The 5th Floor and the Directive
“Yes? Who is this?”
The call had come from extension 106000. Ah, I suppose I should explain the company’s internal phone system and the general structure of our corporate group before moving on. Typically, the highest-ranking officials at subsidiaries or the headquarters—the presidents or chairmen—are assigned a 4-digit extension starting with 6000. The subsidiaries are identified by the two-digit code preceding it. Therefore, the internal phone system follows an XX — ABCD structure.
Let’s look at the extension that just called: 10-6000. Seeing the 6000 tells me it’s the head of a subsidiary, and the 10 identifies which one. It breaks down like this:
00: Headquarters
01: Electronics (Though they use buildings B and C next to the main A-building because of their massive scale)
02: Trading (Headquarters located in Bundang, Seongnam)
03: Construction
04: Property & Casualty Insurance
05: Securities
06: Heavy Industries (President: Han Juwon)
07: Automotive
08: Chemicals
09: Doowon Trading Woolen Textile Division (The name is just for show; the office is in Cheongdam-dong)
10: Life Insurance (Where the call came from. President: Kim Seok)
11: Agricultural Equipment & Hotels (Formerly a joint venture for farm machinery, later pivoted to hotels)
12: Therapeutics (A spin-off from Chemicals, focusing on bio-pharmaceuticals)
12: Infrian (A company specializing in unique, large-scale architecture)
13: Cards & Capital
A quick note on number 12—Infrian. This company... they don't take on projects for buildings under 600 meters. They also won't bid on bridge construction unless the span exceeds 18 kilometers. They spent their first three years in the red due to this bizarre philosophy, but after successfully completing the Jeju Bridge—the world’s largest bridge project—as part of the Asian Highway, they became an undisputed industry leader. The Jeju Bridge is a massive 100km-long structure, spanning from Wando-eup to Soan-myeon (12.9km), then to Yeoseo-do (31.5km, with a rest stop built on the island), and finally to the Pyeongdae coast of Jeju Island (49.3km). That project was their first contract, and it catapulted them to the top of the construction industry. They’ve done all sorts of strange things since. They only provided the architectural design for our current Doowon headquarters in Seocho-dong because it didn't hit the 500-meter mark, so they just ran away after the design phase. They were also the ones who built the 682-meter-tall ICN Hotel at Incheon Airport at the government's request.
Anyway, there are many other major subsidiaries up to 426000, but I’ll leave it at that. Let’s get back to the call.
“Yes, President Kim. But I heard the Chairman is holding a meeting with the presidents right now...”
“Ah, I excused myself, saying I had some urgent business.”
That’s the kind of company this is. It’s surprisingly horizontal in that regard. ...Of course, it’s not a voluntary horizontal structure; it’s because of the Chairman’s past. If the Life Insurance president had said he couldn't attend a meeting back then, the Chairman probably would have said, “...I see. You don't like meetings either. Just get the minutes from my secretary later.”
There used to be a room specifically for storing adult diapers because people couldn't even go to the bathroom during those meetings. It was a meeting where you had to eat your fill and hold back your burps, and if the Chairman started speaking, he would go on for 30 minutes without a break, forcing you to take notes until your hands blistered just so you wouldn't miss a single word. He shuddered at the thought. If it were him, he would have just gone to study abroad.
Anyway, “Oh, I see. But what is the reason for your call...?”
“We’ve received a directive. Has there been any news regarding... that oil?”
Ah, that oil. He must have meant GPL.
“Hmm... I haven't heard anything yet. What is it about?”
“The directive states that our Life Insurance division should also contribute a certain portion of capital... that’s what it says.”
I pondered for a moment. Life Insurance is contributing capital? Why?
“Who made such a—ah, if it’s a directive, it must be the Chairman.”
“Yes. It seems the plan is to invest about 100 to 200 billion won initially in stages. It’s not just us; Property & Casualty, Securities, and Cards are all doing the same.”
“...It’s a PF structure, then.”
“Yes, that’s correct.”
PF stands for Project Financing. To put it simply, there’s CF and PF:
CF (Corporate Financing): Doowon’s credit rating is used to secure an immediate, lump-sum loan for the funds needed.
