoo Group?”

It was a name Lee Dae-soo hadn’t even uttered, yet it represented the entity he despised most. Chairman Kang Oh-joong of Daejoo Group was, indeed, the person Lee Dae-soo loathed above all others.

As Cho Young-chan cautiously inquired and awaited a response, Lee Dae-soo’s voice came through the line.

[That’s right. That Kang Oh-joong, even though the IMF [International Monetary Fund] recommended lowering the debt ratio to 200 percent, he still took over Miryong Motors and is even building a factory in Ukraine, isn’t he?]

Cho Young-chan sighed at Lee Dae-soo’s bluntness. Meanwhile, Lee Dae-soo’s complaining voice continued to fill Cho Young-chan’s ear.

[If we leave him alone, he’ll become a cancer in this country. I shouldn’t have let him become independent back then…]

Lee Dae-soo, who had been cursing the Chairman of Daejoo Group, trailed off for a moment before addressing Cho Young-chan again.

[Anyway, talk to Sung-min. With his insight, he’ll try to buy gold with Hae Dong Merchant Bank’s dollars.]

“Yes, Chairman.”

With that, the call ended, and Cho Young-chan put down the phone and sighed.

***

Lee Dae-soo also sighed after hanging up. Go Seung-joo, who had come to report on Kim’s plan to restructure the general trading companies and had overheard Cho Young-chan and Lee Dae-soo’s conversation, wore a somber expression.

“Chairman Kang… are you going to cut him off, Chairman?”

Lee Dae-soo responded to Go Seung-joo’s cautious question.

“What else can I do? Jin-ho hyung [older brother/respected male figure], Ho-gun, the in-laws, and Jung-hyun are all restructuring, but he’s the only one who isn’t, right?”

Go Seung-joo nodded at Lee Dae-soo’s reproachful tone. Taehyun, Shinsung, GK, and SG were all curtailing expenditures to facilitate restructuring, while Daejoo Group alone was expanding.

“Foolish guy. When he became independent, I told him to solidify his own foundation first and then expand his power…”

Lee Dae-soo, filled with regret, trailed off and reminisced about 31 years prior.

###

March 1, 1967.

Lee Dae-soo, then president of Hae Dong Trading, was playing Go [a strategic board game] with Kang Oh-joong, the director of the textile department at Hae Dong Trading, in a detached house in Samcheong-dong.

“Independent?”

“Yes, President. I want to build a company that values people first, just like you and the Chairman.”

“Hmm…”

Kang Oh-joong held a black stone in his palm and bowed to Lee Dae-soo, who sighed as he looked at Kang Oh-joong.

Kang Oh-joong possessed drive and cared for his subordinates, enough to be promoted to the youngest director of the textile department at Hae Dong Trading. Nevertheless, his ambition sometimes bordered on recklessness, requiring occasional restraint. Lee Dae-soo, ceasing his sighing, addressed Kang Oh-joong.

“You, promise me just one thing.”

“Yes, President!”

Lee Dae-soo, observing Kang Oh-joong’s sudden alertness, swirled his finger on the Go board and said.

“Looking at this board, you’re expanding your influence without firmly establishing your own base. Isn’t that right?”

“Yes…”

Kang Oh-joong understood Lee Dae-soo’s point. He was being cautioned about his impetuous nature.

“Honestly, I’m concerned that you’ll conduct business like this game of Go if you become independent. If you commit in writing to conduct business as you’ve learned from our company for the next 10 years, I will support you with 20 million won.”

Kang Oh-joong hesitated to respond to Lee Dae-soo’s offer.

Securing four times the seed money typically provided to those branching out from Hae Dong Trading was undoubtedly a significant advantage.

However, adhering to Hae Dong Trading’s debt ratio management and growth strategies presented a challenge.

Why adhere to that approach when he was starting a company precisely because he was frustrated with the slow pace of growth!

Lee Dae-soo, in making the offer, also felt conflicted.

It felt like he was trying to control people with money, and he thought that Kang Oh-joong’s fiery personality would be impressive if he lasted even 5 years.

Nevertheless, Lee Dae-soo extended this offer because he believed that if he lasted 10 years, Kang Oh-joong’s personality would mature and evolve. He believed that with a solid foundation, Kang Oh-joong would become a successful businessman who would contribute to the nation.

After a period of silence, Kang Oh-joong placed the stone he held in his palm on the Go board.

“I understand, President.”

Kang Oh-joong placed the stone in a position that solidified his own territory. Lee Dae-soo nodded in response.

“I hope you become a great person, Oh-joong.”

Lee Dae-soo and Kang Oh-joong clasped hands firmly.

###

Lee Dae-soo, having finished his reminiscence, sighed.

“I thought his personality would change as well, since 10 years is enough time for the world to change. But… I was wrong. I think I let him go because I wanted to believe what I saw on the Go board.”

As soon as those 10 years elapsed, Kang Oh-joong expanded his network and aggressively grew his business as if he had been waiting for that moment.

