The Conglomerate Family Became A Villain [EN]: Chapter 200

200. Tokyo Agreement (4)

Hyun-woo Jung surveyed the room, his gaze lingering on each person. After clearing his throat, he began,

“Of course, I didn’t choose Kajima Construction just to make a quick buck and run away.”

He wanted to make it clear that his reasons extended beyond mere financial gain, beyond what Sarah had suggested.

John Pierre’s eyebrows shot up at this statement.

“So, you’re saying there’s another reason?”

Hyun-woo nodded.

“I was drawn to the urban regeneration project that Kajima Construction included in their business plan.”

Kajima Construction’s urban regeneration project focused on acquiring older buildings, renovating their exteriors and interiors without demolition, extending their lifespan, and enhancing their aesthetic appeal.

Urban regeneration wasn’t typically a core business for major construction firms; it was more of a niche project. However, Kajima Construction had recently seen success with an urban regeneration initiative near Kyoto, prompting them to feature it in their business plan.

‘The most profitable approach is new city development, followed by acquiring buildings in prime locations, demolishing them, and rebuilding. But we don’t have time for that.’

Hyun-woo and Victoria Fund were operating under a strict 48-month deadline.

John Pierre nodded, absorbing the information.

“So, you’re saying you weren’t just thinking about flipping real estate.”

Hyun-woo smiled.

“If a company only focuses on maximizing profits, it will inevitably face social criticism. I think you understand the consequences of that without me needing to elaborate.”

He was emphasizing that he had also considered the public good when selecting a business partner.

Sarah sighed softly.

“Haa… I can’t beat Charlie. I didn’t even consider that aspect.”

Yu Tanaka, who had come from JP Morgan’s Japan branch, couldn’t help but be impressed.

‘For an American to consider the potential backlash from Japanese society when undertaking a project…’

Hyun-woo was, technically, still a citizen of South Korea.

However, everyone except Sarah seemed to perceive him as an American.

John Pierre raised his voice slightly, injecting enthusiasm into his tone.

“Good! Let’s move forward with Kajima Construction.”

He understood the power of public opinion in a democratic society.

‘If negative sentiment towards real estate investment grows, the Japanese government will intervene, and we’ll be forced to withdraw from the market.’

With John Pierre’s agreement secured, Sarah raised her hand in affirmation.

“I agree too.”

Despite the unanimous approval from Victoria Fund’s executives, Hyun-woo didn’t immediately nod. Instead, he turned to Yu Tanaka.

“Mr. Tanaka, what are your thoughts?”

Yu Tanaka paused, caught off guard by the direct question.

“Kajima Construction?”

“Yes.”

Yu Tanaka offered his honest assessment.

“Kajima Construction’s financial terms are somewhat less favorable, but they are a well-known construction company backed by a major Japanese corporation, and their reputation is solid.”

“So, you agree?”

“Yes, I agree.”

Only after receiving Yu Tanaka’s endorsement did Hyun-woo nod.

“Good. Then, we’ll proceed with Kajima Construction as our partner.”

As soon as Hyun-woo announced Kajima Construction as their chosen partner, John Pierre posed a question.

“Charlie, how do we notify them?”

Hyun-woo responded without hesitation.

“Do it over the phone.”

“Aren’t we going to visit Kajima Construction in person?”

Hyun-woo understood the underlying meaning of the question and raised his voice slightly at the end.

“John, do *you* want to visit Kajima Construction in person?”

John Pierre nodded.

“I want to see Kajima Construction’s operations firsthand.”

“Good. Then do so.”

Next, Sarah spoke, twirling a pen in her right hand.

“What about America?”

“America, you mean the headquarters?”

Robert was still at the Boston headquarters.

“No.”

“Are there specific people we need to inform?”

Sarah stopped twirling the pen.

“The media. We’re a publicly traded company now.”

