A Distressed Company? (3)
“Oh, Chairman Oh. What brings you here? Requesting an audience like this.”
Chairman Oh Jeong-su, who had generously donated 2.7 billion won to the relief fund, had requested an audience. JD, pleased by the visit, greeted him with a joke typically reserved for his department heads. Thanks to this, Chairman Oh managed to force an awkward smile, but he couldn't hide his flushed, beet-red face. JD asked, looking puzzled, “What’s the matter? Is it hot outside? It’s late autumn, so it should be chilly, shouldn't it? Or did you run here?”
However, Oh Jeong-su walked up to within three steps of JD’s desk and shook his head.
“No, sir. That’s not it. I came because I heard some truly shocking news.”
“What is it?”
“I was notified by your secretary, sir, that the subsidiaries of the Shinsang Group that I was granted are…”
“The subsidiaries? What? Is there some kind of problem?”
Seeing JD’s look of genuine confusion, Oh Jeong-su nodded. Typically, Chairman Oh’s signature look was his thinning hair neatly slicked back with pomade. But right now, his hair was sticking out in every direction, and even the handkerchief in his breast pocket was haphazardly poking out.
“That is correct. I was granted nothing but the chaff, the dregs of the subsidiaries. I couldn't believe that you, sir, would make such a decision, so I came to see you directly. Please forgive my insolence.”
Under normal circumstances, Oh Jeong-su would be a chairman of such a minor company that he would never be able to secure an audience here. However, thanks to his 2.7 billion won donation, he was able to face JD. Of course, such opportunities would vanish over time if there were no additional contributions. But at this point in time, meeting JD was certainly possible.
“Just what kind of subsidiaries were decided for you?”
JD’s way of speaking made it clear he knew absolutely nothing. Oh Jeong-su suppressed his excitement as much as possible in front of JD and got to the point.
“Yes, the subsidiaries I was decided to be granted are…”
Just as Oh Jeong-su was about to speak, JD cut him off.
“Ah, wait. There’s no need to say it. Just write down the subsidiaries you want to be granted in order of priority here. Then I’ll check it and get back to you.”
At JD’s words, Oh Jeong-su’s face brightened. A moment later, he began to write down a list of the subsidiaries he hoped to receive on the A4 paper lying on the table.
“I’ve finished writing it all down.”
“Good. Then wait for my contact. I’ll look into it and call you myself.”
“Thank you, sir!”
After giving a crisp salute, Oh Jeong-su left JD’s office with a satisfied expression. At the same time, JD frowned and called his Chief of Staff on the intercom.
“Sir, did you call for me?”
The Chief of Staff’s attitude was reverent. However, he was immediately kicked in the shin, unable to hide the pain on his face.
“Ugh!”
JD didn't give him time to endure the pain and immediately kicked his other shin with his shoe.
“Kugh!”
A groan echoed low in the office. Even though both his shins had been kicked and he wanted to rub them frantically with his palms, the Chief of Staff didn't dare to do so. The expression on JD’s face before him was filled with pure irritation.
“I clearly instructed you to take good care of Geumsan Steel, didn't I?”
JD pushed up the center of his glasses frame with his right index and middle fingers, sat back in his chair, and radiated a chilling atmosphere.
“I, I am sorry.”
Knowing JD’s temperament well, the Chief of Staff chose apology over excuses. Because of this, JD did not inflict any further physical punishment.
“Why did you do something you’d have to apologize for? You’ve done well until now. How on earth did you make the selections that Chairman Oh of Geumsan Steel came to see me with his face beet-red? Should I have to spend my time on such trivial matters?”
JD’s attitude was calmer than expected. Although he had gone into a frenzy when he heard Kang Seok-ho’s words, he was proving that he hadn't reached the top of the country simply by playing cards.
“I am sorry. It is my negligence.”
“Why on earth did you do that? Do you have some kind of grudge against Geumsan Steel?”
