Third-Generation Chaebol

End of Summer

After a long time, I left work early and enjoyed some refreshments with my grandfather while watching the news.

"Tsk, tsk. Nowadays, every time you turn on the news, it's nothing but stories about North Korea."

"Well, with the reunion of separated families being such a huge issue, there's not much that can be done, right?"

"Even reporters are going to North Korea, and politicians keep visiting too. Haha, sometimes it really feels like reunification could actually happen."

The two Koreas were truly putting on a peaceful front.

North Korean films were even being released in South Korean theaters.

It was a time when family reunions and trips to Mount Baekdu had just begun.

However, the atmosphere of peace didn't last long, and reunification remained nothing more than a dream that vanished like a mirage.

"I think reunification is difficult. The Kim family in North Korea would need to give up their power for it to happen. Would something like that ever occur?"

"Well, it's human nature to hate giving up what you have."

As I chatted with my grandfather, enjoying our time together—

I got a call from Myeong-dong for the first time in ages.

"I think I'll need to step out for a bit."

"At this hour? Don't tell me you're meeting a girl? If so, you should hurry. Go on, get going."

Grandfather practically pushed me out of the house.

But contrary to his hopes, the person I was going to meet was Lee Young-han.

He was waiting for me at Captain Kang's office, and the Myeong-dong trio was there as well.

"What brings everyone together here? Aren't you the busiest people in town these days?"

"Thanks to the IT bubble, there are more people wanting to borrow money than ever."

Baek Grandma answered in a curt tone.

Contrary to her manner of speaking, Baek Grandma's face looked very pleased.

With the IT bubble causing financial trouble, IT companies couldn't borrow any more from the banks; they had no choice but to turn to third-tier lenders or private loan sharks in Myeong-dong.

"But there are rumors circulating that interest rates are being raised ever since Japanese lending companies pulled out. Is that true?"

"I raised them just a tiny bit. We have to make a living, don't we? Still, we're lending money at nearly half the legal maximum interest."

Chairman Kang chimed in defensively.

I hadn't meant my question as a criticism.

If they had charged interest like the Japanese lending companies, I would have cut ties with them myself.

After all, half of the money running through their financial firms came from SAVE Investment, so they had no choice but to keep an eye on my reaction.

"Business seems to be running smoothly. So why the sudden meeting?"

"Hyundai Construction came asking for a loan. After being turned down by the elders, Chairman Jang Young-jun himself showed up in Myeong-dong."

Lee Young-han brought news that was good for us.

Hyundai Construction wasn't just staggering—it was on the brink of collapse.

With no bank loans available, they tried the third-tier lenders, and when that failed, came all the way to Myeong-dong.

"You didn't lend them money, did you?"

"You told me never to help them out, so how could I? We're not people who betray our principles."

"That's a relief."

"I've personally told every loan shark in Myeong-dong not to lend any money to Chairman Jang Young-jun."

Letting money flow to Jang Young-jun would make things difficult.

We needed the first round of bankruptcy to happen so it would be the right moment for me and Jang Kyung-joon to step in.

"I'm sure they'll find a way to borrow money somehow. If Hyundai Construction goes under, other related firms will fall like dominoes, and the government won't just watch."

"In that case, wouldn't it be better if Myeong-dong lent them money at high interest?"

"I want to see just how low Jang Young-jun is willing to go. If he's turned down even here, I'm curious where he'll go next for cash."

Chairman Jang Young-jun of Hyundai Group.

I needed to know his limits—only then would acquiring Hyundai Semiconductor become easier later on.

"That's enough about Hyundai Construction. Since we haven't met in a while, shall we talk about what's going on in the world? Companies are going bankrupt left and right these days. Is everything okay? Collecting debts is your expertise, as well as Myeong-dong's specialty, but I'm still a bit concerned."

"No one borrows money from Myeong-dong and fails to pay it back. Our loan sharks will chase you to the afterlife if that's what it takes."

Lee Young-han's eyes had changed a lot.

When I first met him, his gaze was like a thug's; now, it felt as sharp as a blade.

"Myeong-dong aside, I hope you elders can show a little restraint. Now that you've come out into the open, you need to build a good reputation, don't you?"

"I'm dying of frustration as it is. If we could use the Myeong-dong way, we'd collect the money easily—but now we have to beg and plead just to get what's owed."

The Myeong-dong trio looked worn out.

They might have come out into the light, but their earnings must have dropped compared to their Myeong-dong days.

Sure, handling money for the entire nation had its advantages, but with regulations capping interest rates, it probably left a lot to be desired.

"For all your hard work, I've prepared a little gift."

"A present from the Vice Chairman? I'm really looking forward to this."

"Buy Apple stock. Before long, you'll make a big profit."

"At last, you're giving us some tips. I've heard more than once that all the information that let the Gwanghwamun Bear become owner of Myeong-dong originally came from you."

The Myeong-dong trio pricked up their ears.

Coming from the information capital of Korea, they truly understood the value of a good tip.

"You'll make at least twice your money, and that's within a year."

"A minimum double return? In times like these, that's a real favor."

"With the IT bubble, prices have crashed, so you can buy at a bargain. But there's one condition—you must sell it to me after one year."

"To realize a profit, you have to sell to someone. If the Vice Chairman himself will guarantee our profit, of course we'll do it."

Buying up Apple stock en masse wasn't something I could do myself.