She was reminding him that as a company listed on NASDAQ [National Association of Securities Dealers Automated Quotations, a U.S. stock exchange], they couldn’t secretly push through a project of this magnitude.

‘We need to disclose the contract, but before that, we need to leak the project’s progress to the media.’

Hyun-woo lowered his gaze.

“I hadn’t considered that.”

“Victoria Corporation’s stock price could fluctuate significantly based on the media’s reaction.”

If the market viewed the project as imprudent, Victoria Corporation’s stock price would likely fall. Conversely, positive coverage could lead to a stock price increase.

Hyun-woo scratched his head.

“Please handle that, Sarah. In a way that benefits us.”

Sarah sighed.

“Haa… The troublesome tasks always fall to me.”

“Sarah is better at managing the media than I am.”

Sarah nodded, resigned. But she had another question.

“Charlie, what about the Japanese media?”

The 15 billion dollar real estate deal was taking place in Japan.

She believed that the Japanese media’s attitude and coverage were just as crucial as that of the American media.

‘If we alienate the Japanese media, the project won’t proceed smoothly.’

Hyun-woo agreed.

“The Japanese side… That’s even more important than the US, right?”

Sarah shook the pen she was holding from side to side.

“Of course. And I can’t influence the Japanese media.”

Hyun-woo was already aware of her limitations in that area.

“Mr. Tanaka.”

At Hyun-woo’s summons, Yu Tanaka responded.

“President, how can I help?”

Hyun-woo asked directly.

“Mr. Tanaka, can you manage the Japanese media?”

Yu Tanaka had extensive experience in investment, but he hadn’t yet reached the level of media management.

“I don’t believe I can.”

“Then, do you know anyone who can?”

“That’s…”

Yu Tanaka didn’t have close ties to the media.

‘He doesn’t know anyone.’

Hyun-woo frowned slightly, disappointed that Yu Tanaka couldn’t provide a solution.

‘Can’t everything go smoothly?’

He felt like he had encountered the first real obstacle in this project.

“Charlie, I’ll handle the Japanese media.”

John Pierre raised his hand.

“John?”

“I’ll leverage some of their influence when I visit Kajima Construction.”

He meant that he would try to win over the Japanese media by utilizing Kajima Construction’s public relations department and network.

‘Good idea.’

Hyun-woo nodded.

“John, let’s go to Kajima Construction together.”

“Are you saying Charlie is coming with us?”

John Pierre assumed that Hyun-woo wouldn’t need to accompany them for a simple notification.

But Hyun-woo had other plans.

“Because we need to utilize Kajima Construction effectively.”

He wanted to test Kajima Construction’s capabilities on this occasion.

* * *

After everyone had left, only Hyun-woo and Sarah remained.

“Shall we go out?”

“I’m a little hungry.”

They had eaten lunch at the hotel, but they didn’t want to have dinner there as well.

“Let’s go.”

Sarah led Hyun-woo out of the hotel.

It was December 30th.

The streets of Tokyo were bustling with people.

“Should we eat nearby?”

“No.”

Sarah tilted her head.

“If not nearby, do you have a specific restaurant in mind?”

“I don’t have a particular restaurant in mind, but there’s a place I want to go.”

“Hmm, where is it?”

“Ginza.”

Hyun-woo signaled, and a hotel employee hailed a taxi.

Ten seconds later, a taxi pulled up to where Hyun-woo and Sarah were waiting.

Clack.

The back door of the taxi opened automatically.

“What? The door opened by itself?”

Hyun-woo guided the surprised Sarah into the taxi.

“Japanese taxis have automatic doors.”

Sarah said as she settled into her seat.

“Aren’t automatic doors supposed to slide open?”

“Not on Japanese taxis.”

Hyun-woo answered Sarah and then told the taxi driver their destination.

“We’ll be departing.”

The taxi pulled away with the driver’s brief announcement.

“It’s like an old car, but it has automatic doors. It’s amazing.”

