Free Web NovelThe sun had already set, but many people had gathered in the Ilseong Group chairman’s office.
Seo Jaehoon sat with his legs crossed, watching them. There was no emotion in his eyes.
“How did Ilseong Group come to be treated like this? Do any of you know?”
It was a flat question, but none of the people gathered in the chairman’s office dared answer.
“No one will answer, huh. Is it because your father is bedridden and you are doing the work sloppily, or because you are ignoring me because I am in this seat?”
“That is not the case.”
Yun Yongseong, president of Ilseong Electronics’ semiconductor division, replied.
“Selling off the semiconductor business is not a good choice. In the end, semiconductors will determine Ilseong Electronics’—no, Ilseong Group’s—future.”
“President Yun, do you know which Ilseong Electronics business is currently generating the largest losses and still say that? Where in the world does making and selling more only increase losses? Tell me.”
The insane chicken game in the semiconductor market was strangling Ilseong Electronics and, by extension, Ilseong Group.
Yun Yongseong bit his lip because he was not unaware of Seo Jaehoon’s point.
“I know. But if we hold on, we will be the eventual winner.”
“Not us—Jungwoo Electronics will be. Am I wrong? We can no longer cover Ilseong Electronics’ deficits through affiliates like before. Why should we bear such enormous losses and keep the semiconductor business running?”
“...If we hold on for about a year, eventually the U.S. government will act. Then Jungwoo will have to stop the chicken game.”
Yun Yongseong believed the U.S. government would move. They had to prevent a cascade of bankruptcies among American semiconductor companies.
“Are you sure? Can you take responsibility?”
“Yes. If the U.S. government does not move by next spring, I will resign as president.”
Seo Jaehoon stared at Yun Yongseong, who had played his strongest card by offering to step down.
Yun felt an indescribable chill from Seo’s cold gaze.
“Is resigning going to be enough? If you’re going to stake something, stake your life. Isn’t that right, President Yun?”
“······.”
Yun swallowed dryly and could not answer easily. Rumors circulating in the group sprang to mind.
The rumor that Seo Jaehoon had no hesitation about having people killed made the already tense atmosphere even more ominous.
“And one more question. Why are you bent on developing non-memory semiconductors?”
“In ten years, non-memory semiconductors will dominate the market. Their net profits are much larger.”
“No, President Yun. If the company collapses, what good will that do? We’re on the brink right now. Shouldn’t we focus on areas that are currently profitable? Wake up.”
“······I’m sorry.”
In the end, Yun bowed his head. freeweɓnovel.cѳm
“Prepare to list the new corporation on the stock market as soon as it is formed. That will buy us time. If the listing fails, sell even at a fire-sale price—understand?”
“Yes, Vice Chairman.”
After finishing his remarks, Seo Jaehoon turned his gaze. His eyes landed on the vice president of Ilseong Trading.
“Vice President Kim, on what grounds are you even here? You handed over Ilseong Trading’s management to someone else.”
“······That could not be helped.”
“You should have resigned along with President Hong, shouldn’t you?”
“The chairman asked me to hold on until the end······.”
“Take that up with your father later.”
Seo cut him off and glared icily.
“Everything has gone wrong since control of Ilseong Trading passed to others.”
“······.”
“How can you come in here with your head held high? Do you have no conscience at all?”
The vice president of Ilseong Trading could not utter a word and hung his head.
Even though they all knew he would be struck down for annoying Seo, none of those present dared support him.
“Get out immediately. Do not set foot in headquarters until you reclaim Ilseong Trading’s management rights. Understood?”
“Yes······.”
“I said immediately. Do I have to drag you out?”
“No.”
The vice president of Ilseong Trading sprang up, bowed deeply, and left.
The atmosphere in the chairman’s office turned bitterly cold. Seo Jaehoon, who had created that atmosphere, spoke in a voice edged with displeasure.
“What’s functioning properly right now? Household appliances, mobile devices, and ✧ NоvеIight ✧ (Original source) the insurance company—nothing else. Do you think this is acceptable? This is the greatest crisis since Ilseong Group’s founding. The empire my grandfather and father built is on the verge of collapse. Or rather, I called you here to prepare, but it seems I’ve been the only one speaking. Well then, have any of you prepared countermeasures?”
No one spoke.
Seo clicked his tongue once and called on someone.
“President Oh Jungseok.”
“Yes, Vice Chairman.”
“How is the sale of Ilseong Motors progressing?”
“Several countries have shown interest. However······ they keep driving the price down, so negotiations are not progressing. The government will not allow an outrageously low sale price. Since we merged with Jungwoo Motors······.”
The merger of Ilseong Motors and Jungwoo Motors had instantly vaulted them to second place in the domestic auto industry, but reality was harsh.
Daehyeon Motors dominated the domestic market, so losses would only increase.
Although negotiations with global automakers were underway, there was no meaningful progress.
“Hah. Bringing in Jungwoo Motors was a mistake. Father obsessing over cars started this whole crisis.”
“······.”
No one dared respond to Seo’s attack on Chairman Seo Yonggeon.
“If we keep being dragged around without a plan, we will collapse. Sell all unprofitable affiliates and focus on profitable businesses.”
Seo called out to Executive Director Lee Seokmin, who sat with a firm expression.
“Director.”
“Yes, Vice Chairman.”
“Present the plan.”
Lee Seokmin stood.
Lee had been second-in-command under Chairman Seo Yonggeon, but under Seo Jaehoon he had become merely an implementer of orders.
“I will begin with a plan for the financial affiliates, starting with Ilseong Life.”
