Chapter 121
Chapter 121
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Translator: Vine
Chapter: 121
Chapter Title: Strategic Partnerships
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“Welcome.”
The place I arrived at was the Samjung Group headquarters in Gangnam.
As if they had been notified in advance, Samjung employees were waiting at the entrance and guided me to the Strategic Planning Office as soon as I arrived.
“I apologize for contacting you when you’re so busy.”
Lee Young-hoon, who had been in conversation with Samjung Group’s key executives, stood up with a brightened expression upon seeing me.
The atmosphere I momentarily assessed was as if everyone was on the verge of disaster.
In that instant, I understood why he had asked to see me.
*Rustle.*
At my appearance, the executives all left the room in unison.
Their intention was likely to give us time alone.
Paying them no mind, I headed for the sofa. Lee Young-hoon quickly took the seat opposite me, and to prevent the conversation from beating around the bush, I spoke bluntly.
“How can I help you?”
For a moment, Lee Young-hoon’s eyes wavered intensely.
In truth, there was only one way I could help.
Before the words could leave his mouth, I spoke first.
“The biggest problem right now is probably the inheritance tax. If I may offer some advice, there is absolutely no way to escape it, so you’ll just have to follow the due course.”
“…”
It might sound cold, but it was unavoidable.
Regardless of right or wrong, that was the law of this country, and the consequences of breaking it were severe.
Of course, Lee Young-hoon wouldn’t be ignorant of that fact, which would now become the true core of our conversation.
“Instead, what I can help you with is maintaining your management rights while minimizing the controversy.”
Lee Young-hoon’s eyes lit up.
That was, in fact, exactly what he wanted from me.
Swallowing dryly, he stared only at my lips.
“Currently, at the apex of Samjung Group’s governance structure is Samjung C&T. Therefore, Managing Director, you must secure control of C&T, and to do that, the merger with Jehan Wool Textile is essential.”
“…That’s right.”
“But the serious problem here is that public opinion regarding the merger ratio between Samjung C&T and Jehan Wool Textile is extremely negative.”
That was, in fact, a natural outcome.
Samjung C&T was universally acknowledged as the pinnacle of Samjung Group’s governance.
For it to merge with Jehan Wool Textile, a company with an operating profit of merely a few tens of billions of won, at a ratio of 1:0.35 was, by anyone’s standards, unreasonable.
Furthermore, Jehan Wool Textile had used all sorts of illicit methods to inflate its share value for this merger. From the perspective of a Samjung C&T shareholder, this was practically fraud.
And later, that would become the very issue that legally ensnared Lee Young-hoon.
“But Chairman Jin knows as well as I do that there is no other way.”
“Of course, I know. So, to propose a solution, we need to ‘substantially’ increase the value of Jehan Wool Textile so that there’s no more controversy over the merger ratio.”
“…”
Lee Young-hoon stared at me blankly, not understanding my meaning.
At that moment, I pulled a document from my pocket and handed it to him. He stared at me and the paper alternately with a dazed expression for a long while.
“Jehan Wool Textile will exclusively produce the special fiber materials developed by Jaewoo Research Institute from now on?”
“That’s correct. If that happens, Jehan Wool Textile’s revenue will increase to a level incomparable to its current state.”
“Is that… possible?”
He looked at me with a stunned expression.
I shrugged and continued.
“It is. And it has to be, for the real value of Jehan Wool Textile to rise.”
“…”
“Besides, it’s impossible for us to produce all the new fiber-related materials we’ve developed ourselves. We’ve developed over twenty different types so far. If we tried to produce all of them on our own, how would we handle the costs of equipment and factory expansion?”
“That is a valid point. And as you know, Jehan Wool Textile already has the facilities to produce the materials on this list.”
Lee Young-hoon chimed in enthusiastically.
Letting out a dry chuckle, I took back the paper I had given him and spoke.
“Moreover, as you know, the time it takes to secure marketability after developing these new materials is a crucial battle. In other words, commercializing them as quickly as possible is advantageous for market dominance. That’s why I intend to make Jehan Wool Textile our partner.”
As soon as I finished speaking, his expression brightened considerably.
It was only natural.
If Jehan Wool Textile were to exclusively produce new materials domestically—materials that had previously been entirely reliant on foreign imports and were worth trillions of won—it would be more than enough to justify a rise in its stock price.
Honestly, the moment that fact was announced, they might even have to renegotiate the merger ratio with Samjung C&T.
Then, as a result, the biggest obstacle—the controversy—would disappear.
“However, there is a condition.”
“Yes?”