“I heard it’s a taxi model exclusively used in Japan.”

“Charlie knows a lot about Japan?”

“It’s still a neighboring country.”

Sarah remembered that Hyun-woo was Korean and nodded.

“Come to think of it, Charlie’s hometown isn’t far from here, right?”

“It’s more than 1,000km away, but compared to Boston, it’s like a front yard.”

“Almost 1,000km isn’t exactly close.”

“Besides, I have to cross the sea, so I have to take a plane.”

As they talked, the taxi made its way towards Ginza.

“Charlie, I have a question.”

“What is it?”

“This Japanese investment, what kind of profit are you expecting?”

As expected, the conversation turned to business.

“Shouldn’t we aim for a 100% increase?”

“100% profit would be 3 billion dollars?”

Out of the 15 billion dollars of investment, only 3 billion dollars belonged to Victoria Fund.

Sarah was considering 100% of Victoria Fund’s initial investment of 3 billion dollars as the target profit.

“No.”

“Then?”

“100% of 15 billion dollars.”

Sarah shook her head at Hyun-woo’s ambitious goal.

“I can’t beat Charlie.”

Hyun-woo shrugged.

“Is it too absurd?”

“Since it’s the amount Charlie planned, it’s not unrealistic. But I wasn’t thinking that big.”

Earning 15 billion dollars with a 3 billion dollar investment.

In terms of return on investment, it was 500%.

“I didn’t initially think about 15 billion dollars either. But when I considered the loans, I realized we needed to aim for that much.”

Sarah asked.

“But you said you wanted to finish this project quickly.”

“We can’t make long-term investments spanning 10 years.”

“Can you generate that much profit in such a short timeframe?”

Hyun-woo feigned innocence.

“Is it too greedy?”

Sarah had reviewed Japanese real estate market indicators before coming to Japan.

“It’s not impossible. Japanese real estate prices increased 1.5 times between 1981 and 1985.”

If inflation accelerates, a doubling of prices within 4 years is conceivable.

‘However, if the Japanese economy falters, real estate values could plummet before we can realize a double profit.’

Sarah considered it a rather risky investment.

“From 1981 to 1985. You’ve done your research thoroughly.”

“It’s a project involving substantial funds. I had to do at least this much research. Don’t tell me Charlie intended to invest in Japanese real estate without even this basic level of preparation?”

Hyun-woo turned his gaze out the window.

“I’ve focused on anticipating future trends rather than relying on past indicators.”

“The future?”

“Japan and the United States after the Plaza Accord [an agreement between France, West Germany, Japan, the United States, and the United Kingdom to depreciate the U.S. dollar in relation to the French franc, Deutsche Mark, Japanese yen, and pound sterling].”

Sarah knew that Hyun-woo’s focus was always on the future.

‘The future rather than the past?’

She wondered if his success stemmed from this difference in perspective.

“You’re predicting that the Japanese economy will expand significantly after the Plaza Accord?”

“Yes. If we complete our investment by 1986, we can easily double our money.”

A profit of 15 billion dollars.

Hyun-woo, Sarah, and Victoria Corporation would each receive 30% of that profit.

‘Excluding the money allocated to John Pierre, that’s roughly more than 4 billion dollars?’

In Sarah’s case, her wealth would double almost instantly.

‘If things go exceptionally well, it could be 10 billion dollars.’

If she amassed 10 billion dollars in assets, she would surpass everyone else in the Hilton family.

In other words, 10 billion dollars would make her the wealthiest member of the Hilton family.

“But why Ginza?”

Hyun-woo looked at the buildings visible through the window.

“Because it’s the most expensive place in Japan.”

“The place that sells the most expensive food?”

“No. It’s the place where land prices are the highest.”

Sarah thought, ‘As expected, it’s Hyun-woo.’

“Charlie has it all figured out.”

“I’m just kidding. Ginza is where Japanese money congregates, so there are many excellent restaurants.”

