Vice Chairman Jin Young-gi was all smiles, clearly in a good mood.
“Come on, let’s wrap this up quickly and grab a drink. We’re not strangers here; a little compromise should do the trick, right? Chairman Lee, whom my father trusted the most, his beloved grandson, and me, the eldest son. It would have been great if we could all work together…”
His words seemed sincere enough.
Of course, that would be if Chairman Lee continued to handle all the dirty work like he did for the grandfather, and the smart nephew was busy growing his personal wealth as a fund manager.
“Sorry, but I’ve never once imagined us working together.”
Chairman Lee smiled, but the smile quickly vanished from his uncle’s face.
“Do you have to put it like that?”
Their eyes locked, sparks flying between them.
Whether Chairman Lee’s words were meant to provoke or were genuine, the tension was palpable from the start.
“Let’s just get to the point. State your terms and let’s finish this.”
Chairman Lee ignored his uncle’s glare. When emotions run high, even the smallest conditions become hard to concede.
“Hmm… fine, let’s get this over with. How much are you asking for?”
The stocks held by the construction and heavy industries division were worth far more than those held by the electronics and services division.
His uncle first inquired about the difference in stock values. Agreeing on this difference would make the deal straightforward.
“Let’s start at twice the current market value.”
“What?”
“The stock price of Sunyang Electronics is on the rise… while construction stocks are on a downward trend.”
Sunyang Construction and Heavy Industries stocks were in the 10,000 won range.
Sunyang Electronics was nearing 1 million won. The market price was already a hundredfold difference. Twice that would mean two hundred times.
One electronics stock for 200 construction stocks—Vice Chairman Jin Young-gi was left speechless.
Even the 10,000 won was a slight increase due to rumors of Sunyang Construction’s recovery. But the overall decline in construction stocks continued.
“What are you trying to pull here? Are you looking to make a quick buck with a stock swap? Isn’t our goal to reclaim our shares? Twice the market price? That’s absurd!”
“As representatives of a market-driven company, isn’t it natural to base our decisions on market prices? If you don’t like it, feel free to propose a ratio you find acceptable.”
“Chairman Lee, let’s just swap all the stocks and I’ll pay extra. Just name the amount. But don’t say something ridiculous like two hundred times.”
“I did say two hundred times was just the starting point, didn’t I?”
“What?”
“Construction stocks had a brief uptick but are falling again. Miracle predicts they’ll hover around the 5,000 won mark for the foreseeable future.”
Chairman Lee frowned, frustrated that Vice Chairman Jin Young-gi hadn’t caught on to his intentions.
“The longer you delay the stock swap, the more favorable the exchange rate becomes for me. So, it’s just the beginning.”
Both knew exactly what stocks the other held.
Vice Chairman Jin Young-gi calculated the additional amount he’d have to pay. It was a daunting sum, one he couldn’t easily manage.
The era of feature phones was giving way to smartphones. Not just in Korea, but globally, production facilities were undergoing astronomical investments to adapt to the smartphone era. The group’s reserve funds weren’t abundant.
Chairman Lee employed the most common and effective method to derail the deal.
The money didn’t add up.
No matter how favorable the other conditions were, if the money wasn’t right, the deal wouldn’t go through. Negotiations are about aligning the money, and contracts are made when both parties agree on an acceptable amount.
“Vice Chairman, no matter how important it is to reclaim your company’s stock, the money has to be right. I’m not asking for more. I’m just suggesting we stick to market prices. If you’re hesitant, doesn’t that mean you don’t want to make the deal?”
Chairman Lee turned to me, signaling for my opinion.
“Honestly, I’m not interested in Sunyang Construction and Heavy Industries stocks.”
With my negative stance, my uncle’s expression soured even more.
“I’ve already bought a ton of Sunyang Construction and Heavy Industries stocks. Heh.”
“What?”
Both men turned to look at me.
“Why wouldn’t I buy stocks that have hit rock bottom? I’m looking at a year.”
“A year?”
My uncle asked.
“Won’t they stabilize in about a year? Then they’ll easily surpass their previous price of 30,000 won. Investments that yield five to six times in a year aren’t common. Sunyang Securities has also bought quite a bit.”
The problem with institutional investors is performance. They always need to show results, even in the short term, so they can’t even think about long-term investments. But since I told them not to be obsessed with short-term performance, they’ve started making stable long-term investments.
“Also, I’m not particularly eager for the Sunyang Financial Group stocks you both hold.”
Realizing the deal was off, my uncle bit his lip.
“Even the smallest shareholders holding Sunyang Financial Group stocks support me. They’re not foolish enough to oust Korea’s young investment prodigy. Since I took over the financial group, the stock price has more than tripled. As long as the small shareholders support me, friendly shares are enough to defend management rights.”
I glanced at both men and shifted the responsibility.
“There’s no need for me to step in if you two can’t agree. Come to an agreement and let’s meet again. But I won’t offer stocks at market price. I want a premium that includes the long-term investment gains.”
The deal was off. With only one person at a disadvantage, no conclusion would be reached even if the three of us put our heads together.
“Please continue your discussion. It seems like you need more time.”
I slipped away before my uncle could corner me with a lengthy conversation.
When Chairman Lee entered the conference room, dozens of people stood up.
As he walked to the head of the table and sat down, everyone carefully took their seats, trying not to make a sound.
Chairman Lee looked around the room, seemingly lost in thought.
