Still, I Will Live As The Son-In-Law Of A Conglomerate [EN]: Chapter 61

61. 19th. United We Stand (2)

I immediately turned on my phone.

“This is Sungmin, Director. May I see you at headquarters to discuss something?”

[Yes. Come right now.]

“Thank you, Director.”

After preparing to go out, we took the Ado Motors sedan and entered the underground parking lot of the Haedong Group headquarters.

“Director, Park Taejin, Deputy Manager, and Lee Sungmin, Associate, have arrived.”

[Tell them to come in.]

Others might find it odd, but even I am referred to as ‘Lee Sungmin, Associate,’ which is part of our group’s culture. My grandfather, father, and Lee Myungjin all climbed the ranks based on their abilities, so who would dare to criticize our family openly? Behind our backs, maybe.

I smiled at the secretary and entered the office with Park Taejin.

“Hello, Director.”

“Welcome. Sit there.”

I sat in the lower seat after seeing Go Seungju leave his desk and sit on the sofa. Shortly after we sat down, we each took a sip of the coffee placed on the table.

“It must have been surprising due to the sudden decision, but the Chairman made this decision after fully assessing your capabilities. Take it well.”

Go Seungju had a smile on his face, but his eyes hid something. Even he, who had experienced so much, couldn’t fool me. Wasn’t I the hunting dog of the Shinseong Group for 23 years?

Sensing the situation, I carefully opened my mouth.

“Still, I’m not comfortable with the plan to bundle even my uncle’s affiliates into the holding company and separate them from Mulsan [Haedong Group’s trading and construction arm].”

The smile disappeared from Go Seungju’s face, and his eyes sharpened.

“Do you think CEO Lee is taking too much?”

“No, Director. However, I’m concerned that you’re not cleanly separating them but rather having Mulsan hold shares in the companies that my uncle and I will manage.”

I couldn’t grasp my grandfather’s intentions, but something felt off.

He was someone who had always drawn a line and never colluded with the New Military [referring to the military junta that held power in South Korea in the past] beyond the line he set. Even though I’ve changed since returning, there was no reason for someone who had always adhered to his own lines like a knife to ambiguously straddle the independence of me and Lee Myungjin.

Go Seungju received my question, let out a sigh, and opened his mouth.

“Since you’re also a successor to the group, I’ll tell you. The Chairman said the wind is unusual.”

“The wind?”

“Do you remember what I told you about the national treasury bond issue last time?”

“Yes. I remember. The merchant bank issue and Hanko Steel, too.”

I could never forget. Weren’t those two alone enough to create an attractive force that would bring a storm and waves to the Korean Peninsula?

“But… there’s one more.”

“One more, then…?”

As I racked my brain to find another attractive force, Go Seungju gave me the answer.

“Ado Group.”

“Ado Group?”

“Ado Group’s accounting fraud already exceeds 1 trillion won [approximately $750 million USD]. By the end of the year, it will reach 2 trillion won.”

I was missing this.

Now, I could see the outline of the picture my grandfather was drawing.

Even if only Hanko Group exploded, it would be enough, but if Ado Group also exploded, other groups collapsing one after another would also attract storms and waves.

When that happens, there will be many things to trade with the political and business circles, whether to avoid the crisis or turn it into an opportunity. My grandfather seemed to have decided to provide me and Lee Myungjin with the umbrella of political power, looking that far ahead.

Go Seungju, seeing me surprised by my grandfather’s insight, wore a bitter smile.

“It’s something that almost no one in the business world knows. It’s a forecast based on information from the Myeongdong private loan market [a major financial district in Seoul known for its private lending] and performance data from Haedong Steel and Haedong Heavy Industries… The information from Myeongdong and the group’s secretariat or affiliate planning offices has never been wrong, so we should assume it’s correct.”

Since Ado Group’s main business, automobiles, had begun to lose out to Japan in exports to the U.S., the Myeongdong private lenders would have known the signs. Their main business is discounting promissory notes, so they know everything about the original contractors and the first, second, and third-tier subcontractors who issued the notes.

“I see.”

I answered calmly, but something felt off. Why was our group interested in Ado Group?

Unconsciously, I frowned, and Go Seungju asked.

“You don’t understand why we’re even observing Ado Group, do you?”

“Yes, honestly…”

I stroked the back of my head, pretending to be embarrassed, and Go Seungju sighed.

“You know that Haedong Steel makes special steel, and Haedong Heavy Industries makes machine tools and mold equipment, right?”

“Isn’t that the business that my great-grandfather and grandfather started? They said that the economy needs to be self-reliant in materials and equipment first…”

Go Seungju continued before I could finish my answer.

“That special steel business, machine tools, and mold businesses are all connected to Ado Group. Most of the companies that buy those things from us are Ado Group subcontractors, and their collections are being delayed little by little.”

“What?”

I couldn’t believe it.

I was stunned by the fact I hadn’t known. Was it possible that stray bullets fired by Ado Group were hitting our group after going around in circles?

Go Seungju looked at me with a stern face and said.

