Chapter 56
Chapter 56
Translation: Godtl
Bonds.
It's not just financial institutions—ordinary people often engage in bond trading too.
But the world of bonds was far more headache-inducing than one might think.
Among the most common mistakes is misunderstanding the relationship between interest rates and bonds.
Most people assume that when interest rates rise, bond prices will rise as well.
But in reality, the opposite is true.
When interest rates rise, bond prices fall.
Since bonds pay a fixed interest rate, they inevitably become less attractive when interest rates rise.
For this reason, government and corporate bond prices fluctuate—falling or rising—in response to interest rate changes.
Recently, as the U.S. ended its zero-interest-rate era, it had been gradually raising rates.
Other countries followed suit by increasing their own interest rates, and after Brexit, market volatility only intensified.
Korea was no exception—with rising interest rates, bond prices had been on a steady decline.
"I heard the news. You're gathering bonds from Geum-u Shipbuilding, is that right?"
It was President Kim Du-yeong, who'd been saying since last time that he wanted to have a meal together.
Today, we finally met one-on-one.
"Ah, yes. Thanks to Gwangun Shipping working so diligently, all marine plant bond prices have hit rock bottom."
Amid rising interest rates and falling bond prices...
The shipping industry was in dire straits.
Gwangun Shipping was sweeping up all available contracts, and with crude oil prices skyrocketing, the Asian market was practically decimated.
In this climate, who in their right mind would buy bonds from shipping companies?
Of course, I thought it was insane too.
But my instincts were laser-focused on those very bonds.
"How much did you buy them for?"
"At 10% of their value."
"...At a 10% discount?"
"No. I mean I bought them for one-tenth of their original price."
"!?"
President Kim Du-yeong froze mid-sip, his wine glass trembling in shock.
"W-wait. You're saying banks actually sold them at that steep a discount?"
"You know how Singaporean banks are facing a bank run right now. They had no choice. If those companies enter bankruptcy or restructuring, who knows when they'd ever see their money again."
So they dumped them.
At first, the banks held out.
But as rumors of the shipping industry's collapse spread and no one stepped in to buy the bonds, they eventually gave up and offloaded everything.
They needed cash—immediately.
"As expected, you're remarkable. Deputy Director Jeong's blueprint is unfolding perfectly."
"...Blueprint?"
"Heh. I know exactly what you're doing. You're buying up bonds to minimize the debt of the companies you plan to acquire, aren't you?"
Truthfully, even as I purchased the bonds on instinct, I was half in doubt.
Why on earth were my instincts reacting to bonds?
And not just any bonds—those of companies on the verge of collapse?
Then it suddenly hit me.
What if the intention was to acquire those companies?
But of course.
President Kim Du-yeong was thinking the same thing.
"Honestly, it's a shame. There aren't many shipping companies like ours holding this much oil inventory, yet we have to turn away overflowing contracts and outsource them to other companies. If we could take all that for ourselves, wouldn't the profits be substantial?"
That much was true.
We had outsourced some work, yes.
But if we could handle everything ourselves without sharing the pie, the returns would be even greater.
"So that's why you're acquiring companies one by one as they shut down, right? Starting with Geum-u Shipbuilding. That's how the current Gwangun will be reborn as a conglomerate. Haha. What do you think? Sharp eye, huh? I might seem slow, but my instincts are lightning-fast. Haha."
There's a saying: the interpretation matters more than the dream itself.
Is this what it refers to?
But a conglomerate...
That was a promising direction.
If we formed a conglomerate now, my older brother would have no choice but to step down as president and ascend to chairman.
Ah, hyungnim.
You may have submitted your resignation, but I doubt it'll be approved.
"Just say the word if you need anything. If Deputy Director Jeong orders it, I'm ready to leap into a pit of fire without hesitation!"
But forming a conglomerate was no easy feat.
It required an extremely cautious approach.
One misstep could send shockwaves through the entire structure.
"What are your thoughts, President?"
