The First Method of Restructuring Ilhyeon Watch
Seated in his study and reviewing the documents that had come up from each of the group companies, Lee Tak-hyeon suddenly thought of something and lifted his head to look at Hwang Do-beom.
"How is he doing?"
Hwang Do-beom, who had been organizing the papers on the desk, paused in his work and answered.
"He's had the staff who transferred over with him check the financial statements, and other than that he's been going back and forth between Gumi, headquarters, and Seongnam."
"Seongnam? What on earth is in Seongnam that he would go there?"
The answer to his casual question was so unexpected that Lee Tak-hyeon set down the pen he had been holding, turned his body fully around, and sat properly.
Hwang Do-beom, understanding the chairman's reaction, gave a slight shake of his head before replying.
"I don't know. It isn't that there's anything particular in Seongnam; they say he's simply been looking at empty lots of land."
"Looking at empty land? What the hell is that bastard thinking?"
Lee Tak-hyeon looked thoroughly nonplussed by the unexpected answer.
Hwang Do-beom carefully ventured a suggestion.
"Shall I look into what he's been doing while running around like that?"
"No."
Lee Tak-hyeon waved a hand and turned back to his desk. He picked up the pen again, eyes on the documents, and said,
"Leave him be. Let's watch for a while and see what he's thinking."
"Understood."
Acknowledging the order, Hwang Do-beom placed a fresh set of papers in front of Lee Tak-hyeon. Watching the chairman examine the contents, he thought to himself,
Even if all he does is catch the kickbacks the executives have been taking, the chairman would clap him on the back…
Ilhyeon Watch had become a swamp, and the rot had finally reached the inside. From the executives all the way down to ordinary employees, people had begun accepting bribes and lining their own pockets without the slightest hesitation.
Lee Tak-hyeon had only learned of it recently. The reason he had left Ilhyeon Watch alone until now was that he needed time to prepare to cut out the diseased parts.
And then, of all people, Lee Mun-jong had been the one to suggest sending Kim Seong-ho there.
If Kim Seong-ho dragged the problem out into the open, Lee Tak-hyeon intended to wipe Ilhyeon Watch clean at once. That was why Hwang Do-beom suspected the chairman was privately hoping Seong-ho would bring the matter to the surface.
Should I tip him off…?
Hwang Do-beom briefly considered quietly informing Kim Seong-ho of Ilhyeon Watch's problems. It seemed like a path that would benefit both Seong-ho, who needed results, and the chairman, who had already made up his mind to gut the company.
But a moment later he shook his head. In the end, Kim Seong-ho was only the chairman's son-in-law. Unlike the first son-in-law, Cha Yeong-su, he did not even come from a respectable family. He was nothing more than the insignificant son-in-law of a worthless household. There was neither need nor reason to help him, Hwang decided, and he abandoned the thought.
As if he had read those thoughts, Lee Tak-hyeon spoke without taking his eyes off the documents.
"Don't even think about giving him a hint. I'm curious what kind of stunt that bastard will pull, so just keep watching from a distance."
"Yes, sir. Understood."
At the chairman's order, Hwang Do-beom erased every thought of interference from his mind. All he could do now was cheer Seong-ho on from afar and hope the man figured it out himself.
What Kim Seong-ho brought back, however, lay in a completely different direction from those expectations.
"You haven't left yet?"
"You're one to talk, Assistant Manager Kim. Why are you so late? Don't tell me you went to Seongnam again today?"
The one who greeted Kim Seong-ho upon his return to Ilhyeon Watch was Section Chief Jeong Byeong-ju, sitting alone in the large office. He set down the papers he had been examining and looked at Seong-ho, who had only just come back to the company.
Seong-ho put his bag down, walked over to Jeong Byeong-ju's side, glanced at the documents the section chief had been studying, and asked,
"How does it look?"
Jeong Byeong-ju let out a long sigh.
"Haa… Honestly, I don't even know where to start. For every thousand won we sell, we lose two hundred. Add the mountain of financial debt that's already piled up and… just keeping the business running is a loss in itself. There's nothing here that can even be called restructuring. It would almost be better to go straight into bankruptcy proceedings."
He looked down at the papers once more and shook his head hard. In his eyes, Ilhyeon Watch was a failed company with no going-concern value whatsoever.
A faint smile touched Seong-ho's lips as he nodded.
"That's good."
"Good? It's a company that would be better off bankrupt, and you're saying that's good?"
"Yes."
Seong-ho pulled a chair over in front of Jeong Byeong-ju, sat down, propped an arm on the backrest, and pointed with his chin at the financial statements the section chief had been reading.
"That absurd set of financials will give me the perfect justification for what I'm about to do."
"What is it you're planning, Assistant Manager Kim?"
"A company relocation."
Seong-ho's smile deepened as he continued.
"We have clear proof the company has no money, so no one will be able to object when I create a way to raise funds. That's why I said it's good."
"Company relocation? Raising funds? What are you talking about?"
Seong-ho lightly patted the back of the chair with his palm and answered,
"I'm going to sell the headquarters here and the Gumi plant."
"What?! If you sell the company, what happens to the employees?"
"They go to Seongnam."
"Seongnam? What on earth—"
Seong-ho sat up straight and cut him off.
"From now on, you and I are going to draft a project proposal for relocating Ilhyeon Watch's headquarters and plant to Seongnam. If we get the chairman's approval with that, we can at least resolve the financial debt problem."
"You're saying we're moving headquarters and the plant to Seongnam?!"
The plan was so far outside anything he had imagined that Jeong Byeong-ju was left speechless.