Of course, the solidity that had been built up over those 10 years vanished like smoke. Daejoo Group continued to sprint and grew in size, but the inside was rotting and festering, such as borrowing debt to pay off debt with the help of politicians and public officials.

Nevertheless, Kang Oh-joong remained oblivious to the current situation, touting ‘global management’ and fostering corruption through various mergers and acquisitions. Lee Dae-soo, who had once cared for Kang Oh-joong, now felt only frustration, despite their current animosity.

“If that guy Sung-min says he’s going to buy gold, tell him to entrust the gold purchase to five places: Hae Dong Trading, Shinsung Trading, Taehyun Trading, GK Corporation, and SG Corporation. The only way to stop that Kang Oh-joong is now.”

Though unspoken, Lee Dae-soo hoped that Kang Oh-joong would confront reality after this incident, preventing him from having to personally take drastic action.

***

I returned to the company and was drinking tea with Sun Hae-chul while watching TV.

[KBC has decided to start a ‘Gold Collection Campaign’ from today. As the people’s strength is needed to overcome the national crisis…]

Coincidentally, the gold collection campaign was being broadcast on TV. I inquired about Hae Dong Merchant Bank’s gold purchase from Sun Hae-chul, who was watching the screen.

“…How is it going?”

“Gold is always a safe bet. Central banks hold gold for a reason, right? Hehe.”

Sun Hae-chul chuckled, took a sip of tea, and then asked me.

“But… is that all there is to it?”

“What do you mean?”

“Is the sole purpose of buying gold simply to transform Hae Dong Merchant Bank into a bank?”

“Uncle?”

Sun Hae-chul chuckled as he noticed my momentary flinch.

“You’ve always been like that. When you undertake something, you always achieve multiple objectives, right?”

He was adept at reading people’s minds. Sun Hae-chul continued, observing me clear my throat.

“So, I suspect you have ulterior motives for this gold purchase. What do you say, Tae-jin?”

Park Tae-jin, his eyes widening at Sun Hae-chul’s question, also spoke up.

“After hearing you, Hyung-nim, I think that’s right. Please enlighten us, Director.”

Park Tae-jin also seemed to suspect something. I smiled wryly, took a sip of tea, and addressed them both.

“That’s correct. The gold purchase will be entrusted to Hae Dong Trading, Taehyun Trading, Shinsung Trading, GK Corporation, and SG Corporation. We’ll add 20 percent of the gold price as a commission.”

Sun Hae-chul’s eyes narrowed as he listened to my explanation.

“What about Daejoo Trading? It’s one of the top 5 general trading companies besides Hae Dong Trading, right?”

“That’s right, Director. It would be easier to buy gold if we involved Daejoo Trading…”

These guys were trying to provoke me. Their eyes were filled with suspicion rather than mere curiosity! I waved my hand at them.

“Stop it, we’re all professionals here. We need to make Daejoo Group a scapegoat in the general trading company restructuring plan, right? Don’t you think?”

Starting with the question I posed to them, I calmly explained my reasoning.

“Shinsung Group is my wife’s family. GK Group is my mother’s family. Taehyun Group is at the forefront of President-elect Kim’s North Korea policy, so it’s out of the question, and Chairman Chae Jung-hyun of SG Group is on close terms with my grandfather. Above all, all four groups are faithfully restructuring.”

Capitalizing on the situation, the four groups were diligently restructuring as ruthlessly as possible, and other groups were also in the midst of restructuring. The most talented employees who were laid off were being absorbed by Hae Dong Group, creating a win-win situation for everyone involved.

“On the other hand, Daejoo Group is not coming to its senses and is increasing its size. They decided to acquire Miryong Motors in a few days, and they said they would build a factory in Ukraine, right? Is there any need to save them if they can’t even judge when to advance and when to retreat?”

Daejoo Group was the 4th largest in the business world, but in my eyes, it was a more flimsy scarecrow than a wafer or a Cuckoo Das [Korean snack brands]. Sun Hae-chul looked at me with worried eyes as I harshly criticized Daejoo Group.

“Still, Daejoo Group is the 4th largest in the business world based on assets. Daejoo Trading is the parent company of Daejoo Group. If Daejoo Trading collapses, Daejoo Group will disintegrate, how are you going to handle it?”

Clearly, Daejoo Group was a chaebol [South Korean conglomerate] that could not be easily dismissed. It had numerous affiliates such as Daejoo Trading, Daejoo Motors, Daejoo Heavy Industries, Daejoo Metal, Daejoo Electronics, Daejoo Securities, Daejoo Card, and Daejoo Fire Insurance.

I was aware of that fact, so I nodded calmly.

“Chairman Kang Oh-joong will restrain himself if he has any sense, but if he still doesn’t stop, we’ll tear him down.”

“De, destroy?”

“Di, Director?”

Sun Hae-chul and Park Tae-jin were taken aback, but I had my reasons.

‘Right now, the debt is 33 trillion won and the capital is 10 trillion won on the books. But… if you dig into the accounting fraud, the real capital is only 3 trillion won.’