PF (Project Financing): Instead of relying heavily on credit ratings, loans or investments are disbursed in stages based on the project’s progress.
Usually, when a bank attempts PF, it’s a loan; when another company does it, it’s an investment. But I had a question here. Regardless of whether it’s a temporary loan or a progressive one, why would the subsidiaries want to acquire shares in GPL, a company I thought was full of problems? Even if my father issued the directive, if the subsidiaries expressed that it was difficult, it should have been rejected. Yet, here we are.
Currently, 50.01% of the shares are held by that mysterious foreign company, about 35% are mine, and the remaining 15% are held by those who chose to wait and not withdraw their investment because they believed in me back then. On top of the President mentioning the Investment Corporation and the Pension Service, now Doowon’s financial subsidiaries are joining in, asking to issue new shares.
Just then, “Ah, Director Han. Haven't you heard the news yet?”
“What news...”
“We’ve already received the documents...”
He explained that the President would be issuing a press release within a few weeks outlining the government’s plan to definitively lift regulations on GPL, and that they would proceed with legal amendments accordingly.
“And we’ve done our own analysis,” he said, though the tone felt a bit off. “Yes.”
“GPL’s business viability and potential for success seem high. You were unfairly maligned, and... the public sentiment toward you is generally positive right now.”
Financial subsidiaries are famous for not saying empty words. Naturally, if they just sucked up to the Chairman’s son and then recorded a loss on the financial statements, their heads would be on the chopping block. In that sense, what President Kim Seok was saying could be considered a result derived from reasonable analysis.
“We aren't doing this under duress, but there is something I must tell you, Director.”
“...?”
“That foreign company is...”
Just then, my phone rang. Realizing it was the Chairman, I had no choice but to cut him off.
“Ah, President Kim. The Chairman is calling, so I’m terribly sorry, but...”
“Not at all. Let’s discuss this matter later. Please, take the call.”
“Yes. I will head to Dogok-dong later.”
“Understood. Go ahead, Director.”
I answered the Chairman’s call immediately. “Yes, Fath—”
“Director Han, come down to the 5th floor.”
“Yes.”
The call cut off after that sharp command. I quickly told Eunbyul, and we headed down to the 5th floor together. The 5th floor was the main conference room where the meeting of the presidents was taking place.
“Oh, good. Come here.”
As the door opened and I entered, the executives sitting near the door gave me a small nod. As I walked inside, the Chairman was clearly visible. He watched me in silence until I reached him, and then my father spoke.
“Right. Where was I?”
“Yes, Chairman. You were speaking about the petrochemical spin-off.”
“Ah. That’s right. Yes... Now, look here.”
“Here is my son, our company’s ‘parachute’ executive. The youngest executive among our ranks. Isn't that right?”
People chuckled softly, and the Chairman continued.
“Director Han didn't do the work he was supposed to do and went out to sea to save people instead. And not only that, he even received a medal. I’ve... I’ve come to see my son in a different light.”
“That’s true. Director Han has accomplished a great thing.”
“Indeed. So, it’s not just me who is in a good mood; it seems the President is in a good mood too. Uh... he mentioned GPL during the awards ceremony...”
I was focused on the words petrochemical and spin-off. What did this mean?
“It would have been nice if Director Han had been there, but since he arrived late... well, that’s because I didn't tell him.”
“...”
“Anyway, all business regulations related to GPL will be lifted, and to make up for Director Han’s mistakes, I’m thinking of restarting this business.”
At that, the presidents of the Securities, Property & Casualty, and Card companies slowly stood up, and the Chairman continued.
“The three of them have decided to contribute capital from our subsidiaries. Life Insurance is doing the same.”
“So, my thought is this: as I said earlier, I think it would be best to restart GPL so that our Director Han can properly finish what he started. I would like all executives to please state whether you... agree with this.”
Because this was the very place where I had started my company life, the site of that past shareholders' meeting where executives were appointed, I was tense, haunted by bad memories. But then, Park Dongseok, the Head of the Executive Office and the only Vice Chairman present, took the microphone for a moment.
“If you agree, let’s resolve this with a round of applause.”
Thunderous applause filled the room.