Still, I Will Live As The Son-In-Law Of A Conglomerate [EN]: Chapter 98

98. 29th. Gleaning in Australia (2)

While Haedong Corporation’s people were drafting the contract with the support of Lee Sungmin and Park Taejin, Jane Leonhart was also discussing the upcoming negotiations with her company’s staff.

“What do you think?”

To Jane Leonhart’s blunt question, a young manager with blonde hair opened his mouth with difficulty.

“It’s going to be difficult, Madam Chairman.”

“No company would accept those conditions. Even a $500 million investment is like a lifeline to us. But to pass all the development costs onto them…”

A middle-aged man with brown hair couldn’t continue. The company was still struggling to pay taxes, so what audacity did the chairman have to make such an absurd proposal?

As the other managers barely suppressed their sighs with stiff expressions, Jane Leonhart looked around at them, a glint in her eyes, and began to speak.

“I have my reasons, everyone. Two conglomerates from the East have expressed interest in us. One approached clumsily and was rebuffed, but the other offered the conditions I wanted. Isn’t that right?”

“That’s true, but…”

“That’s how highly the value of Roy Hill and Hope Downs is being recognized. If Haedong Group accepts the contract, we can achieve our goals effortlessly. Even if they don’t, we can raise our profile, which will be advantageous for attracting future investors.”

The executives’ expressions changed upon hearing her words. Weren’t the conglomerates of East Asia incredibly adept at sniffing out lucrative deals, and wouldn’t they go to great lengths to secure them?

Even if Haedong were to back out at the last minute, the Australian financial world would take note of Hancock Prospecting’s value, so in the long run, it wouldn’t be a loss.

“I see. I was short-sighted, Madam Chairman.”

Once they understood this, all the executives nodded in agreement with Jane Leonhart. However, none of them knew that Jane Leonhart was channeling the humiliation and anger she felt from being outmaneuvered by the young upstart onto the unsuspecting Haedong Group.

***

At the base camp in Perth, we finalized the agreement between Haedong Corporation’s headquarters and Standard Capital’s headquarters. We arrived at Hancock Prospecting on time for our appointment.

“It’s a pleasure to meet you, Mrs. Leonhart. Thank you for inviting us.”

Even though he was over sixty, Bae Jaehoon’s English pronunciation was so impeccable that you might think he was a native speaker if you closed your eyes. Jane Leonhart’s eyebrows twitched slightly, as if she had expected him to use an interpreter or broken English [Konglish – a mix of Korean and English], indicating that he had made a strong first impression.

“Thank you for coming, Mr. Bae. But… who is the young man next to you?”

After shaking hands, Jane Leonhart glanced at me and asked. Bae Jaehoon released her hand and smiled.

“This is Lee Sungmin, the eldest grandson of our group’s chairman. Director Lee, please introduce yourself.”

Following Bae Jaehoon’s introduction, I also introduced myself.

“Yes, Director. Hello, Mrs. Leonhart. My name is Lee Sungmin.”

“Nice to meet you, Mr. Lee. Let’s sit down and talk.”

After the introductions, Jane Leonhart shook my hand.

Jane Leonhart.

Her original name was Jaina Hope Hancock. She is the only daughter of Ron Hancock, the founder of Hancock Prospecting, and the second-generation owner of Hancock Prospecting.

In her school days, Leonhart was a shy girl. When her father remarried with a Filipino housekeeper, seemingly disregarding his deceased wife, she married Kenneth Leonhart, a legal advisor who was a friend of her father, a move that deeply hurt Ron Hancock.

And that’s not all.

After Ron Hancock’s death, she engaged in a decade-long inheritance lawsuit with her stepmother and forced her acquaintances to keep all these family matters secret, as she hated to reveal her weaknesses.

Her hands were rough, and her grip was quite strong for a woman. It seemed to be true that she worked hard, personally inspecting ore veins in the field.

After that, simple handshakes between the representatives of both sides continued, and after easing the atmosphere, we sat facing each other across the table and began negotiations.

“What do you think of our proposal?”

“We will accept your company’s basic conditions as they are. $100 million in Hancock Prospecting bonds, and $200 million each in Roy Hill Holdings and Hope Downs Holdings through capital increase, is that correct?”