Instead, I planned to leverage the financial clout of the Myeong-dong trio and Lee Young-han to secure as much Apple stock as possible.

"I'll keep sharing good information from time to time. I hope we'll continue this good relationship."

"That's exactly what we intend."

"I'll help you acquire a bank before long, so don't be impatient."

"Haha, you're really planning to send us out into the open for good. Looks like we might end up as bank presidents, something I never imagined for my life! Hahaha."

Being a bank president—well, what more do you need?

A grand building and piles of deposits are all it takes to make a bank.

As for the building, we could just use one of the existing ones, and I could easily fill the coffers myself.

***

The fateful October had arrived.

News breaking out everywhere said Hyundai Construction was in danger.

On October 30th, Hyundai Construction went bankrupt, failing to cover promissory notes worth 22.4 billion won.

As soon as the bankruptcy news broke, the first to act was Chairman Jang Kyung-joon.

For the first time in a long while, he went directly to Hyundai Group's headquarters and met with Chairman Jang Young-jun.

"Have you come to mock me?"

"I find it remarkable that such words come out of your mouth. You let Hyundai Construction—the core of Hyundai Group—go bankrupt and sit there so comfortably."

"And you think I stayed still? I went to every bank in Korea and even roamed the Myeong-dong loan Shark market trying to gather funds. But they all said they couldn't lend money to Hyundai Construction. What do you expect me to do?"

Jang Young-jun vented his frustration.

Jang Kyung-joon sighed at his brother's state.

Before coming here, he thought he would have felt pleasure seeing his brother as a loser.

But in the end, Kyung-joon was also a man of Hyundai Group, and witnessing the bankruptcy slapped on Hyundai Construction fueled his anger.

"So what do you plan to do now?"

"The government promised to provide 22.4 billion won in aid. Somehow, we can prevent the final bankruptcy."

"And after that? Will you let bankruptcy happen again when the promissory notes mature?"

Bang! Chairman Jang Young-jun slammed his fist on the desk.

The look in his brother's eyes watching him stirred his anger again.

"Are you saying this happened because of me? These events occurred before I even took office as chairman! If only we had been able to collect the outstanding payments from Iraq on time, why would Hyundai Construction have gone bankrupt?"

"The issue of unpaid debts isn't your responsibility, but what happens afterward is entirely your obligation."

"Don't worry. I will take responsibility in any way necessary."

"Just one question. Are you thinking of handing Hyundai Construction over to someone else? Are you going to let the creditors take control of the root of Hyundai Group?"

Even if bankruptcy was averted, Hyundai Construction's recovery was unlikely.

Eventually, it would fall into the hands of the creditors.

If so, it could be acquired by a group other than Hyundai.

"Who would want to take over Hyundai Construction even if it's handed over to creditors? We'll leave it to them temporarily to eliminate the risks, then take it back."

"Do you think the Tae-woo Group will just watch quietly? If Tae-woo gets Hyundai Construction, they could build an overwhelming construction empire."

"The government won't just stand by. If Tae-woo acquires Hyundai Construction, it would be tantamount to monopolizing the construction market."

"So you're just going to trust and rely on the government? Is that why you drove the cattle all the way to North Korea?"

Jang Young-jun had something to rely on.

He was confident that if the government provided support, Hyundai Construction could be reclaimed.

Even if Hyundai Construction fell into the hands of the creditors, it could not be acquired by any other party without government approval.

"Right now, this is the best course of action. By handing the company over to the creditors, some of the debt will be reduced, and during that time, we can secure the funds to revive it."

"You say that so lightly, as if you're willing to hand over everything in Hyundai Group to someone else."

"Didn't I say that won't happen? You're not trying to take over Hyundai Construction yourself, are you? Does Hyundai Cha have the financial power to acquire it?"

"..."

Jang Kyung-joon didn't answer.

At that moment, Jang Young-jun realized why his brother had come.

"Are you really trying to acquire Hyundai Construction?"

"We must prevent the core of Hyundai Group from being taken over by anyone else."

"Must I keep repeating myself? Hyundai Construction won't go anywhere!"

"We'll see about that."

Jang Kyung-joon ended the conversation and left the chairman's office.

He had come to check on his brother's condition.

As expected, his brother was lacking.

Too weak to hold onto Hyundai Construction.

So, I must take it. No, Hyundai Construction is simply returning to its rightful owner.

***

The last day of October.

The Chief of Planning came to the Vice Chairman's office to report on Hyundai Construction.

"They have paid off the entire amount of the first round of bankruptcy."

"So the final bankruptcy was avoided."

"The construction industry association has provided payment guarantees amounting to 3 trillion won, so it's believed that declaring bankruptcy was difficult. If Hyundai Construction collapsed, it could have caused a simultaneous collapse throughout the construction industry."

"Except for Tae-woo Construction, that is."

I had confirmed everything I wanted to know.

It was clear that the government was Hyundai Construction's last line of defense.

There was no longer any reason to delay; it was time to act.

"Make official contact with the Hyundai Construction creditors. Inform them that the Tae-woo Group is interested in acquiring Hyundai Construction."

"Will the government approve it?"

"That's a problem for later. For now, it's enough to create the impression that Hyundai Construction might be taken over by another group."

This was a move to support Jang Kyung-joon.

This way, the Hyundai Group would become desperate.