Chapter 1: Gathering and Scattering
“Executive Director, who do you think holds the real power in the Sunyang Group?”
“Well, that would be Chief Secretary Lee Hak-jae. He’s practically the chairman’s right-hand man, isn’t he?”
“Then how does one become the real power?”
“Trust, I suppose.”
“Trust?”
“Yes, the absolute trust of the one in power. And everyone else knows it too.”
The term “real power” is quite alluring.
A person who wields another form of power beside an absolute ruler, sometimes even more than the one they serve.
But trust alone doesn’t make you the real power.
“Executive Director, here’s what I think. To be the real power, you must be able to meet the ruler anytime, talk about anything, and most of what you say should come to fruition through them. If even one of these is missing, you’re not the real power. So, is Chief Secretary Lee really the real power?”
Executive Director Jang Do-hyung looked at me with a slightly disappointed expression and sighed briefly.
“You’re quite strict. Almost excessively so…”
“That’s not what I meant.”
“Pardon?”
“Everyone in the Sunyang Group thinks Chief Secretary Lee is the real power. Everyone except the chairman. The important thing isn’t whether he is or isn’t.”
“Ah… I see. If everyone thinks he’s the real power…”
Only then did Executive Director Jang slap his knee in realization.
“This meeting today will broaden your scope, Executive Director Jang. Make the most of it.”
Jang nodded, hesitantly speaking up.
“How do you come up with these ideas? Did the chairman give you special guidance?”
“Who knows? They say if you keep your eyes wide open and your ears alert, everyone can be a teacher. Haha.”
At my nonsensical remark, Jang chuckled in disbelief.
“Alright, enough joking. Let’s start reviewing the documents.”
“Ah, yes.”
Jang opened the plan he had prepared.
It was a complex document, like a semiconductor circuit design.
“We need to integrate the subsidiary’s IT systems first. With that system, we can track daily operations. I’ll prepare it so you can easily grasp the cash flow of the subsidiaries.”
“The issue is analyzing the surplus funds. You know you need to know the exact duration to manage the money, right?”
“Yes. By the way… you’re planning to use the funds to buy back company shares, right?”
“That’s correct. You know the current shareholding structure is unstable, right? If the two vice-chairmen start buying up our subsidiary’s shares, the securities and card divisions could be snatched away in an instant. Of course, they won’t do it openly with the chairman watching, but they’re definitely gathering shares under the radar.”
“I’m also thinking of gradually liquidating the real estate held by the subsidiaries. It’s a shame considering the future rise in land prices, but…”
“It’s alright. You can always buy land again, but once shares fall into my uncle’s hands, they’re gone for good. Don’t think of it as a loss; convert them into shares.”
“Yes. But, Chief Secretary.”
“Go ahead.”
“About Sunyang Card. I heard you mentioned signs of risk at the last subsidiary president’s meeting… Is that true?”
“Yes. How did you know?”
“President Lee Min-seop came back to the office fuming.”
Jang avoided my gaze, as if feeling guilty for tattling.
“Did the young brat act all high and mighty with the chairman’s backing?”
“Something like that.”
He answered, still looking down, clearly uncomfortable.
“You know my opinion. How about yours, Executive Director? Is the card division alright as it is?”
“To be honest, credit cards are essentially about money lending, aren’t they? It’s about charging higher interest than the market rate, so if you only focus on collection rates, you’re denying the business itself. You have to account for some uncollectible amounts. As the bonds increase, so do the uncollectible amounts, but the interest and fees you earn also grow. You can’t ignore this balance.”
Exactly.
The unexpected danger always strikes suddenly.
Just look at the IMF crisis. But three years is enough time for people to forget. No one has yet sensed the impending card crisis that will hit like a tsunami.
“I see. I might owe you an apology.”
“Pardon?”
“Never mind. Let’s do this. Focus the share buyback on securities. You don’t need to touch the card division. Instead, gradually transfer the shares held by the card company to Sunyang Life.”
Jang tilted his head, furrowing his brow.
“You haven’t changed your mind.”
“I’m quite stubborn.”
“Then we need to adjust the card company’s policies.”
“No, leave it be.”
To make my uncle pour money into the soon-to-be-ruined card company, someone needs to provoke him. Could President Lee Min-seop play that role? Or should I throw out some bait?
Jang watched me with a doubtful look as I pondered.
“Let’s do it this way.”
“Yes.”
When I finally came up with a plan, Jang’s expression turned tense.
“Casually mention to President Lee Min-seop that Jin Do-jun seems to avoid direct confrontations and prefers investments he can monitor from a screen.”
Jang waited for me to finish.
“But he has a different view on the card company and seems to see it as a bothersome appendage. What do you think we should do? Something along those lines…”
“Given your track record, whether it’s true or not, it sounds plausible.”
“Right? It’s important to make them believe it. If President Lee Min-seop believes this, how do you think he’ll react?”
“Well, if I were in his shoes, I’d be furious.”
“Why’s that?”
“The card company’s performance is exceptionally good right now. But if the owner treats it like an annoying stepchild, it wouldn’t feel good.”