Jane Leonhart’s eyes flickered for a moment when she received Bae Jaehoon’s question, which had no hesitation. Was it because he readily accepted the $500 million, $100 million of which was a proposal to lend money to Hancock Prospecting at a low interest rate, a prospect she had barely dared to hope for?

While Hancock’s representatives were trying to manage their expressions or drinking water to cool their flushed faces, Jane Leonhart opened her mouth.

“What about the additional conditions, Mr. Bae?”

I could feel her looking down on us in her eyes. She seemed to be sneering, questioning whether we could handle a project that would require an investment of around 2 to 3 billion dollars, even considering current prices.

Even after seeing that look, Bae Jaehoon’s expression didn’t change. Rather, he raised one corner of his mouth, making Jane Leonhart’s expression harden.

“From now on, let’s readjust those conditions, Mrs. Leonhart. Director Lee.”

“Yes, Director.”

I placed the 007 briefcase I had brought on the table and took out the proposal inside, handing it to Jane Leonhart.

“What is this?”

“This is a proposal prepared by our side. Let’s talk while looking at it, Mrs. Leonhart.”

Jane Leonhart unfolded the proposal I handed her. She scanned the document with eyes as hard as rock before raising her head to look at Bae Jaehoon.

“Mr. Bae?”

“How is it, Mrs. Leonhart? Do you like it?”

Even though Bae Jaehoon raised one corner of his mouth even higher, Jane Leonhart didn’t get angry. Rather, her mouth was open, and her hands were trembling.

“Our Haedong Corporation plans to acquire North Limited soon. If we acquire North Limited, we will dispatch personnel to help with the exploration.”

At Bae Jaehoon’s words, Hancock’s representatives widened their eyes or gaped. How surprised would they be that we would acquire Australia’s third-largest mining company, even though it was insignificant compared to BHP, the number one, or Rio Tinto, the number two, and help with the exploration?

As if she didn’t care about their appearance, Bae Jaehoon began to point out the key points of the proposal.

“In addition, North Limited and Standard Capital will make a joint investment in 2000 to build a railway and port connecting the two mines, and we will establish a subsidiary to transport iron ore by introducing transport trains.”

Even if we only said this much, they would have calculated it. Although we would only break ground five years from now, including this year, wouldn’t they only need to finance the mine plant construction costs?

After a long silence, Jane Leonhart put down the document and pointed to a certain part with her hand, asking.

“How much are the railway and port usage fees, Mr. Bae? You set it based on annual sales.”

“It’s 3 percent of annual sales. What do you think?”

At the mention of 3 percent, the expressions of Jane Leonhart and the representatives brightened.

The average lifespan of a mine is roughly 20 to 30 years.

Considering the current iron ore price, we may seem like pushovers, but once all the infrastructure is built, it will be the beginning of a raw material super cycle from China.

The current iron ore price of $16 per ton will become $40 due to collusion among the major mining companies from the second half of 2005. Around 2011, it will reach $160, and even after that, it will remain above $60.

So, even if we only receive 3 percent of sales as usage fees, we can recover the principal within 10 years, and considering the railway connection with the iron ore mines that we will independently develop in the future, we had to cling to this condition.

Bae Jaehoon pointed out other conditions to the silent Jane Leonhart.

“The mine plant construction will be promoted from 2000, but Haedong Construction will be in charge. In the future, if Haedong Steel becomes a blast furnace operator, we will supply iron ore at 80 percent of the international price, grant Haedong Corporation priority in shipping contracts, and keep the details confidential except for the $500 million investment until the start of construction. Do you have any objections?”

“No, Mr. Bae. You’ve taken on the biggest burden, so we have to concede that much.”

It was quite a demanding condition, but Jane Leonhart acknowledged that we had taken on the port and railway issues, and she uncapped her fountain pen as soon as the answer was over. Her hand holding the fountain pen touched the proposal, and ‘3’ was written in parentheses.

Seeing that, the representatives on both sides were all smiles. Hancock’s side was able to build a mine while reducing the cost burden, and Haedong Group was able to lay the foundation for future resource development projects in Australia, wasn’t it?