“No, sir. Absolutely not.”
JD asked for the reason again, looking at the Chief of Staff who was shaking his head.
“Then why did you do it?”
“It was a report submitted after consultation with the Chief of the Presidential Security Service. I thought the Chief of the Security Service would know your intentions better than I would, so…”
“JSD? Was it a mistake? Call him here.”
“Understood.”
As soon as the Chief of Staff left the office, he rubbed both his shins frantically with his hands. Only after about a minute did he stagger toward JSD’s office.
“The President is calling for you. It seems to be about the granting of the Shinsang Group’s subsidiaries… the situation is not good.”
JSD had anticipated this situation, so he followed the Chief of Staff to JD’s office without panic.
“Sir, it’s JSD.”
“Come in. Chief of Staff, you may go.”
“Yes.”
The two men sat one-on-one in the office. The meeting between the supreme power of the new military regime and his second-in-command was not as stiff as one might think.
“JSD, I heard you told the Chief of Staff to modify the list. What’s going on?”
Facing JD, who was far more gentle than when he dealt with the Chief of Staff, JSD steeled himself. *‘Whew, okay. I can do this. I didn't do anything bad to the President, did I?’*
Clenching his fist lightly, JSD replied with a reverent expression.
“Yes. I judged that granting the subsidiaries to Samwoo and YK would better align with your intentions, sir.”
“To Samwoo and YK? I had already given the Chief of Staff a hint to pay attention to them, hadn't I?”
JSD nodded.
“Yes, I confirmed that as well. However, I made that choice because I judged it would be better to treat them with more favor. But as a result, I have offended you, sir, so it is entirely my negligence. Please forgive me.”
At JSD’s gesture of bowing his waist at 120 degrees, JD immediately waved his hand.
“No, no. When have I ever raised my voice at you over something like that? I just wanted to hear in more detail why you made that choice.”
JSD straightened his back and opened his mouth, maintaining a respectful attitude toward JD.
“Geumsan Steel may have donated 2.7 billion won this time, but in reality, the scale of the company is not very large and its debt ratio is high, so it is not a company that can offer loyalty to you, sir, in the long term. On the other hand, Samwoo and YK are companies that have consistently shown goodwill since you took power, sir. Wouldn't it be more helpful for the upcoming presidential election to give the favor intended for Geumsan Steel to YK instead?”
Since the general election was only a few months away, it was practically impossible to extract political funds from other companies. They had already emptied the pockets of companies by forcing donations several times. However, if it were the general election three years later, the story would naturally be different. Because of this, JD also wore an expression that suggested JSD’s words made sense.
“You could certainly think of it that way. However, regardless of the reason, Geumsan Steel donated 2.7 billion won. In such a situation, if we don't give Geumsan Steel any special treatment, what will other companies think? This is a matter that can divide the will of the companies.”
“Then, how about doing it this way?”
“How?”
“We grant the current prime assets to YK, and the next prime assets to Geumsan Steel. Since they are 1st and 2nd place with 5 billion and 2.7 billion respectively, we can say it was decided to give them sequentially. And crucially, Geumsan Steel is too small in size to swallow the Shinsang Group.”
“Too small in size?”
JSD nodded.
“Yes. Samwoo and YK are groups that will become your strength, sir. Especially if you combine the two, it is safe to say that they are within the top 5 in the country in terms of cash mobilization power. If such companies support you, sir, it will certainly be helpful for the presidential election. Of course, we would have to give them time to digest it.”
“Good, then proceed that way.”
“Thank you, sir.”
“Don't thank me, it’s all for our own good anyway. Anyway, soothe the chairman of Geumsan Steel well, and make sure to push them next time.”
“Yes, I will do so.”
A moment later, as JSD left, JD rested his elbows on the table, clasped his hands together, and rested his chin on them.
*‘Hmm… something seems different… Has that guy ever acted like that before…’*
It was the moment a seed of doubt was planted in JD’s heart.
