The Pressure an Ordinary Man Would Feel
In the annex of the Blue House, the attendants had locked themselves into a fierce war of words.
"We're better at exports. So hand over your electronics division. You're scrambling just to sell inside Korea, while we're selling to five billion people worldwide. Of course it makes more sense for us to take it."
A Seonwoo Group executive needled the man from KF Group.
The KF man laughed as if he couldn't believe what he was hearing, then rolled up his sleeves.
"Hey. A company that's only been around twenty years, and you're trying to lecture us? We've been at this for sixty. Sixty years. When your chairman was still toddling around in diapers, our founding chairman was out on the road selling goods. You understand that?"
"If age alone made a company good, why bother with sales strategy? Just hang a sign and loaf around all day."
"What did you just say?"
As the sparring grew uglier, Kim Seong-ho sat quietly eating an apple.
The fight only got rougher.
"Let's be blunt. You sell a lot of product, but the company's rotting from the roots up. Is there anyone here who doesn't know that? Everyone in this business knows Seonwoo Group runs at a loss."
"We run at a loss? Who says that? Have you actually looked at our financial statements? Our annual operating profit runs into the hundreds of billions."
"Is there anyone who doesn't know those statements are fake?"
"What? You little—"
"Little? Have you lost your mind?"
"What is all this noise?"
The Blue House secretary who had stepped out for a moment returned at the rising volume and moved to separate the Seonwoo and KF men, who were already on their feet glaring at each other.
A Mirae Group executive who had been watching the whole mess with helpless confusion glanced over at Jo Byeong-jin, still calmly working through an apple, then cautiously spoke up.
"Excuse me…"
Jo Byeong-jin, just pushing another apple into his mouth, turned at the call.
"Yes? Were you speaking to me?"
The Mirae man shifted fully toward him and offered a greeting.
"How do you do? I'm Han Jong-hoon of Mirae Group."
"Ah, yes."
At Han Jong-hoon's introduction, Seong-ho extended a hand.
"Jo Byeong-jin, Ilhyeon Group."
The two men shook hands lightly.
Jo Byeong-jin released the handshake and looked at Han Jong-hoon with a clear question in his eyes: Why did you call me?
Han Jong-hoon glanced sideways at the Seonwoo and KF men, who were finally settling down under the secretary's mediation, then spoke.
"How is Ilhyeon approaching this?"
"Approaching what, exactly?"
"What I mean is, what did you come here intending to do?"
Han Jong-hoon of Mirae Group asked Jo Byeong-jin outright.
"I simply thought that if we spoke honestly about what each of us wants, without hiding anything, the process from here might go more smoothly."
He dropped his voice even lower.
"If we match what we're willing to give up, what we want to take, and the price…"
He flicked a glance toward the Seonwoo and KF men, who were now seated again and cooling off.
"…we wouldn't have to end up fighting like that, would we?"
Jo Byeong-jin followed his gaze, then nodded.
"You're right. If everyone already knew the others' thinking, we could prevent a few disasters."
"Exactly. Why should anyone have to turn red in the face over this? So… what is Ilhyeon's position?"
Han Jong-hoon fixed Jo Byeong-jin with a meaningful look. He had come only as Kim Seong-ho's attendant, yet he clearly hoped to walk away with something useful.
What came out of Jo Byeong-jin's mouth was nothing he expected.
"You're not wrong… but that conversation has nothing to do with us."
"Pardon? Nothing to do with Ilhyeon?"
Jo Byeong-jin popped another apple into his mouth and answered around it.
"We have no intention of taking anything, and no intention of giving anything up."
"What?"
"We came because the Blue House told us to come. Our head of headquarters has already said he has no interest in the Big Deal. We're only here to listen, so please don't worry about us."
"Only… to listen?"
Han Jong-hoon of Mirae Group stared at him in open disbelief. He had no idea how to interpret the news that the largest company in the Republic of Korea was simply uninterested in the Big Deal.
