Chapter 88
Chapter 88
Episode 88: Bouncing Off in the Wrong Direction
A meeting was in progress on the 32nd floor of MH Future Security in the MH Group building.
Shinwoo, the CEO, sat in the center seat, receiving reports on ongoing projects and their progress from the heads of each department and team leaders.
"Investment profit rate increased by 16.4% compared to two months ago. In the case of △△ Tech, losses occurred due to the relationship between Baeseong Corporation and its subsidiaries, but net profit was preserved at approximately 1.23 billion won."
"This is a real estate investment proposal. An 8-story building in △△ City, Gyeonggi Province, to be purchased, remodeled, and have a pharmacy and specialized hospitals move in..."
The reports were unremarkable. Each team was generating sufficient profits, backed by data and experience.
Shinwoo was aware of these details and could agree with them.
"It's not bad, so please proceed as is. Are there any other matters?"
In response to that question, Deputy Manager Na Jeong-hyun, sitting in the left row, raised his hand.
Na Jeong-hyun, along with most of the employees who had been part of the former Strategic Investment Headquarters, had moved to MH Future Security.
Even now, the former team leaders were sitting together in the conference room.
"Please speak, Deputy Manager Na Jeong-hyun."
"I would like to propose that MH Future Security acquire the distribution affiliate under Baeseong Corporation."
Everyone began to stir at those words. At the same time, the atmosphere became strange as the expressions of some employees turned sour.
"What's the reason?"
"Because it's the best way to strengthen the MH Group's distribution affiliate."
Baeseong Corporation had a more detailed and extensive distribution network than MH Retail, which only owned convenience stores and large supermarkets.
As he said, if MH Group acquired Baeseong Corporation's distribution affiliate, it could expand its power several times over.
"What is the current situation of Baeseong Corporation's distribution affiliate?"
Na Jeong-hyun, as if prepared in advance, looked at his tablet and said.
"Currently, Baeseong Distribution's stock price is in the 12,000 won range. Baeseong Super has fallen to the 15,000 won range. In addition, the debt ratio is 243%, while the current ratio is only 34%. They are barely holding on with cash flow, but I don't think that will last long."
Just looking at the market capitalization, both had fallen to the 650 billion to 260 billion won range, respectively.
But the problem lay elsewhere.
"Even if we acquire it, we have to take on their debt. Wouldn't that be too much?"
"MH Group can handle that part. Baeseong Corporation's image has been severely damaged by the successor competition and the anonymously reported ledgers. If MH Group acquires it, I believe it will be easy to escape that image and recover the break-even point."
It was an explanation that seemed to have been prepared for quite some time.
At the same time, Shinwoo stared intently at Na Jeong-hyun.
"Based on the data alone, it's not a bad proposal. But you know that we also have more than 70% of our liquid assets invested in projects, so it's not an easy situation, right?"
10 billion won in Livio Soft, 10 billion won in TSF Investment. A total of 20 billion won was being operated and invested outside of customer liquid assets.
The remaining 30%, or 6 billion won, was for employee salaries and other liquid assets.
Of course, profits were being steadily reported, but even if Baeseong Corporation was collapsing, it was still a large corporation.
Baeseong Distribution alone, with its falling stock price, had a market capitalization of over 200 billion won, so it was bound to be difficult.
"Isn't it possible with your abilities, CEO?"
"Are you telling me to form a Hedge fund, attract investment, and then acquire Baeseong Corporation's distribution affiliate?"
"Inquiries from corporate investors are flooding in. Wouldn't it be possible to gather only large corporations among them?"
"You must think I'm a very capable person."
In response to Shinwoo's question, Na Jeong-hyun continued his explanation with a serious expression.
"I believe it is sufficient. You know very well how much of a positive effect the acquisition of Baeseong's distribution affiliate will have on MH Group."
Of course, he couldn't not know.
However, what bothered Shinwoo was not that issue.
"Let me ask you one thing."
"Please do."
"If MH Future Security acquires Baeseong's distribution affiliate, how much should we sell it to MH Group for to make a profit?"
Na Jeong-hyun's expression turned troubled for a moment.
"MH Group is the headquarters of our MH Future Security. Of course, we will transfer it at a reasonable level and..."
"So, how much should we sell it for to make a profit?"
"MH Future Security is an affiliate of MH Group. We don't necessarily have to make a profit..."
"Are you saying we should break even? Why should we do that? Aren't we doing business to make a profit?"
Shinwoo had realized what Na Jeong-hyun's intentions were from the moment he brought up Baeseong Corporation. Nevertheless, he had been listening quietly, then pointed out a part that Na Jeong-hyun had not considered.
"Then... let's set the profit at 5% of the acquisition price..."
"Let's calculate with the acquisition funds for Baeseong Distribution and Super generously set at 600 billion won. 5% of that is a net profit of 30 billion won. But even if we set the dividend percentage for investors at only 8% of the net profit, if we take only a minimum of 10 people, 24 billion won will be deducted, so 80% will be gone at once."
The final net profit falling to MH Future Security meant 6 billion won.
Of course, that was not a small amount, but considering the companies that would jump in before the acquisition of Baeseong Corporation, they might have to pour in even more than that amount.
"That's..."
"Are we going to go through all that trouble to earn only 6 billion won?"
"..."
Shinwoo stared intently at Na Jeong-hyun.
"Deputy Manager Na Jeong-hyun. Aren't you tired of this kind of puppet show?"
"...Excuse me?"
"Of course, I don't think you proposed it thinking that this wouldn't be obvious."
"..."
