Splitting the Pie?
“What’s the plan for the name? Are you keeping Sunyang, or thinking of merging it with HW?”
“While most companies acquired by Daehyun Group are being merged with HW, we haven’t decided on Sunyang yet. I’ll need to discuss it with my eldest uncle. Of course, Chairman Lee Hak-jae will have the final say.”
“Why? Are you using Chairman Lee as a front to hide the fact that you’re the owner of Miracle and HW?”
His eyes gleamed with understanding, and I couldn’t help but smile at his misconception.
“I have no reason to hide it, nor do I intend to. HW Group is the one acquiring the construction company, so it’s only natural for Chairman Lee to take the lead. You can tell my eldest uncle that I’m the owner of Miracle; it doesn’t matter to me.”
“Wouldn’t it be better to keep it under wraps? The suspicion towards you…”
“Uncle, just tell me what you want. I appreciate your advice.”
He let out a short groan before speaking with difficulty.
“I want to make sure your cousins are taken care of.”
In the end, it always comes down to worrying about one’s children.
“What would you like me to do? If you want a subsidiary, I can consider it.”
“Don’t insult me any further!”
As the second son of Sunyang’s founder, he was considered the most capable among his siblings and held a vice-chairman position in the group. A dignified retirement would be preferable to the disgrace of running a small shop.
“I’m sorry. I spoke without thinking. Do you want to continue working with the group?”
“Is that possible?”
“With Tae-jun’s good reputation, there shouldn’t be any issues. But hasn’t Sung-jun never really been involved in the group?”
“He’s only worked at the European branch for a year, but he can’t just drift around forever, can he?”
“Understood. I’ll discuss it and find a position. However, I’ll make it clear to the head of the subsidiary: if they can’t handle the role, they can be let go at any time.”
Though my words were harsh, he nodded in agreement.
With Vice Chairman Jin Dong-ki’s influence, creating a small subsidiary is no problem. It’s a safety net for his children when they’re cornered. For now, staying attached to the main body is more important.
“Without their father’s backing, it’s only natural. That’s enough for me. But…”
“Don’t worry. I’ll ensure they have important roles.”
I reassured him, knowing he feared they’d be given idle positions with no real responsibility.
“Is there anything else you need?”
My second uncle handed me a document.
“These are my shares. Most are worthless now that the subsidiaries have been stripped away, but there are still some valuable ones left.”
I quickly scanned the list. The valuable shares were in electronics and trading, though not in large quantities.
In the final battle, even a single share could be crucial, so I was grateful. Showing me these shares was a gesture of negotiation.
He wasn’t someone who wanted money. He was far too shrewd for that.
“I’ll keep these shares buried. I won’t hand them over to your uncle. Remember that.”
“When I need them most… and of course, when my eldest uncle needs them most too.”
“You’re quick-witted. I’m curious to see how valuable these shares will be then.”
A smile played on his lips, and I mirrored it.
“Think carefully. They might not be worth much. It’s unlikely such a small stake will change the tide.”
“You don’t invest based on odds alone, do you? I’ll trust my instincts too.”
I understood his desire not to miss the last opportunity. But he seemed to forget that he was aging.
Time changes everything, and if he doesn’t change, he’ll only suffer.
“Very well. I’m curious to see if your predictions are accurate, Uncle.”
We exchanged smiles, though one of us might have been forcing it.
“Looking at Chairman Lee, I’m envious. Having such a powerful backer… no, an incredible backer, allows him to sweep up everything. Remember during the IMF crisis? He bought up Ajin and Dae-ah when they were struggling for cash, right?”
Vice Chairman Jin Young-ki joked in front of Chairman Lee Hak-jae. To him, Lee was nothing more than his father’s eternal lackey.
Now, this lackey was trying to take one of the three legs supporting the Sunyang cauldron, and it made Jin Young-ki uneasy.
“Do you think it was just money? It was about seizing the opportunity. Isn’t that the essence of management? Haha.”
Mocking Jin Young-ki for missing the opportunity, his eyes narrowed.
But now wasn’t the time to dwell on past glories, so he quickly composed himself.
“It’s a shame. I never imagined such a chance would come.”
“Let’s forget the past and focus on cleaning up the fragments. We shouldn’t let tangled shares cause any unnecessary conflict, should we?”
“I agree. Dong-ki is my brother, so that’s one thing, but HW and Chairman Lee are complete outsiders, aren’t they? Well, not complete outsiders. After all, Chairman Lee was once the master of our household’s annex.”
This time, Lee Hak-jae’s eyes narrowed.
Master of the annex…!
The annex was where the servants lived, along the main gate and walls.
He was likening him to a servant.
“Those were good times… Sunyang shone brightly under a proper master, didn’t it? Compared to then, it’s only half of what it was, so I’m not at ease.”
Jin Young-ki implied that he wasn’t a proper master.
Both men knew they couldn’t continue exchanging sharp words. As if on cue, they lifted their teacups to dispel the awkward atmosphere.
