Chairman Lee Hak-jae called for a meeting with the creditors. The banks, wary of the massive conglomerates Sunyang and Daehyeon, eagerly accepted the invitation. After all, someone was finally stepping up to bell the cat, and they had no reason to refuse.
However, the words Lee Hak-jae uttered during the meeting sent chills down their spines.
“I’m not a generous man. Why should I consider the plight of those who’ve exploited me for free?”
When he threatened to throw away all the promissory notes he held, the bank presidents collectively shook their heads in alarm.
“Chairman Lee, we’re well aware of the financial state of Sunyang Construction and Daehyeon Construction. If you throw everything away, there’s no stopping it. Bankruptcy is certain.”
“Chairman, if they go bankrupt, recovering the debts will be impossible. It could take years to normalize the situation.”
“We thought this meeting was to discuss ways to recover the debts, not to shut down these companies.”
Lee Hak-jae shook his head at the bank presidents, who were visibly startled.
“Those destined to fail should fail. Have you forgotten what happened when we went easy on those bloated, failing companies just because they were big?”
The memories from over a decade ago were still vivid for the bankers. Wasn’t it then that even the supposedly unshakeable banks began to falter?
“And even if I don’t get my money back, or can’t, I’ll take pleasure in watching those two companies close down and laugh at them from the sidelines.”
Everyone knew the unpaid debts amounted to at least trillions. They understood where his audacity came from—he had a solid backer.
But the banks were different.
The moment bankruptcy hit, debt recovery would be out of the question, and the chain reaction of bankruptcies among the subsidiaries under the two construction companies was a foregone conclusion.
The banks would suffer massive losses again, and some bank presidents might lose their titles.
The scariest part was the government considering the elimination or merger of failing banks. The surviving banks would grow twice as large.
But isn’t it better for everyone in the industry to eat a little less but survive together, rather than just the survivors thriving?
They tried desperately to appease Lee Hak-jae, but he was immovable. He even brought in someone who shared his views.
When another figure appeared, the bank presidents realized they couldn’t stop them.
“You all probably owe this gentleman quite a bit.”
Lee Hak-jae introduced me to the bank presidents with these words.
“Owe? What do you mean by that…?”
One of the bank presidents bristled as if it were nonsense, but it wasn’t incorrect.
“Didn’t I lend my money to the bank? Isn’t that why the bank pays me interest regularly? If it wasn’t a loan, it would be an investment, but do investors get interest?”
Depositors are all creditors, and a bankbook is a promissory note. They dressed it up with terms like ‘depositing’ or ‘saving,’ but ‘lending’ is the accurate term.
That’s why they create various financial products to entice depositors, the creditors. They have to lure them with promises of higher returns so they don’t have to repay the borrowed money.
Since I didn’t invest in financial products but am a simple depositor, I am indeed a creditor.
“I’ve lent a significant amount to the bank. But if you’re going to use that money to save companies that are bound to fail, there’s nothing I can do.”
The bank presidents’ faces turned ashen, anticipating my next words.
“I want to withdraw all the money Sunyang Financial Group and I personally lent. I’ll be withdrawing it as soon as the bank opens tomorrow morning.”
Faced with Lee Hak-jae’s threat to throw away the promissory notes and my intention to withdraw all deposits, the bank presidents remained silent.
They realized that trying to dissuade us wouldn’t work and that they needed to understand our true intentions. They knew we weren’t foolish enough to be stubborn without reason.
After a long silence, they cautiously spoke up.
“Chairman Lee, Director Jin, are we missing the real topic here?”
“Is this meeting not about bankruptcy measures for Sunyang and Daehyeon, but about discussing acquisition methods?”
We couldn’t hide the smiles that naturally appeared.
“HW Group has invested nearly ten trillion won. I’ve lent your banks several trillion won. If you convert that into time, it’s hundreds of billions per second. We won’t waste any more precious time on nonsense.”
“So, you spent all that money to acquire the two construction companies?”
“Please call it an investment. We’re planning to not only recoup our investment but also make a hefty profit, so there’s no need for alarm.”
The long sighs from the bank presidents were a sign of their relief.
The threat of restructuring due to bad debts was gone, and they wouldn’t be removed from their positions as bank presidents. That is, if this acquisition went smoothly.
“But before we proceed with the normal acquisition process, please let us know how much you’re willing to shoulder.”
“What do you mean…?”
The old men feigned ignorance, typical of bankers who never want to incur losses.
“Come on, you know what I mean. The banks should also contribute when reviving bankrupt companies. How much debt relief are you willing to offer for the two construction companies?”
Faced with the blunt question, they all fell silent.
“You should bear an amount that anyone would consider reasonable. If anyone here thinks they can’t offer a single penny of debt relief, feel free to leave. It would mean you’re a robust bank, so you wouldn’t mind if I withdrew all my money, right?”
Silence ensued once more.
“Oh, and if you’re thinking the government might step in with a bailout, forget it. The Blue House won’t take any calls from the two construction companies. Even the aides of Yeouido’s lawmakers are avoiding their calls.”
Not a single person left the room.
Lee Hak-jae addressed them.
“As the largest creditor, I’ll take the helm. You just need to row in the direction I point. No objections, right?”
Chairman Joo Tae-sik of Daehyeon Automobile Group let out a groan as he read the morning paper.
