Chapter 75
I’m translating the chapter into published-style English and preserving the HTML structure, with special handling only where the source itself turns into in-universe content.CHAPTER_TITLE: Inflating the Scale (2)
Haesol Textile conference room.
Seung-hyun sat staring down at the documents related to the acquisition of Huain Trading, turning each page in silence as thoughts moved behind his eyes.
On either side of him, Director Hwang Seok-jae and Factory Manager Park Han-soo were seated, exchanging their views.
"The due diligence results aren't especially encouraging. Of course, that's only natural, given that the company's situation has been deteriorating for a long time. On the surface, Huain Trading's factory equipment is fairly old, and the debt is heavier than expected. To be precise, it's closer to 4.7 billion won, not 4.1."
At the bad news, Seung-hyun frowned.
"That's a difference of 600 million won."
Park Han-soo then offered his own opinion.
"It is true that this is a company with many shortcomings. But the history they have, their human assets, and the technical expertise they've accumulated are definite advantages. Just the factory site and capacity alone are on par with Haesol Textile's first and second factories combined, so if we acquire Huain Trading, our production volume will increase to more than three times what it is now."
"With the equipment being that old, will we be able to get the output and quality we want?"
"That additional 600 million won is the cost of replacing the outdated equipment. If we modernize only the machinery we absolutely need, we can still produce at the quality level we want."
"Hmm..."
As Seung-hyun weighed it all, Director Hwang said in a low, firm voice, "It may not look attractive in pure numbers, but when you break it down, this acquisition will solve Haesol Textile's production-capacity problem in one stroke. On top of that, the government-backed low-interest loan and the ten-year stable military supply contract will be a major springboard for the company's growth."
Park Han-soo nodded as well.
"The factory itself is old, but it's equipped with machinery specialized for military uniform production. That means less work for the operators, too. Things like military-specific printing and the detailed placement of pockets are the sort of thing a company has to remake several times from scratch when it doesn't know what it's doing. If we acquire Huain Trading, we won't have to go through that trouble.
"And if you were to buy that kind of specialized equipment new, the cost would be considerable. But if we simply acquire the place and start producing and delivering, then... there really won't be much to worry about. That's assuming the samples pass, of course. And when you consider the site and building value of Huain Trading's Busan property, it seems like an opportunity from the company's perspective."
It wasn't as though Seung-hyun didn't understand any of that.
He leaned back in his chair and let out a sigh.
"Honestly, what worries me more isn't the Defense Acquisition Program Administration's strict requirements and quality inspection. It's what happens later if that office starts demanding things from companies by force. It's such a corrupt place... who knows? A few years down the line, they may start asking for money from us, bit by bit."
Director Hwang gave an awkward laugh. "President, that is a fair concern, but if you think that way, you won't be able to make any decisions at all. There is no business in this world that can be conducted in perfect morality. Things like that happen everywhere."
Hearing that, Seung-hyun realized he had been worrying foolishly.
If trouble like that came up after working hard, then he'd deal with it then.
"You're right. Understood. Then let's start by making the sample for the Defense Acquisition Program Administration."
"Should we proceed with the acquisition if the sample passes?"
"That's the safest route, so if we prepare the paperwork in advance, wouldn't we be able to move straight into the acquisition once the sample results come in?"
"Yes. It will take time to get the Defense Ministry's guarantee letter, and it will also take time to analyze Huain Trading's finances. Unidentified issues could still come up, so I think it's best to keep moving with the sample first and look into the rest gradually."
"Good. Then the Defense Acquisition Program Administration said that for the first Dual-Tex fabric, they only want improved flame resistance, so let's handle that part and have Huain Trading's design team make a military uniform."
This was an opportunity to mass-produce and supply hundreds of thousands of stable uniforms every year without being affected by market swings.
They always said government contracts were the sweetest business there was, and if this went well, there was hardly a better way to raise the company's value.
After the meeting ended, Seung-hyun headed for the building where Lesser Factory was housed.
It was a workspace where more than twenty full-time employees now worked, and also where Lee A-young, one of the company's most essential talents, did her design work.
The design room set aside in one corner of the basement was A-young's private space, and she had spent more than six months here, alone, making design after design.
Some of the designs she created had excellent marketability, some fell short, but what mattered was that her artistic sense was steadily improving.
"How is it?"
Seung-hyun dropped by without warning and tapped the table as he spoke. A-young, who had been wearing earphones and focusing on her sketch alone, turned her head.
When she had first worked part-time at the company, she had still had an unmistakably youthful look about her. Now, with her hair tied up in a messy bun and dressed in something light and practical, she had become a young woman whose feminine charm spilled over naturally.
The reason was money, most likely.
Because she took home a portion of Lesser Factory's monthly profits, her salary had climbed to nearly 100 million won a year.
In a word, her life had been turned upside down.
That was probably why her skin glowed the way it did.
"Huh? You're here?"
"Have you touched it yet?"
To get her to touch Dual-Tex as quickly as possible, Seung-hyun had sent the sample fabric straight to the Lesser Factory building.
He wanted her to be able to feel it the moment she arrived at work.
He had told her there was no need to come up to headquarters and that she should just keep looking at it for now, then had come to see her in person.
Clutching the sample fabric, A-young frowned deeply and asked, "How on earth did you make this?"
"Why? Is it bad?"
"No! It's so good!"
She shouted in delight, then bounced on the balls of her feet while holding the fabric.