Standard Capital also secured investment returns and an exit strategy, so it was a good deal for everyone. Although the extent was different.

“Then let’s leave the detailed review to the representatives.”

“Let’s do that.”

Now it’s the turn of the legal representatives on both sides.

The Haedong Corporation representative will sigh, and the Hancock representative will grin from ear to ear, but since we proposed the project, the final contract will be easily created.

***

A few days later.

After coordinating the details and signing the final contract with Hancock, we moved to Sydney and reviewed the data collected by the Australian subsidiary.

“Kings, Firetail, Cloudbreak, Christmas Creek… all have low quality and have been neglected, but the reserves are good.”

“Yes, Director. Chairman and Director Bae showed interest in Hancock Prospecting and North Limited, so I prepared this thinking it might be of some help, however small.”

Ma Youngmin, this person seems *gwaenchaneun* [괜찮은 – decent/okay/promising]. Even if he only does what he’s told, he’ll be halfway there, but seeing that he’s organized the status of iron ore exploration in the Pilbara region, he seems to have a lot of ambition and enthusiasm.

I wanted to show it to the two of them as well, so I asked him to copy two more reports. The representative who returned after making the copies handed one copy each to Bae Jaehoon and Park Taejin.

Bae Jaehoon’s eyebrows twitched as he slowly examined the first page. He had read related books and reports on entering the Australian iron ore business as if he were studying for the college entrance exam, so he would quickly know that the purity could be adjusted by mixing the raw ore from each mine.

Bae Jaehoon took his eyes off the documents he was quickly scanning and asked, almost shouting.

“You knew this and tried to seize the railway and port?”

“No, Director. This is the first time I’ve seen this data. I just thought of it in the hope that the Chairman and Director would win the project, but I was lucky, haha.”

He smiled with a humble smile, but what could I do? In this life, I am the first person to see this data.

Bae Jaehoon’s expression looking at me changed from surprise to admiration.

“There’s no grandson as filial as you. You worked hard to be filial to the Chairman, so the founding chairman and Director Lee and his wife must have helped you.”

“Thank you, Director.”

Seeing Bae Jaehoon’s pleased expression, I was relieved. The awkward feelings during the Yeongdeungpo redevelopment seemed to be resolved with this.

Park Taejin looked at me and Bae Jaehoon with a bright expression and opened his mouth.

“If that’s the case, we should bring in the development rights for those four mines as well. Director Ma, can we bring them all for $300 million as written here?”

“It’s definitely possible, Director. I’ll make it happen even if it doesn’t.”

Bae Jaehoon gave a pleased expression as he saw Ma Youngmin’s eyes sparkle.

“Good. Secure the development rights for those four mines as well. I’ll talk to the Chairman.”

Park Taejin carefully offered his opinion after hearing Bae Jaehoon’s instructions to Ma Youngmin.

“If that happens, we should increase the size of the railway and port in consideration of future development, Director. We will also need blending facilities to adjust the purity of the iron ore.”

“We’ll have to. In the long term, raw material prices will rise a lot as China grows, so the profits will be enough. Even if the Vice Chairman had ten bodies, it wouldn’t be enough, euahaha.”

As Bae Jaehoon laughed heartily, Ma Youngmin carefully opened his mouth.

“It seems like a toast is missing on such a good day, Director. If it’s okay with you, I’ll prepare a company dinner.”

“That’s good! Let’s drink until we’re crooked tonight, euahaha!”

We’ve won a good deal, so how can we miss a company dinner? I won’t regret drinking to the point of intoxication today.

***

After finishing our business trip to Australia, we began follow-up work.

Haedong Corporation acquired Hancock Prospecting’s bonds and 50 percent of the shares of Hope Downs Holdings and Roy Hill Holdings, and then proposed an acquisition to North Limited.

The existing executives and employees treated Haedong Corporation as invaders, but when we promised to guarantee the employment of the existing management and employees, they changed their attitude and agreed to an acquisition through a tender offer.

After completing the negotiations, Haedong Corporation announced a tender offer for North Limited on the Australian stock market. Standard and Triumph sequentially sold a total of 60 percent of the shares secured through paper companies, 30 percent each, over 40 trading days.