“We’re all familiar with each other’s shareholdings, so how should we proceed?”
Jin Young-ki, having set down his teacup, spoke smoothly.
“Vice Chairman, you know well, but I don’t. I’ve heard the share structure changed a lot after I left Sunyang… or rather, the annex, so I can’t speak carelessly.”
“That’s just a matter of revealing our shareholder lists and discussing exchange ratios.”
Lee Hak-jae gave Jin Young-ki a sly smile.
“You want a complete separation. In that case, shouldn’t there be one more person here?”
“Who?”
“Jin Do-jun. Sunyang Construction and Heavy Industries hold some shares in Sunyang Financial affiliates. If Sunyang and HW are to draw a clear line, shouldn’t Do-jun be involved too?”
With all three parties holding onto each other’s tails, a clean break requires cutting all ties at once.
“That’s a matter for HW and Do-jun to handle. I plan to settle with Chairman Lee and then separately with Do-jun…”
“That won’t do. Without a clear line between Do-jun and the Vice Chairman, there won’t be a complete separation.”
“So, Chairman Lee wants a clear separation. It sounds like you want to split Sunyang into three.”
Lee Hak-jae didn’t miss the small smile on Jin Young-ki’s lips.
“If you don’t like it, we’ll have to maintain this ambiguous relationship. I won’t consider settling the shares without a clear separation.”
“Well… it seems we’ll have to arrange a three-way meeting. Understood. Let’s set it up.”
“Before that, know this: I won’t settle based on the stock’s market price. I’ll negotiate under conditions beneficial to HW. As you said, with a strong backer, money isn’t a concern.”
Chairman Lee Hak-jae threw down a challenging task and stood up.
While the two negotiated the division of affiliates, I was exploring the possibility of uniting them.
“Mr. Jin, the reason we hold shares in Sunyang Electronics and Trading is because they’re consistently profitable and safe. We can’t abandon profit and safety when managing our clients’ money.”
“Director, clients don’t care about that. As long as there’s profit, they’re satisfied. They’re not interested in where the bank invests, as you well know.”
“But dumping them on the market is riskier. If that volume hits the market, the stock price will drop, causing immediate losses.”
The bank director, holding over 5% of shares in electronics and trading, looked troubled.
With high stock prices, many institutions had secured shares as if they were savings. They wouldn’t easily dump them on the market, meaning less than 20% of the total shares were actually traded.
“There’s an investment firm willing to buy those shares. They’ll snap up everything you throw, which will actually drive the stock price up.”
“Is that firm Miracle?”
“Miracle is one of them, but…”
The bank director scrutinized me before speaking slowly.
“Mr. Jin, I know how influential you are in the financial sector. I’d like to grant any request you make. But consider Sunyang Electronics as our long-time partner. No, all four major banks have been partners. We support their stock prices, and in return, they provide us with substantial fees and interest.”
He took a short breath before continuing.
“It’s no secret that Miracle is targeting Sunyang, and you’re involved too, right? But it’s hard to accept foreign capital taking over a Korean symbol. I’m sorry.”
His words sounded reasonable, but it was fear of retribution. He saw Jin Young-ki, the eldest son, as Sunyang itself and treated him as his lord.
Chairman Lee Hak-jae’s words echoed in my mind.
Strong! Really strong.
They call it the Sunyang Republic, but it’s more like the Sunyang Kingdom. The principle of primogeniture is deeply rooted. It’s almost frustrating how much my grandfather has entrenched himself in Korea.
Other places weren’t much different. Some were willing to sell at a premium, but their shares were like grains of sand on a scale.
Of course, I had to scrape up every last bit.
I changed my mind. The division of affiliates must be approached with extreme caution.
“Vice Chairman Jin Young-gi wants complete independence. He’s definitely scared of you.”
“We missed something.”
“Missed something?”
“Yes. It’s not just about running away in fear; he’s burning bridges so we can’t follow.”
Chairman Lee Hak-jae’s eyes widened.
“Is it that serious?”
“Yes. Once the spin-off is complete, he’ll have a perfect control structure in place. An unshakeable fortress.”
“No wonder… He seemed a bit too eager when he suggested the separation.”
“Let’s keep pushing. There will be gaps, and eventually, those gaps will widen.”
“And in trying to fill those gaps, he might make mistakes?”
“Exactly. Anxiety clouds judgment.”
Chairman Lee pondered for a moment before speaking.
“What about the institutions? Are they stubborn?”
“Yes, more than I anticipated. There’s only one way to get them on my side.”
“When Vice Chairman Jin Young-gi appears weak?”
“That’s right. It all comes down to that. We need to attack relentlessly until they believe Jin Young-gi could fall. Then this battle will end in an instant.”
“Like a lightning strike, over in a flash.”
It was a familiar saying.
“Grandfather used to say that all the time. No matter how difficult things seem, everything can be resolved in the blink of an eye.”
When I spoke with determination, Chairman Lee patted my back and laughed.
“Let’s celebrate the halfway success for now. You’ve worked hard.”