At Na Jeong-hyun's silence, Shinwoo sighed.
Frankly, the conversation they had had so far was too obvious. In the end, it was a matter that Shinwoo had to decide, and it was difficult for Shinwoo to accept the proposal of Na Jeong-hyun, who was once Myung Woon-suk's man.
"What were you thinking when you made this proposal?"
Even to that question, Na Jeong-hyun's lips did not part.
Shinwoo looked at him coldly and said quietly.
"Let's wrap up today's meeting here. Only Deputy Manager Na Jeong-hyun remains, everyone else, go back to work."
As people got up one by one, Jang Man-soo approached Shinwoo's side and asked in a quiet voice.
"Should we look into it?"
Shinwoo quietly nodded and waited for everyone else to leave. And when the conference room door closed, he looked at Na Jeong-hyun and opened his mouth.
"Did someone threaten you if you didn't make the proposal just now? Or did they grant you a favor?"
"..."
"Judging from the talk about the distribution affiliate... is it President Myung Sung-chul? Or one of his close aides?"
The guess was not difficult. This was because Myung Sung-chul was the president of MH Food and MH Retail.
If Shinwoo acquired Baeseong's distribution affiliate and sold it to MH Group, the person who would benefit the most was Myung Sung-chul.
At this, Na Jeong-hyun let out a long sigh through his nose.
"That's right. To be exact, it's a request from Director Lee Myung-gon of the headquarters, but President Myung Sung-chul is behind it."
"So, you deliberately made such a ridiculous proposal in front of everyone?"
If he had moved for a real purpose, he should have submitted a proposal separately from the meeting to test the waters.
But Na Jeong-hyun had thrown it in as if deliberately asking for the proposal to be rejected.
"There are a lot of employees in MH Future Security besides me who came in with strings attached, so I couldn't help it."
"That's obvious."
He brought 80% of the existing Strategic Investment Headquarters employees as they were.
Of course, it was clear that employees who were in contact with the Myung siblings had also come along.
"Knowing that, why are you staying still?"
Na Jeong-hyun had been showing strange signs since before the meeting, and finally, he had burst out.
But the desperation felt there was similar to the appearance of an ally being held hostage on the battlefield.
"The things those people are likely to do are obvious, and I just have to do my job well. Rather, judging from the atmosphere, it doesn't seem like you received instructions as a give and take. Is it because of your wife?"
Soon, Na Jeong-hyun looked at Shinwoo with a surprised expression.
"Hoo... did you know?"
"No. I just thought that Director Lee Myung-gon and President Myung Sung-chul would only be able to bring up your wife as someone to hold against you."
Na Jeong-hyun's wife is an employee working at MH Retail.
Shinwoo had memorized the personal information of the employees belonging to MH Future Security. Thanks to that, he was able to guess the reason why Na Jeong-hyun was acting strangely by connecting it to his wife.
"...That's right. Director Lee Myung-gon told me to propose the acquisition of Baeseong's distribution affiliate to the CEO and proceed with it. Judging from the current situation, he also said that it might already be in preparation."
Baeseong Corporation was collapsing like a sandcastle. Of course, Shinwoo had not been unaware of that.
However, TSF's Korean branch had already reached out to Baeseong Corporation. Moreover, since Shinwoo had helped with the start, he could not intervene externally.
"I'm not saying I haven't thought about it, but as I said before, there are many difficulties. It's not something we can jump into alone."
"I think so too. Frankly, it's a stretch. The people who gave that instruction must know that too..."
It was a matter of hundreds of billions of won changing hands. It didn't make sense that it was entrusted to Na Jeong-hyun alone.
At the same time, Shinwoo speculated on who could benefit from the current situation and how.
"They're trying to open the floodgates."
"What do you mean by that?"
"It's hard to say because it's not certain yet. Instead, if there's a problem with your wife, please tell me. I'll take care of that on my end."
"...Really?"
"I don't tend to lie. You can go now."
Shinwoo finished his conversation with Na Jeong-hyun and returned to his office.
Then, as soon as Jang Man-soo, who was checking something at his desk, saw Shinwoo, he shouted.
"There were people picking up shares of Baeseong's distribution affiliate."
"Lee Myung-gon?"
"And Executive Director Park Tae-wook. They used nominee names, but when I tracked the flow of funds, those guys came out."
They were all Myung Sung-chul's people. Of course, their purpose was obvious.
"They're thinking of using the fact that they made a proposal as an excuse to interfere with MH Future Security's investment projects."
"It's because of the executive team issue, right?"
Currently, there was no executive team in MH Future Security due to Shinwoo's opposition. At the same time, Shinwoo was the final decision-maker for all projects, so even MH Group's headquarters could not interfere.
Of course, that situation was bound to be an eyesore for Myung In-chul, who had been trying to plant an executive team, and Myung Sung-chul, who had been looking for an opportunity.
"They can't stay quiet. How much capital has been invested in selling shares so far?"
"Um... just Baeseong Distribution for now. 462,000 shares, 2.31%. The amount is about 15 billion won."
Myung Sung-chul's plan was obvious. If MH Future Security moved, they would profit from the secured shares. Or, they would jump into the acquisition process and seize management rights.
In any case, they could damage MH Future Security.
"Seeing that they have that kind of money, they must have embezzled a lot."
"What else can stagnant water do but rot?"
Shinwoo pondered for a moment.
"What is TSF's Korean branch's shareholding rate?"
"They've already exceeded 10% each."
"Myung Sung-chul has given me the timing to shake things up appropriately."
With that answer, Shinwoo gave a chilling smile.