Securing a Foothold 5
“Yes, there are plenty of companies like Sunyang Electronics and Trading that are cash cows, aren’t there? Rumor has it they’re struggling with excess retained earnings.”
He wasn’t listening to me anymore.
“Do-jun, are you playing innocent, or are you trying to make things difficult for me?”
His face flushed a fiery red.
“Uncle, this isn’t the time for sibling rivalry. You know the card company needs billions to operate smoothly, right? You’ve seen the government’s announcement. The bad debt alone is 90 trillion won. How much of that is Sunyang Card’s share? You need to start firefighting before it gets worse.”
“Do you think my brother would lend me even a single won from the company’s reserves? He’s just waiting for me to fall.”
“I know. Everyone knows you two are in a power struggle. So don’t ask him for a loan.”
“And if I don’t ask? Should I steal it?”
“No. Threaten him for the loan.”
“What?”
I scratched an itch as I watched Vice Chairman Jin Dong-ki’s mouth drop open in shock.
“If Sunyang Card doesn’t get through this crisis, it’ll go bankrupt. You said it yourself, government support is unlikely. The only solution is internal, and it’s not complicated. It needs money. Without it, it’s bankruptcy.”
“So what? Should I let it go bankrupt?”
“Tell him you’ll let it go bankrupt. If the card company goes under, it will shake Sunyang Group’s core affiliates like Heavy Industries and Construction.”
Jin Dong-ki’s eyes wavered.
His greatest fear was being seen as less competent than his older brother. Affiliate stock prices can rise and fall, but a crash would mean facing the cold stares of external investors and executives.
The greater danger is the group’s overall stock value.
“I understand the situation well. The group’s controlling shares held by you two and my 10% are intricately intertwined. To outsiders, it looks like the affiliates are completely separate, but if any of our shares go external, the control weakens.”
Internal transactions aren’t an issue, but the moment our shares go outside, the entire share ratio starts to shift.
“Warn him that to prevent Sunyang Card’s bankruptcy, you’ll have to sell shares of core affiliates like Heavy Industries and Construction.”
“You know I won’t sell, and my brother knows it too. We won’t give up Sunyang Group for a moment.”
“What did I say? I said warn him. Threats aren’t made with words; they’re shown through actions. Make him think you might really have to sell.”
“Actions?”
“Stop the cash services.”
“Hey!”
He knew what it meant for a service company to halt services. My uncle shouted in surprise, and I waved him off.
“It’s fine. It’s temporary. Once Sunyang Card’s services stop, the stock price will drop. Not just the card, but the entire group’s stock will fall. That’s the threat.”
I could see Vice Chairman Jin Dong-ki’s mind racing.
“Just two service suspensions will change everyone’s thinking. They’ll start to believe Sunyang Card might actually go bankrupt.”
“To prevent the worst, my brother will have to act…?”
“Isn’t it like eating mustard while crying?”
Suddenly, a small smile appeared on my uncle’s lips.
“And you?”
“Yes?”
“Your financial affiliates’ stock will drop too. Sunyang Life is already in financial trouble, isn’t it? You’re in the same boat as my brother. You’ve just shown me how to tighten your own noose.”
His smile widened.
“Oh, right. What a foolish move… haha.”
My laughter wiped the smile off his face.
“You have another agenda.”
“Don’t you see the difference between my uncles and me? If Sunyang’s financial affiliates have a bleak future, I can sell them off.”
“What?”
“If I wanted to keep the affiliates, would I have handed the card company to you?”
Jin Dong-ki twitched but said nothing.
“I can objectively assess the asset value of the affiliates and sell them off piece by piece for the highest price before the company falls further.”
I said it casually, and he started to get angry.
“You brat! Do you think so lightly of the company your grandfather left you? Sunyang Group was built by enduring hardships. If we sold when things got tough, would Sunyang even exist today?”
“Times have changed. We can’t protect Sunyang’s name with outdated methods.”
“What?”
“Don’t underestimate this card crisis. Domestic consumption has plummeted, and there’s no sign of recovery. It’s better to let go of affiliates that are choking us and reorganize. When the economy stabilizes, we can buy them back.”
“Is the company a corner store? Sell when it’s tough and buy back when things improve?”
“To me, it’s no different. Corporate M&A might seem complex, but at its core, it’s the same as buying and selling goods. Sell struggling Sunyang Life and later buy a better life insurance company to rebrand. It’ll be a much better company than now.”
I added one more thing to my uncle, who was too stunned to speak.
“Don’t blame my choices. This is because of you. If you repay our 800 billion won bond at maturity, there’s no need to buy and sell companies. It’s your Sunyang Card that’s putting the group at risk.”
Knowing he was responsible, my uncle stayed silent. His mind must be a whirlwind right now.
I had said what I could only say if I had no lingering attachment to Sunyang Group.
He was trying hard to figure out if I was serious or if this was another threat that Sunyang’s financial sector would disappear if he didn’t repay the money.
The longer you dwell on complex thoughts, the more you wander in the fog. Before he could read more into my intentions, I stood up.
