The Fall of Shinsang Group
The heads of the other conglomerates were all in attendance, but Kang Seok-ho of the Shinsang Group had yet to arrive. There hadn't even been a notice of absence. Because of this, JD began to criticize Kang Seok-ho with biting sarcasm.
“When Chairman Kang Jang-hwan was running things, the Shinsang Group was a truly outstanding company. Perhaps out of patriotism, their support for politicians in need was also quite remarkable.”
The conglomerate heads could only swallow hard.
“However, ever since the new chairman took over, things have changed drastically. A tiger of a father, but a dog of a son. Do you all understand what I mean?”
As the heads nodded with awkward smiles, JD continued.
“Do you know how much the Shinsang Group has contributed in donations, both last time and this time combined?”
JD held up his right hand, extending four fingers one by one.
“Four hundred million won. A mere 400 million. What is the Shinsang Group’s domestic ranking? They hover between 8th and 9th place. Yet, their donation ranking is languishing in the 50s!”
With JD’s behavior and bulging veins making it seem as if he might slam his fist onto the dining table, the other heads were practically breaking out in cold sweat.
“Look at Chairman Oh Jeong-su and Chairman Choi Ki-hyun here. These two are not even in the top 90 of the conglomerate rankings. Yet, they have taken 1st and 2nd place in donations, respectively. What true patriots they are! In contrast, that fellow Kang Seok-ho of the Shinsang Group is……”
JD was trembling with rage. Just as he was about to launch into an even more scathing critique, Kang Seok-ho arrived.
“Ah, my apologies. You see, the taxi was stuck in traffic.”
It was a smooth, oily apology that didn't seem particularly sincere. Considering that most of the heads present were in their 50s or 60s, it was practically an act of grave disrespect.
“No, Chairman Kang. Are you telling me you came here by taxi? Does the Shinsang Group not own a car?”
To the bewildered JD, Kang Seok-ho just shrugged his shoulders and sat in his seat.
“Whether you ride in a private car or a taxi, aren't you stuck in the same traffic? My chauffeur is on vacation today, so I took a taxi.”
Who in the world would be late when summoned by the President? Unless one was playing a high-stakes power game, it was something one should absolutely never do. Even if this wasn't the era of the New Military Junta, Kang Seok-ho’s attitude was a breach of etiquette among breaches. However, Kang Seok-ho felt as if his blood were drying up.
‘Please, just don’t let them drag me to the ANSP.’
It was an act he could never have pulled off if he didn't trust Yoon-gi implicitly. Because of that, even though the back of his undershirt was soaked with cold sweat, Kang Seok-ho feigned a calm expression and reached for the cutlery on the table.
“Phew, I skipped breakfast this morning, so I’m starving. I’ll dig in.”
While the other heads were already eating, JD was in the middle of speaking. JD felt his blood boiling in reverse and trembled, but Kang Seok-ho didn't stop there; he drove the nail in completely.
“Ah, Your Excellency. Now that I think of it, I have something to say.”
Kang Seok-ho spoke with food still in his mouth.
“What…… is it?”
His gaze was so furious that if lasers could shoot from eyes, they would have pierced right through Kang Seok-ho’s body. However, Kang Seok-ho did not back down from that glare and delivered the storm-like statement he had been instructed to say by Yoon-gi.
“Please, look after our companies' situations. If you keep stripping us of our money under the guise of donations and contributions, what funds are we supposed to use to do business? Our companies are not pocket money pouches for politicians. Everyone, don't you agree?”
Finally, JD’s rage exploded.
It was Choi Ki-hyun who managed to barely stop JD, who was running wild in a frenzy.
Although he used the term 'merchants' while all the other conglomerate heads were watching, Choi Ki-hyun didn't care. From the beginning, both Samwoo and YK rarely collaborated with other conglomerates anyway. Of course, even though JD had regained his composure thanks to Choi Ki-hyun, the banquet did not resume in a warm atmosphere. In fact, the banquet effectively ended right there. When the conglomerate heads, including Choi Ki-hyun, returned to their homes, JD was fuming and called his Chief of Staff to talk.
“Make sure this incident is never reported in the newspapers or on TV.”
“Understood.”
The Chief of Staff, fearing that the sparks might fly in his direction, didn't ask for the reason and immediately nodded.
“And, the Shinsang Group. Dissolve them immediately!”
JD’s bombshell declaration. The Shinsang Group was selected as the first scapegoat for the Distressed Company Management System.
Distressed company. In fact, from the 80s to the 90s, it was impossible to find a system that didn't involve distressed companies. This was because the definition of a distressed company, simply put, was 'a company with a lot of debt.'
The average debt ratio of companies in the 80s was a staggering 500 percent. It meant that for every 10,000 won worth of collateral, they were 50,000 won in debt. Of course, this was only possible because South Korea was achieving ultra-high growth until the IMF crisis. It was a situation where ruining a business was practically synonymous with being an idiot. Therefore, banks lent money to almost any company with almost no limits, and companies continued to expand their businesses based on that money. The Shinsang Group was no different. Of course, because Kang Seok-ho had consistently warned his father, Kang Jang-hwan, about the dangers of 'excessive expansion,' their debt ratio was quite low for companies of that era. 250 percent. Considering other companies, it made no sense for the Shinsang Group to be a target for distressed company management, but the New Military Junta was a group that made the impossible possible.
“It seems His Excellency is very firmly enraged.”
At JSD’s words, the Chief of Staff nodded.
“That is correct. He was already having a headache due to next year’s general election, and Chairman Kang’s reckless remarks dealt a fatal blow.”