And the same stunned reaction was playing out on the other side of the room as well.
"Ilhyeon Group will not be participating in the Big Deal?"
Deputy Prime Minister Hwang Jang-chul frowned hard as he looked at Kim Seong-ho.
"Is there some dissatisfaction with what this government is trying to do?"
"Dissatisfaction? Not at all."
Seong-ho glanced around at the familiar faces of the other groups' representatives, men he had met several times already, then continued.
"We simply have nothing we want. And, frankly, nothing particularly convenient to put on the table either."
"Nothing convenient to put on the table? You mean you intend to keep every single affiliate and walk away?"
The head of Seonwoo Group's Restructuring Headquarters barked the question at him.
Seong-ho looked toward the Seonwoo side, gave a short, dry laugh, and said,
"Very well. Then I'll put Ilhyeon Petrochemical on the table. Does Seonwoo Group have any interest in acquiring it?"
"Of course."
Seonwoo answered loudly, as if afraid Seong-ho might take the words back.
Seong-ho smiled as though he had expected exactly that reaction.
"Excellent. The price will be ten percent above the current market valuation on the exchange. Will you take it?"
"Fine. We will—"
The Seonwoo headquarters chief who had been about to commit hesitated.
At that moment the head of Mirae Group's Strategic Planning Office looked at him and said,
"Ilhyeon Petrochemical's market capitalization is ten trillion won. Does Seonwoo Group have that kind of capacity?"
Considering that the figure had once soared past twenty trillion before the foreign-exchange crisis hit, ten trillion almost felt cheap. But with Ilhyeon's forty-percent stake, the acquisition cost alone would come to four trillion four hundred billion won.
The Seonwoo chief had no answer. Four trillion four hundred billion was a sum that completely exceeded any capital Seonwoo Group could possibly raise.
Seong-ho watched the speechless Seonwoo man for a moment, then turned back to Deputy Prime Minister Hwang Jang-chul.
"As you can see, the assets we hold are not small. Rather than us volunteering something first, it would be better to hear what the others actually want, and if the price seems reasonable, we will sell. That approach is far more practical."
"…That does sound reasonable."
Hwang Jang-chul, Deputy Prime Minister for the Economy, had no choice but to concede the point.
The scale is different.
He looked around at the representatives of the so-called top five groups and let out a low sigh. Ilhyeon was counted among the five, yet its size stood in a different class from the other four. Even before the foreign-exchange crisis, Ilhyeon had held the number-one spot in the corporate rankings without interruption. And because it had succeeded in restructuring and navigated the crisis so skillfully, the gap with the rest had only grown more severe. Even if Ilhyeon tossed something on the table and told them to take it, the others could not swallow it; if Ilhyeon decided it wanted something, none of them could stop it.
Hwang Jang-chul shook his head lightly and said,
"Then let's begin with the other groups, excluding Ilhyeon. How about KF Group? What will you put on the table?"
"Rather than giving something up, we want Seonwoo Electronics from Seonwoo Group."
"Nonsense."
The moment KF's chief of staff spoke, Seonwoo's restructuring head exploded.
"What do you mean, nonsense?"
"What would KF Group even do with Seonwoo Electronics? We're the ones who want KF Electronics."
"KF Electronics? Even if we gave it to you, could you actually take it?"
The two men, voices rising, had already forgotten honorifics and were shouting at each other in an official meeting.
"Could we take it? Do you think you're Ilhyeon Electronics or something?"
The Seonwoo headquarters chief pointed at the calmly seated Kim Seong-ho.
"Ilhyeon Electronics is over forty trillion in size. You people are three or four hundred billion at best. You think we can't swallow that?"
"That—"
"So hand it over."
"Don't talk rubbish. We'll acquire Seonwoo Electronics for the same amount. You hand it over."
"Hand over what? You're the ones who said you'd give it first."
"I asked whether you could take it if we gave it. When did I say we were giving it?"
