As Long as There's Collateral
Butler Lee Ung-hyeon frowned at the sudden crowd and tried to block them.
Kim Seong-ho merely waved him off, signaling it was fine, then raised his voice so Choi Cheol-jin, President of Homyeong Construction, and everyone else could hear.
"You want to borrow money? Fine. I'll go inside and speak with the Chairman myself."
"Seong-ho!"
Lee Gyeong-eun, arms folded, shot him a startled look that asked whether he was sure. She believed leaving these people standing in the courtyard was her father's indirect way of saying he had no intention of lending them anything.
Seong-ho knew that perfectly well. In his eyes, though, it was also an opportunity. That was why he had told them he would try to get the money for them.
He was not, of course, offering a free gift.
He patted Gyeong-eun's hand to reassure her and continued.
"If you can put up collateral, I will go inside, persuade the Chairman, and see that the money is lent to you."
"Collateral?"
"Yes."
Seong-ho looked Choi Cheol-jin straight in the eye.
"If Homyeong Construction is willing to put up the Seocho land it holds, we will lend you money matched to the value of that land."
"The Seocho land is..."
When Choi's face clouded with reluctance, Seong-ho raised his voice so the entire gathering could hear.
"Listen carefully, all of you. Even with collateral, the banks will not lend you money right now. You know that—that is why you came here."
He paused and swept his gaze over the people assembled in the yard. No one could contradict him. The reason they had gathered here instead of at a bank was all too clear.
"I, and probably the Chairman as well, would like to honor our relationships with you and lend the money. But you also know how bad the situation is. In times like these, lending money to outsiders before securing our own house can look like breach of trust—borderline embezzlement."
Choi Byeong-mu started to protest.
"Calling it embezzlement is a bit—"
Choi Cheol-jin cut him off.
"Be quiet."
He shot his nephew a look that said read the room, then turned back to Seong-ho with a smile.
"Please continue."
Seong-ho gave him a brief nod of thanks and went on.
"But if there is collateral, the conversation changes. We gain a legitimate reason to lend, and you get to borrow on solid footing instead of clinging to favors. As long as the collateral is sufficient, we will lend the money. So stop loitering here hoping the Chairman will take pity on you. Go home, figure out what collateral you can offer, and come to the Restructuring Headquarters on Monday. I will examine it then and arrange the loan."
"You mean... if we really have collateral, you will lend us the money?"
Choi Cheol-jin's voice trembled. This was an era when even collateral could not open bank vaults. Private lenders had slammed their windows shut as well. Raising cash was harder than plucking stars from the sky. For Seong-ho to offer a loan so readily made the older man's voice shake despite himself.
He was not alone. Hope lit every face in the courtyard; people edged closer to Seong-ho.
He raised his voice again.
"I, Kim Seong-ho, will personally guarantee it. As long as there is collateral, I will lend you the money interest-free."
"Interest-free as well?"
Choi's voice shook even harder, as if he had stepped into a freezer though winter had not yet fully arrived.
Seong-ho smiled and nodded.
"Yes. Interest-free. However, the collateral will be valued at market price. That is acceptable, I trust?"
"Of course it is. Valuing collateral at market is only natural—especially now."
Choi seized Seong-ho's hand and bowed deeply in gratitude. Seong-ho soothed him and the others, assuring them everything would work out, and helped usher them out of the Pyeongchang-dong residence. One by one he told them not to worry, to go home, find their collateral, and report to the Restructuring Headquarters on Monday. Only after the last visitor had left did he return to the courtyard.
"Where did everyone go?"
When he came back into the yard, Lee Tak-hyeon was standing there with a gray-faced man in glasses.
Deputy Prime Minister for the Economy Gang, Seong-ho recognized at once. He approached and bowed.
"Chairman. We have returned. You must be Deputy Prime Minister Gang. It is an honor to meet you. I am Kim Seong-ho, the Chairman's youngest son-in-law. And this is my wife, Lee Gyeong-eun, the Chairman's youngest daughter."
Gang Gyeong-ju adjusted his glasses, answered the greeting half-heartedly, and turned back to Lee Tak-hyeon.
"Then I will take my leave, Chairman."
"Very well. Take care. No need to see you out."
Gang nodded, bowed once more, and trudged away with heavy steps. Lee Tak-hyeon watched the retreating figure for a moment, then turned to Seong-ho again.
"I still have not heard an answer. Why did those people thank you and leave?"
In a calm voice Seong-ho recounted what had just happened. Lee Tak-hyeon stood with his hands clasped behind his back and listened in silence. Gyeong-eun watched her father's face carefully. The moment Seong-ho finished, she latched onto Lee Tak-hyeon's arm and tugged him toward the house in a coaxing tone.
"Dad, let's go inside already. I've been here ages and still haven't even set foot indoors. I'm starving too. Why was Deputy Prime Minister Gang here, anyway? His face looked terrible—did something happen?"
She kept up a stream of chatter to divert his attention and led him inside. Whether the diversion worked or not, Lee Tak-hyeon said nothing and let himself be pulled along. His interest, however, had not completely shifted.
Once they were all inside, Lee Tak-hyeon gestured for Seong-ho to explain the courtyard incident again in front of everyone. Then he stepped back, settled onto the sofa, and silently watched his children and son-in-law.
"So you told them you would lend the money if they put up collateral?"
Lee Mun-jong looked stunned after hearing the full account. He glanced around at his brothers, seeking their reactions. Lee Sang-jong and the others were equally shaken. Sang-jong shook his head and turned on Seong-ho.
"You know why we didn't go out to the yard? Because we didn't want to face those people. And you went and promised them loans? Interest-free loans?"