In original history, a different group is dissolved instead of the Shinsang Group. There were issues with donations, but the biggest reason was the general election. JD asked the head of that company for regional support in the general election, but the head of that company at the time was in no position to grant such a request. He was in a state of extreme personal grief. However, JD decided to dissolve that group immediately without any consideration for the situation, and the dissolution took place in just two days. Of course, the target of dissolution in this history was the Shinsang Group. Regardless of the general election, the actions Kang Seok-ho took were decided because they were at a level that the New Military Junta could simply not overlook.
“How have you decided to proceed with the dissolution?”
The Chief of Staff handed the report he was holding to JSD.
“It is a report to be presented to His Excellency in a moment, but you will understand better if you see this. Still, to explain briefly, the dissolution will be announced tomorrow. The day after tomorrow, the Yuil Bank, the main creditor bank of the Shinsang Group, will send a creditors' committee to the Shinsang Group. Since they cannot cover the promissory notes, a primary default is naturally confirmed. After that, a secondary default is also a natural sequence.”
“So the name Shinsang Group will disappear from history?”
“That is correct.”
JSD, watching the nodding Chief of Staff, began to flip through the pages of the report.
‘The content must definitely be in there…….’
What JSD was looking for was none other than the details regarding which group the Shinsang Group’s subsidiaries would be absorbed into in the future.
[Dissolve the group.]
This was not simply about making a company disappear, but about dismantling an insolent company and distributing it to companies that listened well. Therefore, JSD couldn't help but be interested in this part, and he soon found it.
“It seems like you are giving significant benefits to Geumsan Steel?”
“Yes, that is correct. His Excellency said that Geumsan Steel, which contributed a large amount of money during a difficult time, was admirable, so he asked to take care of them.”
However, JSD put on a feigned look of puzzlement.
“If you put it that way, shouldn't the company that receives the most benefits this time be YK? Because while Geumsan contributed 2.7 billion, YK contributed 5 billion.”
“Th-that may be true, but……”
“Furthermore, both you and I have received quite a lot of help from YK. Thinking about that, honestly, this seems like too much of a benefit for Geumsan Steel.”
“Hmm……”
Since the Chief of Staff’s relative also operated a mini department store, he couldn't offer any particular counterargument to JSD’s words.
“Even if we give YK some more special treatment, it won't be enough to offend His Excellency. What do you think about readjusting it?”
At JSD’s persuasive words, the Chief of Staff also nodded.
“I suppose my thinking was short-sighted. I will readjust it and report it again.”
However, JSD raised his right hand and shook his head.
“Ah, don't report it right away; come back to me tomorrow. Wouldn't it be safer to review it with me? Even if His Excellency happens to be uncomfortable, I will make sure you don't run into any problems alone.”
It was a statement that would have been unimaginable for the JSD of the past. It was a remark coming from the mouth of JSD, who had advocated for 'heart-guarding,' saying that not even JD’s mood should be disturbed. However, the existence of Yoon-gi had changed JSD. Another existence in the world that acknowledged him. Therefore, JSD uttered these words while forgetting his former self, and the Chief of Staff, for his part, didn't think it was strange because the words had plausible grounds.
“Understood. Then, I will see you again tomorrow. Should I come to the office in the morning?”
“Daytime would be better.”
“Understood.”
After parting with the Chief of Staff, JSD immediately called Choi Ki-hyun.
“I apologize. Since my grandfather is currently abroad in the United States, I had no choice but to receive instructions over the phone.”
Yoon-gi, maintaining the friendly tone he had adopted toward JSD, bowed politely in JSD’s office.
“No, no. I heard the news that he was abroad, too. Still, I like that the Chairman is quick to act. It would have been troublesome if you had asked me to wait until he returned.”
The reason for the trouble was none other than JD’s prodding. Since JD was already determined to dissolve the Shinsang Group as quickly as possible, even for JSD, today was the deadline.
“My grandfather said he was truly grateful for the contact, and that he would definitely repay you when he returns.”
“Repay……, rather, I should be the one thanking him. Since I was rude to Mr. Yoon-gi last time, I wanted to help this time. As a man, if you receive a favor, you should pay it back, right?”
“A favor, you say. We at Samwoo already think the favors we’ve received are more than enough.”
JSD shook his head.
“Even if Samwoo thinks that, I don't. So, don't worry and submit the list. I will take responsibility and make sure YK gets those subsidiaries.”
“Really……, is it okay to do that?”
In Yoon-gi’s appearance of feigning difficulty with JSD, the fact that he was the actual strategist of YK was not revealed at all. Because of that, JSD smiled even more softly and nodded.
“I said so. Are you going to make me say it twice?”
“Ah, no.”
The list Yoon-gi handed over. JSD, who checked the list, gave it a rough glance and nodded.
“Good. News will come within a few days. Tell Chairman Choi that he can look forward to it.”
“Yes, he will be truly happy.”
As promised, JSD held a discussion that bordered on an order with the Chief of Staff, then took measures to ensure the report was submitted to JD.
There are two ways to lead an organization. One is when the leader is so outstanding that they can handle most of the organization’s work alone. Zhuge Liang of the Shu Kingdom in the Romance of the Three Kingdoms was exactly this type of person. The other is when the leadership is so outstanding that the aides handle the organization’s work well on their own. If Yoon-gi felt like a combination of the former and the latter, JD was a person close to the latter.
“Well, you must have handled it well. Implement it like this. However, the speed must be fast.”
JD’s instruction to the Chief of Staff. However, a few hours later, Chairman Oh Jeong-su of Geumsan Steel requested an audience with JD with a face that had turned beet red.