The Conglomerate Family Became A Villain [EN]: Chapter 163

163. Return the Key (4)

In 1985, South Korea was at the heart of the Cold War. Given this context, the South Korean government naturally leaned towards pro-American policies.

The United States also considered South Korea a key ally. The Republican Party, then the ruling party in the U.S., shared this view. They readily agreed when Chung Hyun-woo requested a meeting with a high-ranking official from the Blue House [the executive office and official residence of the South Korean president].

However, some congressmen were skeptical about the visit.

“Shouldn’t we be consulting with the White House instead, especially before the President’s visit?”

They felt that foreign policy should be managed by the executive branch, not Congress.

Congressman Jack Edinburgh addressed their concerns.

“That’s true, but what if they need something from us?”

The congressmen looked puzzled.

“They need something from us? What do you mean?”

“Edinburgh, I think we need an explanation.”

Congressman Jack Edinburgh cleared his throat before responding.

“Ahem, ahem. It’s likely about arms exports.”

The congressmen nodded, understanding dawning on their faces.

“You mean they’re asking us to approve the export of advanced weapons to Korea.”

“Arms exports, huh? Defense companies will be thrilled.”

“Promoting American companies’ exports isn’t a bad thing for us.”

Congressman Jack Edinburgh agreed.

“I think so too. How about we approve this within reasonable limits?”

Then, as now, during the Cold War, arms exports weren’t solely decided by the U.S. and South Korean governments.

Even with both governments’ agreement, the U.S. Congress could still veto the deal.

“Let’s do it.”

“Sounds good to me.”

Consensus seemed to be forming. But then, a congressman from New York State raised his hand.

“We shouldn’t just rubber-stamp everything.”

Congressman Jack Edinburgh turned to him.

“Are you suggesting we ask for something in return?”

The congressman nodded.

“Exactly.”

“What could Congress gain from the South Korean government?”

“There might not be anything specific. But we have to consider the Democratic Party.”

The Republican congressmen groaned.

“Ugh.”

“You’re saying we should avoid anything the Democratic Party could criticize.”

“If the Democratic Party latches onto company rebates or something, it could become a problem.”

The congressman who had raised his hand earlier added, “Also, the South Korean government has a history of suppressing the democracy movement. They might bring that up.”

The 1985 South Korean presidential election had a structure similar to the 21st-century Thai elections, heavily favoring the ruling party.

The U.S. Democratic Party could object, arguing that the election structure was undemocratic.

“Hmm, so what should we do?” Congressman Jack Edinburgh asked.

“How about including a declaration on democratization or a recommendation from Congress?” the other congressman suggested.

It was a suggestion to apply indirect pressure through a declaration or recommendation, rather than demanding specific institutional changes.

“You’re saying we should recommend, without specifying institutional improvements.”

“Wouldn’t that be less controversial?”

Congressman Jack Edinburgh nodded.

“I understand. Let’s do that.”

Although the Republican congressmen had won a significant victory in the presidential election, they felt they couldn’t completely ignore the Democratic Party.

As Jack Edinburgh exited the meeting, his aide approached him.

“Congressman.”

“What is it?”

“It’s a call from Mr. Chung.”

“What does he want?”

“He’s asking about the meeting location.”

Congressman Jack Edinburgh raised his voice as he walked.

“Was that all he said?”

“He also hinted that Washington would be ideal.”

“He wants to meet in Washington.”

“What should we do?”

“Tell him we’re going to Boston.”

The aide’s eyes widened.

“You’re going to Boston?”

“There are too many prying eyes in Washington.”

Congressman Jack Edinburgh didn’t want the high-ranking Blue House official arriving through Washington Airport.

“I understand. I’ll arrange for Boston.”

Contrary to Chung Hyun-woo’s expectations, Edinburgh chose Boston.

* * *

In early 1985, the South Korean business world was captivated by one event:

The dissolution of the Kukje Group [a major South Korean conglomerate that was forcibly dissolved by the government].

Later historians would analyze this event from various angles. However, one thing was clear: the government’s will, specifically the will of the highest authority, played a significant role.

Chairman Chung Woo-sun summoned the presidents of major affiliates and Chief of Staff Hong Won-ik to his office.

“What are your thoughts?”

Jeong Min-seok, president of Daewoon Construction, was the first to respond.

“I think it’s a strong message from the Blue House.”

“A strong message?”

“Isn’t it a warning not to be swayed by the results of the general election?”

In the general election held in February 1985, the ruling party barely maintained its majority, and lost in the local elections to the opposition party.

“They’re showing us they still have the power?”

“Exactly.”

Chairman Chung Woo-sun turned to Jeong Min-young, who was seated to his left. Although Jeong Min-young wasn’t an affiliate president, he was attending as a potential successor.

“Min-young, what do you think?”

Jeong Min-young puffed out his chest and replied, “I think we need to decide on a direction for the future.”

“Decide on a direction? What do you mean?”

“We should significantly increase political donations to the Blue House and subsidies to various organizations.”

Chairman Chung Woo-sun frowned.

“Are you saying we should increase bribes?”

