Chapter 214: Stunned Silence, Part 2
The civil servants snapped to attention at the cold, hard words of Oh Se-hyun.
The financial sector isn’t the only one that needs to bear economic responsibility. Ordinary consumers who recklessly swiped their credit cards are in the same boat.
“Mr. Oh, what do you plan to do about the credit card defaulters?”
“Is the government going to forgive their debts?”
“No, there’s no plan for that yet. We might be able to handle household debts, but these are credit card debts. The public backlash over moral hazard is too daunting.”
“If the government won’t intervene, I’ll handle it myself. You don’t need to worry.”
The economic advisor from the Blue House looked troubled. If Oh Se-hyun attempted aggressive debt collection, it would be another burden.
“Are you thinking of selling off the bad debts? To companies that specialize in that sort of thing?”
These companies, known as “credit information” firms, buy bad debts that card companies, commercial banks, savings banks, and installment finance companies have given up on, for 10% to 30% of their value. They then use specialized debt collectors to pressure debtors, almost like loan sharks, to recover the money.
This is the heyday of such credit information companies.
With nearly three million credit delinquents and card companies already writing off losses amounting to four trillion won, another two trillion won in losses is expected. The overdue amount for individual credit delinquents with debts under one hundred million won totals 44.7 trillion won, and the overdue amount for savings banks and installment finance companies exceeds four trillion won.
In 2003, South Korea is a republic of delinquencies.
“Of course. The debt collection staff at Sunyang Card can’t handle it alone. I don’t intend to lose a single won in this deal. I’ll sell off the bad debts in response to the murmurs outside.”
If the financial sector holding short-term bonds decides on a 30% recovery rate, it means selling all overdue amounts at 30%.
“Don’t get too complacent. Sunyang Card is just the beginning. All eight card companies are fighting tooth and nail with credit delinquents, albeit to varying degrees. If the current government has made a bold decision, it must see it through to the end.”
Oh Se-hyun spoke, observing the civil servants’ flustered expressions.
“If you implement a policy to rescue defaulters thinking about the next election, you’ll be swarmed by a pack of wolves demanding accountability for tens of trillions in overdue debts. The card companies and financial institutions, myself included, will turn into those wolves.”
As the civil servants fell silent, financial sector representatives poured into the meeting room.
Seeing their stern faces, Oh Se-hyun spoke first.
“Before you tell me the results, there’s one thing you should know.”
All eyes in the room turned to Oh Se-hyun.
“The moment the acquisition of Sunyang Card is finalized, I’ll transfer all the bad debts to a credit information company. And I hope you’ll introduce me to that company.”
The eyes of the financial executives changed, a glint of greed appearing.
Unbeknownst to many, banks own credit information companies. Former executives create them, and laid-off bank employees are hired as debt collectors.
Current executives also invest in these companies, making a tidy profit. If collections go well, the bank’s loss becomes the credit information company’s gain.
They exchanged glances.
“Mr. Oh, here’s our decision.”
They handed Oh Se-hyun a folded note.
“If you negotiate with us regarding collections, we’ll pay more attention.”
Oh Se-hyun checked the note and tucked it into his pocket.
“Prepare the contracts. We don’t have much time left, and I’ll wrap this up quickly.”
As Oh Se-hyun stood up abruptly, the head of Policy Division 1 spoke.
“What is it? You need to tell us how the recovery rate was determined.”
“Director, this is a corporate secret. There’s no need for you to know, nor do you need to. The government only needs to ensure one thing, right?”
Oh Se-hyun’s retort left the director looking sheepish.
“I’ll have all Sunyang Card services back to normal within 48 hours. Isn’t that enough?”
As Oh Se-hyun was about to leave the meeting room, he paused and turned back.
“Oh, I almost forgot.”
He approached the Blue House economic advisor and whispered.
“Watch how I handle Sunyang Card. If you’re satisfied, consider entrusting Daehyeon Card to me as well.”
The economic advisor, unable to gauge whether Oh Se-hyun was friend or foe, couldn’t even muster a response.
Vice Chairman Jin Dong-gi stared at the documents in front of him, speechless and stunned.
“I thought it unnecessary to go through a shareholders’ meeting, so I came to see you directly. The only change is that you and Sunyang Card will have no connection.”
Oh Se-hyun’s voice was devoid of emotion.
There was no arrogance of a victor, no apology for taking over the company—just a dry, matter-of-fact tone, like the numbers on the page.
“Then why bring this to me? You don’t need to tell me. Just report the change in major shareholders.”
“I wanted to discuss a few things.”
“Discuss? You just said there’s no connection with Sunyang Card.”
“There’s one thing left—the name Sunyang.”
At first, Jin Dong-gi didn’t understand. But soon, he realized they didn’t want to give up the name Sunyang.
“Let’s get to the point. What do you want?”
“How about joining forces with me?”
“What?”
Jin Dong-gi, who had been leaning back in his chair, sprang forward. What did this mean?