Lee Young-hoon, who had been lost in a dream, tensed up again at my words.
I mean, honestly, there was no reason for me to help him without getting something in return.
I glanced at him briefly before continuing.
“After the merger, transfer 6% of Samjung C&T’s shares to me.”
“…”
It must have been a difficult proposition for him.
According to the current merger ratio, the stake he would control in Samjung C&T would be 17.8%. Giving up 6% of that would be a significant blow.
“That’s a bit…”
As expected, Lee Young-hoon immediately objected, and I continued.
“Giving that up won’t threaten your management rights, will it? With the family’s shares, friendly shares, the National Pension Service, and treasury stocks combined, defending your control won’t be an issue. Besides, the 6% you transfer to me will also be a ‘permanently friendly stake.’”
“…”
He looked at me with an intensely cautious expression.
What was he thinking? After a long moment of contemplation, he suddenly blurted out a question.
“Do you really intend to stay with me until the end?”
*Heh.*
If I didn’t, I probably wouldn’t have even considered doing something like this.
Now and in the future, Samjung had to be my number one key partner.
Not that much would change if the owner changed, but I saw no need to complicate things.
Simply put, it’s better to suppress variables as much as possible, and it’s more profitable for someone I can control to lead Samjung.
“Of course. Oh! Come to think of it, I didn’t mention this. The ‘Future Fund’ that Jaewoo operates is also planning to purchase some shares of both Samsung Electronics and the post-merger Samjung C&T. Of course, those too will become your friendly shares whenever you need them.”
“…”
********
[The merger between Samjung C&T and Jehan Wool Textile, which had drawn public attention, has been successfully completed.]
[The merger ratio of the two affiliates, which had been a hot topic, was fortunately settled without issue. The main reason for the resolution is reportedly the rise in Jehan’s share value due to the collaborative project with Jaewoo Group. Experts view the solidified strategic partnership between the two companies as a positive factor.]
March 27, 2004.
The tedious merger issue of Samjung C&T finally came to an end.
Afterward, Lee Young-hoon transferred 6% of Samjung C&T’s shares to me as promised, and by pushing them back to him, I helped secure his management rights.
[The Ministry of National Defense announced today that it will begin the official deployment of the large attack helicopter, which has been undergoing operational tests.]
The projects Jaewoo had been handling were also showing remarkable results.
To name a few, the production of the army’s large attack helicopters was complete, with about ten units already built.
They had been handed over to the military a few days ago and would probably be deployed in the upcoming joint exercises with the US forces.
[This morning, Jaewoo announced that it will proceed with the mast integration for the Korean Aegis destroyer.]
The construction of the first Korean Aegis destroyer was also proceeding smoothly.
Unlike the original method, the simultaneous construction of the ship and mast had drastically reduced the construction time per vessel.
By the end of next year, the weapon control system could be installed, and by around 2005, when the missile development is complete, it could be handed over to the military.
“The business feasibility study for the truck equipped with the Polar Bear engine has been completed.”
The development of the new truck, which had been undergoing a feasibility study, was concluded to have a high probability of success.
In fact, that was the news I had been waiting for most eagerly.
I immediately convened a board meeting and decided to reorganize Jaewoo’s large truck division. As a result, a business plan with a total investment of 800 billion won was approved.
“Please prepare the car.”
Three months later, Ssangwoong Motors, which had been developing new cars with a new lineup, finally bore fruit.
The media flocked to the news that Ssangwoong’s new car, which had been surrounded by rumors, would be unveiled. And today, it would finally be revealed to the world.
“You know today is the Ssangwoong Motors new car launch event, right?”
Just as I was about to head to the showroom, Vice Chairman Yoon Sang-min came into my office, limping.
It was the result of a fall down the stairs while exercising about two months ago. He said that due to his age, it wasn’t healing easily.
“Yes, I was just getting ready to attend.”
“We’ve invited all the reporters from the press and every automotive magazine in Korea, so I need you to go and be the face of the company for a bit.”
Vice Chairman Yoon said with a deeply apologetic expression.
When you thought about it, I was essentially filling in for him now.
But what could be done?
I couldn’t put an old man with a broken leg in front of the media, and calling Jin Hyun-cheol from Russia was even more out of the question.
I’d thought things would be a bit easier for a while after the system reorganization, but it seems that happiness was only meant to last a few months.
“You’d better pay me back for this later. And since you’re resting anyway, why don’t you go keep my father company?”
“I was just about to. The Chairman has been overly down lately, so I should go and console him.”
I let out a dry laugh at his words.
Chairman Jin Hyun-pil—no, my father—was down precisely because of Vice Chairman Yoon himself.
