The Third-Party Allocation Capital Increase (2)
“As you know, there’s never been a case where a chaebol group was attacked and then actually lost control of the company.”
“There’s a first time for everything.”
“That’s exactly the problem. Everyone’s worried about what happens if a precedent gets set like this.”
A company belonged to its shareholders, and it was only common sense that whoever earned the confidence of the majority should run it.
And yet, strangely enough, in Korea alone, it was treated as common sense that a chaebol’s management rights were inherited from one generation to the next.
So whenever someone acted against that so-called common sense, people immediately pointed fingers and called them a family property thief, a corporate raider, or a vulture fund.
But what if this time it succeeded?
What if the person who actually won the trust of the majority of shareholders became the manager?
Then people would have to confront the possibility that the “common sense” they had always taken for granted might have been wrong. From a chaebol’s point of view, there was nothing more alarming than that.
“So, do you really think it’s possible?”
“Well. We won’t know until we try, will we?”
“Hanjeong Group may rank tenth in the business world, but its influence over politics and the media isn’t something to sneeze at. It’s had long-standing connections in political circles. And especially with this administration, they’re very close, so there’s no way they’ll sit still and do nothing.”
No chaebol wanted to make an enemy of the government.
Unlike economic power, which could be passed down from one generation to the next, political power usually ended after five years—but within that limited time, it could still wield absolute authority.
“I actually have something to discuss about that.”
“What is it?”
“Do you know Daejun Construction?”
“Of course I do. That’s the company on the brink of collapse. Big as a whale, heavy with debt, and its performance is garbage. The Korea Development Bank’s been poking around everywhere trying to dump it on someone, but nobody wants to take it.”
Who in their right mind would want to acquire a company with no realistic chance of recovery?
“How about Hwaan Construction takes it over?”
At my words, Heo Min-woong’s eyes widened.
“What? What the hell are you talking about? Why would we acquire a company like that…?”
But as he spoke, his eyes suddenly gleamed.
“Wait. Is there something in that company? Some huge technology or asset? Or maybe some issue that’ll make every unsold unit disappear overnight?”
“No. There’s nothing there. If you acquire it, it’ll only give you a headache.”
“Then why are you telling us to acquire it?”
“Because I thought Hanjeong Mulsan might be willing to take it.”
I organized what David had told me and explained it to him.
Heo Min-woong couldn’t hide his surprise.
“You thought that far ahead?”
“It wasn’t me. It was Mr. Lockhart’s idea.”
“I see. So Hwaan Construction should step in and take over Daejun Construction first, under the pretense of an acquisition, and that would prevent Hanjeong Mulsan from carrying out a Third-Party Allocation Capital Increase?”
“Wouldn’t helping with this be more profitable for you too, Heo Min-woong?”
“How so?”
I threw his own words back at him.
“You’re asking me? Anyone can see there’s a connection here.”
Hwaan Group’s eldest son, Hur Min-hong, was married to Hanjeong Group’s eldest daughter, Joo Hye-jin. In other words, the two groups were related by marriage.
Of course, Hanjeong Group would want to back its son-in-law so he could inherit the group.
But what if Hanjeong Group lost control of management?
From Hur Min-hong’s perspective, that would mean losing a powerful ally. If a brother’s in-laws were in trouble, it made the brother’s life harder—and that was only better for the younger brother.
“I get what you mean, but this isn’t something I can decide on my own. As you know, I’m just a vice president at Hwaan Energy.”
“Don’t sell yourself short. Becoming vice president at your age is impressive enough.”
Heo Min-woong gave a perfunctory nod.
“Yeah. Thanks.”
Of course, that was only because his father was the chairman of Hwaan Group. If my dad were chairman, I’d be confident I could become vice president too.
“Then who can make that decision?”
“Who else? The chairman. My father.”
“I see. Then we should ask him directly.”
“Huh?”
Heo Min-woong waved his hands in alarm, looking genuinely shocked.