“Exactly. Especially if that owner is a young upstart, it would really hurt his pride. He’ll go to someone, but it won’t be my grandfather, right? He can’t possibly oppose the chairman’s decision.”
Jang’s expression changed completely. He seemed to have caught on to my intentions.
“Chief Secretary, you don’t mean…”
“Excluding my grandfather, the most powerful person is Vice Chairman Jin Young-ki.”
“Are you planning to sell the card company?”
“Not sell, but exchange. Pick a decent company from my uncle’s subsidiaries and swap it.”
“Chief Secretary, considering the card company’s current performance…”
“Is it a waste?”
“Of course.”
“Because it’s valuable, we can sell it at a high price. Now, find a similar company among Vice Chairman Jin Young-ki’s subsidiaries. It doesn’t have to be perfect. Just make sure it’s a company that would make my uncle feel like he’s gained something.”
Jang’s expression clearly showed how much he hated the idea, which reassured me that the deal was feasible. A company that generates cash is crucial for securing shares to take over the group. It’s worth coveting.
“Proceed quickly with transferring the subsidiary shares held by the card company, as I mentioned earlier.”
“Have you made up your mind?”
“Yes. But don’t feel too bad. Once something is in my hands, I never let it slip away, whether it’s money, a company, or a person…”
Realizing I was referring to myself, Jang smiled faintly.
“The card company that leaves my hands will soon return. No, it will definitely come back.”
“What exactly are you planning…? Can’t you tell me?”
“It’s a story that’s hard to understand and accept. Just watch.”
“What? He said that?”
“Yes. Honestly, I thought Jin Do-jun was no ordinary kid, but… it turns out he’s just a stubborn brat who thinks only his opinion is right. A typical third-generation chaebol.”
“What makes him think we’re in trouble?”
“Exactly. Isn’t he just spouting nonsense after reading a couple of books?”
“Damn it!”
President Lee Min-seop couldn’t help but curse when he heard the unpleasant news on his first day back at work in the new year.
“Executive Director Jang, what should we do about that brat? It seems like he’s trying to make you his confidant.”
“Among the executives, I must seem like the easiest target. He probably chose me because of my age. The subsidiary presidents are all older than his father, President Jin Yoon-ki, so it’s hard for him to boss them around.”
Pacing around his office, Lee Min-seop looked at Jang.
“You did well putting up with him. You can go now.”
“What are you planning to do?”
“I’ll handle it. Go on.”
“Yes, then.”
Once Jang left, Lee Min-seop picked up the phone.
“Check Vice Chairman Jin Young-ki’s schedule. Let him know I’d like to meet if he has time.”
After hanging up, President Lee bit his lip.
“Sorry for the late visit, Vice Chairman.”
“No need to apologize. I’m grateful you came by.”
Vice Chairman Jin Young-ki helped the bowing Lee Min-seop to his feet.
“Everyone’s busy paying respects to their own bosses, so it’s understandable they don’t have time to worry about the neighbors. Don’t worry about it.”
The two settled on the sofa and exchanged simple New Year’s greetings.
“Vice Chairman.”
“Yes?”
“Are you just going to sit back and watch?”
“Excuse me? What do you mean?”
“I mean, are you going to let your young nephew take over the financial subsidiaries without doing anything?”
“Well, starting the year with such heavy topics, are we? Haha.”
Though he laughed, his eyes gleamed with interest.
First, he needed to confirm what had happened.
“Did my nephew give you a hard time, President Lee?”
Lee Min-seop relayed everything he had heard from Executive Director Jang, maintaining as much accuracy as possible, though his tone was a bit more agitated.
“Hmm…”
After hearing the story, Jin Young-ki’s mind raced. This could be an opportunity.
“So, my nephew isn’t too fond of the card company?”
“Yes. Who knows where he got such ideas.”
“It’s probably because of our father.”
“Sorry? Are you talking about the chairman?”
Jin Young-gi nodded.
“He was never keen on the credit card business. He used to shake his head, calling it a loan shark’s game. But as the world changed and credit cards became essential, he reluctantly got involved. Do-jun must have been influenced by that…”
“Ah…”
At first, President Lee Min-seop thought Jin Do-jun was just showing off the financial jargon he picked up from the stock market, talking about bad debts and recovery rates.
But realizing it was merely the influence of an old-school mindset that valued cash above all else only fueled his frustration.
“Is there anything else you can tell me about Do-jun?”
President Lee Min-seop was eager to seize the opportunity, grateful for Vice Chairman Jin Young-gi’s interest.
“I think I might have misunderstood. I thought Do-jun was quite clever and had the makings of a good manager…”
“Misunderstood?”
“I assumed his talk about separating ownership from management and emphasizing accountability was just him adopting Western ideas. But now I see it’s simply because he finds it all a hassle.”
“A hassle?”
“Yes. Think about it. He’s just a kid fresh out of college, the youngest in the family. Would he really want to get tangled up with us older folks? Especially when all he’s done is stare at a monitor and learn stock trading.”
President Lee Min-seop mixed what he’d heard from Jang Do-hyung with his own hopes, crafting a new narrative.
With Vice Chairman Jin Young-gi listening intently, he wanted to believe it even more.