Chapter 96
Chapter 96
Shinwoo closed the office door and entered, shaking his head at the sight of Lillian and Jang Man-soo.
"How long has it been since you finished your call for this to be happening?"
At his question, Lillian tightened her grip on Jang Man-soo's neck.
"This jerk is still making fun of the dress I wore to the party!"
"Keuk—! The Green Mermaid is killing me!"
"Shut your mouth!"
Shinwoo considered stopping them but decided against it and walked past towards Lillian's desk. He noticed a photo of her in her dress from the party placed on the desk.
It was obvious who had put it there.
'Ugh, Jang Man-soo… he's such a child.'
Even before the regression, he would often bring up his colleagues' embarrassing moments from operations to tease them, and it seemed that habit had returned since meeting Wen Wei.
"Knock it off, you two. How's Myung Sung-chul doing?"
"Ugh—! Huh? If it's him, he's probably feeling as sick as the Baeseong Corporation's stock is falling. The prosecution and the Financial Supervisory Service have started moving too."
The aftermath of the second anonymously released ledger was significant. The stock price had started to fall before the party and showed no signs of stopping.
Moreover, since this target was Baesung Distribution's affiliate, a separate additional investigation had been launched.
Jang Man-soo was explaining all this while being held in a headlock by Lillian.
"The bigger the loss, the more likely they are to reach out elsewhere. Or they might sell off their holdings."
"We're buying up all MH Group-related stocks that come onto the market."
At his answer, Shinwoo nodded and checked the stock situation of Baeseong Corporation.
【Baeseong Corporation ― ▼22,300(KRW)】
【Baesung Distribution ― ▼9,800(KRW)】
They were down 73% and 69% respectively from their normal levels. Of course, even in that situation, Baeseong Corporation's market capitalization alone was over 780 billion won.
Considering corporate debt and liquid assets, their management was in a precarious situation. If the banks started to pressure them, bankruptcy could happen in an instant.
"It won't be long now."
Beep beep—
Just then, the internal phone rang. It was a call from the chairman's secretariat, which was unusual.
[The Chairman is asking you to come up.]
Myung Joong-hwan, who usually worked from home, had come to the company.
Shinwoo left the two still fighting and headed to the chairman's office.
Myung Joong-hwan wasn't the only one in the chairman's office. All the Myung family siblings currently involved in management were gathered there.
Of course, Im Hee-yeon was also sitting at the end, looking displeased.
"You called for me."
"You're here. Baek Shin-woo. Have a seat."
It wasn't the casual way he usually addressed him. The sofa was full of them. When Gu Sang-ho brought a folding chair, he calmly sat down.
After a moment of silence, Myung Joong-hwan spoke.
"I hear there have been many issues lately because of Baeseong Corporation."
Myung Sung-chul's expression immediately darkened.
Shinwoo could guess what kind of story was coming from those words alone. Myung Joong-hwan continued.
"I heard that President Myung Sung-chul is preparing to acquire Baeseong's distribution affiliate through MH Retail? What percentage of possibility do you see in that?"
Myung Sung-chul cleared his throat and explained.
"Ahem! We have tentatively set the acquisition price with President Bae Min-sung of Baesung Distribution at 250 billion won. Of course, considering the current stock price, it's a higher price than the market capitalization, but considering that MH Retail and the food distribution network will expand at least three times and the subsequent cash flow, it's definitely not a high amount."
He had brought the plan to acquire Baesung Distribution to the surface because Shinwoo had made it difficult to proceed. Moreover, the fact that they had already reached an agreement meant that Myung Sung-chul had prepared a Plan B of his own.
"The problem is that we're not the only ones eyeing Baesung Distribution. With its solid distribution network, it's bound to be tempting to anyone."
The problem was that Bae Young-cheol, the former chairman of Baeseong Corporation, had been using funds from various affiliates to create the ledger. If they had secured the ledger, Bae Sung-wook, the new chairman, and Baeseong Corporation's position would have been even stronger.
Myung Soo-yeon, who rarely participated in discussions, cautiously stepped forward.
"Is it possible? I heard that TSF is fully engaged in M&A. What if we get involved and suffer disadvantages later?"
TSF had already swallowed a significant portion of Baeseong Corporation's shares. Joining the fray now would be seen as obstruction rather than competition.
Moreover, considering the financial power of TSF, they couldn't ignore the corporate implications.
Of course, Myung Sung-chul had considered that as well.
"I know. But the stock price is plummeting every day. No matter how much money TSF has, it's like pouring water into a bottomless pit."
"So TSF said they would give up?"
"Enough."
Myung Joong-hwan stopped the argument that seemed to be going on and looked at Myung In-chul.
"What are your thoughts, President Myung In-chul?"
"Hmm… As President Myung Sung-chul said, it will be difficult for TSF to pour money in indefinitely. The stock price continues to fall, and we don't know when the ledger will explode again. I also heard on the way here that the prosecution is conducting an additional investigation into Baesung Distribution."
As he explained the very difficult situation, the atmosphere seemed to lean slightly towards Myung Sung-chul's argument.
However, Myung In-chul had someone he was working with separately: Kwak Chi-young of TSF's Korean branch. While weighing MH Group, interfering with TSF's plans could be a problem. After hesitating for a moment, he continued his explanation.
