A Distressed Company? (1)
In an instant, Kang Seok-ho’s eyes widened to the size of saucers. Three seconds, two seconds, one second. Only after his pupils finally returned to their normal state and he had spent another thirty seconds in deep thought did he regain his composure and ask Yoon-gi, "Are you truly planning to embrace the Shinsang Group into your arms?"
Clap, clap, clap, clap! Yoon-gi clapped his hands lightly. Seeing this, Kang Seok-ho let out a small, relieved breath, and as if responding to that, Yoon-gi opened his mouth.
"That’s truly impressive. As expected, Secretary Kang, you are quite capable."
"At this current juncture, the only benefit I could think of that would come from provoking JD’s displeasure was 'that'."
'That'—the thing Kang Seok-ho was referring to—was the "Distressed Company Management" system, a policy the new military regime had used to grant special favors to companies they were on friendly terms with. The pretext was to revitalize the economy by integrating struggling companies into superior ones. The justification was sound, of course. However, because it provided benefits to the acquiring companies that made the term "special favor" seem like an understatement, it was a system that faced constant criticism, both then and in the future.
In the original history, a group within the top ten of the business world had been dismantled precisely because they had offended JD. As a result, their perfectly functional subsidiaries were absorbed by other groups. Yoon-gi intended to use this method in reverse, absorbing only the high-value subsidiaries of the Shinsang Group into YK. Of course, that included Kang Seok-ho himself.
'I don't know the details of that group's downfall in the original timeline. But with the fragmented information I have about that era and my current judgment, it’s a task I can easily pull off. Besides, the coloring stage is already complete.'
In truth, if Kang Seok-ho hadn't bowed his head, Yoon-gi would never have considered such a plan. There hadn't been a group worth acquiring in the first place. Since Yoon-gi was still suffering from a talent shortage, acquiring a company larger than necessary would have been a blunder, but the story changed if it was a group where Kang Seok-ho was the owner. That was why he had ignited this plan. If Kang Seok-ho was the minimum requirement to execute this plan, JSD was the essential existence needed to make it a success.
'To that end, I gave JSD the production margin. Good, this is entirely possible.'
Having bolstered his own confidence, Yoon-gi maintained a relaxed attitude throughout, contrary to his inner thoughts, to put Kang Seok-ho at ease.
"You can rest easy. The Shinsang Group will be reborn."
"If you don't mind, could I hear a more detailed explanation?"
Kang Seok-ho had also been considering the "Distressed Company Management" system. He had already discussed it with Director Jo Yun-tae previously. However, in the past, the talk had been about YK potentially dismantling the Shinsang Group as a form of punishment, whereas now, as YK’s closest aide, he was talking about "intentionally" becoming a target for management. There was a clear difference. Yet, anxiety was unavoidable. Thus, Kang Seok-ho wanted to obtain reassurance, even if only in words.
"Of course."
Instead of explaining, Yoon-gi handed Kang Seok-ho a sheet of A4 paper and a ballpoint pen.
"You don't have 100 percent control over the Shinsang Group right now, do you?"
Kang Seok-ho gave a bitter smile and nodded.
"Actually... that is correct."
No matter how capable Kang Seok-ho was, there was a difference between those who had lined up behind him and those who had lined up behind his father, Kang Jang-hwan. Even now, with Kang Jang-hwan ousted and Kang Seok-ho running the Shinsang Group, there were definitely subsidiaries that Kang Seok-ho’s influence couldn't properly reach.
"Classify them into allies you must keep, allies you would like to keep, and enemies you can discard, then submit it. How many days will you need?"
"I will handle it within three days."
In a sense, it was a death sentence. But Kang Seok-ho nodded without a moment's hesitation.
'If I can use this opportunity to get rid of the eyesores, there’s nothing better than that.'
From the start, Kang Seok-ho cared deeply for the family members who followed him, but he wasn't willing to stake his life on the Shinsang Group itself. If he had been, he wouldn't have bowed his head to Yoon-gi in the first place. More important than the name was the well-being of the subordinates he was responsible for. Furthermore, Kang Seok-ho could receive unexpected support in this matter.
