[217] The First Wave
As soon as Vice Chairman Jin Young-gi summoned me, I rushed over. With Oh Se-hyun having stirred things up, everyone must have been busy crunching numbers.
They were probably still trying to figure out the extent of the financial damage and the exact changes in the shareholding structure. Surely, they wouldn’t demand the extra money back, would they?
When I entered the vice chairman’s office, my eldest uncle greeted me with a bright smile.
“Welcome, Do-jun.”
So, it’s not about money? In situations like this, it’s better to take the initiative.
“Uncle, I’m sorry.”
As I bowed my head, my uncle quickly understood and lifted me up.
“No need to apologize. You have nothing to be sorry for.”
As expected, he would never say anything that would damage his pride.
It seemed unlikely that he would ask for the money back.
“Technically, I should return everything except a reasonable premium…”
I glanced at him, and his eyes were sparkling with anticipation. He wouldn’t refuse if I offered to return the money, even if it was beneath him to demand it.
“It was like pouring water into a bottomless pit. As soon as the money came in, it was used to pay off short-term debts in the life insurance, fire insurance, and capital sectors. They said they had no choice since foreign capital was pulling out…”
Disappointment was evident in his eyes, but his words were different.
“Well, it’s good to know it helped. In times of crisis, family should support each other. It’s fine.”
Not exactly what you’d expect from someone who refused to lend money to a family member in need, but I nodded as if it were the most natural thing.
“Thank you for understanding.”
As I settled onto the sofa, my uncle got to the real reason he had called me.
“I wanted to talk to you about the shareholding structure.”
Shares?
Both he and Vice Chairman Jin Dong-gi had reached out to CEO Oh Se-hyun, but only Jin Dong-gi had half-succeeded. At least he managed to maintain his current position.
Having failed to win over the major shareholder, Oh Se-hyun, were they now trying to secure my 10% stake?
“First, hear me out.”
“Yes.”
“I discussed it with your second uncle, and we concluded that things can’t continue as they are.”
”…”
I had no choice but to listen. What couldn’t continue?
“Our family’s foundation is being eaten away by termites.”
“Are you referring to CEO Oh Se-hyun?”
“Yes. We’re still calculating the exact numbers, but it seems he holds over 23% of the shares. Does that make any sense to you?”
”…”
Whether it makes sense or not, I should hear him out. What is he planning?
“If he ever gets any ideas, we could be in trouble.”
“What kind of ideas?”
“If Oh Se-hyun requests an extraordinary general meeting, all subsidiaries of Sunyang would have to hold one. And if he, being a financial expert, demands to inspect Sunyang Group’s entire accounting books?”
It would be better if the National Tax Service came after Sunyang Group. We could make some calls to handle it gently or use the media to create a narrative about targeting large corporations.
But if a major shareholder attacks, it becomes an internal issue.
We’d have to endure Oh Se-hyun’s scrutiny without any defense.
Several executives or CEOs would likely face lawsuits.
“I’ll make sure that doesn’t happen.”
My uncle waved his hand dismissively.
“I’m not telling you this to make you do anything. It’s just a temporary measure. And this is a big deal for you too. Don’t let your guard down just because you’re close.”
“For me too?”
“Yes.”
I know my only weakness well. And so does everyone in the family. Even the entire nation knows.
It’s the inheritance tax.
I inherited a financial group worth over ten trillion won, but I paid less inheritance tax than someone who inherited a single building.
Everyone was outraged, but they quickly forgot with a few curses, having grown accustomed to the ways of the chaebols. They see it as a different world.
When you think of it as another world, there’s no reason to be outraged. Different worlds have different rules.
And instead of calling it illegal, they use the term “loophole.”
If you scrutinize it, you might find illegal elements, but they gloss over it with the term “loophole.”
“Surely, CEO Oh wouldn’t… No, that’s not it.”
I waved my hand dismissively with a smile, but my uncle’s expression remained stern.
“Don’t test your friendship. Think about the money Oh Se-hyun has invested so far. He might be eyeing Sunyang Group with foreign capital backing him.”
Though his concerns were misdirected, he was right to sense a threat.
“Uncle, aren’t you overreacting? CEO Oh is a close friend of my father’s. And he’s too small to take on Sunyang.”
“That’s why I need your assurance.”
“Assurance?”
“Yes. If Oh Se-hyun approaches you and your father with grandiose ideas, what will you do? If you and he join forces, you’d instantly become the second-largest shareholder. It’s enough to entertain delusions.”
My uncle glanced at me sideways and casually dropped a bombshell.
“We’re thinking of adjusting the controlling shares. Keep that in mind and cooperate. That’s the assurance I need.”
Here we go again with the overreach.
Or is it insecurity this time?
Transferring shares between subsidiaries isn’t easy. There were even rumors that the Fair Trade Commission gave up on examining Sunyang’s circular shareholding structure.
Even experts struggle to analyze the structure, let alone change it.