“We’ve never had a payment delayed before, but all the payments from Ado Group are delayed, and that’s affecting us. Your uncle told me this information. Naturally, he’s also against the affiliate separation.”

My grandfather and Lee Myungjin were scary people. They sensed the crisis with just a few pieces of information… I couldn’t match their experience, insight and wisdom.

Go Seungju nodded at me, who had a serious expression, and asked.

“Then let’s hear your thoughts now. What do you think about the affiliate separation?”

After hesitating for a moment, I looked at Go Seungju with a firm gaze and said.

“I’m also against it, Director.”

“Why are you against it? You could have Standard Capital as your backing, couldn’t you?”

Go Seungju looked at me and asked calmly. I could see curiosity rather than doubt flashing in his eyes, so I had to reveal some of my cards.

“You’re right, Director. I made a lot of money from the yen appreciation speculation, and my position within the company has also improved. But it wouldn’t look good if only I became independent while my uncle remained.”

It was true that I wanted to inherit Haedong Merchant Bank, but if my uncle didn’t become independent and his nephew did, resentment would build up.

Considering my plan to grow the tightly knit Haedong Group and use it to swallow up the affiliates of Jang Hogun, Jang Hokyung, and Jang Homin, it was even more absolutely impossible.

However, Go Seungju shook his head.

“Hierarchy is important, but this isn’t about dividing the wealth of a mediocre rich family, Sungmin. You must have studied enough outside, so tell me your opinion.”

At that moment, Go Seungju transformed into an interviewer. I grasped what answer he wanted and opened my mouth after pretending to think for a moment.

“It’s because of the United States.”

“The United States?”

“Combine the reverse Plaza Accord [an agreement aimed at devaluing the US dollar in the mid-1980s], which was announced in the news a while ago, with the U.S. presidential election next year, Director.”

Instead of answering, I asked a question, and Go Seungju silently looked down at his coffee cup before raising his head.

“You mean a foreign exchange crisis?”

“Yes. The U.S. presidential election is no different from our presidential election. Wouldn’t those who bet on the winning side make money?”

Go Seungju nodded and said.

“Then Wall Street will bet on the Democratic Party. The Clinton administration is pushing IT, media, and finance.”

I was taken aback by Go Seungju’s answer. Indeed, before being the chief of staff who handles all of Haedong Group’s information, he was a senior to me and Park Taejin in the Seoul National University’s Business Administration department, so he must have had extensive overseas connections. He would have heard all sorts of information through those connections.

“Yes. It seems that the Wall Street hedge funds are lining up with the Democratic Party because Clinton has a high chance of being re-elected. I think Wall Street, led by hedge funds, will target Asia after the U.S. presidential election.”

“That’s why Triumph Capital bought the national treasury bonds. It would be an opportunity to damage Mr. Royce’s opposing faction.”

Go Seungju’s mind worked incredibly fast. He deduced my intentions hidden in the series of events that had happened so far with just the current conversation.

“I see.”

Go Seungju let out a light breath and said, then picked up the phone and dialed a number.

“Chairman, this is Go Seungju. May I see you now? I’d like to take Sungmin with me. Yes.”

***

We went straight to Samcheong-dong [an affluent district in Seoul] to see my grandfather and opposed the equity reorganization. My grandfather spat out with a stern face.

“It’s been five years since you passed your prime. And you still don’t have the confidence to be independent?”

“CEO Lee also opposed it, Chairman. First, please take a look at this document.”

Go Seungju calmed my grandfather down in my place and handed over the document that Lee Myungjin had given him from his bag. My grandfather put on his glasses and opened the document.

“Hmm…”

The humming sound coming from my grandfather’s mouth grew thicker and heavier each time he turned a page.

“Tell CEO Cho to review the loan delinquency and promissory note acquisition status of the companies. And don’t pressure the clients.”

“Yes, Chairman.”

After handing the document to Go Seungju, my grandfather asked.

“Still, shouldn’t you inherit the merchant bank? You designed the plan to rob the Japanese bastards, so your money in Standard must have grown quite a bit, right?”

He didn’t know that I was the owner of Standard Capital, but he guessed this far… My grandfather didn’t seem to have won the position of the second chairman of Haedong Group through gambling.

“Of course, Grandfather. My credibility within Standard has increased due to this incident. I also received a lot of bonuses.”

“Then why are you opposing it? If you have the talent to handle money and that company as your backing, you should be able to manage the merchant bank well enough, right?”

“Next year is the U.S. presidential election. The hedge funds that lost to Royce during the yen appreciation speculation are lining up with the U.S. Democratic Party and Clinton. Considering what those guys will do in the next election outlook, where will the next gambling den open?”

After taking a moment to catch my breath, I recalled what my grandfather had said before and continued.

“As you said, Grandfather, hedge funds are as greedy as golden goblins, or even more so. They’ve already devastated Europe and Mexico, so if Clinton wins the U.S. presidential election, they’ll flock to Asia. The IMF [International Monetary Fund] will act as a broker.”

That’s what happened in my past life, and that’s what will happen this time as well. Here, I added the final blow.