"Well, buying Geum-u Shipbuilding's bonds means you plan to acquire them first. But Geum-u builds ships—they don't operate them, right? So we'd need a company to charter the vessels they produce. That means our immediate priorities are Geum-u Shipbuilding, a chartering company, and a holding company to consolidate everything under one conglomerate. Those three would come first."
"So that's the baseline, then?"
"Yes. Literally the bare minimum. But to take down the entire market, we'll need far more companies than this. We could either incorporate them as subsidiaries within the group or outright acquire them."
Every maritime company out there must be grimacing right now.
Their stock prices alone tell the story.
But for us, on the contrary, there couldn't be a better opportunity than this.
To snap them all up at bargain prices and secure the resources we need.
"Speed will be key. Sure, oil prices are skyrocketing now, but they could stabilize again, and it's not like we have an infinite supply of petroleum either."
Meaning we had to grab everything we could before this discount period ended.
"Seems like you'd have better insight in this field than our research team, sir. Could you provide a list of companies that look promising for acquisition?"
At that, Chairman Kim Du-yeong smiled faintly, as if he'd been waiting for those very words, and handed me a file.
"I actually prepared this in advance. Didn't I tell you? I've got a good eye. It's how I clawed my way up from the bottom to the executive suite, haha."
He wasn't wrong.
Now I understood how this chairman had risen from entry-level to the boardroom.
"...!"
The moment I opened the file Chairman Kim handed me, an electric current seemed to surge through my entire body.
Just as I'd guessed—after acquiring Geum-u Shipbuilding, the plan was to devour other related companies one by one to build a massive maritime conglomerate.
'This one feels absolutely right... but this one gives me nothing.'
I skimmed through the materials rapidly, checking only those that sparked my intuition.
"Here you go."
"Huh? A-already?"
"Yes. I think we should prioritize acquiring the companies I've marked. Since you're more familiar with this sector, sir, I trust you can handle it?"
"Pfft. Of course. This is exactly why you're sitting here."
"If I come across any additional companies worth acquiring later, I'll let you know separately. For now, let's start with these."
"Understood, Department Head."
It felt oddly unnatural—a chairman, and one far older at that, addressing someone decades younger as "Department Head" with such deference.
"And feel free to speak casually. We're family now."
"Ahem. R-really? That's... touching. Calling us family and all."
"Yes. It's more comfortable for me too."
"Haha. Thanks. But anytime you need something done, just say the word. When our Department Head Jeong gives an order, I'd jump into a pit of fire—that's no empty promise."
"Got it. Thank you, Chairman."
"Oh my, you're making me blush. Haha."
Now I understood why my intuition had singled out Chairman Kim Du-yeong from all those executives.
He was exactly the talent our company needed.
＊＊＊
Could there have been another dinner as meaningful as yesterday's?
Chairman Kim Du-yeong emerged from an exceptionally satisfying meal.
"It's the character, the character."
The more you saw him, the more you realized he was the real deal.
He must have already mapped out the entire blueprint in his mind, yet he still made a point of considering Chairman Kim's opinions with respect and care.
As proof, Jeong Jin-ho had received the company list, checked it with startling speed, and handed it right back.
Meaning Jeong had long since calculated which companies to acquire—even before Chairman Kim had compiled the list.
"At that level, he'd have every right to be arrogant."
This was someone making astronomical profits through spectacular plays at Gwangun Securities.
There was a reason Chairman Hwang Dae-un cherished him so fiercely.
At his age, he could easily have grown arrogant, yet not a trace of that showed in Jeong Jin-ho.
Despite that genius intellect, there was something...
Almost pure about him, you might say.
Though sometimes, that very quality felt unsettling.
Because the more someone was like that, the more inscrutable their true nature became.
"But... this is unexpected."
Returning to the office the next morning and reviewing the list Jeong had checked, Chairman Kim tilted his head in puzzlement.
"Most of these are Chinese companies?"
Of course, Kim had compiled the list himself.
But those were just reference points—not strong recommendations for actual acquisition.
Yet Jeong had marked predominantly Chinese maritime companies.
