The Private Auction of a Thousand Billion Won
"This is something I’m telling you specifically because the transaction with Seonhan Bank—or rather, with you, Section Chief Ahn—is nearing its final stages."
Ahn Dae-ho felt his throat go dry, swallowing hard. He couldn't even begin to imagine what Choi Cheol-kyu was about to say.
"If I were to request a loan in the range of 100 billion won from Seonhan Bank, what kind of interest rate would you offer?"
"Excuse me? A loan? And for 100 billion won at that?"
Ahn Dae-ho hadn't expected such a bombshell at this timing, and he inadvertently let his inner turmoil show on his face.
"That is correct. I brought you here specifically because I wanted to proceed with this alongside our current business. Can you give me an answer?"
In Ahn Dae-ho's head, the beads of an abacus began to click frantically. 'What kind of interest rate should I offer? No, the loan interest isn't the only thing that matters. I have to decide on the deposit interest too... This isn't something I can decide on my own. I have to report this to the branch manager.'
Ahn Dae-ho’s face quickly regained its composure.
"I am terribly sorry, but could you give me just one day? I want to come back to you with more accurate and favorable conditions."
"Hmm, is that so? Well, I suppose I have no choice."
Seeing Choi Cheol-kyu’s indifferent reaction, Ahn Dae-ho instinctively realized that time was of the essence.
"I will let you know as soon as possible."
"Understood. Then, I shall await your contact."
"Yes, then I will head straight to the bank. Please, just wait a moment."
Choi Cheol-kyu smiled as he watched Ahn Dae-ho practically vanish like the wind. After all, Ahn Dae-ho was the third person to visit him today, and there were still plenty of people left for Choi Cheol-kyu to meet.
"What? A loan? For 100 billion won?"
The branch manager, who had been smoking, was so startled by Ahn Dae-ho’s report that he dropped his cigarette. Consequently, the rug in the branch manager's office caught fire, leading to a brief commotion of frantic stomping, but it didn't last long.
"Yes, 100 billion won. I thought I misheard at first, but it was definitely 100 billion."
"Are you insane... Is there even a reason for YK Department Store to take out a 100 billion won loan? Wait, hold on... Could it be...?"
"You’re likely thinking the same thing as me, Branch Manager. Nine times out of ten, they’re planning a second branch."
Although it was confidential, considering the construction costs of YK Department Store that they had estimated themselves, it was entirely plausible that they needed 100 billion won for a second location.
"100 billion... 100 billion, huh..."
The branch manager lit another cigarette, but his body wouldn't stop trembling. A 100 billion won loan. If they could pull it off, it would undoubtedly become a gold mine, generating over 10 billion won in annual profit based on the standard interest rates for first-tier financial institutions of this era. However, it wasn't without its problems.
"100 billion isn't an amount we can just lend out easily. We need approval from headquarters."
Even though Seonhan Bank was a top-tier institution, 100 billion won was by no means a small sum. In this era, 100 billion won was equivalent to over 300 billion won in the 2010s. If they lent it out and couldn't recover it, it wouldn't just be Ahn Dae-ho’s head on the chopping block.
"But wouldn't it be worth it for a client like YK Department Store? We estimated their first-day revenue to be over 1 billion won, and while the trend has dipped slightly, I understand it’s still well over 500 million won daily. Assuming a 40 percent profit margin, it means YK Department Store could pay back the principal in about 500 days."
In reality, YK Department Store’s actual daily revenue was 400 million won at the main store alone, and well over that when including the mini-department stores, but Seonhan Bank had managed to calculate a fairly close figure.
"That’s exactly why I’m agonizing over this."
At the branch manager’s words, Ahn Dae-ho pushed for a stronger argument.
"Furthermore, YK Department Store has incredibly strong ties to the New Military Regime. If our Seonhan Bank builds a solid relationship with them, I believe we will see benefits in many ways down the road..."
"That’s exactly why my head hurts even more."
"Pardon?"
The branch manager crushed his cigarette and lit a new one.
"Phew."
After exhaling a thick cloud of smoke, the branch manager offered one to Ahn Dae-ho as well.
"Ah, thank you."
Ahn Dae-ho had been standing until now, but thanks to the "lubricant" of the cigarette, he was able to sit on the reception sofa.
"Think about it carefully. If it were just a simple lending relationship, we would be the 'Gap' (the superior party). Don't you agree?"
"That is true."
If it weren't YK Department Store but an ordinary company, the bank would be the 'Gap'. It’s not easy for an obscure company, rather than a blue-chip one, to borrow such a large amount of money. Therefore, the interest rates would be relatively high, and the company’s finance manager wouldn't dare treat the bank clerk carelessly. But in the case of YK Department Store? Given their current revenue, the probability of repayment is extremely high, the collateral—the building—is solid, and their connections to the regime are incredibly tight. Because the loan itself is a tool to build those connections, there are inevitably many things to worry about in terms of profitability.
"There are two choices. The first is to treat it as a business where we simply lend money."
"In that case, we would have more leeway regarding the interest rate."
"Exactly. And the second is to judge it as a device to build connections. In this case, we can never charge a high interest rate. Furthermore, we would have to offer preferential deposit interest rates to YK Department Store as well."