* * *
Shinsang Technology / Shinsang Securities / Shinsang Electronics / Shinsang Trading / Shinsang Heavy Industries / Shinsang Trade / Shinsang Logistics / Shinsang Textiles / Shinsang Construction, and finally, Shinsang Steel. A total of 10 subsidiaries fell into YK’s hands.
Of course, if you count the minor parts that were hardly worth calling subsidiaries, more than 10 companies fell into the hands of other firms, but the true prime assets of the Shinsang Group had fallen into YK’s grasp. Among these, Trade and Logistics would be a great help for the expansion into the Soviet Union that Yoon-gi would soon undertake, so it was an even more meaningful harvest at this point. Of course, it was clear that Yoon-gi could utilize the remaining 8 subsidiaries efficiently as well. It was just a matter of order.
Furthermore, it was November, just before winter began. If things had flowed similarly to original history, the dissolution of the Shinsang Group would have taken about a year. However, in the current history, the dissolution of the Shinsang Group was completed in just two months. Of course, that was limited to YK.
The reason was very simple. YK possessed a massive cash mobilization power that other companies did not have. In fact, it was very easy for YK to get loans from banks. Unlike other companies with an average debt ratio of 500 percent, YK’s debt ratio was virtually non-existent. This might have been mocked by those around them if viewed through the lens of the 80s, but it was also something that happened because, according to Yoon-gi’s guideline of achieving maximum efficiency with the best talent, expanding without talent went against his principles. Of course, it was also because Yoon-gi, before he properly encountered management and practical work, had a deep-seated hatred for debt.
Yoon-gi didn't even take out bank loans directly when he took over the 10 subsidiaries. The place that provided the money was none other than his own oil field. It was possible because the new military regime had granted the Shinsang Group at such a low price, but this was only possible because it was Yoon-gi; other companies were still in the process of dealing with the Yuil Bank even though they had received grants close to free.
“To be this considerate of me… thank you so much.”
Even though the massive Shinsang Group had been cut in half, Kang Seok-ho, who was in the study, bowed his head to Yoon-gi instead.
“I’m the one who’s grateful. Because you still trust me.”
At Yoon-gi’s gentle smile, Kang Seok-ho smiled as well.
“Naturally, I have no choice but to smile. You have cleanly resolved my risks.”
In fact, as a human being, one cannot help but have about 1 percent doubt. That was why Kang Seok-ho, while absolutely following Yoon-gi’s orders, couldn't help but feel a sense of anxiety. Thoughts like, *‘What if I get abandoned?’*
However, while taking over the 10 subsidiaries, Yoon-gi recognized the shares of Kang Seok-ho and his close associates exactly as they were. Yoon-gi did take over the shares that weren't recognized, but at least in terms of shares, his associates didn't suffer any losses at all. Of course, the existence of the Shinsang Group had disappeared, and the names of the subsidiaries would change to ones related to YK, but this exceptional treatment completely silenced any internal strife among his associates at once.
The 8th largest Shinsang Group in the country. YK, often evaluated in the business world as a ‘999-year-old Imoogi.’ The consensus was that holding shares in the subsidiaries of YK, which was rumored to potentially become a dragon soon, would certainly be a greater benefit in the long term. Therefore, Kang Seok-ho’s associates trusted Kang Seok-ho and YK’s exceptional treatment, and did not cause any trouble at all.
However, Kang Seok-ho’s worries were not over.
“But, is it really okay to keep me as the chairman of Shinsang Trading? I think JD will be watching me very closely…”
To this reasonable concern, Yoon-gi shook his head and smiled.
“You don't need to worry at all.”
“If you say so, Chairman, I have no choice but to believe you, but…”
To dispel Kang Seok-ho’s worries, Yoon-gi added a light explanation.
“Even just because of the Daehan Ilbo, it will be difficult for him to touch you.”