During the peak of Japan’s bubble economy [an economic bubble in Japan from 1986 to 1991, characterized by rapid asset price inflation and overheated economic activity], the land price per square meter in Ginza reached 100 million yen.

100 million yen in the 1980s.

If converted to the price of goods in South Korea in the 2020s, it would be close to 5 billion won per square meter.

Of course, Hyun-woo wasn’t even aware of this fact.

* * *

President Mori of Kajima Construction frowned upon receiving the unwelcome news.

“So, you’re telling me that Kajima Construction offered the *worst* conditions?”

Executive Director Kato was responsible for this project at Kajima Construction.

He bowed deeply, anticipating President Mori’s reprimand.

“I’m sorry.”

“Kato! Do you think this is something that can be resolved with a simple apology!”

The worst conditions, not even in the middle of the pack.

President Mori, who had 15 years of experience in overseas construction, struggled to accept this blunder.

‘It was a mistake to delegate this to Kato.’

He should have personally overseen the project. But he hadn’t.

Executive Director Kato bowed deeply again.

“I’m sorry.”

President Mori raised his eyebrows and his voice.

“Kato! Don’t just apologize, tell me the reason! Why did we offer worse conditions than Taisei or Sekisui, which are smaller companies!”

Taisei Construction and Sekisui Construction were large companies that ranked in the top 10 of Japanese construction companies.

However, their scale was smaller compared to Kajima Construction.

“The bank said they couldn’t offer us favorable terms.”

“What? The bank?”

Kajima Construction’s primary bank was Kajima Bank.

“I couldn’t persuade the bank with my abilities.”

President Mori clicked his tongue in disapproval.

“Tch, those bank guys didn’t want us to succeed.”

He clasped his hands together, frustration evident.

‘Damn bastards!’

The succession structure of the Kajima Group involved a rivalry between the second son, who controlled the bank, and the third son, who managed construction and shipping.

In other words, Kajima Bank didn’t want Kajima Construction to achieve significant success.

“Kato.”

“Yes, President.”

“You should have informed me sooner if that was the case.”

“I’m sorry. There wasn’t enough time…”

He had to create a 15 billion dollar business plan in just 3 days, making it impossible to effectively negotiate with the bank.

“I understand. Go back and wait.”

December 31st.

Executive Director Kato couldn’t relax, even on the last day of the year.

‘Go back and wait? This year-end is completely ruined.’

His waiting meant that his subordinates also had to remain on standby.

‘Haa… Should I have focused more on the bank?’

When he learned that the conditions offered by other construction companies were significantly better than Kajima Construction’s, his face paled. He hadn’t anticipated such competitive offers.

‘Sumitomo and Shimizu are one thing, but Sekisui and Taisei offered better terms than us.’

He returned to his office with heavy steps.

“Executive Director!”

Someone burst into his office.

“What’s going on?”

Executive Director Kato assumed that the president had summoned him again.

“We have a guest.”

“A guest?”

“They’re requesting to meet you in the lobby on the first floor.”

Executive Director Kato clicked his tongue and rose from his seat.

“Who’s asking for me?”

He frowned and went outside to answer the phone.

“This is Executive Director Kato.”

The secretarial staff working in the lobby spoke.

“I’ll transfer the call.”

“Hmm?”

Executive Director Kato sighed inwardly at the lack of information.

‘Hoo… Is it a lack of experience? They don’t even disclose the caller’s identity.’

He frowned.

“Executive Director Kato, how do you do?”

A high-pitched voice.

Executive Director Kato tilted his head.

“Who are you?”

“You don’t remember me? It’s Yu Tanaka.”

Yu Tanaka, head of the Japan branch of Victoria Fund.

Executive Director Kato straightened up instantly.

“Branch Manager Tanaka, I’ll be right down.”

As soon as he hung up the phone, he rushed towards the first floor.