His voice rose steadily until he was openly scolding Seong-ho.
"You could have just walked inside. Instead you had to go and cause trouble? Look at the others—Big Brother, Third Brother, Fourth Brother—they all came in quietly. But you make an absurd promise like that? Honestly."
Sang-jong planted his hands on his hips and turned away. With Lee Tak-hyeon present he could not explode completely, yet rage was written all over him. Watching her husband take fire from every brother, Gyeong-eun could no longer hold her tongue.
"What is wrong with you all? He must have had a reason. Why jump straight to attacking him without even asking what it was?"
When she raised her voice in his defense, Oh Min-yeong, who had been standing a step behind, stepped forward.
"Young miss, the older brothers are speaking. Come over this way."
It was a roundabout way of saying a younger sister had no business interrupting the adults.
"I'm not allowed to speak, but my sister is?"
"Come now. The eldest young lady has always handled household matters—"
"I am the President of Ilhyeon Hotel. By that logic, Second Brother should have no speaking rights either."
"Hey! What did you just say?"
Sang-jong jabbed a finger at Gyeong-eun. As the atmosphere turned ugly, Chu Suk-ja finally intervened.
"Why is everyone so loud? Can't you see your father is sitting right here?"
At her scolding, Sang-jong, Oh Min-yeong, and Gyeong-eun all glanced nervously at Lee Tak-hyeon. From the sofa he had been watching the entire scene; now he waved a hand at them.
"Don't mind me. Finish what you were doing. I am enjoying the show."
After that, Sang-jong kept his mouth shut. Lee Tak-hyeon surveyed the suddenly quiet living room, smiled, and spoke again.
"It was entertaining while it was noisy, yet the moment I tell you to continue you all clam up. Fine. Director Kim."
Seong-ho turned toward him.
"Yes, Chairman."
"Explain this interest-free lending idea. Why you decided on it. These idiots here clearly need it spelled out."
Seong-ho looked at the man on the sofa and thought, He already knows why I did it. When Lee Tak-hyeon had walked inside without demanding an explanation in the yard, Seong-ho had suspected the Chairman understood his intent. Watching the family explode had only strengthened that suspicion; the order to "explain it to the idiots" confirmed it. Lee Tak-hyeon had grasped at once that taking collateral and lending interest-free was advantageous for Ilhyeon.
Seong-ho held the Chairman's gaze a moment longer, then turned to face Lee Mun-jong, Lee Sang-jong, the other siblings, and their spouses.
"The market is already wrecked beyond repair. Even if we put out the immediate fire by lending money, the places that are going to fail will still fail. That is the reality now."
"Then why lend at all? If they go under, we never get the money back."
Sang-jong frowned, unable to follow. Seong-ho smiled faintly.
"That is why we take collateral."
"So what you are really after is the collateral itself?"
Mun-jong's eyes narrowed.
"Even if we lend, they will go bankrupt and the collateral will fall to us... In the end you are lending money in order to seize the collateral. Is that it?"
Seong-ho nodded.
"Exactly. And I made it clear to them that the collateral would be valued at current market price."
A smile curved his lips of its own accord. He had not engineered the situation, yet a chance for enormous profit had simply presented itself; the more he spoke of it, the more the smile refused to leave his face.
"Take Homyeong Construction as an example. I told President Choi Cheol-jin that if he brought the Seocho land, I would lend him the money. Homyeong wants two hundred billion won. That—"
"That is ridiculous."
Lee Chang-jong cut him off, looking incredulous.
"That land is easily worth over a trillion. Even a forced sale would bring seven or eight hundred billion. And they would put it up as collateral for a mere two hundred billion?"
Seong-ho turned to him.
"Before things fell apart, yes. Right now, though, you could offer it for two hundred billion and no one would buy. So what is that land actually worth? In my view, two hundred billion is already generous."
"What kind of—"
The words "highway robbery" rose to Chang-jong's throat, but the pleased look on Lee Tak-hyeon's face forced him to swallow them. The Chairman brushed his knee with one hand and rose.
"Director Kim just drove the flies out of the courtyard with an excellent idea—and laid the groundwork to snatch the fine things those flies were carrying. That is what strategic sense looks like."
He pointed at Seong-ho, then cast a contemptuous glance over his own children.
"While I was talking with Deputy Prime Minister Gang, what were the rest of you doing? Sitting around waiting for me to clean everything up. Did even one of you think the way this one did?"
He swept a pitying look across Mun-jong and the others, then turned away.
"Parasites like you only think about your next meal. Hey—is dinner ready?"
Chu Suk-ja knew she was being summoned. She cast Seong-ho a sour look before answering.
"Yes. It is ready."
"Then let's eat. Honestly, the rice those mouths waste is a crime. A crime."
Lee Tak-hyeon clasped his hands behind his back and strolled toward the dining room. Mun-jong and the rest, unable even to lift their heads after the scolding, trailed after him. Halfway there the Chairman gestured for Seong-ho to walk beside him.
"Director Kim. Come here."
Seong-ho, who had been bringing up the rear, stepped forward. Still looking straight ahead, Lee Tak-hyeon gave his order.
"Push the collateral valuations back a little longer."
"You mean the values may fall further with time... Does that mean you have decided not to grant Deputy Prime Minister Gang's request?"
Lee Tak-hyeon turned his head and regarded him. The corner of his mouth twitched.
"You figured that out too? You really are becoming more useful by the day. Yes. I refused him. Starting tomorrow this country will stop intervening in the foreign-exchange market. And... we will begin considering an application to the IMF for a bailout."
The words were few, yet the content was devastating. Mun-jong and the others forgot they had just been berated; they could not hide their shock.