The people gathered here had bowed their heads to him for some time. But their gazes were always directed at Chairman Jin Yang-cheol behind him. Today was different. Their eyes were solely on him.
“It’s been a while, and I see many familiar faces.”
The word “familiar” was ambiguous.
Whether it was a joyful reunion or a gritted-teeth familiarity, the meaning varied for each person.
“First, thank you for your active cooperation during the acquisition process. For the time being, I don’t plan to discard the name Sunyang. But aside from the name, many things will change.”
The people in the conference room were pleased to hear the name would remain, but the mention of changes was unwelcome.
It meant personnel changes. This implied a reshuffling of staff.
“First, we’ll review all subsidiaries from scratch. Any subsidiary that only drains money without a clear role will be dismantled, and any corruption found in the process will be prosecuted.”
Some people already looked pale.
“The same goes for the parent company. The audit team will thoroughly investigate those who contributed to the company’s insolvency. Also, anyone who holds a position solely due to loyalty to the owner family, without any real ability, will be asked to vacate their desk immediately.”
This meant starting with Vice Chairman Jin Dong-gi’s close associates, leading to many executives losing their positions.
“I’m the chairman of HW Group, but I don’t own a single share of HW Group stock. I’m a complete professional manager. You will all become the same. Once the group personnel changes are complete, evaluations will be based solely on sales, profits, and stock prices. I won’t be returning to this building for work instructions.”
The Sunyang headquarters’ conference room was filled with a mix of joy and disappointment, fear and excitement. Emotions were mixed between those being ousted and those poised to take their places.
While Chairman Lee played the conqueror in the conference room, the son of the dethroned king sat in my office, looking anxious.
“Had a tough time? How many days were you in the detention center?”
“Not long. I was under investigation, though.”
“They decided not to prosecute?”
“Yeah. Once my father surrendered to the creditors, that was the conclusion.”
Jin Tae-jun seemed to have accepted reality. He neither showed anger nor resentment towards me.
“I assume you’ve heard everything from Uncle?”
“Yeah. I also learned about your true self.”
If he knew, he should have shown some respect, but perhaps because of his father’s loss, his eyes were devoid of spirit.
“Then, instead of Uncle’s thoughts and plans, tell me what you think. I’ll do as you wish.”
“Are you serious about the promise you made to my father?”
“About keeping your position? Yes, I’m serious.”
“Without any conditions?”
“No, there are conditions.”
Jin Tae-jun’s previously lifeless eyes changed.
“All reports must be made only to me and Chairman Lee.”
“So, you’re telling me to keep my mouth shut about company matters to my father.”
“Isn’t that obvious?”
“And?”
“The most important thing: do your job well. Very well. I have high standards. If I think you’re not up to the task, you’ll be dismissed immediately.”
“Anything else?”
“Not from me. But Chairman Lee might have something.”
He’s no longer a third-generation chaebol. Being a chaebol’s cousin is the privilege he has.
For ordinary people, it takes immense time and effort to secure such a position, but he got it easily. However, the way to keep it is the same. He must demonstrate the ability that suits the position.
A cold evaluation without privileges. Jin Tae-jun had never experienced this, but now being evaluated by others would become routine.
He stood up, speaking firmly.
“I should meet Chairman Lee first.”
“Have your interview and let me know.”
“Sure.”
I called out to him as he was about to leave.
“Tae-jun.”
He turned slowly.
“From now on, you’ll have to keep a phrase on the tip of your tongue, something you’ve never said before. Like ordinary people. If you can’t think of it, there’s no point in having an interview with Chairman Lee. You won’t pass.”
He stood still for a moment, surprised by my unexpected words.
He wasn’t slow-witted. Remembering the phrase he’d forgotten all his life, he smiled.
“Thank you, Do-jun, for giving me this chance…”
“At this rate, he won’t be labeled as incompetent.”
“So, what do you think? About Tae-jun?”
“He’s pretty calm, isn’t he? I never really paid much attention to him since he grew up without causing any trouble.”
“Do you think we can trust him with some responsibilities?”
“Honestly, there are plenty of people like him. If it weren’t for family ties, is there any special reason to favor him?”
“Since it’s a request from your second uncle, I’ll oblige, but if the chairman isn’t keen, I’ll take him under my wing. There are plenty of positions equivalent to a financial director.”
“No, he hasn’t done anything wrong, so we should keep our promise. Let’s observe him a bit longer.”
Chairman Lee didn’t seem inclined to be overly harsh, considering Vice Chairman Jin Dong-ki.
“But Do-jun.”
“Yes?”
He suddenly lowered his voice, scrutinizing my expression.
“There’s a place holding 2.8% of Sunyang Corporation’s stock. I’ve made contact… What do you think?”
“Do you even need to ask? We should definitely acquire it. Who is it?”
“It’s Korea Land Trust.”
Korea Land Trust is a specialized real estate investment finance subsidiary under the Ministry of Land, Infrastructure, and Transport’s Korea Land and Housing Corporation. However, with the current administration, they’re pushing for privatization by transferring shares to the private sector.
“Given their close ties to domestic apartment construction, they probably want to maintain a good relationship with us now.”
HW, having acquired Sunyang and Daehyun, has become the leader in the construction industry. It’s no surprise Korea Land Trust is reacting this way.
“But they expressed interest in meeting you.”
Huh? Why me? Construction isn’t even my field.