The less capitalism reaches its extreme, the more chaebols run around busily. Conversely, the more capitalism reaches its peak, the less chaebols work. Why? Because money makes money. Entering the 2010s, Korea suffered from the derailments of chaebols. In the past, it wasn't discovered because the media and public opinion were controlled, but in a society with highly developed communications, the "crazy stunts" pulled by third or fourth-generation chaebols were bound to cause problems in one way or another.
Kang Seok-ho was also a third-generation chaebol. But because it was 1980s Korea, where capitalism had not yet reached its peak, Kang Seok-ho was the one running around incredibly busily.
'Hmm, I’ve basically placed the ones who need to be cut off in the high-debt divisions, but I’m not sure if it’s okay to cut them all off at once. Will I be able to suppress the backlash in one go?'
Kang Seok-ho had already accurately pierced through Yoon-gi’s intentions.
'Come to YK as a clean Shinsang without debt. An opportunity has arisen.'
This point was also highly welcomed by Kang Seok-ho. The cleaner the state he arrived in, the better he would be treated by Yoon-gi. However, because there were relatives stationed in distressed subsidiaries for various reasons, there had to be a catalyst to set things right.
'There needs to be a catalyst. A catalyst...'
Even though he was sitting in his home study, tapping his forehead with his right index finger, no brilliant idea came to mind. The reason was the three-day deadline. If it were three years, or even three months, he felt he could do something, but three days was too short by any common-sense standard.
'But I’m the one who already said three days.'
Just as he was regretting his own bold claim, the study door opened cautiously.
"Seok-ho. Are you busy...?"
It was Kang Jang-hwan, peering into the study with a somewhat shy expression. Seeing that, Kang Seok-ho hesitated for a moment before shaking his head.
"I am busy, but I can spare a moment. What is it?"
After learning that Kim Seong-pil had been deceiving him, Kang Jang-hwan had taken the opportunity to reflect on his own attitude. That reflection brought about repentance, and that repentance led to a change in attitude. Of course, he hadn't been able to apologize to his son, Kang Seok-ho, for the past events, but since the change in his state of mind was visible on the outside, it was also true that Kang Seok-ho didn't resent his father as much as he used to.
"No, it’s just that you looked like you had a lot on your mind."
"Hmm... as a matter of fact, I do have some worries."
"I don't know what kind of worries they are, but why don't you try confiding in me? They say that if you share a worry with someone else, it gets cut in half."
Kang Jang-hwan pulled a chair from the study and sat down next to Kang Seok-ho, and since Kang Seok-ho didn't particularly rebuke his father, a scene naturally formed of the two sitting side by side, looking at each other.
'Should I tell Father? Hmm... looking at his behavior lately, it might be okay.'
Kang Seok-ho was the type who knew how to take risks if the inference was based on rationality. Therefore, he didn't drag out his worry and immediately confessed to his father the instructions he had received from Yoon-gi.
"You want to peel off only the distressed companies from Shinsang?"
At Kang Jang-hwan’s words, Kang Seok-ho nodded.
"Yes. But it’s not easy. I have to create a plan within three days, and I don't think the time given to implement the plan will be very long either."
Kang Jang-hwan, who had been pondering his son's words, suddenly made a determined expression, nodded, and opened his mouth.
"Seok-ho, use me."
"Yes? Father, surely...?"
Kang Seok-ho quickly inferred his father's intent, but he couldn't help but make a shocked expression.
"To be honest, I am a sinner when it comes to YK. Even though I was deceived by that bastard Seong-pil, I dealt a direct blow to YK."
"Hmm..."
"Therefore, nothing will change just because I go and apologize. However, YK accepted you. That means if you achieve results, it’s not you, but Shinsang that will grow. It won't be my Shinsang, but it means our Shinsang will grow."
"That... I think so too."
Kang Seok-ho couldn't bring himself to answer no, and Kang Jang-hwan nodded as if he understood.
"Even if I can't take a seat at YK, I can at least support you. So, use me. I will gather the guys in the distressed subsidiaries and openly rebel against you. Then it will be easier for you to handle things."
"But, Father, if you do that, your reputation..."
Kang Jang-hwan cut off his son and shook his head.
"My reputation is already at rock bottom. The fact that I confined you was also discovered by the directors and shareholders. How much lower can my reputation fall from here? Since my influence hasn't completely disappeared, I will take the heat. Instead, make one promise."
