Still, I Will Live As The Son-In-Law Of A Conglomerate [EN]: Chapter 175

175. 50th. The Inevitable Big Deal (1)

We went down to the lobby and bowed deeply to the three people waiting on the sofa.

“Sorry we’re late.”

“No, it’s this old man who came without notice, so I should be the one waiting, haha.”

With my grandfather laughing heartily, we headed straight to Cactus Village with him leading the way.

“Is this the cactus?”

“Yes, Grandfather.”

My grandfather bent his knees and carefully touched the cactus.

“It’s truly amazing. To think something that can only be seen on the other side of the world is growing here…”

My grandfather, who had been admiring it in a low voice, straightened up.

“So, I think there’s enough of a brand story here to apply to the product.”

“Brand story?”

“As technology advances, the quality of products will become similar across all companies, so we need to create a unique story for our product.”

My grandfather nodded and began to speak.

“I suppose so. If the quality is similar, you’ll have to capture the consumers’ hearts. If you create a story about chocolate made from the fruit of a cactus that came from the other side of the world and has the vitality to grow on its own, it seems like it would be a hit, haha.”

My grandfather was about to turn eighty the day after tomorrow, but he had a business sense as sharp as any marketer. If it were other group chairmen, they would have only cared about the quality…

“We also set the direction of the brand story according to what you said, Grandfather. Right?”

Jang Ha-yeon spoke as soon as I looked at her.

“Yes, Grandfather. We would like you to look at the business plan we made first.”

Jang Ha-yeon took out three copies of the document from her Birkin bag and handed them to my grandfather, Go Seung-ju, and Tae Jae-ho.

“Hmm… thanks to our eldest grandson and his wife, the residents of this town will be living the good life, haha. Isn’t that right?”

“Are you talking about that? If we build a farm and factory here to source raw materials and produce products, and even build a resort in the nearby vacant lot to create experience programs, I think it would be quite successful, haha. What do you think, Head of Headquarters?”

Go Seung-ju took the baton from Tae Jae-ho, who was about to answer.

“Vice Chairman’s words are correct, but I also expect it will give a good impression to the government, local governments, and the public in terms of coexisting with the local community.”

Even though Go Seung-ju agreed, my grandfather frowned slightly.

“You guys aren’t just praising because it’s something my own flesh and blood have planned, are you?”

Tae Jae-ho waved his hand dismissively at my grandfather’s sly tone.

“No, Chairman. Isn’t what’s left from a trip the sights and the food? If you build a resort in a place with sights to see and add a story that differentiates it from others, it will be successful enough.”

“In the future, it would be good to sell local foods unique to the areas where our hotels or condos are located. There’s no need to force it, but if there’s good food, I think it’s a good idea to formally contract with the person who developed the food and sell it, Chairman.”

Only after hearing Go Seung-ju’s suggestion did my grandfather smile and nod.

“I understand. Soon, when Korea Hotel and Haedong Corporation merge to reorganize the leisure business, we will build the business based on this plan.”

My grandfather’s final approval was given. Jang Ha-yeon and I looked at each other and smiled brightly.

***

After returning from a week-long honeymoon, I returned to Standard Capital, and Jang Ha-yeon returned to Korea Hotel.

The first thing I pushed for was the separation of subsidiaries after the merger of Haedong Corporation and Korea Hotel.

“As you all know, our new daughter-in-law has become a shareholder of Haedong Corporation through this merger. The newly reorganized Korea Hotel and the duty-free shop business are for our new daughter-in-law, so keep that in mind.”

At the rare family meeting, all the family members congratulated Jang Ha-yeon at my grandfather’s declaration.

“If you want to have a good vacation in the future, you’ll have to treat our niece-in-law well. Please give me a good room on Christmas Eve, haha.”

Jang Ha-yeon wore an awkward smile at Lee Myung-jin’s joke, and the aunt next to Lee Myung-jin’s face turned red.

“Oh my, really…”

“You’re fifty years old and you’re trying to give me my youngest grandchild? Ehehe.”