In other words, Daejoo Group’s actual debt ratio was 1,100 percent. It was absolutely impossible to achieve the debt ratio of 200 percent recommended by the IMF.

Nevertheless, in my memory, Chairman Kang Oh-joong of Daejoo Group was caught up in the illusion of ‘global management’ and clamored for growth.

If history repeated itself, Daejoo Group would leave a legacy of over 40 trillion won in accounting fraud and a total debt of 87 trillion won in the Korean economy, but I couldn’t predict how history would unfold.

I calmly addressed the two, who couldn’t conceal their unease.

“The one who started it has to clean it up, what else can I do? Still, there’s a lot to gain if Daejoo Group collapses.”

I took a sip of tea, took a breath, and then said calmly, looking at the two who were nervous.

“We need to take over Daejoo Trading’s Myanmar gas field business rights, the headquarters building at Seoul Station, the Hilton Hotel, and Daejoo Heavy Industries, Daejoo Metal, and Daejoo Motors. If we receive a little support, whether it’s public funds or debt restructuring, we can save them, so the acquisition value is sufficient.”

Having revealed even the contingency plans prepared for the worst-case scenario, I calmly drank tea, while Sun Hae-chul stared at me with an incredulous expression.

“You’ve become a true entrepreneur now. You’re talking about devouring the people’s tax money without any qualms.”

“We have to save them in that way so they can pay more taxes or repay the tax money with interest. What do you think, Hyung?”

Park Tae-jin hesitated, his expression firm, at my question, which I answered with a wry smile, and then spoke.

“I think the same way. All of the affiliates that Director mentioned are companies with solid fundamentals. They can be saved even with just debt restructuring, without needing public funds.”

Sun Hae-chul nodded as Park Tae-jin also agreed with the assessment I had made.

“Okay. Then I’ll have to gather information about Daejoo Group, right?”

“Yes. Hyung and I will create a gold collection plan, so Uncle, please deploy people and gather information about Daejoo Group. Everything from the morale of internal employees to the actual asset status and disguised affiliates.”

It was a blatant instruction, but Sun Hae-chul smiled at me.

“I’m going to delve into the inner workings of Daejoo Group, the 4th largest in the business world… It’s going to be fun, right? Hehe.”

***

A few days later.

While gathering information about Daejoo Group with Sun Hae-chul and Park Tae-jin, I also finalized a gold purchase plan and called Cho Young-chan to inform him of our strategy.

“…How does it sound, Vice Chairman?”

[Di, Di Director?]

It was strange that Cho Young-chan was stuttering. Why was the usually composed man so surprised?

“What’s wrong, Vice Chairman?”

[Your plan is the same as the Chairman’s. That’s why I was surprised.]

“The Chairman?”

My grandfather was also considering making Daejoo Group a scapegoat… I had a hunch, so I quickly questioned Cho Young-chan.

“Is it because Chairman Kang Oh-joong of Daejoo Group is from our group?”

Cho Young-chan remained silent even after my cautious inquiry. I had to press him for information.

“I assume that Chairman Kang Oh-joong expanded the company extravagantly, unlike our Hae Dong Group, so he fell out of favor with the Chairman. Please answer me, Vice Chairman.”

Cho Young-chan sighed at my persistent questioning.

[That’s right. As you know, our Hae Dong has a tradition of providing seed money separately from severance pay to people who want to start a business after going through a reasonable procedure. But Kang Oh-joong is…]

I simply smiled wryly as I learned about the relationship between my grandfather and Kang Oh-joong.

‘He must have been kicked out of his eyes because he deceived his grandfather.’

I couldn’t know my grandfather’s true feelings, but I sensed that this could be a signal for the gold purchase plan to become the dismantling of Daejoo Group. I briefly removed the phone from my ear, took a breath, and continued the call.

“I understand, Vice Chairman. I apologize, but I would like to meet with all the Vice Chairmen and discuss this further.”

[As expected… you must have considered the worst-case scenario.]

“You never know what tomorrow may bring.”

Cho Young-chan sighed softly at my pragmatic response.

[Okay. I’ll contact you as soon as the time is set.]

“Yes. I’ll be there as soon as you call.”

I hung up the phone and looked at Sun Hae-chul and Park Tae-jin with determined eyes. They nodded, meeting my gaze, understanding that we had to prepare for the worst-case scenario of dismantling Daejoo Group.

***

After finishing lunch, we received a call from Cho Young-chan and went straight to the Hae Dong Group headquarters.

We entered the conference room and briefed the five Vice Chairmen on Hae Dong Merchant Bank’s gold purchase plan and the merger and acquisition strategy in preparation for the potential dismantling of Daejoo Group.

‘If Kang Oh-joong restrains himself, I’ll just take what I need and move on. I only need to acquire what’s necessary to compete with Shinsung Group. But if he persists, we’ll have to intervene and tear him down.’

After finishing the briefing, I looked at the adults who were sighing with grave expressions and steeled myself. If someone has to get their hands dirty, it should be me, the one who has benefited as a returnee.