“Politics and economics are inseparable, especially in our country. We shouldn’t see it as bribing politicians, but as building a financial shield to protect us.”

Building a shield with money.

Chairman Chung Woo-sun liked Jeong Min-young’s analogy.

‘He’s quite clever.’

He thought Jeong Min-young had matured considerably.

“If we have to increase bribes, how much should we increase them?”

Jeong Min-young answered immediately, as if he had already considered the question.

“We should increase it by at least 50%.”

Chairman Chung Woo-sun turned to Jeong Min-seok.

“Min-seok?”

Jeong Min-seok inwardly clicked his tongue at Jeong Min-young’s confident answer. When his turn came, he lowered his voice and replied, “I think it would be better to observe the situation a little longer.”

Chairman Chung Woo-sun raised his eyebrows.

“Observe the situation?”

Jeong Min-seok nodded.

“The Asian Games will be held next year. The government won’t be able to ignore the scrutiny of developed countries and the demands of pro-democracy movements.”

He believed that the government, dominated by former members of the New Military [the military junta that seized power in South Korea in 1979], would have to change.

‘The era of ruling with guns and swords is over.’

Chairman Chung Woo-sun groaned softly after hearing his words.

“Hmm, that seems a little different from what you said earlier. Tell me more.”

Jeong Min-seok had previously suggested accepting the incident as a warning from the regime.

“It’s not different. Everyone knows the Blue House’s power is slowly waning. The Blue House showed that it wasn’t by wielding a big sword.”

He saw the dissolution of the Kukje Group as the Blue House’s last desperate act.

“So, there’s no need to increase bribes or political funds any further? Is that what you’re saying?”

“That’s right.”

After his answer, Jeong Min-seok spoke for about three minutes about ethical management.

Chairman Chung Woo-sun listened calmly and then looked around at the executives.

“Min-seok has a clear vision. What do you all think?”

The affiliate presidents lowered their heads.

“I think President Jeong has a great vision.”

“I agree. It showed a firm will.”

“I think ethical management is the only way for the Daewoon Group to become one of the top five groups.”

Most of the affiliate presidents praised Jeong Min-seok. Jeong Min-young, who had advocated for increased political funds, couldn’t help but frown.

‘Tsk, swayed by idealism.’

He felt that the Blue House’s power couldn’t be ignored yet. However, he couldn’t contradict his brother’s opinion, given the prevailing sentiment.

“Hmm, since opinions are divided, everyone should go back and consider their positions.”

Chairman Chung Woo-sun ended the meeting without a decision. The affiliate presidents realized the meeting was to gauge the opinions of the two successors, not their own. They left the chairman’s office and exchanged thoughts.

“It seems President Jeong had a narrow victory today.”

“I think so too. He scored more points.”

The affiliate presidents gave Jeong Min-seok’s ethical management higher marks.

However, some disagreed.

“President Jeong’s approach is theoretically sound, but wouldn’t the chairman ultimately choose Vice President Jeong’s method?”

“Are you saying he’s worried about the government?”

“We’re not Samjung or Daehyun yet.”

The Daewoon Group and the dissolved Kukje Group were similar in size.

However, their business focus differed slightly.

The Daewoon Group balanced domestic demand and exports, while the Kukje Group leaned more towards domestic demand.

“That could be. But isn’t ethical management the foundation of a good manager?”

“The chairman would prefer that too.”

Back in the chairman’s office, now empty of affiliate presidents,

Chairman Chung Woo-sun kept only Chief of Staff Hong Won-ik and Vice Chairman Jang Woon-young.

“Chief Hong.”

The first one called was Chief of Staff Hong Won-ik.

“Yes, Chairman.”

“What do you think?”

Chief Hong Won-ik carefully shared his opinion.

“I think the dissolution of the Kukje Group is something that needs careful consideration.”

Chairman Chung Woo-sun clicked his tongue.

“Tsk tsk, aren’t you being too cautious? You’re always vague.”

“Chairman, how could you say that?”

“Then?”

“I think this matter shouldn’t be viewed in only one way.”

Chairman Chung Woo-sun frowned.

“It seems your opinion differs from Min-young or Min-seok. What are you thinking?”

Chief Hong Won-ik placed both hands on his knees and replied, “The Kukje Group’s financial structure was in serious condition just before its dissolution.”

In fact, the Kukje Group had a debt ratio of 900%, far exceeding the average of 500% for domestic conglomerates.

“So?”

Chief Hong Won-ik continued, “I spoke with the First Bank, and they said the situation had deteriorated rapidly since the end of last year. Every day, 10 billion won worth of promissory notes were being returned, and they were barely managing to cover them.”

10 billion won in 1985 was equivalent to 100 billion won in 2020. The Kukje Group’s financial condition wasn’t just bad, it was critical.

In that state, they also defied the regime, making the group’s fate inevitable.

Vice Chairman Jang Woon-young, who had been listening, spoke up. “Chief Hong, are you saying we should reduce debt?”

Chief Hong Won-ik nodded.

“If we don’t manage our debt, we’ll collapse without even being able to resist when the regime comes after us.”

Chairman Chung Woo-sun was pleased with Chief Hong Won-ik’s analysis.