“You must not know my father very well. His temper is no joke.”
“I know. I’ve seen the news.”
Chairman Heo Seong-hun was famous for being fiery.
When he was younger, he caused just as much trouble as Heo Min-woong did, and even now, it was said that he occasionally shouted at meetings or threw things around.
There were more than a few executives who had been hospitalized after getting hit by whatever he’d thrown.
At this point, there was even a joke that the reason the Hwaan Hawks baseball team never won the championship was because their ace pitcher still hadn’t taken the mound.
“Even I’m scared enough that sometimes I can’t look him in the eye.”
“The way you say that makes me want to meet him even more.”
I stood up.
“What are you doing? Hurry up and take me there.”
My words left Heo Min-woong flustered.
“What? You want to go now? Hey, do you know what time it is? And we’ve been drinking.”
“I only had three drinks.”
“I had a lot! Ah, just stay the night at my place and go tomorrow.”
“We’re close, right?”
It was an abrupt question, but Heo Min-woong nodded without thinking.
“Y-Yeah, of course.”
“Then isn’t it fine for a son to bring a close younger brother home late at night?”
“……”
Chairman Heo Seong-hun of Hwaan Group.
He was just about to turn in for the night when his second son suddenly came home.
His face was flushed red, so he must have been drinking.
The son who barely ever came home even when he was told to do so—why had he shown up at this hour? The reason was absurd enough to make him sigh.
“You brought someone home at this hour?”
“Ah, yes. His name is Han Miru. He works at Continue Capital. I’m sure you’ve heard of him.”
There was no way he hadn’t.
At the moment, there wasn’t anyone in the business world whose name was being tossed around more.
Not only had he wiped out the heir to DA Financial Group with a single move, but now he was joining forces with KSGI and Eliant to go after Hanjeong Group.
Continue Capital also had deep ties to Hwaan Group.
After all, the company that had been Hwaan Group’s most important partner, Thomas Motors, had been obliterated by Continue Capital.
“How do you two know each other?”
“He came looking for me when I was in the States.”
Just as he’d suspected.
“So you listened to the bastard and sold the stock.”
Heo Min-woong nodded honestly.
“Yes.”
In the end, it had been the right choice.
If he hadn’t, Hwaan Group’s entire hydrogen energy business would have been destroyed.
“And why did you bring him here?”
“He said he had something he wanted to tell you.”
Is he just following someone he owes a favor to?
He clicked his tongue inwardly.
The chairman of Hwaan Group wasn’t someone you could just show up and meet at any time without an appointment. Meeting like this, in itself, bordered on disrespect.
“What did he say?”
Heo Min-woong relayed everything Han Miru had told him just moments ago.
“The government might step in and merge Daejun Construction with Hanjeong Mulsan?”
“Yes. In the process, Hanjeong Mulsan would carry out a Third-Party Allocation Capital Increase, the Korea Development Bank would take the shares, and in return they’d back Hanjeong Group’s side.”
If that happened, they could win the shareholder meeting for certain.
Chairman Heo nodded.
“A perfectly plausible scenario. So?”
“He said Hwaan Construction should step in first and take over Daejun Construction.”
Of course it was nonsense.
If a chaebol group was going to lend a hand, it would help Hanjeong Group—not some private equity fund no different from a hyena.
From Heo Min-woong’s perspective, Hanjeong Group might be the one better off falling. If he could repay the debt from last time with this chance, he’d have even less reason to refuse.
So he’s already thinking about going up against his own brother?
What mattered was whether it benefited the group.
Chairman Heo Seong-hun asked with an unimpressed expression, “So? Do you think we should accept that proposal?”
Unlike his father expected, his son shook his head.
“We should hear it out and then decide.”
“What did you say?”