Even my grandfather laughed good-naturedly, and the aunt couldn’t lift her head, looking like a new bride.

###

After completing the merger of Haedong Corporation and Korea Hotel, Jang Ha-yeon embarked on the chocolate business of Korea Hotel with Jung Chang-ho and Tae Jae-ho.

“It would be good to prepare so that the resort, cactus farm, and chocolate factory can open at the same time, Vice Chairman.”

Jung Chang-ho couldn’t hide his tension because it was the first time he was meeting with the group’s top executives since joining the Haedong Group, but Tae Jae-ho waved his hand.

“Make yourself comfortable, CEO Jung. What kind of formalities are we going to have when you and I are both getting old?”

Jung Chang-ho wore an embarrassed smile at Tae Jae-ho’s kind smile.

“Still, you have been with Haedong Corporation since its founding, haven’t you? We have to keep what we have to keep, haha.”

“Oh, come on… I’ll push you hard in the future, so do well, haha.”

Jang Ha-yeon and Jung Chang-ho were feeling a strange emotion, different from their days at the rigid Shinseong Group, at Tae Jae-ho’s generous heart.

###

While Jang Ha-yeon was promoting the construction plan for the cactus farm, chocolate factory, and resort in Jeju Cactus Village with Tae Jae-ho and Jung Chang-ho, I was checking the business on my own.

“The bank acquisition preparations are going well.”

I whistled happily as I looked at the documents Claire sent me from the United States. Seon Hae-cheol smiled at me.

“Claire likes it. She said she doesn’t have to worry about the money to raise our kids, hehe.”

“Uncle, really. Anyone who knows would think I’m a ruthless employer. But you know I’ve taken good care of you and Claire, right?”

“I know, you rascal. How much money is already in the account?”

The money in Seon Hae-cheol and Claire’s accounts was close to 1 trillion won each [approximately $750 million USD]. Both of them entrusted the money to Standard Capital, so the money was making money.

“Ah! How is the Miryong Group’s rehabilitation going?”

“Smooth sailing. Since we’ve been providing financial support, the banks’ attitude has changed completely.”

“How?”

“The pressure to repay the loan has decreased, and they even said they would cut the interest rate.”

Seon Hae-cheol’s answer drew a smile on my face.

“I guess they were worried about losing customers.”

“I guess so. If you only look at the size, Miryong Group is one of the few customers that can be counted on one hand, right?”

The Miryong Group investment proved that Standard Capital could lend much more money than domestic commercial banks under good conditions. Because of this, domestic banks were refraining from loan pressure and even giving preferential interest rates to groups that were likely to recover.

“Still, Haedong Motors, which ate Shinseong Motors, is a much better blue-chip customer than Miryong Group, hehe.”

“It’s all thanks to my father-in-law, hehe.”

I also smiled at Seon Hae-cheol’s sly smile.

Haedong Motors acquired Shinseong Motors from Shinseong Corporation for 800 billion won [approximately $600 million USD] in mid-April.

Compared to acquiring a state-of-the-art factory that can produce 300,000 vehicles of various models per year on one line through the merger, the increased debt is only 1 trillion won.

This is all because, as a result of the due diligence completed by the four major accounting firms at the end of March, the fair stock price of Shinseong Life was 700,000 won per share, and the National Tax Service recognized the stock price calculated by the accounting firms.

It was thanks to Jang Ho-geon giving 3.5 million shares of Shinseong Life to the banks and writing off 2.45 trillion won [approximately $1.8 billion USD] in debt.

“Director’s father-in-law and Director Lee must have had a hard time, haha.”

When Jang Ho-geon and Lee Soo-han handed over Shinseong Motors to us, they said they would put out Shinseong Life shares in the name of clearing debt and sprayed hundreds of billions of won to the government, politicians, banks, and accounting firms. I also knew that fact, so I nodded at Park Tae-jin’s answer.

“Still, it wouldn’t have been a loss. They threw away a piece of stock and cleared nearly 2.5 trillion won in debt, and they created an excuse to list Shinseong Life, so I think it’s a profitable business, hoho.”

