Splitting the Difference? Part 1
“Ah, don’t even get me started. Do you have any idea how much trouble we’ve been in because of you? We had the media under control, and then out of nowhere, a young star from Sunyang makes a grand entrance, claiming the national economy is at risk… We didn’t even have time to react. Haha.”
“I see. I’m truly sorry about that. I was in a bit of a rush myself. If another economic crisis hits, the financial institutions I’m responsible for would be in jeopardy.”
“No need to apologize. It’s all in the past now, just trying to lighten the mood.”
The Blue House’s Chief Economic Advisor quickly waved off my apology.
“But now, with this new issue cropping up, I’m at my wit’s end. When you reached out to meet, I was shocked. I thought something even bigger was about to happen… I’m really worried.”
Hasn’t the big issue already happened? Or does he not grasp the severity yet?
“Actually, I’ve been getting a flood of meeting requests from the heads of major construction companies, including Sunyang. But I was most pleased to hear from you. Understanding the situation is crucial.”
The Chief Economic Advisor studied my expression closely.
“When you say major construction companies, you mean Sunyang and Daehyun, right?”
“Yes.”
“Do you know how much those two companies are entangled?”
“No, I haven’t confirmed yet.”
“Nearly 10 billion dollars, or about 10 trillion won.”
The Chief Economic Advisor blinked, teacup halfway to his lips. It’s a number that’s hard to fathom.
“Ten trillion? Are you sure?”
“I’m part of Sunyang. And I’ve got a finger in HW Construction too. The information I’ve gathered from various sources is accurate.”
He set down his teacup and hurriedly pulled out his phone.
“Sir, perhaps you should make that call after we’re done talking?”
“Oh, right.”
He put his phone away again.
“Dubai isn’t the end of it. The apartment constructions in the provinces will catch fire next. You understand why the construction company heads are requesting meetings with you, don’t you?”
He probably assumed they were just asking for loan facilitation, but this is beyond that. It’s at the level of needing corporate bailout funds, like during the IMF crisis.
I could see him thinking hard. As we approach the third year of the administration, the more crises that erupt, the faster the lame-duck period arrives. To influence next year’s local elections, the Blue House needs to calm this situation with minimal impact.
“I’m more curious about why you wanted to meet than why they did. Do you have a solution?”
“I have a rather bold but clean solution.”
The word “bold” seemed to make my proposal less appealing. Even though I said I could solve it, his expression didn’t brighten.
“It would be problematic if things get noisy.”
“For the Blue House, the noisier, the better.”
“What?”
“For the past two years, the opposition has mainly attacked the pro-business, pro-chaebol policies, haven’t they? Not that I’m criticizing; I’ve benefited from them.”
When his expression hardened at the mention of being pro-chaebol, I waved my hand dismissively.
“Up until now, it’s been policy, but this situation will be seen as favoritism. Why not just leave it to the market?”
“Leave it to the market…?”
“Yes. If they can’t withstand the dual shockwaves of the U.S. financial crisis and the Dubai moratorium, they’ll fail. If they can, they’ll survive. Without government intervention.”
“Do you really think that’s wise? If those two companies go bankrupt, it will be uncontrollable.”
Ignoring his concerns, I continued.
“Show the government taking care of collapsing local SMEs. That’ll put the opposition in an awkward position and greatly aid next year’s local elections.”
“That’s a good idea, but don’t you realize that if a major construction company collapses, all of that becomes meaningless?”
The scale of Daehyun and Sunyang’s troubles dwarfs the government’s support for SMEs. The government’s efforts would be quickly overshadowed.
“The market won’t be affected at all. There’s a company ready to acquire both.”
“Acquire?”
“Yes. On very favorable terms. They won’t ask for debt relief or loan extensions; they’ll acquire them on their own strength.”
The Chief Economic Advisor finally realized why I wanted to meet.
Unlike others asking for help or favors, I’m simply asking them not to interfere.
“Which company is that?”
“HW Group.”
“Oh…!”
“Especially the money tied up in Dubai—HW Group is shouldering most of it.”
“Is that so? This is the first I’m hearing of it.”
“The moment HW Group throws in the promissory notes they hold, that’s the final bankruptcy day for those two companies. A chain reaction of bankruptcies is inevitable.”
As someone in the position of the Blue House’s Chief Economic Advisor, he was now seeing the big picture.
“HW has meticulously planned the acquisition strategy for these two companies. So you’re saying the Blue House should just sit back and watch, not interfere?”
“Not at all. If it were a premeditated scenario, it would mean HW Group knew about Dubai’s moratorium a year in advance… Something even global companies couldn’t predict. HW isn’t that capable.”
My rebuttal wasn’t important to the Chief Economic Advisor.
The Blue House not intervening is also a crucial role for them.
Helping Sunyang and Daehyun would ruin HW’s acquisition strategy, so simply watching is a favor to HW Group.
His expression and demeanor suddenly changed.
Now, I’m no different from other conglomerates begging for favors, and he’s in a position to receive complaints on behalf of the Blue House.
“Anyway, it’s not my decision to make. Watching two of Korea’s representative companies go bankrupt is a heavy burden.”