Frankly, even I found that part absurd.
“Why did you have to go and make me out to be sterile all of a sudden?”
“That was just an impromptu solution because you were so stressed about the pressure to get married. And let’s get our facts straight. I didn’t say you were impotent, just that you were infertile.”
It was essentially the same excuse.
From Chairman Jin’s perspective, whether his son was impotent or infertile, it was six of one, half a dozen of the other.
It might be convenient for now, but I was worried about the future.
“I don’t know about that. When it’s revealed to be a lie later, you can deal with the aftermath, uncle.”
“Well, I’ll be. It seems you do have some intention of getting married after all.”
He said, smiling with a sidelong glance.
I had nothing to say to that. As I was grabbing my suit, he suddenly spoke in a serious tone.
“My boy, you know what kind of person your father is. You think he’d believe such a ridiculous story?”
“If he doesn’t believe it, he’s been far too quiet lately.”
I turned my head back, puzzled, and asked.
He let out a chuckle and said.
“That just means he’s starting to understand your position to some extent.”
“…”
“In other words, he’s probably thinking something like, ‘My son must have been under so much stress to resort to such a lie.’”
“…”
******
“We’ve arrived.”
The atmosphere at the Ssangwoong Motors headquarters, where the press conference was being held, was electric.
After all, it was a project that had been veiled in secrecy for nearly two years.
Perhaps for that reason, the reporters’ camera flashes on the new SUV were endless.
“When did you start planning the new car launch?”
As soon as I got out of the car, questions poured in from the reporters.
Normally, I would have hated dealing with the tiresome reporters, but given the circumstances, I smiled and engaged in conversation with them.
“The plan to launch a new car for Ssangwoong Motors has been in progress since the initial acquisition process.”
“It seems you’re pursuing a design completely different from Ssangwoong’s previous style. Are you perhaps aiming for the European and North American markets?”
No sooner had I answered than another question followed.
What was surprising was that it hit the nail on the head.
Wondering who it was, I glanced at the questioner and saw a female reporter with a vaguely familiar air smiling at me.
“That’s correct. The new car launched by Ssangwoong this time was developed not just for the domestic market, but with full-scale exports in mind. As a result, you can consider almost every part, including the engine, to have undergone a full change. But, excuse me…”
The reporters looked at me quizzically as my voice trailed off.
I immediately looked straight at the female reporter who had asked the question and continued.
“Have we met somewhere before?”
“No, this is the first time I’m meeting you, Chairman.”
“Then I must have been mistaken. If you don’t mind my asking, what is your name?”
“It’s Han Ji-hye.”
The name that came to mind was reporter Han Ji-yeon.
Come to think of it, her face looked so familiar because she resembled her.
Still, just in case, I was about to ask again when she threw another pointed question.
“Chairman, you anticipated the future growth of the electric vehicle market and even established a company in the U.S. Isn’t it a bit contradictory to launch an internal combustion engine vehicle under these circumstances?”
“Strictly speaking, it is a contradiction. But just because electric cars have been born doesn’t mean they can instantly replace all internal combustion engine vehicles.”
“…”
“And the fundamental reason I acquired Ssangwoong was to establish an Asian production base and infrastructure for the upcoming electric vehicle market. But I can’t just let the transitional period pass by, can I?”
“Does that mean Ssangwoong will also eventually transition to an electric vehicle system?”
“That’s correct.”
The firm answer caused a stir in the venue.
I glanced over again to see reporter Han Ji-hye staring at me with a blank expression.
Thinking this was my chance, I asked again.
“What is your relationship with reporter Han Ji-yeon?”
“Oh? You know my sister?”
My guess hadn’t been wrong.
What was strange was that her tone made it seem like she didn’t know about my relationship with Han Ji-yeon.
Just in case, I asked again.
“It seems your sister didn’t tell you that we have a rather close relationship?”
“No, she’s always very tight-lipped when it comes to her work.”
That part seemed plausible.
It was true that Han Ji-yeon was unusually discreet compared to other reporters.
Pleased to have met her, I was about to extend my hand again when I saw Secretary Yang rushing over from the other side.
“Chairman!”
“Why are you so out of breath? Is something wrong?”
“A call just came from CEO Kim Young-gi…”
Secretary Yang glanced at Han Ji-hye and trailed off.
“Anyway, it was nice to meet you. If you have time later, let’s have a meal with your sister.”
I quickly offered my apologies to her and turned away. Secretary Yang immediately closed in and finished his sentence.
“There’s a problem with the early warning aircraft project we were pursuing.”
“…”