One of Jang Ho-geon’s long-cherished projects is the listing of Shinseong Life.

Banks must somehow convert the shares they received instead of cash into cash to fill the cash hole in their books. Therefore, Jang Ho-geon and Lee Soo-han calculated that the listing of Shinseong Life must be promoted.

“What are you going to do with that stock?”

“When my father-in-law signed a contract with the creditors, he promised to list Shinseong Life by 2000 and allow them to sell the stock, so I have to watch until then.”

Seon Hae-cheol, who asked the question, wore a mischievous smile after hearing my answer.

“If it doesn’t sell, you’ll take it, right?”

“Of course. I brought Shinseong Steel’s petrochemical division and Shinseong Motors, right? Hehe.”

Someone may call my smile the devil’s smile, but my revenge on my in-laws has only just begun. I will grind their flesh piece by piece, as many as the number of companies they have.

I stopped smiling and looked at the documents again and asked Seon Hae-cheol.

“Didn’t you feel something was off during the President’s inauguration speech?”

“What?”

“That large corporations had uncompetitive companies like octopus tentacles.”

Seon Hae-cheol frowned for a moment, recalling whether it was a somewhat absurd question, and then relaxed his expression.

“Ah, that?”

“Yes. I don’t think it was just lip service.”

“Then?”

“I think they will reorganize uncompetitive companies by industry.”

Seon Hae-cheol’s eyes widened.

“Big deal?”

“Yes.”

Even after giving the answer, Seon Hae-cheol couldn’t believe it, but President Kim was a democrat, a pacifist, and a capitalist faithful to the market economy. Even though there was the influence of the foreign exchange crisis, wasn’t he the one who strengthened labor flexibility despite the opposition of the labor union?

Not only that.

President Kim even pushed for a big deal to merge several industries that were deemed uncompetitive into one company. Even though I and my family released a huge amount of dollars in this life to overcome one crisis, the chronic debt problem of the chaebols [large, family-owned conglomerates] was not resolved, so the big deal was expected.

“Still, our group’s affiliates are out of the influence of the big deal. It’s not certain, but they may be the subject of the big deal rather than the target, Director.”

Park Tae-jin cautiously guessed, but it wasn’t wrong. Among the companies in Korea by industry, Haedong Group affiliates have the lowest debt ratio, right?

“I think so too. It would be good to find out which companies are worth acquiring through the big deal… The most likely is Daeju Group. Other companies are too small compared to our group’s size.”

Park Tae-jin’s expression hardened at my opinion.

“However, Daeju Group has stopped all forms of expansion, whether it’s mergers and acquisitions or external borrowing, and is preparing self-rescue measures since the gold collection [a national campaign to collect gold to help the country overcome its financial crisis]. If they really reduce their debt, recovery is likely.”

I was also concerned about the part that Park Tae-jin pointed out.

Perhaps because I changed history, Daeju Group stopped all expansion as if it had become ice in the ice cream game after the gold collection campaign. As far as I know, it’s normal to expand overseas business…

While twisting my lips and tilting my head, I heard a rough door opening.

“Something terrible happened, Director!”

“What’s wrong?”

I handed water to the employee who was panting as if he had run up from the office downstairs.

“Drink and talk.”

The employee who drank the water I gave him and caught his breath quickly pressed the remote control button.

“[…succeeded in attracting a total of 4 billion dollars from overseas. In the future, Daeju Group will reorganize the group…]”

No one in the office could shut their mouths at the sight of Kang Oh-jung reading the manuscript in front of the podium. Daeju Group attracted 4 billion dollars?

***

“…Yes, Mr. President! Don’t worry. On this occasion, the business community should also try to focus on what they do best. We, Daeju, will also try to meet the President’s expectations, haha!”

Kang Oh-jung, who was speaking with a hearty laugh, turned expressionless as he put down the receiver.

“What did the President say?”