Heo Min-woong said confidently, “As you know, Continue Capital is currently in a management rights dispute with Hanjeong Group. In the process, they need Hwaan Group’s help. If it benefits the group, we accept it. If it doesn’t, we refuse. Either way, there’s no harm in hearing them out. We might even use the information to negotiate something else with Hanjeong Group behind the scenes.”
Chairman Heo couldn’t hide his surprise.
He’d already thought that far ahead?
This was definitely different from before.
People didn’t change easily, but sometimes a single trigger could transform them completely.
The same reckless bastard who had lived like a good-for-nothing had started acting like a different person after that day…
Was Han Miru the trigger?
Seeing his son speak so seriously made him want to meet the man, if only out of curiosity.
Chairman Heo nodded.
“Then I should change out of my pajamas first.”
* * *
Chairman Heo’s house was in Pyeongchang-dong.
With Hwaan’s headquarters in the Jongno area, I guessed it must make the commute easier.
“Wait here for a moment. I’ll go tell my father.”
“You should wash your face before going in.”
“Right. Ah! Why isn’t the alcohol wearing off?”
While Heo Min-woong went to see his father first, I sat in the living room and waited.
Life had a way of making me visit even the homes of chaebol chairmen.
There wasn’t much that felt especially grand.
It was a three-story detached house with a spacious yard and an underground garage. According to Heo Min-woong, the adjacent mansion was used for the caretaker’s quarters and security personnel.
The interior décor was, to put it kindly, old-fashioned. To put it badly, it was tacky.
It felt like one of those big country houses you’d see out in the provinces. The furniture was so worn that you could practically see the years in the wood.
A little while later, Heo Min-woong came back.
“Should I head home now?”
“No. He said he wants to meet you. Come on.”
I followed him up to the second-floor study.
The spacious room was lined with old books. It looked as though it were cleaned every day, because not a speck of dust could be seen on the shelves.
At the desk deeper inside sat a man who seemed to fall somewhere between middle-aged and elderly.
He seemed like the sort of man who frowned often, because deep wrinkles cut across his forehead and between his brows, and he wore silver-rimmed glasses. Instead of the black suit he was always seen in, he was dressed casually in slacks and a sweater.
That was Hwaan Group Chairman Heo Seong-hun.
Ordinarily, second-generation heirs went through years of succession training.
But Hwaan Group’s founder, Chairman Heo Young-tae, had died suddenly of a myocardial infarction, and at the age of only twenty-eight, Heo Seong-hun had inherited the chairmanship from his father.
There had been plenty of doubts about whether he could really run the company so young, but surprisingly, he had led the group stably for more than thirty years and raised Hwaan Group to seventh place in the business rankings.
In both experience and seniority, he could hold his own against any other chairman.
I bowed slightly.
“Good evening, Chairman. My name is Han Miru.”
Chairman Heo accepted my greeting with a nod.
“I’m Heo Seong-hun. I understand you’ve been busy lately, so what brings you here at this hour?”
“First, I’d like to apologize for visiting so late without proper manners. The reason I didn’t come by the company and instead came here unannounced is that I thought it would be better if no one else saw me.”
“Better if no one saw you? It’s not as if you’re meeting someone you shouldn’t be.”
“Wouldn’t it be troublesome if unnecessary misunderstandings were to arise?”
Chairman Heo didn’t deny my words.
Continue Capital was currently at the center of controversy. If rumors spread that he had met with me, it would do him no favors.
“I’ve heard the basics. You’d like Hwaan Construction to acquire Daejun Construction?”
“Yes.”
At my answer, Chairman Heo’s brow furrowed slightly.
“You want us to acquire a company that’s nothing but losses and rot? Do you even realize how unreasonable that is?”
“Ah. I wasn’t really asking you to acquire it for real.”
Heo Min-woong looked confused.
“What do you mean by that? Didn’t you just say you wanted us to acquire it?”
I answered calmly, “Announce the acquisition, pretend to do due diligence for a while, and then back out. There’ll be plenty of reasons not to go through with it once the due diligence starts anyway.”