"China's a bit of a hassle."
Acquiring domestic or other foreign companies wouldn't be so complicated. They could simply buy up all the bonds currently on the market at bargain prices, then acquire near-bankrupt firms for minimal amounts through takeover strategies.
But China is different.
Many of their companies are deeply entangled with the Chinese government, and if they decide to interfere, things will get complicated.
"Well, if there's any silver lining, it's that they don't pay much attention to the shipping sector."
Under the pretext of national security, Chinese agencies like the Ministry of Commerce tightly control state-owned enterprises and key national industries, thoroughly blocking foreign capital.
Perhaps Jeong Jin-ho had taken that into account when selecting these companies.
Since the scale of these enterprises wasn't particularly large, it was unlikely that sanctions would be imposed even if foreign capital acquired them. After all, the Chinese government had too much on its plate to micromanage every small-scale company like these.
Still, it was odd that the list was overwhelmingly skewed toward Chinese firms.
"Honestly, acquiring companies elsewhere would probably be more profitable."
There were plenty of assets up for sale in Korea.
Since it was domestic, acquiring them would undoubtedly be much smoother.
If not Korea, Europe would've been fine too.
So why China, of all places?
And why small-to-medium-sized private enterprises at that?
"..."
Should he call and ask?
Ask why only these were chosen?
"No."
Just the other day, CEO Hwang Dae-un had given him a crucial piece of advice.
It was practically a mantra that the people working under Director Jeong Jin-ho chanted every morning.
"Abandon your ego," he'd said.
Meaning, don't question the tasks assigned by Director Jeong Jin-ho.
Besides, hadn't Kim Du-yeong himself declared just yesterday?
That he'd jump into a pit of fire if Director Jeong ordered him to.
That was a promise—no matter what he was told to do, he wouldn't doubt it.
"Right. That's me."
Having settled his thoughts, CEO Kim Du-yeong picked up the receiver.
"Gather all the executives. Starting today, we're diving headfirst into acquisitions."
***
The acquisition process was in full swing.
Hwang Dae-un deliberately stayed out of it.
Once the gears were set in motion, Kim Du-yeong began darting around, snapping up companies left and right, so interfering would only get in the way.
As he'd mentioned before, this was a fire sale for Gwangun.
Companies were offering their shares at less than a third of their market value from a year ago.
But since there were no buyers, prices kept dropping further—until Gwangun Shipping swooped in like a savior and scooped up every last share.
The fact that even the Industrial Bank of Korea, once the largest shareholder of Geum-u Shipbuilding, had surrendered its stake without negotiation, practically begging them to take it, was proof enough that the maritime market was completely dead.
Except for one place—Gwangun Shipping.
'To think this was really the plan our Jin-ho had in mind.'
What a clever kid.
Had he kept silent back then because he wanted to surprise them with this?
A little gift?
Moreover, with Gwangun Securities and Gwangun Shipping working in tandem to acquire companies, CEO Hwang Dae-un had to hastily establish a holding company to navigate financial regulations and keep everything compliant.
As a result, while he'd been gradually easing off securities work to transition responsibilities, the workload had suddenly piled up like a mountain.
'Well, this is just great. Now I can't even retire when I want.'
Why did this remind him of Chief Minister Hwang Hui, who had repeatedly petitioned King Sejong to resign—only to be refused every time?
Still, work was enjoyable.
It meant the company was growing.
But that joy was short-lived.
"What the hell is this? A Ban on Korean Culture?!"
The Ban on Korean Culture—restricting Korea.
In other words, China was cutting off all avenues for Korea to make money within its borders.
K-pop, tourism, cosmetics, consumer goods, Korean supermarkets—everything.
They were suspending all Korean businesses operating in China and even inciting nationwide boycotts to strangle Korea economically.
"This is retaliation for the THAAD deployment. We had no choice but to deploy it to defend against North Korea's nuclear threats, but from China's perspective, it's infuriating. Sure, it's for North Korea, but the U.S. is essentially using our country to defend against China too."