But Seong-ho's plan was only just beginning. The relocation of headquarters and the plant was nothing more than the starting point of Ilhyeon Watch's restructuring.
After spending a full week with Jeong Byeong-ju completing the proposal for relocating Ilhyeon Watch's headquarters and the Gumi plant, Kim Seong-ho took the documents and headed straight for group headquarters.
When Hwang Do-beom saw Seong-ho arrive at the chairman's office, he asked him to wait a moment.
"Please wait a little. He's still speaking with the person who came ahead of you."
"Yes. Then I'll wait right here."
Hwang Do-beom glanced back and forth between the proposal in Seong-ho's hand and Seong-ho himself, then asked,
"Is that the way to save Ilhyeon Watch?"
"Yes. I've brought the first method for now."
"Calling it the first method means there are a second and a third as well, I take it."
Seong-ho only smiled quietly. Finding confidence in that smile, Hwang Do-beom smiled back.
"Then I suppose there's no need to worry."
"Of course not. Don't worry. I fully intend to save Ilhyeon Watch no matter what."
"Good. I hope it goes well."
Meeting Hwang Do-beom's eyes, Seong-ho thought to himself,
It will go well. After all, it's the method you used.
The restructuring approach Seong-ho intended to use was the same one Chief of Staff Hwang Do-beom had employed in his previous life. After winning the expensive bid for Daeguk Fertilizer and being transferred to Ilhyeon Watch, Hwang Do-beom had done what no one else could: he had revived the company and made a brilliant return to Ilhyeon Group. Seong-ho, who had watched the entire process unfold, remembered exactly how Hwang had saved Ilhyeon Watch back then. He had mixed in a few of his own refinements, and the result was the proposal he now carried.
Click.
The door to the chairman's office opened and the man who had been speaking with Chairman Lee Tak-hyeon came out. Before leaving he turned once more and bowed at a perfect ninety degrees toward Lee Tak-hyeon.
"Thank you, Chairman."
"Once you become Deputy Prime Minister for the Economy, you'll have to work even harder."
"I will do my utmost not to disappoint you, Chairman."
"Ah, for me? You should work hard for the country."
Though he scolded the man for saying he would not disappoint him, Lee Tak-hyeon's face still held a smile; the words had not displeased him. The man bowed once more to the chairman, then carefully stepped backward and closed the door behind him.
Seong-ho recognized the face at once. He was the current president of a well-known university and a former Minister of Commerce and Industry. Seong-ho realized that Lee Tak-hyeon had intervened in the selection of the next Deputy Prime Minister for the Economy, and he immediately understood that future economic policy would proceed in ways favorable to Ilhyeon Group.
"Tell Assistant Manager Kim Seong-ho to come in."
Lee Tak-hyeon's voice came from inside the office. Seong-ho quickly straightened his clothes and gave Hwang Do-beom a small nod to signal he was ready. Hwang opened the door for him. Stepping through into the chairman's office, Seong-ho bowed deeply toward Lee Tak-hyeon.
"Chairman. I have brought a proposal regarding the restructuring of Ilhyeon Watch."
"Oh? You already have a plan?"
Lee Tak-hyeon, seated on the reception sofa, looked at Seong-ho with genuine interest.
"All right. Bring it here. I'm curious what this 'plan' of yours is."
At the chairman's gesture, Seong-ho approached the sofa, sat opposite him, and Hwang Do-beom closed the door and took his place behind Lee Tak-hyeon.
Once seated, Seong-ho held out the proposal.
"At present, the greatest problem facing Ilhyeon Watch is its financial debt."
"Financial debt, is it."
Lee Tak-hyeon quietly studied the son-in-law who had spoken of financial debt rather than the executives' corruption that made reform so difficult. He flipped through the proposal Seong-ho had placed before him and said,
"Continue."
At the order to proceed with the explanation, Seong-ho began laying out what he had prepared in a calm, measured voice.
"I believe we must first stop the money draining away through financial debt if we are to build any foundation for saving the company."
"Obvious enough. Interest alone is costing us tens of billions a month."
Lee Tak-hyeon wore a half-bored expression at the self-evident remark—until he turned a page and suddenly stopped. His brow furrowed as he stared hard at the proposal.
"…You're going to sell the headquarters and the Gumi plant to clear the financial debt?"
"Yes. The reason I requested this meeting today is to obtain your permission to sell the headquarters and the Gumi plant."
"If you sell the headquarters and the Gumi plant right away, where are the employees supposed to work?"
"If you turn to the next page, you will find the replacement plant site already organized."
Lee Tak-hyeon flipped further and began examining the contents again.
"You're going to build a plant in Seongnam?"
"Yes. Until now the headquarters and the plant have been separate, which has hurt operational efficiency. I intend to correct that by constructing a new facility in the capital region that combines both offices and production. The proceeds from selling the headquarters and the Gumi plant should be more than enough to clear the high-interest financial debt and build the new plant. Those details are also organized on the following pages."
"Haha. Would you look at this…"
Faced with a proposal he had never anticipated, the corners of Lee Tak-hyeon's mouth lifted. He studied the document carefully, then pointed out the biggest problem with Seong-ho's plan.
"All right. Let's say we relocate headquarters and the plant. What do you intend to do about the employees? The ones who have homes in Seoul and the ones who have homes in Gumi."
Seong-ho leaned forward slightly and answered,
"That is precisely the second method for restructuring Ilhyeon Watch."
Lee Tak-hyeon's gaze rose from the proposal and fixed on Seong-ho. As if he had been waiting for exactly that question, Seong-ho began to explain the second restructuring plan.