Guerrilla Warfare. Part 1

On December 17, 2010, when a young fruit vendor set himself on fire in a small town square in Tunisia, no one could have predicted that his act would ignite a revolution that would topple dictators in Tunisia, Egypt, and Libya, and challenge regimes in Syria, Yemen, and Bahrain.

The news of the young man’s self-immolation spread like wildfire, sparking protests that, exactly 28 days later, led to the Tunisian president fleeing to Saudi Arabia, ending 23 years of dictatorship. This spirit of resistance would soon manifest in Mexicans standing up to drug cartels, Greeks marching against irresponsible leaders, and Americans gathering on Wall Street to protest income inequality.

2011 would begin and end with protests, and while Time magazine might name “The Protester” as Person of the Year, the world would not change so easily.

Since last year, there have been grim forecasts that, for the first time since industrialization, South Korea’s economic growth rate would fall below the global average. The government was worried, and so were the people, but my concerns lay elsewhere.

“There’s no better tool for image management. It’s far more impactful than the media. Post a message every day. The goal is to have people eagerly awaiting your messages.”

“Like a celebrity?”

“Quantitatively, yes, but the content must maintain dignity. Especially since the public will constantly ask which stocks to invest in. Ignore those questions completely.”

The era of social media had truly begun. Until now, I felt a twinge of guilt about the high salary I received as a PI expert, but now it was time to earn that pay.

“As I said before, even if I become an economic criminal, public opinion must remain in my favor. Remember that.”

Celebrities and politicians are in the same category of professions. Now, businesspeople are joining that category too.

In an age where every word can influence society, being a conglomerate leader is no easy task.

“Are you a celebrity? What’s with the grand showmanship?”

Chairman Lee Hak-jae laughed as he received New Year’s greetings.

“It’s worth the show. I saved 30 trillion won, didn’t I?”

“Do you put on a show at home too?”

“Pardon?”

“You must have paid New Year’s respects to your family elders. Did you put on a show pretending to be the dutiful youngest?”

“I’m not the dutiful youngest anymore; I’ve become the scary youngest. Everyone’s walking on eggshells around me. Of course, I haven’t even seen the family of my eldest uncle.”

My aunt, who was over sixty, didn’t want to retire and was eager to show she was still young. Her three sons, eager to take over the hotel business, were unusually flattering.

My second uncle, Jin Dong-ki, pretended to be indifferent but was still interested in the group’s internal affairs, while Jin Tae-jun treated me almost embarrassingly like a superior.

The third uncle, who had always been looked down upon, had clearly changed his tune. He hovered around my father, supporting his younger brother.

This was because his only son, Jin Kang-jun, whom I had once broken a leg of as a child, wanted to enter the entertainment business.

“Sucking up to a powerful, wealthy relative is the same in a chaebol family as it is in any ordinary family.”

Chairman Lee shook his head.

“Enough with the pleasantries. Let’s get to work.”

He tossed a file folder my way.

“This is a summary of the business matters you need to know this year. Review it and let me know your thoughts.”

“If you’ve approved it, just proceed.”

“I’ve only summarized the ambiguous ones, so check them. And this is Vice Chairman Jin Young-ki’s stock holdings and asset list from the end of last year. Consider it all exposed.”

This was more interesting than business.

I carefully examined the documents he handed over.

I had some idea of the asset movements, but there were unexpected details.

“He set up a foundation?”

“Yes, he did it suddenly at the end of last year. You can assume all of Vice Chairman Jin Young-ki’s personal assets went there. The foundation’s chairman is…”

“So he’s passing it on to his second son, Kyung-jun, in this way.”

“It’s too blatant. Usually, they do some show about social contribution or something, but this time he did it in secret. Not a single article came out.”

“This is basically saying he won’t pay gift taxes, isn’t it?”

“There’s more. Most of the real estate went to the foundation, but only 70 billion won in cash. From what I know, he should have at least 300 billion won in cash…”

This was proof that my uncle was on edge.

He either kept it as a contingency fund or didn’t transfer it to the foundation to secure shares.

If the foundation buys stocks, it’s as good as being owned by the second son.

“Kyung-jun will be grinding his teeth again, won’t he?”

“The more he gets angry, the better it is for you, right? Heh heh.”

“Internal strife is always welcome. So, the remaining issue is the movement of affiliate stocks.”

“Yes. It’ll be a headache.”

“There’s no perfect governance structure, is there?”

“Right. If even a bit of the so-called friendly shares’ support falters, it’ll be nerve-wracking.”

“Do you have any anticipated countermeasures?”

“Electronics and trading are too big to handle, so they’ll have to play tricks with the affiliates holding shares in the two main companies.”

“So, they’re solidifying the affiliates’ governance to prevent me from picking them off one by one?”

“Yes. Until you find a groundbreaking method, that’s all there is.”

I wondered about the caliber of talent surrounding Vice Chairman Jin Young-ki. What plans would they devise to defend the fortress and protect their master?

“Chairman, should we probe a bit before the succession process is complete? As a New Year’s gift, perhaps. To see what countermeasures they come up with… If we poke hard enough, we’ll see who ignores the blood and who wipes it away.