“These are the hedge funds that had to eat only scraps because of us during the yen appreciation speculation. They’ll be even more fierce and come in more aggressively, Grandfather.”

Because of the last yen appreciation speculation, the nickname ‘Yokai (妖怪) [a Japanese word for ghost, monster, or spirit],’ which should have been attached to George Soros, was attached to Henry, and the hedge funds’ returns were terrible. I believed that my grandfather would understand their greed and foresee the future.

My grandfather frowned, but after listening to my words, he loosened his expression and leaned back in his chair. He even closed his eyes and tapped the armrest of the chair with his fingertips.

How much time had passed? My grandfather raised his head and opened his eyes. In my grandfather’s eyes, from which the eyelids had been lifted, I could see fear and worry.

“Then how should our Haedong avoid the coming waves?”

The first thing he said after opening his eyes was about preparing for the future.

He was the one who saved Haedong Mulsan from the ashes just before the Korean War and grew it even bigger, but even with the achievements I’ve built up so far, I never thought he would believe the words of his young grandson.

“Your uncle’s affiliates are still not big enough, so they need to build strong fences. But Haedong Mulsan is big and solid, so I think it can withstand the waves even if it continues on its current path.”

After taking a moment to catch my breath, I added, just in case.

“However, conspicuous austerity measures are not allowed, Grandfather. There are too many eyes watching…”

“Do you think this grandfather is a pushover? Your great-grandfather and I evacuated hundreds of company employees before the war, you rascal.”

After scolding me for a moment, my grandfather said calmly.

“Your great-grandfather and I planted people in military units at the front and constantly monitored their movements. Thanks to that, we saved our assets and company employees before the People’s Army invaded.”

Today, the mystery of our family that had not been solved was solved. The secret of the evacuation, which was so ingenious, was information… My grandfather seemed to find my dumbfounded face amusing, and he laughed at me, as if I was still far from it.

“Your grandfather had some premonition, but I’ll trust you since our smart eldest grandson is good at reconnaissance. Chief Go.”

“Yes, Chairman.”

“Tell all affiliates to trade in cash from the second half of the year, whether it’s money to be given or money to be received. The same goes for cutting supply prices. Cut the same amount whether buying or selling.”

“I understand, Chairman.”

After exchanging instructions with Go Seungju, I carefully asked my grandfather.

“허실상란(虛實相亂) [Heosil Sangnan – a strategy of mixing truth and lies to confuse the enemy]?”

“What can we do? It would be too obvious if we only threw promissory notes for money to be given and hoarded cash for money to be received. Even if other fools don’t notice, Shinseong, Taehyun, and your maternal family, GK Group, will notice it quickly.”

To deceive the enemy, you have to deceive your allies first, so my maternal family, GK Group, was no exception. This was something that only our family and our group had to prepare for quietly.

“So, we’re going to trade all money to be given and money to be received in cash. If we do that, everyone will just think that my eccentricity has returned, hehe.”

I felt chills down my spine when I saw my grandfather chuckling.

The nickname ‘Eccentric of the Business World’ was clearly a mask created to package all this meticulousness and insight as luck. The grandfather I saw today was a ‘Sage of the Business World.’

My grandfather, who had stopped laughing, said to Go Seungju.

“From tomorrow, adjust Sungmin’s stake in the merchant bank to 50 percent, Chief Go. Exchange all of Myungjin’s stake in the merchant bank for Sungmin’s stake in the heavy industry affiliate and Mulsan’s stake. If it’s not enough, exchange my stake as well.”

Even though the intensity was lower than the original plan, my eyes widened at the equity adjustment. I couldn’t understand what he was thinking, but my grandfather continued to give instructions while looking down on me.

“Transfer 30 percent of my stake in the merchant bank and all of the heavy industry affiliate’s stake to Mulsan. After the equity reorganization is complete, tell Myungjin to prepare for his inauguration as vice chairman.”

I understand why my grandfather gave those instructions. Isn’t the position within the group as important as the shareholding ratio?

Even if I hold 50 percent of Haedong Merchant Bank’s shares, I’m just ‘Lee Sungmin, Associate of Haedong Mulsan’ within the group. On the other hand, the remaining 50 percent of Haedong Merchant Bank’s shares are held by my grandfather and Haedong Mulsan, and Cho Youngchan, my grandfather’s closest aide, is the CEO.

So, to the outside world, I’m just a major shareholder of Haedong Merchant Bank, which has only accumulated capital without paying dividends since its founding.

On the other hand, if the heavy industry affiliate within the group is more firmly tied to Haedong Mulsan, and Lee Myungjin, who oversees the heavy industry affiliate, becomes the group’s vice chairman, where will the world focus more? They will focus the spotlight on Lee Myungjin, who is older and has a higher position than me.

That way, it will be difficult to find articles that shake the trust of customers because I, in my mid-20s, have become the owner of Haedong Merchant Bank.

‘Even if articles come out…’

I believed that my grandfather would handle it well. He’s the type of person who hates any noise related to our family.