Vice Chairman Jin Dong-ki stared at the empty space left by Jin Do-jun for a long time, muttering to himself.
“Even knowing that kid’s dark intentions, should I pretend to be fooled… or should I just give him what he wants…?”
He couldn’t hide his bitter expression, feeling pathetic for being led around by his young nephew.
“Starting at midnight, Sunyang Card’s cash services have been suspended. This is the second card company to halt services after K Card’s temporary suspension.
Sunyang Card has stated they are doing their utmost to resume services quickly. However, there has been no official announcement from Sunyang Group yet.”
The TV evening news played in the Sunyang Group chairman’s office, which was always kept spotless despite being empty for some time.
Neither of Sunyang’s two vice chairmen dared to sit in the chairman’s chair. Instead, they sat side by side on the sofa, staring at their father’s portrait on the wall.
“So, what now? Can you resolve this soon, like the news says?”
“No. I can’t.”
“You’re kidding. Is that something to brag about?”
They didn’t look at each other, keeping their eyes on their father’s portrait, speaking in calm voices as if it were no big deal.
To someone unaware of the situation, it might have seemed like they were simply admiring the portrait.
“The money we owe Do-jun, the money needed to run the card company, it’s all 1.3 to 1.4 trillion won. Where do we get that? Even without counting the money we’ve already lost, that’s the amount.”
“You got played by your nephew. Serves you right. Haha.”
“I didn’t get completely played… I had some fun for about a year. And isn’t it a stretch to think Do-jun predicted this crisis?”
“It’s too perfect not to think so.”
Vice Chairman Jin Young-ki didn’t want to believe it either. If his nephew had sold the card company with such chilling accuracy, he would be a formidable opponent.
“Coincidences can seem inevitable, but this is just a coincidence. More importantly, we need to find 600 billion won before the day ends. Only then can we resume normal services tomorrow.”
“Are you asking for a loan?”
“I hope so.”
“Shameless…”
Jin Young-ki knew why his brother was so shameless. Today, when Sunyang Card’s cash services were suspended, the stock prices of all Sunyang affiliates dropped.
It signaled that even the fortress-like Sunyang could crumble. Distrust was beginning to erode Sunyang’s strength.
“If I don’t lend you the money, Sunyang Card will just become a piece of plastic?”
“Worse than that. Bankruptcy is just a matter of time.”
“Stop it. Don’t exaggerate.”
“I’m not exaggerating. We’re really out of money.”
Jin Dong-ki turned to look at his brother’s face.
“The best I can do is abandon the card. It’s okay to let go of a debt-ridden company, but the problem is… Do-jun.”
“Do-jun?”
“Yes. The stocks of Heavy Industries and Construction that are pledged as collateral. They’ll end up in Do-jun’s hands.”
“That’s your problem, not mine.”
It’s just a shift in the group’s controlling shares. Whether those shares are in his brother’s hands or his nephew’s, it makes no difference to Jin Young-ki.
“Soon, it’ll affect you too. Then it’ll be our problem.”
“What do you mean by that?”
“If we don’t repay the 800 billion won to Sunyang Life, he said he’d sell all his shares and walk away. He’ll clean up and buy back when spring comes. It’s just like him.”
“What? Sell all his shares?”
Finally, Jin Young-ki turned to look at his brother.
“Crazy bastard, is that even possible?”
“Is he crazy? No. He’s the smartest in our family. He knows this kind of threat works on us. He’ll do whatever it takes to get his money back.”
Jin Young-gi quickly did the math in his head.
His nephew’s 10% stake, backed by 800 billion won, would account for at least 7% of Jin Dong-gi’s 33% shares. In an instant, 17% of the shares would be gone.
If these shares ended up with Miracle, they would hold 33% of the group’s controlling interest.
That would make Miracle the second-largest shareholder in Sunyang Group. With enough friendly shares, Miracle could potentially take over Sunyang.
Jin Young-gi bit his lip as he glared at Jin Dong-gi.
He still didn’t know who was behind this threat.
Was it his nephew?
Or was it his brother using his nephew’s name?
Whoever it was, this was a serious threat.
But Jin Young-gi was too proud to simply cave in. He wanted to turn this threat into a negotiation.
“I’ll give you 1.5 trillion won. But in return…”
“You want Do-jun to hand over his shares in the heavy industries and construction sectors as collateral?”
“My brother, you never miss a beat… Even with age, you haven’t lost your touch.”
Jin Young-gi nodded with a smile.
“That’s not going to happen. Giving up 7% of the shares means giving up any chance of sitting under that portrait. I’d rather we both go down together.”
“You stubborn bastard…”
Jin Young-gi clicked his tongue as he looked at his brother pointing at their father’s portrait.
“You know, sometimes you seem smart, but you have your blind spots.”
“Me?”
“Yes. If I take 1.5 trillion won to Do-jun, don’t you think he’d gladly hand over his shares in heavy industries and construction as collateral? Whether Sunyang Card goes bankrupt or not, that’s none of my concern… If I make a deal with Do-jun in this room without you, what will you do then?”
Jin Dong-gi’s eyebrows twitched at Jin Young-gi’s unexpected counterattack.