Target those who wear the mask of friendly shares but turn a blind eye. They are friendly shares and friends only to those who benefit them.

“Poke?”

“Yes. We’ll introduce a black knight to gauge their strength.”

“A black knight… Who? Miracle?”

“Yes. Since Miracle holds shares in the Sunyang Group, they’re qualified. But I’m thinking of bringing in Miracle from the U.S.”

“The headquarters?”

“Yes. Rachel is quite well-known in our country and is friendly, isn’t she? She’s also considering retirement, so we should give her one thrilling task before she goes.”

Chairman Lee counted on his fingers and clicked his tongue.

“Geez, is she even over fifty yet, talking about retirement? Has she hit fifty?”

“Retirement comes early in that field. And Rachel has lasted quite a while given her less aggressive nature. I heard she’s already preparing by buying a winery in Napa Valley.”

At the mention of a winery, Chairman Lee spoke enviously.

“Damn, should I move to the countryside and make makgeolli?”

“You’re a carnivore by nature; can you really become a herbivore? If you want, I’ll set up a brewery for you, so you can visit like a weekend farm. Don’t dream of rural life. You wouldn’t last a day… Heh heh.”

Herbivores in the countryside, carnivores in the city.

This is the modern jungle.

＊＊＊

“I do love a good threat.”

Despite the sudden contact, Rachel Arieff wasn’t surprised and had flown to Korea, her eyes sparkling with a smile. She looked like she’d found a fun new game.

“Come on, I’m serious. We need to maintain appropriate boundaries. If we’re not careful, the government might get involved. Sunyang Electronics is that important to Korea.”

“If it’s important enough for the government to get involved, why does your family control it? With such a small share, no less.”

I had no intention of debating corporate ethics with her, who couldn’t understand why Korean corporations ignored shareholders for personal gain, unlike normal companies where management worked for shareholders’ interests.

“Thanks to that, I can get my hands on the Sunyang Group. Isn’t it enough to apply moral standards in the U.S.?”

She shrugged, dropping the subject.

“So, will you publicly announce an aggressive M&A?”

“No. M&A isn’t possible right now. So, we’ll subtly leak it through unofficial channels.”

“Unofficial channels meaning the media?”

“Yes. If it’s Rachel, all the major media outlets in our country will line up for an interview. And in that interview, you can share your thoughts on corporations.”

She immediately looked disappointed.

“What? That’s your idea of a threat?”

“You know, the opposite of what Rachel considers a normal and desirable corporation is exactly the Korean chaebol conglomerate.”

“This is just criticism.”

“When you criticize, use Sunyang Electronics as an example. Then, with the journalists’ speculation and imagination, criticism will soon turn into a threat.”

Rachel, understanding the overall flow, laughed.

“You’re a tough opponent. You have a knack for subtle harassment.”

“That means my family is a tough opponent. It’s too difficult to strike directly.”

Her gaze didn’t reveal what she was thinking, but one thing was clear.

She pitied me, struggling to get what I wanted despite being one of the world’s wealthiest. She knew well that living comfortably was something you were born with.

＊＊＊

“Could you tell us the purpose of your visit to Korea?”

“Nothing special. It’s part of the routine work to check the management performance of HW Group, where Korea Miracle is a major shareholder.”

Journalists at the joint press conference kept firing questions, hoping to get a scoop from someone who moved massive amounts of capital.

“Miracle seems to have a special affection for Korea. From the emergency support of 10 billion dollars when foreign reserves were low to actively acquiring Korean companies.”

Rachel’s eyes sparkled at this question.

“The foundation of Korean companies is quite fragile. That’s why their corporate value is often underestimated, making them vulnerable to external shocks.”

“Could you clarify what you mean by that?”

“My statement is quite straightforward. It means there are plenty of opportunities to acquire good companies at a bargain.”

“What evidence do you have to support the claim that they’re undervalued?”

Rachel smiled as she looked at the reporter who was asking all the right questions. She suspected this reporter might have been planted by Jin Do-jun.

“For instance, take Sunyang Electronics. I saw a news report a few days ago that their stock price surpassed a thousand dollars. However, there are several American companies, about a third the size of Sunyang, that have long exceeded that mark. Sunyang’s stock should be at least double its current value, assuming certain conditions are met.”

Sunyang Electronics and double the value.

These words were like a feast for the reporters.

“To be recognized for their true corporate value, companies need to ensure transparency in management and protect shareholder rights. It’s hard to deny that the current structure of Korean chaebol conglomerates is unusually convoluted.”

The reporters were racking their brains, trying to come up with questions that would elicit even more sensational statements.

“Are you considering acquiring Sunyang Electronics?”

The reporter who had been waiting for this moment jumped in with the question.

Rachel took a brief moment to compose herself before speaking into the microphone.

“Great companies are always on the M&A list. Sunyang Electronics is no exception, of course.”

With that, Rachel wondered if she had given the answer Jin Do-jun was hoping for, and she wrapped up the interview.