“How about we split it evenly?”
“Well, that’s a new one. Alright, what exactly do you want, Chairman Lee? Let’s hear it.”
“Cement.”
Chairman Joo Tae-sik jumped up, clearly displeased.
“Oh, come on. That’s not happening. Cement is the only thing keeping my brother afloat. If you take that away, he’ll have nothing left.”
“Your brother, Chairman Joo Min-sik?”
“Yes. Even if he’s not the brightest, he’s still family. I can’t just let him waste away doing nothing.”
“Then throw in Comprehensive Design and Rotem. I won’t ask for more.”
“Rotem?”
The mention of Daehyun Rotem, a company in the railway and defense sectors, caught Chairman Joo off guard. It wasn’t part of the construction division, so his surprise was understandable.
“I’m not asking for the defense part, just the railway vehicles.”
Chairman Joo hesitated. It wasn’t a particularly lucrative or large business, so he was curious why it was being requested.
“HW Auto is already breathing down our necks, and now you want the railway too? You’re a real piece of work.”
“Brother, I have no interest in the auto business. It’s practically an independent company under President Jo Dae-ho. He just asked me for a favor, saying he wanted to secure railway vehicle technology. As the chairman, I need to save face. It’s not like it’s a huge moneymaker.”
To be a comprehensive auto company, you need a strong heavy industry backing. HW Auto’s weakness is precisely the lack of such support. President Jo Dae-ho knows this well.
“Alright, just take Rotem. Leave Comprehensive Design. How about that?”
After some back-and-forth, both parties got what they wanted.
“Agreed. Let’s do that.”
Chairman Lee nodded with satisfaction, but he still needed to confirm Chairman Joo’s promise.
“But how do you plan to handle your brother’s management rights?”
“I’ll buy out all his shares. It’s the only way to resolve this mess. The company is on the brink of collapse; what else can he do?”
“I trust there won’t be any issues.”
“Don’t worry. I’ll acquire the shares, package the construction and remaining subsidiaries nicely, and hand them over to you. Just try not to lay off too many people. They’ve been with Daehyun for a long time.”
“I’ll handle it. Restructuring is inevitable.”
He didn’t make any empty promises about keeping everyone on board.
“You’re a sharp one. You’d think being a chairman would dull your edge a bit.”
“What’s the point of pretending to be a chairman in front of you, brother? Haha.”
Chairman Joo frowned slightly at Chairman Lee’s hearty laugh.
“I’m worried about Sunyang. Jin Dong-ki, that guy… he’s going to lose his footing.”
“It’s a tough time for younger siblings. I’ll leave at least one company for them. They need to make a living.”
Chairman Joo was curious about which company Chairman Lee intended to leave behind.
“You… how dare you…”
Vice Chairman Jin Dong-ki was too furious to speak.
But the bank presidents surrounding him were indifferent to his anger, pressing him with cold detachment.
“This is a careful decision. Watch your words, Vice Chairman Jin.”
“This isn’t just about Sunyang Construction. It affects all subsidiaries with payment guarantees and the entire Sunyang Group. You don’t think the financial sector is taking this lightly, do you?”
“Have you forgotten the financial crisis ten years ago? Several top ten conglomerates disintegrated for lack of a few hundred billion. It’s only been ten years. We’re facing a potential trillion-won default. Can you stop it, Vice Chairman Jin?”
Jin Dong-ki was at a loss for words, but he couldn’t back down. Stepping down from management was akin to giving up the group.
His father, Chairman Jin, would have installed his confidants as puppets and controlled things from behind the scenes, but the financial sector now demanded the entire management team step down.
Without even one confidant left, and with the company filled with creditors’ people, a comeback would be impossible.
“Shouldn’t you at least give us time to come up with a self-rescue plan? What’s the reason for this?”
Jin Dong-ki wanted to know the bankers’ true intentions. Was this a mere warning, or was the situation so dire that they intended to dismantle the company?
The chief creditor, the president of Jinhan Bank, spoke up.
“We need to survive too, don’t we?”
“What?”
“We’re not singling out Sunyang. We’ve already given Daehyun the final notice. The defaults of both groups threaten all our banks. It’s a matter of survival.”
“We’re not talking about personal survival. The banks themselves are at risk. We can’t let foreign capital take over the financial sector again, can we?”
“Is this a directive from the Blue House?”
This was the question Jin Dong-ki most wanted to ask. If the Blue House had issued an ultimatum through the banks, he would have no choice but to comply.
“The Blue House has repeatedly stated it won’t intervene. Understand? If you’re hoping for government-level financial support, forget it.”
It was indeed an ultimatum. There was no point in negotiating further with them.
Before the creditors took over the company, he needed to find a way to tie them up.
“Give me a week. Surely you won’t refuse me that much time?”
Without waiting for an answer, Jin Dong-ki left the room.
“They’re right. The government has washed its hands of this. They’re whining about not having enough money to prop up small businesses. They think we and Daehyun can handle it at the group level.”
“Will they help?”