Hwang Byeong-sik, who was in front of Kang Oh-jung, swallowed dryly. Wasn’t he the chief officer who planned Kang Oh-jung’s plan to bring all overseas slush funds into the group and take the high ground in the government-led big deal?

Yoo Seong-hak, the head of the planning department of Daeju Group, who was next to him, didn’t even know what the two were up to and was just blinking his eyes.

“I told Lee Jae-heon of the Financial Supervisory Commission to lift the restrictions on issuing corporate bonds and CPs [commercial paper, a short-term debt instrument], and the government decided to take over the remaining bad debts by separating construction and commerce from the material industry. In the big deal that will be promoted soon, we will throw railway vehicles to Taehyun Group and bring metals and communications from GK Group.”

Hwang Byeong-sik tried hard to close his opening mouth. Not only is the money supply released, but the bad debts are also cleared, and the big deal is to throw away the dregs and bring in the marrow?

On the contrary, Kang Oh-jung’s expression was full of dissatisfaction.

“Is this all I’ve been pushing for so far…”

Daeju Group had been pushing more political funds than other groups since the current president and the ruling party were in the opposition party. In other words, Kang Oh-jung was complaining because he had been pushing money at the risk of being frowned upon by the current opposition party, which was the ruling party at the time.

“Still, if we only raise funds by issuing corporate bonds and CPs and strengthen the internal affairs…”

Yoo Seong-hak carefully opened his mouth to comfort his lord, but had to close his mouth at the shout Kang Oh-jung made.

“Don’t be weak, Director Yoo! If we get the money, we can lead the game! But does it make sense to put out the company? Even though we did a rights offering?”

Kang Oh-jung chose a gamble to gain public support by showing that he was giving up his control, at least on the surface, by using all 4 billion dollars of overseas slush funds that had been collected like albatrosses over decades to choose a rights offering that was tied to stocks that are sensitive to market fluctuations, not long-term bonds that can be recovered.

“I’m sorry, Chairman.”

While Yoo Seong-hak quickly bowed his head, Hwang Byeong-sik opened his mouth from the side.

“Still, Director Yoo has come up with a way to increase the liquidity of Daeju Electronics by using Korea Credit Distribution.”

“Is that true?”

Hwang Byeong-sik continued to answer, looking at Kang Oh-jung’s sparkling eyes.

“Yes, Chairman. We proposed a plan to separate Daeju Electronics’ domestic sales network and merge it with Korea Credit Distribution, and then sell Daeju Electronics’ stake in Korea Credit Distribution, which it will receive instead of the sale price, on the market.”

Korea Credit Distribution, a comprehensive home appliance distribution company, is a disguised affiliate established by Kang Oh-jung and key executives of Daeju Group under borrowed names. Therefore, since it is not an affiliate on the surface, selling the shares of Korea Credit Distribution that Daeju Electronics will hold could have the effect of reducing debt.

Kang Oh-jung, who calculated all of that in an instant, frowned slightly and looked at Yoo Seong-hak.

“Why is someone with such a good head so timid?”

“…I’m sorry, Chairman.”

Yoo Seong-hak, who hesitated for a moment, bowed his head, and Hwang Byeong-sik continued to speak, looking at Kang Oh-jung’s relaxed face.

“We also need to create the appearance that we are restructuring, so it would be good to do it according to Director Yoo’s plan.”

“Good, good. Take good care of the issuance of corporate bonds and CPs besides that. If there is no liquid funds, it will all be in vain. Go.”

Kang Oh-jung sent Hwang Byeong-sik and Yoo Seong-hak away with a satisfied expression, then got up from his chair and walked to the window.

“It’s always the same. Down there.”

Kang Oh-jung, who was muttering in a low voice, looked down at Baekbeom Square, which was visible under his feet.

In his eyes, he saw people walking around like dots down there. Kang Oh-jung, who was one of those countless dots when he was young, gritted his teeth.

“I will never go back to that dot again. I will protect this place and look down on those dots, Chairman.”

It was needless to say who the ‘Chairman’ who came out of Kang Oh-jung’s mouth was.