"Damn it. Why do China and the U.S. keep screwing us over?"
"What can we do? Our country's location is a strategic goldmine. Anyway, because of this measure, all Korean businesses in China are shutting down."
The biggest immediate casualties were tourism and food exports.
The millions of Chinese tourists who used to visit Korea vanished overnight, and Korean supermarkets operating in China were forcibly closed.
Moreover, extreme incidents were occurring one after another where enraged Chinese citizens were rioting and completely destroying stores selling electronics like those from Kangsung.
"The biggest problem is shipping. China has declared they won't work with Korean shipping companies anymore. For domestic shipping firms that were barely staying afloat through trade with China, this is practically a death sentence."
China and Korea have maintained close trade relations.
Since Korea imports many raw materials cheaply from China, shipping companies had been barely scraping by relying on that business.
But now, that lifeline has been severed.
This would also deal a significant blow to Gwangun Shipping.
"But here's the thing. Far from taking a hit this time, we're actually poised to make even more money."
"Huh?"
"Didn't you notice while wrapping up the acquisitions? Director Jeong Jin-ho had President Kim Du-yeong acquire Chinese companies, didn't he?"
That had puzzled Hwang Dae-un too.
Out of all the countless companies, why specifically China?
"It seems President Kim Du-yeong pushed through the acquisitions quickly since there was so much to handle. The group's structure hasn't even been fully finalized yet, starting from the holding company."
"So?"
"In other words, while we've acquired these companies, we haven't erased their original names yet. Plus, there's still some Chinese capital mixed in."
"Are you saying... those companies are exempt from this ban?"
"Exactly. Even if they wanted to sanction them, they can't right now. You know how it is—with the recent oil price surge, Chinese shipping companies have collapsed en masse. So now, Chinese ports are overflowing with containers. There's no one to transport them."
Meaning, Gwangun would have to handle all that cargo volume.
"So the Chinese government is in a bind. They know full well these are companies we've absorbed, but if they sanction them too, we'll take a hit—but so will China, and the damage would be enormous."
"So they're turning a blind eye?"
"Yes. In fact, the public security bureau is practically begging us to clear the backlog quickly."
"Hah."
Hwang Dae-un let out a hollow laugh.
With the ban cutting off even the Korean companies that had been handling China's shipping, even more work had piled onto Gwangun.
The Chinese government knew.
They weren't fools—they were aware Gwangun had acquired Chinese shipping firms.
Yet, despite knowing, they weren't stopping it.
Had the acquisitions happened after the ban, they might have intervened, but Gwangun had bought them beforehand.
Most importantly, since the group restructuring wasn't complete yet, the Chinese companies' names still remained intact.
"Call it turning a blind eye, but I guess they're saving face in their own way?"
"Right. Even if we erased the names now, they wouldn't have a choice. The moment they block us, they'd have to turn elsewhere—and right now, that would cost them nearly double. It's either this or mutual destruction."
This was truly killing two birds with one stone.
While the ban was inflicting massive damage domestically, Gwangun was sitting back, poised to rake in even more money.
"Just how far ahead did that bastard Jin-ho predict this?"
"Maybe he saw this coming the moment he heard about THAAD being deployed in Korea?"
It was nothing short of razor-sharp foresight.
Thanks to that, Gwangun Group was on the verge of explosive growth.
"Congratulations, CEO. No—should I say Chairman now? Weren't you planning to hand the securities firm presidency to Director Jeong and step down? Looks like you're becoming Chairman instead."
"The inauguration hasn't even happened yet."
"Haha. That's just around the corner. And with China's help this time, our growth is going to be insane. At this rate, we're looking at a group of truly staggering scale."
Honestly, it still didn't feel real.
Back then, he'd vaguely thought, If I ever build a group, it'd probably be a financial one. But a maritime group? Never crossed his mind.
And at this speed, it would become the largest maritime group in the industry.
All I did was say I'd quit as CEO...
That bastard Jin-ho had tied Hwang Dae-un down for good—not just as a CEO, but as the chairman of a major conglomerate.