"...But the truth is that there are still problems left to explode even after the acquisition. The risks we have to take on if we succeed in the acquisition are too great."
"So you're against it?"
"Brother! You have to think about the profits that will fall to MH Group!"
Before the meeting, Myung Sung-chul had visited Myung In-chul and asked him to support the acquisition of Baesung Distribution. He hadn't received an answer at the meeting, but he felt betrayed at the thought of a negative vote.
Of course, Myung In-chul also needed Myung Sung-chul's power for the future. Since TSF had plans in the works, simply opposing it was also a conflicting issue.
It might be faster to hope that TSF would swallow Baeseong Corporation as soon as possible.
"I'm not unconditionally opposed. I'm saying it wouldn't be bad if we could lower the acquisition price a little more."
"The acquisition price needs to be negotiated further, but even now, that's the maximum they've lowered it."
As the conversation continued, Myung Joong-hwan's gaze passed Im Hee-yeon and went to Shinwoo.
"What are your thoughts, President Baek Shin-woo? As someone in charge of our MH Group's investment affiliate."
At the same time, everyone who had been talking loudly closed their mouths and looked at Shinwoo.
Shinwoo glanced at the Myung siblings.
"The main point of the problem right now is the expansion of the distribution network. If another company takes it, MH Retail's position and MH Group's distribution network itself will be under pressure. So, the acquisition of Baesung Distribution is essential, isn't it?"
"That's right."
Myung Joong-hwan knew that well, so he had intimidated Yoo Ji-young, the chairman of EsOne Financial, to buy the Haenam factory site at a bargain price. It was to be used for expanding the distribution network.
"Then, if we can expand the distribution network, we don't need Baesung Distribution, do we?"
At that moment, Myung Sung-chul flared up.
"President Baek! Have you been listening to us at all? We're targeting Baesung Distribution, which has an acquisition opportunity, because that's impossible!"
Shinwoo glanced at Myung Sung-chul. Currently, Myung Sung-chul was stuck with the 150 won worth of shares of Baesung Distribution that he had secured by using the head office executives. It would be fine if TSF quickly acquired Baesung Distribution, but the second ledger incident had only made it sluggish.
Moreover, the funds used to secure the shares were public funds, so they had to be replenished by the end of the year in preparation for the audit.
As a result, Myung Sung-chul was pushing to expand MH Retail's distribution network with the power of MH Group and solve the funding problem at once.
"Why is it impossible?"
"President Baek is talking as if he has a way!"
"Have you ever seen me talk without anything? Of course, I'm talking because I have a way."
Surprised, they stared at Shinwoo intently, and Myung Joong-hwan asked on behalf of them.
"What do you mean? You have a way?"
"The distribution network is ultimately about classification and speed. In that regard, Baeseong Corporation distributed it because it had more logistics centers and a system to link them than MH Retail."
"That's exactly right."
"If we look at that point alone, the key is the system. It's just a matter of having a faster and more accurate system than Baeseong Corporation, isn't it?"
Myung Sung-chul couldn't help but get angry this time.
"Who doesn't know that? It's easier said than done! The system that Baeseong Corporation has is independently developed. We're going to bring it in while acquiring it. By the way, you know that the system is also being used by one of the top distribution companies in the United States, right?"
That meant it was innovative and practical. Of course, Baeseong Corporation was receiving system usage fees from the company, but it wasn't a huge amount to compare with the current situation.
"Livio Soft has a distribution system that is being tested. The classification error rate is 3.4%, and the processing speed is 220% higher than Baeseong Corporation's."
Myung Sung-chul's face hardened at those words. However, it wasn't something he could immediately believe.
"It's just a test version anyway."
"The test operation is already underway at KEDEX. There have been no problems at the five logistics centers that are currently being tested."
KEDEX was the large US distribution company that was using Baesung Distribution's system.
"You don't mean to tell me you're thinking of replacing all of Baesung Distribution's systems there?"
"It will happen because it is definitely superior in terms of performance."
Myung Sung-chul found it difficult to continue talking about the system.
"What good is a good system? We need to secure a center to run it. Baesung Distribution has centers that we lack, even if the performance is poor."
"Wouldn't it be more efficient to build our own center with the acquisition price of 250 billion won? If Baeseong Corporation collapses, there will be plenty of experienced people. Moreover, the usage fee for Livio Soft's distribution system will be set at 30% of the market price. If you only look at efficiency, it couldn't be better."
Everyone couldn't help but be surprised once again. System usage fees range from at least tens of billions to hundreds of billions of won per year, depending on the purpose.
Shinwoo had made such a proposal in a fully prepared state.
Myung Joong-hwan asked with wide eyes.
"How is it possible to use it at such a price?"
"Someone in my network has a connection with the major shareholder, who is the main programmer of Livio Soft. They have agreed to provide as much convenience as possible."
"Heo…."
While sighs flowed from people's mouths, Myung Sung-chul could only smile bitterly without making any counterattacks.
Of course, MH Retail could grow more with Shinwoo's proposal, but if he couldn't resolve his shares of Baesung Distribution in the current state, it might be difficult to maintain his position.