The media was relentlessly covering the Dubai crisis, amplifying the crisis of Sunyang and Daehyeon with plummeting stock prices.
The fact that Daehyeon Group and Sunyang Group couldn’t stop the media coverage meant the situation was beyond repair.
As Chairman Joo put down the newspaper, he saw his younger brother sitting on the sofa with his head hung low.
“Is Dubai everything?”
“Huh?”
“If we just get through this, will everything be resolved?!”
Joo Min-sik, the third son of the late Chairman Joo Young-il, who had inherited the construction division, couldn’t answer. All the apartment constructions and shopping mall redevelopments in the provinces were being carried out on debt.
There were secrets everyone knew but didn’t talk about. They were plugging holes everywhere, even using pre-sale payments to cover debts.
“The financial sector knows the government is turning its back. You have to handle this.”
“Big brother, if HW pulls the promissory notes, we can’t avoid bankruptcy. The only solution is at the group level…”
Joo Min-sik barely managed to speak, but his brother’s response was cold.
“Group level? Weren’t you the one boasting about Daehyeon Construction Group? I’m with the Automobile Group, remember? We’re not one family. If it’s at the group level, then the Construction Group should handle it.”
“Brother, that’s not what I meant.”
“I know it’s not. But are we some neighborhood grocery store owners? We have tens of thousands of people depending on us. We can’t starve just to save you. We’re not like Sunyang. We’ve already completed the division of affiliates. Even if you go bankrupt, Daehyeon Automobile Group won’t be affected.”
“Brother! Construction is the foundation of Daehyeon! Killing it would be like…”
“Don’t give me that crap. Since when did you care about father’s honor? How dare you drag father into this! Get out, you bastard!”
Chairman Joo Tae-sik chased his brother out and fumed for a while.
He wasn’t angry because of Daehyeon Construction’s crisis. He was furious at his late father for entrusting the construction, the group’s foundation, to such a fool.
Once he calmed down a bit, his secretary quietly knocked on the door.
“Chairman, it’s time for your appointment with Chairman Lee Hak-jae. Shall we depart?”
“Let’s go. We can’t keep him waiting.”
“Ah, my friend! How long has it been?”
Chairman Lee Hak-jae greeted Chairman Joo Tae-sik with a bright smile, firmly shaking his hand.
“Chairman Lee, you look quite well for someone who’s invested so much money. You must still have plenty stashed away. Haha.”
“Please, don’t say that. I’m struggling here, holding onto promissory notes I can’t even cash.”
The two men exchanged a firm handshake and smiled warmly at each other.
After a brief exchange of pleasantries and light conversation about their personal lives, they got to the purpose of today’s secret meeting.
“Chairman Lee, are you sure that once this crisis is resolved, things will return to normal?”
“Absolutely. The U.S. government has already poured astronomical amounts of money into it. The money tied up in Dubai can be recovered in two years at most.”
“HW Construction has settled in Dubai, I see.”
“Yes. If I didn’t believe in the recovery, I would have pulled out too.”
“If Dubai recovers, HW’s situation will improve significantly. They won’t turn their backs on a company that showed loyalty.”
“They’re businessmen too. If there’s no profit, loyalty means nothing. Haha.”
Chairman Joo Tae-sik, holding his teacup, looked at Lee Hak-jae with envy.
Leading a group with a solid financial backer as a major shareholder, steering the company with a long-term vision—it’s something he could do too, but he’s preoccupied with the succession plans for his children.
He briefly wondered how great it would be if a professional manager like Lee Hak-jae worked for Daehyeon.
“Anyway, sir, you’re really not planning to save the construction company, are you?”
“That’s right. I’m not foolish enough to pour astronomical amounts of money into that. As you know, the automotive group already has Daehyun Industries, a construction company. It’s better to use that money to strengthen my own company.”
“Then I’ll take it that you’re accepting my proposal.”
“Isn’t that why we’re sitting here, having this pleasant chat?”
Now it was Chairman Lee Hak-jae’s turn to listen to Chairman Joo Tae-sik’s demands.
“Alright, tell me which company you want.”
Chairman Joo pulled a neatly folded piece of paper from his pocket.
“My kids insisted I bring this. Take a look.”
Unfolding the paper, it revealed a list of company names along with their assessed values. Daehyun Construction, Daehyun Cement, Daehyun Development—all subsidiaries under his third son, Joo Min-sik.
“You’re being too much. Are you saying I should only take the construction companies?”
“Don’t misunderstand. I’ve only listed the companies essential to Daehyun Industries. I didn’t just pick the profitable ones. And I’m handing over the prime subsidiaries of Daehyun Construction.”
“Of course, we should take over Daehyun Construction’s subsidiaries. We spent all the money, and we even dealt with the Blue House. The banks are in our hands, isn’t this a bit harsh?”
“Come on, Chairman Lee. My father built this. If I really put my foot down, I could protect Daehyun Construction too. I’m making a concession here, and you call it harsh? How much do you need to be satisfied? Do you expect to take half?”
“Sir, in situations like this, the rule is to split it evenly. Even kids know that.”
Chairman Lee had no intention of taking half. When dealing with the greedy Joo family, the best strategy was to make a bold demand and then settle for a little less.
This time was no different. If he could secure just a couple more, it would be a satisfactory deal.