The Australian political world remained silent. Only a small number of politicians protested, but what could they do since both parties involved in the acquisition exchanged favorable conditions and even slipped money through lobbying? The acquisition approval was quickly processed and came to an end.

In addition, Ma Youngmin and the Australian subsidiary brought in 100 percent of the shares of the Kings, Firetail, Cloudbreak, and Christmas Creek mines for $300 million, and Haedong Corporation made a splendid debut in the Australian raw materials market.

[Haedong Corporation Raises the Banner of a Korean General Trading Company in Australia!

From last June to this August, Haedong Corporation completed the acquisition of the Hope Downs iron ore and Roy Hill iron ore development rights of Hancock Prospecting in Australia, the acquisition of North Limited, and the acquisition of four other iron ore development rights. This is a project that will contribute to the future of resource-poor Korea…]

“Hehe, that Hyungman is gilding our family.”

Lee Daesu laughed heartily after seeing the article in the Dongyang Ilbo [a fictional Korean newspaper] and made a phone call.

“Is that President Go? This is Lee Daesu.”

[Have you been well, Elder?]

“Thanks to you gilding me, my skin can’t breathe! If you praise me like this, I’ll get dizzy, euhehehe!”

Go Hyungman also laughed heartily at Lee Daesu’s hearty laughter.

[No, Elder! I prepared this article because my father told me to pay attention to it and upload it.]

“Hehe, President Go said that?”

[Yes, Elder. Haven’t you done something that will help this country, which is sad because it has no resources? Even if my father hadn’t ordered it, I would have paid attention to it.]

The process was dirty, but looking at the results alone, Haedong Corporation’s entry into the Australian raw materials market was a triumph that would soothe the sorrow of resource-poor Korea. Above all, it was Haedong Corporation that helped the Go family’s media and education businesses, so Go Hyungman’s words were not empty words.

“Thank you for thinking that way, President Go. I’ll tell my company to run a full-page advertisement in the Dongyang Ilbo for a month on this matter.”

[T, thank you, Elder!]

A full-page advertisement for a month is an amount that cannot be ignored. It was like *danbi* [단비 – welcome rain] in a drought for a newspaper company that lives off advertisements, especially Dongyang Ilbo, which is always third place, so Go Hyungman’s voice rose as if it would fly away.

The laughter of giving and receiving subsided, and Lee Daesu took a sip of *hongcha* [홍차 – black tea] and smiled.

“President Go, how is my second grandson?”

[Are you talking about Vice President Lee?]

“No, I’m talking about my second grandson. I heard from my second son that he’s dating your eldest daughter these days, euahaha.”

Go Hyungman replied in a bright voice to Lee Daesu’s hearty laughter.

[She says he’s serious but witty, so he’s manly and good. He always takes her home at the end of the date.]

Currently, Lee Daesu’s second grandson and Lee Myungjin’s eldest son, Lee Sungmoon, and Go Hyungman’s eldest daughter have been dating for three months. Both are attending Seoul National University, and they are handsome and have good conduct, so both families deliberately arranged a group blind date to connect the two men and women.

“Hoo, I was worried because that guy is an engineering student with only dark guys, but that’s a relief, euhehehe.”

[No, Elder. I’m worried that my eldest daughter might not be enough.]

Lee Daesu smiled at Go Hyungman’s modesty.

“What are you talking about? I saw a picture of your eldest daughter, and I have nothing to wish for if such a woman becomes my second grandson’s wife. Don’t worry and help the two children’s youth business well.”

[Thank you for looking at them kindly, Elder.]

Lee Daesu ended the call with Go Hyungman, contacted Go Seungju to order a full-page advertisement contract with Dongyang Ilbo, and turned on the record player. As always, the song he listened to was the song made by his dead eldest son and his wife.

“If I send Sungmin off to get married first, his father will have nothing to wish for. Myungwoo, Miyeon.”

Lee Daesu leaned his head on the chair, closed his eyes, and called out the names of his eldest son and his eldest daughter-in-law, who was like a daughter. A pleased smile spread across his lips.