"A promise?"
At his son's question, Kang Jang-hwan nodded.
"Create results good enough to overcome the bad results my foolish actions created. Only then will I have the face to see your grandfather when I die later."
"Father..."
Kang Seok-ho found himself grabbing his father's hands with his own.
"I beg you, Seok-ho."
At Kang Jang-hwan’s words, Kang Seok-ho finally closed his eyes tightly and nodded. Kang Jang-hwan would never be able to appear at the forefront of YK. However, he had repented, albeit late, and became another hidden keel of Shinsang.
"You’ve solidified the internal affairs very well."
"I tried my best."
Most of the people in charge of the Shinsang Group's profitable businesses were figures under Kang Seok-ho. Of course, there were exceptions, but they were a minority compared to the pro-Kang Seok-ho faction. Therefore, Kang Seok-ho boldly classified them as the enemy. With his father's support already in place, there was nothing to fear.
"The enemy side also has a much higher debt-to-equity ratio, right?"
"That is correct."
"Good. You don't need to worry, as this choice won't lead to any regrets. I swear it on my love for my family."
"Since long ago, they said that if you want to see a profit, you must take risks. I have already made up my mind to take that risk."
Yoon-gi, who nodded with a smile, began his full-scale command.
"You are in a situation where you have to donate to the establishment of the Seongwol Foundation soon, right?"
"That is correct. I am currently discussing with my aides how much to donate."
"Donate 200 million won."
"200 million..."
Even though he had made up his mind, the fear toward JD could not be shaken off so easily. Thus, Kang Seok-ho repeated the very small amount of 200 million won in his mouth for a brief moment before nodding.
"I understand."
However, Yoon-gi’s order did not end there.
"In promissory notes."
Kang Seok-ho’s eyes widened just like they had at the very beginning, and Yoon-gi also smiled just like he had at the beginning. The die had already been cast.
"The Shinsang Group only donated 200 million won?"
JD said to the Chief of Staff standing in front of him with a very uncomfortable expression.
"That is correct."
"Is that a joke? Do you know what rank the Shinsang Group is? Even if their influence has diminished due to recent events, they are still a group in the top 10 domestically. Yet they only donated 200 million won?"
"That... is correct."
The Chief of Staff’s answer, which was dripping with cold sweat, didn't end there.
"There... is something else I must report."
"What is it?"
"The 200 million won that the Shinsang Group donated is... uh, a promissory note."
"What?!"
JD jumped up from his seat without realizing it. Then, leaning his hands on the table, he leaned toward the Chief of Staff and began to make a wheezing sound.
"Say that again. What did the Shinsang Group do?"
"A promissory note... they donated with a promissory note."
"These damn bastards! How dare they present a promissory note? What do they take me for!"
"B-but there is good news as well."
At the Chief of Staff’s desperate shout, JD barely managed to suppress his anger and looked at him.
"The Samwoo Group donated 3 billion won."
They say that when you have to say something, it’s better to say the bad news first and then the good news. Of course, that’s only if the good news is larger in scale than the bad news.
"The Samwoo Group? 3 billion won? Hoho...!"
At JD’s appearance, who had pushed the Shinsang Group matter into a corner of his brain for a moment, the Chief of Staff managed a difficult smile and nodded.
"That is correct. When I asked over the phone if they were overreaching, the answer came back that it was the President's special instruction and they were thinking of the President's dignity."
The Seongwol Foundation was a foundation established under the pretext of helping the bereaved families of those who died in the Aung San Cemetery bombing. Of course, this was only a pretext. In reality, it was a foundation for laundering JD’s slush funds, and JD had "demanded" 30 billion won from chaebols for the costs of operating the Seongwol Foundation for three years. It was naturally a very difficult demand from the companies' perspective. However, the companies collected the donations while biting the bullet, and news arrived that the Samwoo Group, which was honestly not in a position to be included in this demand, had donated a whopping 3 billion won.
JD nodded with a very satisfied expression.
"The Chairman of Samwoo was the real owner of the YK Department Store, right? Even though there is already a lot of consideration for this side through that channel, they donated? I like it very much."