“That’s the Blue House’s delusion. Thinking we’re one big family. Daehyun’s no different. Rumor has it Chairman Joo Tae-sik is determined to oust Joo Min-sik and let him wither away.”
Vice Chairman Jin Young-ki looked as if he were watching an entertaining drama.
“And you, brother? Are you waiting for me to wither away too?”
“Of course. Why should I save you? Did you expect a brotherly bond of loyalty?”
Jin Dong-ki bit his lip as his brother poked fun at him with a sly smile.
“I’ll give you Sunyang Petrochemicals and Sunyang Precision Machinery. You and your family can keep your personal assets. But hand over all your group shares. Then I’ll take responsibility for this mess.”
Despite his bravado, Vice Chairman Jin Young-ki couldn’t stop a trillion-won deficit.
He’d drag out the restructuring of subsidiaries as a self-rescue plan, lobby hard, and eventually borrow more bank money. The deficit would only grow.
Jin Dong-ki saw no point in continuing the conversation with a brother whose sole aim was to seize his shares. He knew it was better to negotiate with the main creditor.
He could only hope the creditors would be more lenient than his brother.
“Vice Chairman Jin, we can’t touch your personal shares, but… Sunyang Construction and Heavy Industries’ shares, HW will take those. That means the subsidiaries and a few affiliates under those two companies will fall into our hands.”
His brother wanted the construction and heavy industries shares Jin Dong-ki held, while the creditors wanted the shares those companies held in other affiliates.
Even if they did, the banks would reorganize everything once the company defaulted.
“Chairman Lee, you’re not going to change your mind, are you?”
Jin Dong-ki didn’t want to beg. He knew it wouldn’t work with someone like Chairman Lee.
At least he was rational and logical. He wouldn’t demand shares outright like his brother.
“No, I’m not changing my mind. Securing at least 25% of Sunyang’s affiliates is a professional manager’s duty, not a matter of sentiment.”
To Jin Dong-ki, this man was the most intimidating.
He had a clear understanding of Sunyang Group’s structure.
He’d probably already numbered the affiliates and calculated what to take first.
“I know you won’t give up the group’s controlling shares. So there’s no choice but to take it piece by piece.”
Jin Dong-ki steeled himself.
“I’ll fight with everything I have. You won’t take it easily. It’ll be a long battle, and we’ll both bleed. I, Jin Dong-ki, still have that much strength.”
“Sounds like you’re planning to rely on political power to extend your life. But do you really still have that power? Those people can turn on you in an instant. You know that, right?”
“Try me if you want. I’m just suggesting we save ourselves the sweat and blood. Tell me what you want. HW lacks heavy industry, so if you extend the credit, I might give you a few related companies.”
Chairman Lee chuckled.
“Sunyang’s glory was buried with Chairman Jin Yang-cheol. If you don’t know that yet, I’ll make sure you do.”
Chairman Lee placed his smartphone on the table and turned on the speaker.
The screen displayed the word “Prime Minister.”
“Prime Minister, it’s Lee Hak-jae.”
“Oh, Prime Minister, I’ve given up on golf. The skill gap is too wide for a rematch.”
Jin Dong-ki’s expression hardened as he listened to the friendly phone conversation.
“Prime Minister, I’ve finished discussions with Chairman Joo Tae-sik of Daehyun. HW will take over the construction division and save it. So there won’t be any fires spreading because of Daehyun Group.”
“Well, that’s a relief. Thank you. I’ve been worried sick that we might face another crisis like the IMF one… By the way, have you wrapped things up with Sunyang?”
“Not yet. Daehyun’s separation is clear-cut, so there aren’t any major issues, but Sunyang’s ownership is all tangled up. I’ll do my best to resolve it quickly.”
“I’d appreciate that. Jindong-gi has been stirring up trouble everywhere, and it’s becoming quite a headache. I thought our government’s stance was clear enough… I can’t tell if he’s just oblivious or overly ambitious. He doesn’t know when to step back.”
“It’s my fault. I’m sorry for causing you any discomfort, Prime Minister.”
“Oh, not at all. We’re actually grateful that the HW Group is supporting the struggling construction industry. And as Chairman Lee mentioned, we’ve confirmed that Miracle brought in 12 billion dollars. Thanks to that, we can breathe a little easier. Thank you.”
“You’re too kind. It’s only natural to do what’s necessary to defend the exchange rate.”
“Well, keep up the good work. Keep me updated on the Sunyang situation. And if Jindong-gi doesn’t listen, let me know. We’ll get the tax office involved and shake things up. Just a little nudge, and all the dirt will come out. If he wants to be humiliated, we’ll make sure it happens.”
After ending the call, Chairman Lee Hak-jae turned to Jindong-gi with a smile.
“Looks like you’ll need to use your influence to persuade the Prime Minister. Of course, we both know the Prime Minister’s wishes align with the Blue House…”
Jindong-gi, pale as a sheet, couldn’t tear his eyes away from the smartphone screen after the call ended.