As Lee presented his restructuring blueprint, Seo leaned back in his chair.
His cold gaze never left the faces of the assembled executives.
* * *
Park Younggeun and I finished our meal while catching up.
Park sipped the sujunggwa dessert and then spoke.
“Well, President Kim. Now to business. Tell me what you want me to do. You must have a purpose for putting me in this position. Still, I’m perplexed. They suddenly nominated me for Fair Trade Commission chairman and told me to prepare. Then President Kim Hakkwon called me... It’s like waking from a dream.”
I set down my empty bowl of sujunggwa and smiled.
“I intend to dismantle Ilseong Group.”
“······Completely destroying them would harm the national economy.”
“But an example is necessary. If they are torn apart and other chaebols acquire the pieces, the economy won’t suffer much.”
Before the IMF, the Fair Trade Commission had focused on monopolies and consumer protection; around 2000 it began to turn its attention to big conglomerates known as chaebols.
Before the foreign exchange crisis, the government had given conglomerates a variety of benefits under the pretext that they sustained the national economy.
That deepened collusion between business and government and contributed to a horrific foreign exchange crisis.
Although the IMF demanded reforms, the tide had moved naturally toward reforming the conglomerates.
The Fair Trade Commission led that charge—often called the economic prosecutors.
“Hmm······.”
Park stroked his chin thoughtfully.
“You intend the Fair Trade Commission and the Financial Supervisory Service to act simultaneously?”
“Yes. If both institutions shake things up together, others will fall in line.”
“So you want the Fair Trade Commission to stop management control via cross-shareholdings among affiliates.”
Smart as ever, he identified my aim without fuss.
“That’s right. With Seo Yonggeon’s fate uncertain, now is the right time. Seo Jaehoon’s exercise of management rights could be constrained depending on legal interpretation.”
“······Ilseong Group is the Seo family’s. Unless they sell, it’s not easy to pull Ilseong Group from them. Other conglomerates probably won’t interfere either. If that’s the case, all plans could be for nothing. And if the Fair Trade Commission moves and they block it, Seo Jaehoon’s grip could become firmer.”
Ilseong Group wielded overwhelming influence through blood ties and marriage.
In my previous life they had used that network and Ilseong scholars to control politicians, the administration, and even the judiciary.
The phrase “Ilseong Republic” was not spoken in vain.
But in this life I had been slowly gnawing Ilseong Group from below.
And before Chairman Song of Daehyeon Group retired, we had already isolated Ilseong Group in the business world.
Now no one would help Ilseong Group.
“If you properly strip Ilseong Group this time, I will handle the rest. Make sure the chaebols cannot intervene.”
“Hmm... If the chaebols don’t help each other, it shouldn’t be difficult. I’ll strip them properly.”
“Seo Yonggeon attempted every trick to pass management rights to Seo Jaehoon, but we blocked those moves. He might have pursued other methods we don’t know about. First, cancel the corporate split that transferred Ilseong Electronics’ semiconductor division into a separate company.”
Park’s face showed discomfort.
“Cancel a physical division? That’s difficult. That’s not under the Fair Trade Commission’s jurisdiction. That falls to the Ministry of Trade, Industry and Energy or financial regulators.”
“Yes. But the Fair Trade Commission must create the justification for them to act. Without a clear reason, the ministry or Financial Supervisory Service will be reluctant.”
“Create the justification...”
I nodded firmly, and Park’s gaze darkened.
“Understood. The semiconductor business will become strategic. Selling it to foreign firms must never happen.”
“Wouldn’t it be enough if Jungwoo Electronics stopped the chicken game? That would avoid mutual destruction.”
“If that happens, Ilseong Group could revive by that strength. We cannot allow that. I will take Ilseong Electronics.”
“Wouldn’t that be a monopoly?”
Park voiced his concern. I handed him reassurance.
“You know me. Don’t worry. They will not become one company. No foreign government would allow it. We will aim for DreamHigh Investment to acquire it. Then the United States would have no grounds to oppose.”
Although selling would compound losses, Ilseong Electronics’ memory semiconductor market share was number one.
A merger of the two companies would likely trigger U.S. antitrust laws.
DreamHigh is an investment firm based in the U.S. If DreamHigh is the buyer on paper, there would be no outward basis for opposition.
“First, block Ilseong Electronics’ corporate split. Next, shake up the financial affiliates. Order the forced sale of Ilseong Group’s affiliate stakes.”
“That... we were thinking of providing a grace period.”
Park’s eyes fluttered. Did Ilseong spread rumors that if they collapsed, Korea would collapse? Why is everyone so scared?
I clicked my tongue inwardly and slid the envelope of documents across the table to Park.
“A grace period is for those who obey the law. Look here: there are signs of funds flowing from Ilseong Life into non-financial affiliates. If you dig into that, it could work.”
Park opened the envelope and checked the papers. His eyes widened.
“Where did you get this? This isn’t something anyone but a key executive would know.”
The documents detailed money flows after Seo Jaehoon began running the company—secret movements of funds from financial affiliates into non-financial ones.
I smiled at Park’s question.
“A reliable source provided them. That level of evidence will be invaluable when the Fair Trade Commission begins its investigation.”
“‘Invaluable’ doesn’t begin to cover it. This is a sword of justice. No matter how much the Fair Trade Commission or the Financial Supervisory Service ask, chaebol heads will stonewall. But with these documents······.”
“Trust me, Chairman Park. Show them what you can do. You were forced out of the Financial Supervisory Service because of one reform; prove you are not dead yet.”
I kindled Park Younggeun’s appetite for revenge.