“As you know, Miracle holds a 16% controlling stake in the group. Ah… of course, I should check again. I don’t know how you and your brother have adjusted the share structure. But I expect it to be at least 15%.”
“So?”
“Sunyang Card is completely separated from the group. If we’re told to leave the group headquarters, we’ll have to pack up. If we’re told not to use the name, we’ll have to change it.”
“You don’t want to change the name or move?”
“Yes. I’d like to stay here. The employees fear change. If the name Sunyang remains and the office location doesn’t change, they’ll feel secure. After all, what do the people care who the king is, as long as their lives remain unchanged?”
Jin Dong-gi’s eyes sparkled.
“Does that mean there won’t be changes in management?”
“I’m not planning a major overhaul. I do intend to cut a few fools who complacently watched the card crisis unfold.”
Only the major shareholder changes.
Even if Jin Dong-gi had held Sunyang Card, he would have dismissed some of the management responsible for the crisis.
“Then what do you mean by joining forces with me?”
“Didn’t your brother gain 7% of your shares in this ordeal? Your support within the group must be shaky. I’ll help stabilize it.”
“So, Miracle’s 16% will support me?”
“Not 16%. It’ll be 23% once I retrieve the shares held as collateral.”
Jin Dong-gi closed his eyes tightly.
He had lost both the company and his shares, and he had forgotten that the man in front of him was picking up both.
He held 26%, and Miracle held 23%…
Now they were on equal footing.
Jin Dong-gi opened his eyes wide after a long pause.
This wasn’t just about keeping the name and not moving.
If Miracle supported him, he would instantly secure 49% of the shares. Just 2% short of a majority.
He could easily bring a few executives on board. A swift reversal. And wasn’t there his nephew?
If Jin Do-jun’s 10% sided with him, he could oust his brother immediately.
“Mr. Oh, transfer the voting rights of those shares to me. I’m not asking for the shares, just the voting rights…”
Jin Dong-gi had to stop speaking as Oh Se-hyun raised a hand with a smile. A clear refusal.
“When I said join forces, I meant something else. I’ll only help maintain your current position. If we join forces, we can prevent your brother from taking control of the entire group.”
Growing anxious, Jin Dong-gi pleaded earnestly.
“Mr. Oh, honestly, my brother is unfit as a manager, isn’t he? Do you know how many companies he’s run into the ground? It’s over ten, though we keep it quiet.”
Jin Young-gi had once been nicknamed “The Hand of Ruin” because everything he touched failed. As he aged, he stopped creating or expanding companies.
Chairman Jin had ordered him to focus on maintaining stable companies.
“Vice Chairman, such talk is useless to me. I’m not interested in how foolish or reckless Jin Young-gi was in the past. I only care about the present.”
Oh Se-hyun coldly dismissed Jin Dong-gi’s pleas.
“Look at the current management indicators. There’s nothing to criticize. Sunyang Electronics is making a fortune.”
“That’s because the market is favorable. Even a puppet could achieve those results!”
Jin Dong-gi thought this was the moment his father’s saying, “Crisis is opportunity,” applied. He was desperate to seize this chance for a turnaround.
“I prefer a puppet like Jin Young-gi.”
“What?”
“If it were you, you’d likely start a new business based on Sunyang Electronics’ massive profits. That’s what a capable manager would do. Endless expansion and growth—that’s the ultimate goal of a conglomerate, isn’t it?”
“Then why?”
“I’m a shareholder. Stability comes first, not risk. I prefer stable dividends over uncertain growth.”
“Mr. Oh…”
“Let’s stop here. My mind won’t change. Just tell me if you’ll accept what I proposed.”
There was no other choice.
Oh Se-hyun smiled as he watched Jin Dong-gi nod weakly.
“Then please inform the management at Sunyang Card about this. I’ll be on my way…”
Just as Oh Se-hyun was about to stand, Vice Chairman Jin Dong-gi asked a crucial question.
“Mr. Oh, since we’re on the same side now, I have to ask. What exactly is Do-jun’s position at Miracle? Is he…?”
He couldn’t bring himself to finish the question. The thought that Do-jun might be the largest shareholder was too daunting.
“Do-jun? Well, he’s invested quite a significant amount and holds a substantial share. Why do you ask?”
“Oh, it’s nothing.”
Oh Se-hyun chuckled softly.
“If you’re worried about your nephew, there’s no need. Do-jun has different ambitions. His goals are not the same.”
“What are his goals, then?”
“Honestly, I’m not entirely sure, but I’d wager they’re grander than just becoming the chairman of Sunyang Group. Haha.”
Leaving behind those cryptic words, Oh Se-hyun walked out.
Jin Dong-gi sat in a daze for a moment before getting up.
He had narrowly escaped the threat of being ousted by his brother. Now, it was time to seize the opportunity.
If there were no opportunities, he might despair, but a concrete one had just presented itself. The man who had just walked out was that opportunity. If he could bring him over to his side, he could shake Sunyang Group to its core.
Determined to act on this opportunity, Jin Dong-gi headed to the president’s office at Sunyang Card.