“Chief Hong, you’re back on form.”

He had worried that Chief Hong Won-ik had become too involved in the succession battle and lost his edge. This incident eased those concerns.

“What about you, Woon-young? Do you have any other thoughts?”

Vice Chairman Jang Woon-young lowered his head slightly.

“From what I’ve heard, Chairman Yang didn’t accept the Blue House’s final recommendation.”

The Blue House’s final recommendation had been delivered through a military-affiliated president of Kukje Corporation.

The content was secret, but it likely involved demands for a large-scale reorganization of affiliates, asset sales, or Chairman Yang’s resignation.

However, Kukje Group Chairman Yang refused the Blue House’s request, and the Blue House dissolved the group as if they had been waiting for it.

“Chairman Yang was always late for meetings called by the President, which angered him.”

Chairman Chung Woo-sun knew that Kukje Group Chairman Yang had been late several times.

Each time, the President frowned and made jokes that were close to scolding Chairman Yang.

‘He was late because he had urgent business, but he should have prioritized the meeting with the President.’

He felt that Chairman Yang had underestimated the President and the New Military.

Chairman Chung Woo-sun, on the other hand, would cancel his morning schedule and wait at headquarters before heading straight to the Blue House for any dinner or meeting with the President.

Kukje Group Chairman Yang, however, would work in 지방(local) areas like Busan or Ulsan and then fly to Seoul.

If the plane was delayed or there was traffic congestion near Gimpo Airport, he would inevitably be late for the Blue House luncheon meeting.

Chairman Chung Woo-sun addressed the two men.

“Let’s all pay a little more attention to the Blue House.”

Vice Chairman Jang Woon-young and Chief Hong Won-ik responded.

“I understand.”

After they left, Chairman Chung Woo-sun rose and walked to the window.

“Fish can’t live in water that’s too clear. Min-seok needs to understand that.”

He worried that Jeong Min-seok might be too focused on performance and results.

* * *

Outside Boston.

Levin Forest.

A small wooden building stood among the tall trees.

Chung Hyun-woo pointed to the building.

“That’s the place.”

Presidential Chief of Staff Han Cheol-in nodded slowly.

“It’s not exactly a mansion.”

“It’s probably Congressman Edinburgh’s acquaintance’s villa.”

Villas weren’t only built in warm climates like Miami or LA.

They were sometimes built in places with more moderate temperatures, like Boston.

“The fact that Congressman Edinburgh called us to a villa suggests he wants to keep this meeting secret.”

“Even if it’s not secret, it will be informal.”

“I know.”

The limousine carrying Chung Hyun-woo and Chief of Staff Han Cheol-in stopped in front of the villa.

Squeak.

The driver quickly opened the door.

“Let’s go.”

At Chung Hyun-woo’s words, Chief of Staff Han Cheol-in stepped out of the car. He looked up at the trees surrounding the villa.

“The scenery is certainly different from Korea.”

Chung Hyun-woo followed him out of the limousine.

“Boston has a certain charm.”

“It seems so.”

“Let’s go.”

As they entered the villa, Congressman Edinburgh’s aide greeted them.

“Mr. Chung, the Congressman is waiting for you on the second floor.”

Chung Hyun-woo bowed slightly and followed the aide.

“I understand.”

As he walked to the second floor with Chief of Staff Han Cheol-in, he thought, ‘I should step back at the right time.’

When they reached the second floor, Congressman Edinburgh greeted them with a warm smile.

“Hahaha, you two must have had a long journey.”

Chief of Staff Han Cheol-in relaxed slightly at the sight of his smile.

“We flew a long way to see you, Congressman.”

“Welcome.”

After the initial greetings, Chung Hyun-woo introduced Congressman Edinburgh.

“This is Congressman Edinburgh of the Republican Party. He’s a future Speaker of the House.”

Congressman Edinburgh chuckled.

“Mr. Chung, the Speaker of the House hasn’t been decided yet.”

“Isn’t the current Speaker’s term ending soon?”

“Hahaha, I’m just one of the candidates.”

Chung Hyun-woo smiled and introduced Chief of Staff Han Cheol-in to Congressman Edinburgh, using the American naming convention.

“This is Cheol-in Han, Chief of Staff of the Blue House in South Korea.”

Congressman Edinburgh gestured for Chief of Staff Han Cheol-in to sit.

“Please, have a seat.”

“Thank you.”

Chief of Staff Han Cheol-in felt slightly uneasy at the lack of an interpreter.

“Hyun-woo, there’s no interpreter.”

Chung Hyun-woo raised his eyebrows.

“Do you need one?”

“I can speak some English, but wouldn’t we need an interpreter for more in-depth conversations?”

Chung Hyun-woo sighed inwardly.

‘Hoo… I’m going to be hearing from the Blue House about this.’

He wanted to distance himself from the Blue House if possible, but things weren’t going as planned.

“I understand. I’ll interpret for you.”

Chung Hyun-woo decided it was better to volunteer than to be forced into it.

‘If I create a connection with the Blue House, the Daewoon Group will benefit.’

He was the CEO of Victoria Corporation, but he still cared about the Daewoon Group.