"In fact, the Samwoo Group was a company not included in this fundraising target. Although the YK Department Store is doing well, it was because we were already gaining benefits through that part."
"Yes, that is certainly true."
"Actually, looking at the Samwoo Group alone, they were not included in this fundraising because they are in a situation where they go up and down from 90th place."
Finally, JD leaned back and laughed.
"To think they were such patriots. Hahahaha! I like it very much. Include the Samwoo Group in the upcoming banquet with the top 10 groups."
"I understand."
The Chief of Staff tried not to talk about the Shinsang Group anymore, but JD’s grudge was not so light.
"Keep an eye on the Shinsang Group. Arrogant bastards. How dare they present a promissory note?"
JD’s gaze turned toward two places, Samwoo and Shinsang. Just like the N and S poles of a magnet.
Not long after the Seongwol Foundation fundraising ended, JD had to explode with anger once again.
"They donated 200 million won again?!"
The Saemaul Heart Foundation donation and the Saemaul donation. The Shinsang Group repeated the same behavior as before.
"Yes, even this time it is a promissory note..."
Because he had left one piece of good news, the Chief of Staff reported in a slightly more stable voice compared to last time. However, JD’s anger was greater than before.
"Damn it! Where do they dare to present a promissory note! Do they think I can't dismantle the Shinsang Group? How dare those lowly merchants insult the head of a country? Huh?!"
The reason JD was angry. This was not just about the amount; the issue of the promissory note was also significant. A promissory note is generally a method for the "superior" to pay the "inferior." Therefore, interpreting the Shinsang Group’s actions meant, "We are superior to you." It was impossible for JD not to know this. JD went wild at the blatantly intentional behavior, and it was only after about 30 minutes that the Chief of Staff could inform JD of the good news.
"The Samwoo Group donated 2 billion won again this time?"
"That is correct. They said they wanted to donate more, but apologized, saying the group's internal cash liquidity wasn't very good. They even made a positive promise to donate again if there is a need to collect donations in the future."
One company in the top 10 domestically was showing off its talent for making people angry, while a company that could practically be considered 100th domestically was making him feel like he was walking on air. Therefore, JD felt anger and joy at the same time and gave an order to the Chief of Staff.
"For this banquet, I don't care about the others, but make sure the Chairman of the Shinsang Group attends. I’m going to find a pretext and send them away."
"I understand."
Watching the back of the Chief of Staff who had bowed and left, JD began to wheeze again.
'Shinsang Group... I will give you one last chance. I will show you clearly what happens to a dog that mocks its master.'
The banquet of the top 10 chaebols held at the Blue House. Being invited here had the advantage of knowing the power your group possessed, but during the new military regime, the disadvantages were much greater.
[Damn it, this is a 2.5 billion won meal.]
[Sigh, I donated 1.4 billion won, and it’s just a meal.]
[Surely they won't ask for another donation at this table, right?]
The chairmen of each group sighed inwardly as they looked at the banquet placed on the table. It was certainly appetizing. However, they were also people who knew better than anyone that this was no different from a master giving a piece of rib meat to the dog he was raising for once.
"Hahahaha, it’s truly good to see patriots gathered like this. Thanks to you all, the Seongwol Foundation is flowing very smoothly, and I am also very satisfied with this Saemaul-related donation."
The chaebols forced smiles at JD’s words and acted as hypocritically as possible. However, the chaebols came to have one question.
[Who is that person?]
Normally, there would be 10 companies participating in the banquet. But two more companies were participating. Of course, it wasn't that the chaebols didn't know both. JD’s introduction took place in a situation where they knew one but not the other.
"Now, I will introduce them separately. These people are special patriots. Chairman Oh Jeong-su of Geumsan Steel, and Chairman Choi Ki-hyun of the Samwoo Group. Despite the small scale of the companies they operate, both of them donated 2.7 billion won and 5 billion won respectively."
At these words, the chaebols sitting in their seats felt their seats turn into a bed of thorns in an instant. No, it was a bed of thorns to begin with. It was just that now, because of this remark, it felt like a large stone had been placed on their knees.
"How can I not be happy when there are so many patriots in the country? However, it seems one person who is not a patriot is even late."
JD looked at the empty seat with an uncomfortable expression.