The Chief Economic Advisor delayed his decision and tilted his head.
“But I’m curious, sir. Why are you leading the charge when one of Sunyang’s flagship companies is being taken over by another?”
I scratched my head sheepishly.
“Do I have to share my family affairs today? Haha.”
“Oh, if it’s uncomfortable, you don’t have to.”
“No, it’s a well-known story. The truth is, I’ve partnered with HW Group. When HW acquires Daehyun and Sunyang, I’ll be taking back Sunyang Construction. It’s not a good look for a nephew to directly acquire his uncle’s company.”
I could hear him thinking again. The Blue House just needs to secure the best outcome from the current situation.
I mentioned a crucial point he should consider.
“As long as Sunyang Electronics and Daehyun Motors remain stable, both Sunyang and Daehyun will be fine. It’s just that a mega-corporation, HW Construction, will emerge. Isn’t that beneficial in many ways?”
Electronics, automobiles, and construction.
I was hinting that there would be another pillar for the political world to lean on.
He remained silent, still deep in thought. It was a sign he wanted me to reveal more of the gifts I could offer.
In such cases, a personal touch can be effective.
I pulled out several hotel key cards and tossed them onto the table.
“I know it’s tough with so many eyes watching these days. Use these when you need to have discreet conversations like today. Share them with your colleagues. I’ll keep them available 365 days a year, so feel free to use them anytime.”
“These are hotel…?”
“Yes. I’ve also assigned a dedicated manager. Just call before you head out, and everything will be prepared for your convenience.”
The Blue House advisors need secret places to meet with journalists, to cajole or negotiate, to inform ruling party members of the Blue House’s intentions, and to discreetly hand allowances to opposition members. Ten years ago, it was common practice, but it has since disappeared. The places for conducting illegal activities have been eliminated.
Perhaps he missed it, as the Chief Economic Advisor’s face lit up.
“You’re really scratching where it itches. I’ll make good use of it.”
“And I’ll leave a small box for you to treat the journalists to lunch. Feel free to pick it up when you have time.”
“Oh, I hope it doesn’t cause any trouble.”
“I was taught by my late grandfather. I know how to end a gift with a gift. Don’t worry.”
The Chief Economic Advisor looked satisfied.
Businesspeople usually just request a meeting with the president through the advisors and toss an envelope for arranging the meeting. Finding a benefactor who scratches where it itches, like me, isn’t easy for them.
“I look forward to the Blue House’s wise decision.”
I bowed politely, and he quickly returned the gesture.
“Leaving it to the market is our government’s main policy, isn’t it? We’ll do our best.”
Doing nothing is the easiest choice.
They won’t take the hard road.
“What on earth are you doing? Did I ask you to bring money? Or to retrieve the promissory notes? Is arranging a meeting with the Blue House that difficult?”
Vice Chairman Jin Dong-ki shouted, but everyone just hung their heads, playing dumb.
“How much money have you taken over the years for political funds and whatnot? The money you took during last year’s general election alone could have prevented this crisis. Did you have a delivery mishap? Did you pocket it all?”
Jin Dong-ki knew better than anyone that he was venting his frustration.
Even if he called the Blue House directly, they would avoid him, so how much more would they ignore calls from the executives? They probably wouldn’t even answer.
“Get it connected quickly! Stir up Yeouido and ransack the government complex. Use everyone who’s taken my money to knock on the Blue House’s door. The longer it takes, the sooner the banks will act.”
It’s still too early to give up. The Blue House would also be burdened by the risk of killing a giant.
Jin Dong-ki, feeling like he was grasping at straws, sought out his brother.
But before he could even speak, Jin Young-ki waved him off.
“Don’t even bring it up. I’m broke. The financial crisis isn’t just hitting you, you know. I’m barely keeping it together myself. The U.S. and Europe have collapsed. The two biggest markets are in shambles… It’s hard enough just to hang on.”
“Hyung, I’m not asking for cash. Just open the bank vaults for me.”
“The banks are in even worse shape. Forget about getting a loan under Sunyang Electronics’ name.”
“Hyung!”
“Don’t shout. It’s not like I’m unaware of the situation. Let’s each deal with the obstacles in our own paths. You think you’re the only one struggling? I’m at my wit’s end too!”
Jin Dong-ki wasn’t surprised that his brother had turned his back on him.
But what terrified him most was the thought that his crisis might be his brother’s opportunity.
He knew better than anyone that this could be a once-in-a-lifetime chance for his brother to seize control of Sunyang’s construction and heavy industries.
Jin Young-ki’s sinister gaze was more frightening than any bank.
While the brothers were exchanging heated words, Chairman Lee Hak-jae was busy making phone calls.
“We can’t wait forever, can we? I haven’t even contacted Sunyang Construction or Daehyun. What’s the point of calling when I know they can’t pay?”
Chairman Lee spoke smoothly with the heads of major banks.
Do-jun had set the table perfectly.
He was the only one holding the spoon and chopsticks, and all that was left was for the banks to serve the meal right in front of him.
The Blue House, the only entity with the power to overturn the table, wasn’t even looking this way.
All that remained was to enjoy the feast.