"In the latter case, it seems we would need a very thorough review."
"That’s exactly the problem."
"Pardon?"
"We don't have time."
"I did ask for a day’s grace..."
At Ahn Dae-ho’s foolish answer, the branch manager furrowed his brows.
"You idiot! Ahn, are you out of your mind? Do you think that one day is a grace period given only to us? Have you lost your sense of reality because of the number 100 billion?"
"Gasp!"
Only then did Ahn Dae-ho realize what a grave mistake he had made.
"You fool. Do you think the representative from YK Department Store only said that to you? They’ve likely said the same thing to every other bank. And they will accept the loan from whoever offers the best conditions. The fact that they brought up the loan after we already set the initial deposit interest rate proves that the YK representative is no pushover. They’re a seasoned pro."
"I’m sorry. I thought it was such a great opportunity that I got ahead of myself."
As Ahn Dae-ho bowed his head, the branch manager sighed and shook his head.
"No. At least you reported it immediately, so you’ve done your part. But this isn't a problem I can decide on my own."
"Then... what do you intend to do?"
"Get up. We’re going to headquarters. Let’s hear the guidelines from the top. It’s nice to hog the credit, but this is too big, and the risk of bursting is too high."
"Are you sure about this? This is a really big deal..."
"Are you confident you can handle it if it fails?"
Watching Ahn Dae-ho, who couldn't answer, the branch manager stood up and spat out the words.
"Then shut up and follow me."
"If there’s one piece of luck in my life, it’s that I got hired at YK Department Store. Look, Min-gwan. Look at all these gifts."
Ma Seok-il was wearing an incredibly happy expression as he looked at the gifts piled high under his desk.
"Being in sales really is something else..."
"Hey, think back to when you were at the construction site and you listened well to other people. Think about how well people treated you back then."
"They treated me well, but there wasn't much substance to it. They weren't exactly people with money to spare."
"That may be, but from their perspective, they were treating you well, right?"
"I suppose so."
Ma Seok-il added to his words, addressing Son Min-gwan, who was nodding.
"And it’s not because we’re in sales that we’re living the high life like this. We’re living this well because we’re the ones handling the negotiations. To put it bluntly, the bank sales reps are the ones wining and dining us, aren't they?"
"Ah, I see."
"And you. You’re thinking to yourself right now, 'Is it okay to accept all this?', aren't you?"
Hearing this, Son Min-gwan scratched the back of his head with a bitter smile.
"Did you catch me?"
"It’s written all over your face. But you absolutely don't need to feel sorry. That’s just how sales works."
"What do you mean, 'that’s how it is'?"
"I mean, just like we’re being treated like this, the banks that come to sell to us will receive the same treatment when their time comes to be the ones being courted."
"Ah... I think I understand what you mean."
"People make the mistake of thinking that the person in the 'Eul' (subordinate) position is always pitiful, but that’s nonsense. There are times when the 'Eul' becomes the 'Gap'. When that happens, do you think the 'Eul' will treat the 'Byeong' (third party) well, thinking, 'Ah, I had it hard when I was the Eul'? Not a chance! They’ll squeeze them even harder. Because they have to extract what they lost when they were the 'Eul' from the 'Byeong'."
"Surely not..."
"You don't think so? Think carefully about the stories you heard at the construction site. There were definitely people there who had run companies, too."
Son Min-gwan began to apply the stories he had heard to reality, and before long, he wore a bitter expression.
"You’re right, Section Chief."
"In the end, that’s what a company is. It’s not about treating other companies well; it’s about how to fleece other companies to make your own company bigger. Honestly, do you believe the small business owners who say their company is struggling?"
Son Min-gwan realized he had heard the same person say, "I’m someone who spent a large corporation employee’s annual salary in a single day at a bar," and "My company went bankrupt because it was struggling," and he let out an even deeper, bitter smile.
"Even if a 'Gap' company treats an 'Eul' company well, that profit doesn't go to the employees. It goes straight into the owner’s pocket."
"I don't know... I used to just listen, but now that I’m starting to understand it in the context of reality, society feels incredibly dirty and bitter."
"That’s reality. That’s why employees like us have to choose who to pledge our loyalty to very carefully."
"Pledge loyalty to?"
"Yes. Some trashy small business owners pay someone who has worked by their side for decades only 100,000 won a month, while they take home over 6 million won. Is such a person worth pledging loyalty to?"
"No, they aren't."
Watching Son Min-gwan, who had finally learned how to speak decisively, Ma Seok-il smiled brightly.
"But look at President Ryu. He guarantees us a significant level of autonomy and the benefits are fantastic. This is the kind of company worth pledging loyalty to. Keep this in mind: don't worry about other companies' employees, just pledge loyalty to the person who treats you well. This is the basic rule of social life. As YK Department Store grows, it will hire more employees, so won't the number of people enjoying benefits like ours increase?"
Although it was mixed with a bit of sophistry, it was more than enough to persuade Son Min-gwan, and his eyes began to sparkle.
"There was such a way..."
"Good. Then, let’s go meet the next person."
First-tier financial institutions were Choi Cheol-kyu’s responsibility. Second-tier institutions were the responsibility of Ma Seok-il and Son Min-gwan. A de facto private auction for a 100 billion won loan was actively underway.