“It won’t be easy, will it? You’d have to completely move the shares tied up in circular shareholding. Shares of other subsidiaries are company assets, so you’d have to buy and sell them. If you’re not careful, it could lead to charges of breach of fiduciary duty for the CEOs…”
“I’ll handle that. I know it’s not easy. It’s impossible to do it all at once. We’ll proceed very slowly and cautiously.”
For now, I have no choice but to agree. It could be true that they’re planning to change the shareholding structure, or they might be testing me.
Opposing it would only deepen their suspicions.
I know well that my uncles’ suspicions have never rested.
“Understood. Let me know whenever you need my voting rights.”
My uncle smiled with satisfaction at my unwavering response.
“Good. It eases my mind to know you’re on board. Haha.”
His laughter seemed forced.
Does my smile look forced too?
Leaving the Sunyang headquarters, I headed home. There was much to ponder.
There’s only one person who truly understands the group’s shareholding structure.
Lee Hak-jae, the chief secretary.
What I’m curious about is whether it’s possible to move shares without going through him and whether Vice Chairman Jin Young-gi has discussed this with him.
If they have talked about it, then the share transfer is definitely happening. And does Grandfather know about it?
To think through the complex variables, I need to verify each one accurately.
In the end, I made a call.
Someone I see once or twice a year to catch up, someone I talk to on the phone every couple of months, but someone I can trust.
When I asked him to come over after work, he readily agreed.
“What brings you to call me first…?”
Kim Yoon-seok, an assistant manager, entered with a smile, carrying a convenience store bag filled with canned beer and snacks.
“What else? You know I didn’t just call you over to catch up. Haha.”
After sharing a brief laugh, we started drinking.
“Anything unusual happening lately?”
“Not really. With the chairman practically retired, the entire secretariat is quite relaxed.”
Kim Yoon-seok seemed to have fully adapted to the secretariat, exuding confidence.
“Are you still working closely with Chief Secretary Lee Hak-jae?”
“Yes. I’m still his bag carrier, but he treats me a bit more comfortably now.”
“Has Chief Secretary Lee met with the two vice chairmen recently?”
Kim Yoon-seok thought for a moment before shaking his head.
“They might have met after I left work, but at least during the day, they haven’t met.”
“No special instructions either? Like regarding the group’s shareholding status…?”
“None at all. As I mentioned, things have been really quiet. The two vice chairmen have been keeping their distance from Chief Secretary Lee for a long time.”
The two uncles have no intention of inheriting Grandfather’s closest aide. They want to groom a new chief secretary of their own, like Lee Hak-jae.
Kim Yoon-seok cautiously observed me before speaking carefully.
“May I ask what this is about?”
“Vice Chairman Jin Young-gi mentioned changing the holding company. I’m unsure if it’s a test or if they’re serious about it.”
Kim Yoon-seok didn’t seem too surprised. His lack of visible emotion suggested he was well-trained.
“If it’s about shares, it’s hard to bypass Chief Secretary Lee. He has a firm grip on the legal team handling shares.”
“If they proceed discreetly on their own, it’s not impossible. It would just take a long time.”
Kim Yoon-seok hesitated for a moment before speaking.
“It’s a bit delicate to say, but for the vice chairman to handle the share transfer himself… it would only be possible if Chairman Jin wasn’t around.”
He meant it would only be possible if Grandfather passed away.
“Does Chief Secretary Lee still have many informants?”
“Yes. Each subsidiary has plenty of people loyal to him. They report to him daily, and he reports directly to the chairman.”
Kim Yoon-seok took a sip of beer to wet his throat.
“Should we report this?”
“To Chief Secretary Lee? What if he asks how you found out?”
“Come on, you know who I’m with, right? You can probably guess the source without me saying.”
“No, let’s just leave it for now. We can’t act immediately, so we have some time.”
My uncle was clear about it too. He said to proceed very slowly and carefully.
Just like Kim Yoon-seok mentioned, they seem to be planning to act swiftly once Grandfather passes away. Of course, they’ll need to deal with Director Lee Hak-jae first.
“By the way, can I ask you something?”
“Sure.”
“What do you think Director Lee is planning? He can’t hold onto that position forever now that Grandfather’s retired, can he?”
“He’s been drinking more in the evenings lately, probably because he’s been thinking about that. He’s not quite old enough to retire alongside the Chairman…”
“He’s about the same age as my eldest uncle, so he could work for another ten years.”
But now, Lee Hak-jae has become a burden to the group.
“Mr. Kim.”
“Yes?”
“Do you think Director Lee has any particular desires? I mean, would he want to stay with Sunyang even after Grandfather is gone?”
Kim Yoon-seok answered without hesitation.
“He probably wishes Chairman Jin could remain Chairman forever.”
In other words, he wants to be the eternal second-in-command.
In that case…
“Mr. Kim, you mentioned Director Lee has been drinking more lately, right?”
“Yes, he often sends the staff home early and spends time alone.”
Kim Yoon-seok seemed to understand my intentions, offering information I hadn’t even asked for.
“There’s a quiet bar in Gangnam called ‘Sang.’ He’s a regular there.”
“Then let me know right away if you see him there next time.”
“Understood.”
Kim Yoon-seok smiled, a grin that hinted at the anticipation of his role finally coming into play.