"Talking out of both sides of your mouth like that—how can you sit there and spout garbage so shamelessly?"
"What did you say?"
The KF man shot to his feet. The Seonwoo man rose right after him. The two stood glaring as if they might come to blows at any second, and Deputy Prime Minister Hwang Jang-chul pressed a hand to his forehead.
Kim Seong-ho simply watched the scene with the mild interest of a man who found it entertaining.
As if a headache were setting in, Hwang Jang-chul rubbed his temples, stood, and brought the meeting to a close.
"We'll leave it here for today. We'll notify you separately of the next schedule. In the meantime, each group should decide what it is prepared to restructure and come to the next meeting ready."
"Yes, understood."
"We'll do so."
Even though the Deputy Prime Minister had told them to get their houses in order, none of them had any intention of releasing what they held while still coveting what others possessed; Seong-ho doubted a second meeting would change a single mind. Hwang Jang-chul knew it too, but he had nothing sharper to offer, so he ended the session without further comment.
Before leaving he turned to Seong-ho.
"Director Kim. If you have a moment, might I speak with you privately?"
Seong-ho paused briefly, then answered,
"Yes. Of course."
At the reply, Hwang Jang-chul called over an administrative officer from the Blue House protocol office and instructed him to see the remaining four groups out properly.
"Then, if you would follow me?"
As the officer led the way, the four groups' representatives looked at Seong-ho for a moment, then turned and filed out of the annex after the officer.
Hwang Jang-chul, who had remained standing, pressed his temple between thumb and forefinger for a second, then turned back to Seong-ho with a faint smile.
"I expected it would go this way, but it was even worse."
"I can imagine how frustrating it must have been watching everyone refuse to let go of anything. I understand completely."
At Seong-ho's words, the Deputy Prime Minister lowered his hand and gestured for him to sit again.
Just then the door through which the four groups had exited opened, and several people entered.
Seong-ho turned toward the doorway and rose hurriedly from his seat.
The arrivals were President Kim Dae-sang, Senior Secretary for Economic Affairs Do Su-myeong, and Prime Minister Kim Jung-pyo.
Seong-ho bowed quickly toward the President.
"Good to see you, sir."
"Yes, Director Kim Seong-ho. Have you been well?"
Still bowing, Seong-ho carefully took the President's offered hand.
"It's been some time."
"Yes. I last saw you with my father-in-law during your private-residence days. Thank you for remembering."
"Hahaha. Private-residence days… I'm not that sort of person. This isn't the Joseon Dynasty…"
Whether he disliked the expression or not, Kim Dae-sang laughed and gave Seong-ho a light clap on the shoulder.
Once the greetings were finished, the President motioned for Seong-ho to sit again and took the chair that Hwang Jang-chul had occupied only moments before. The Deputy Prime Minister settled beside him; the Senior Secretary for Economic Affairs and the Prime Minister followed, and the seats filled once more.
"How did the discussion go? Did it finish well?"
President Kim Dae-sang asked Hwang Jang-chul.
The Deputy Prime Minister shook his head.
"I'm sorry. My own shortcomings produced no results whatsoever."
"Nonsense. Shortcomings? If the Deputy Prime Minister is inadequate, then the man who appointed him—and the Prime Minister as well—would have to be something far worse."
Kim Dae-sang pointed first at himself and then at Prime Minister Kim Jung-pyo.
"This is exactly what we expected, isn't it? So don't take it too much to heart."
"Thank you."
As Hwang Jang-chul bowed his head, the President turned his gaze to Seong-ho.
The moment their eyes met, Seong-ho felt he already knew why he had been kept behind.
The Deputy Prime Minister, the Senior Secretary for Economic Affairs, the Prime Minister, and the President of the Republic of Korea—all of them seated around him. In a place where any ordinary man would have felt crushing, unbearable pressure, Kim Seong-ho was already calculating, at high speed, exactly how he might turn the seating arrangement to his advantage.