"How can something be this soft and comfortable? The elasticity is great, but it doesn't feel constricting when you wear it either... which means the breathability is good too. Does it also absorb sweat well? I was going to splash some water on it, but I was afraid I'd ruin the sample for nothing..."
"Haha, why worry about something like that? If it gets damaged, we can just make another one. We're not a company that has to be stingy with sample fabric anymore."
"Ah, yes, yes. Before, the outer layer was crisp and stiff, so it was perfect for comfortable workwear. But this one has a soft outer layer too, while still seeming to keep all the functions of the original fabric. I love it. But what about the cost?"
"It's about the same. There's not much difference."
She seemed to have been worried that since the fabric was better, the price would have to go up as well.
"Phew, that's a relief. I think our brand should never get expensive. Good clothes at a low price. That's what lets people buy several pieces of basic wear. I think we have to keep that spirit."
"I agree. That's why we split the corporation in the first place."
"Honestly, do you know how worried I was that Lesser Factory would be treated badly from now on? Everyone here was really anxious about it."
"That's why I kept coming by in the middle and having company dinners with you all."
"If you hadn't, everyone would've thought the company was being sold off. Anyway, the moment I saw this fabric, designs I wanted to make just started pouring into my head. I'll organize them and send them to you soon."
She was visibly excited, speaking with bright expectation in her eyes.
"I'm looking forward to it. We actually have something to do with that fabric."
"Huh? Something to do?"
Seung-hyun gave her an expression full of meaning.
"It's not finalized yet, so I'll tell you later when it's decided. Just keep making things the way you have been."
"What is it? Now you've made me curious."
"Haha, isn't it fun when you get curious about something? See you later."
Leaving A-young brimming with questions, Seung-hyun headed out.
*
At a luxury restaurant in Paris.
Antoine Arnault lifted his wineglass and gave it a slight swirl as he looked across at his father, Bernard Arnault.
Their table was tucked deep inside the restaurant, in a private space where no one would disturb them.
Outside the window, against the dark night, the lights of the Eiffel Tower glittered.
"How's your health?"
At Antoine's question, his father snapped back, "So you do care, do you?"
"Why wouldn't I care?"
"Hmph. You're probably just hoping I'll die soon..."
"Please don't say that. I'm happy enough right now, with you still here. Don't get the wrong idea."
Bernard stared at his son, who was well past middle age, then said, "How are things going?"
"Why are you asking me when you keep closer track of it than I do?"
"I'm asking for your thoughts."
"...Sales are sluggish across the board because the economy isn't doing well. Especially in the Chinese market, which isn't the same as before, blind luxury demand is declining. There have also been some marketing mistakes."
"And?"
"But I think the cycle will turn around within a year or two. We're preparing steadily for that."
After hearing his son's answer, Bernard took a sip of wine and asked, "How's that Korean company's acquisition working out?"
Antoine grinned.
"Why? Are you worried?"
"You brat. I put in close to 7 million euros, so of course I'm going to worry."
"Haha, and here I thought you wouldn't worry over such a small sum, Father."
"The money itself doesn't worry me. But if I spent it, then naturally I'll have to worry about how my judgment is being evaluated."
Antoine nodded, feeling lighter in spirit. "Fortunately, it's growing much faster than expected. I saw its potential when I visited six months ago, but the pace of growth since then has been truly surprising."
Bernard Arnault cut into his steak with elegant precision and nodded. Even at 83, he still retained a razor-sharp gaze, and he listened closely to his son's words.
"The market share of GyeolBit bedding in Europe is rising steadily, and the clothing brand Lesser Factory has also achieved major success in Korea. Jung Seung-hyun's vision and ability to execute are astonishing."
"We invested because they were turning out fabrics with a unique aesthetic, and now they're selling bedding and clothes? Interesting."
As he said, when LVMH Group first invested in the early Haesol Textile, what had drawn the most attention was the art fabric supplied to Roche Bobois.
But now, that art fabric was generating only royalties, while bedding and apparel were driving revenue growth. From Bernard's perspective, that was certainly worth watching.
"Yes. I think the company's current value is at least 70 million euros, which is about 110 billion won. That's more than double what it was at the time of investment."
There was no investor who disliked a company they had backed growing its sales and swelling in size.
That was why a faint smile appeared on Bernard's face.
"Then it was a good decision after all."
"On the other hand..."
A curious look entered his father's eyes.
He was wondering what Antoine meant to bring up.
"Prette is a bit..."
"Hah. So that's what you wanted to talk about? Does your sister really bother you that much?"
"Father, to be precise, it's not that I'm concerned about Prette. It's that my sister acquired Prette to keep me in check."
"Then why didn't you refuse to acquire that small Eastern fabric company, too?"
Antoine gave a shrug.
"I don't like it. Father, don't tell me either. I'm going to pretend I never found out."
"Hmph. I have no intention of getting involved in your little squabbles."
"If you're going to get involved, it wouldn't be so bad if you just sorted things out for us."
"Is that so? Should I really do that?"
At the piercing look in his father's eyes, Antoine quietly averted his gaze.
He was afraid his father might hand the group over to his sister.
"No. We'll handle it ourselves."
"Good. That's how it should be."
"Don't you think my sister's being a little outrageous? She's acquired Prette and used it to press down on Haesol Textile."
"That's part of business as well. And overcoming it is part of your ability too."
"What about you, Father?"
"I'm already an old man who doesn't know when he'll die, aren't I?"
Bernard smiled with easy calm and took another sip of wine, and Antoine responded with a bitter smile of his own.
His father was refusing, until the very end, to reveal what he really thought, and kept stoking the fire all the way through.