Free Web Novel“Did you rest well?”
“Yes, Grandfather.”
Grandfather welcomed me warmly upon my return from Busan.
“I heard Chairman Jang came by?”
“Yes. Just like you said, he came asking for money.”
“He must’ve been desperate. After acting like he’d never show his face again.”
I smiled faintly.
Grandfather shook his head in disbelief.
“The funding has already dried up—he’s a sinking ship. The other chaebols are probably circling Hyunbo, wondering what they can scavenge. Hyenas, the lot of them.”
“Hyunbo is only the beginning. Ilseong and even Daehyeon won’t be safe.”
“Haha... If what you’re saying is true, then this country’s economy is going to collapse completely... and at this point, I can’t even dismiss that possibility.”
“It’s the side effect of rapid growth. Sooner or later, something like this ★ 𝐍𝐨𝐯𝐞𝐥𝐢𝐠𝐡𝐭 ★ was bound to happen.”
“Yeah, I suppose so.”
Since taking office, the President had earned overwhelming public support with reforms like the dissolution of Hanahoe. But after a string of large-scale disasters with massive casualties, the administration had become a national laughingstock, nicknamed the “Republic of Accidents.”
Undeterred, the government pushed to highlight Korea’s 1996 OECD membership and $10,000 GDP per capita milestone, hoping to regain public favor.
But behind the scenes, a ticking time bomb loomed—$39 billion in current account deficits, 211% short-term foreign debt ratio compared to reserves, and an average 317% debt-to-equity ratio for manufacturers.
It was a powder keg waiting to explode.
“Grandfather, this is just the beginning.”
History was unfolding exactly the way I remembered it.
* * *
On January 6, Chairman Jang of Hyunbo Group tried to avert disaster by issuing 45 billion won in convertible bonds. But due to a stock market crash the following day, the issuance failed.
By January 9, Hyunbo faced bankruptcy after failing to cover 120 billion won in promissory notes. A last-minute emergency loan from the banks barely saved them.
Chairman Jang tried liquidating real estate assets to raise funds, but his 300 billion won–worth of properties didn’t sell.
He made another attempt to issue 35 billion won in convertible bonds, but again, there were no buyers.
He contacted Pyeongchang-dong once more but was turned down.
Pretending to enter emergency management, Hyunbo reshuffled executives and kept pleading with banks and government officials for help.
On the 17th, another 50 billion won note came due—again, the banks stepped in.
But the disaster wasn’t over.
On January 20, Chairman Jang begged again, this time for 300 billion won.
The creditors refused.
“Chairman, please give up control. Then we’ll do everything we can to save the company.”
“We’ve already saved you twice. We can’t support you anymore. Please just give up your management rights.”
The creditor group’s demand was simple:
Chairman Jang’s family had to relinquish control of Hyunbo.
With an election year underway, the government and ruling party feared accusations of favoritism. If the Jang family gave up their management rights, they were prepared to inject emergency capital and revive the company.
But Chairman Jang resisted, holding subcontractors and partner companies hostage in negotiations.
Too big to fail.
He believed there was no way the government would let Hyunbo go bankrupt.
Chairman Jang knew creditors had lent him several trillion won.
“If you give me 300 billion won more, I can normalize the company again. I’ve already listed properties and I’m doing my best to issue bonds. Just help me one more time. I’ll repay you.”
But they couldn’t come to an agreement. The negotiations broke down.
“You idiots! If Hyunbo falls, the whole country falls! Hey! Get the car, we’re going to Pyeongchang-dong!”
He lashed out at the innocent driver and stormed off.
He was determined to persuade Chairman Cheon to give him the money somehow.
And even now, he still didn’t believe bankruptcy was a real threat.
‘How do I convince Chairman Cheon?’
* * *
“Would you like to meet with him?”
“Yes, I’ll handle it.”
“Alright then.”
Grandfather left the meeting with Chairman Jang to me.
A little while later—
When I heard that Chairman Jang had arrived, I stepped out of the study.
“It’s been a while, Chairman Jang.”
“Oh, you’re here too? Isn’t the Chairman inside?”
“He’s not feeling well. You’ll be speaking with me. I’ve been given full authority.”
“Hmph...”
Chairman Jang furrowed his brows in frustration.
He still hadn’t grasped the situation.
I simply smiled.
“This way, to the parlor.”
I didn’t take him to the study. We sat alone in the guest room—no Chief Ha either.
“What would you like to drink?”
“...Even Chief Ha’s not here?”
“I already told you—I’ve been given full authority. If you have no intention of speaking, you may leave.”
My firm tone made his face sour further. But ultimately, he was the one in need. He didn’t get up.
“If you’re staying, let’s get to the point. We have no intention of buying any more convertible bonds. Hyunbo stock is now worth less than scrap paper.”
“What? You think you can just say anything?”
“I understand your talks with the creditors already failed. Do you have the money to cover the 5 billion won promissory note due on the 23rd?”
Hyunbo Group—then 14th in the corporate rankings—would be declared bankrupt when Hyunbo Steel failed to cover that note and signed a stock forfeiture letter.
But the 5 billion was just the beginning. Hyunbo Steel alone had over 5 trillion won in debt.
“The banks will cover that. That’s not the urgent issue.”
“Then give us something else. Not convertible bonds.”
“What do you want? Just say it.”
The only thing of value left at Hyunbo was its real estate.
The golden lands held by Hyunbo Construction across the country.
“You’ve currently listed 310 billion won worth of properties, correct?”
“Yes, will you buy them?”
“Not at full price.”
His face twisted.
“Listen, young man—”
“Two hundred billion. We’ll sign the contract with payment due February 1st. If that’s unacceptable, we end the negotiation here.”
The banks had already dumped their Hyunbo stock. Prices were plummeting.
There was a momentary rebound after Dangjin Steel Plant’s completion, but the bank selloff crushed any recovery.
“...Can you go a bit higher?”
“No one’s lending to Hyunbo, buying its bonds, or its land. You know that. The Federation of Korean Industries? They’re probably negotiating how to carve up Hyunbo already. You know this.”
Chairman Jang bit his lip.
He couldn’t deny it.
Before coming here, he must’ve already begged other conglomerates for help, only to be met with lowball offers or complete silence.
He was beyond desperate.
“...”
His long sigh sounded like surrender.
Once bankruptcy was declared, everyone would fight over that land. That was the only thing left worth taking.
At last, Chairman Jang raised both hands.
“Fine. Let’s sign. But you must pay by February 1st.”
“Of course. You know the reputation of Pyeongchang-dong.”
I smiled coolly. freēwēbnovel.com
With a purchase contract already signed before bankruptcy, I could just pay the creditors directly.
Chairman Jang wouldn’t see a single won.
I had Chief Ma bring out the prepared contract.
“...You had this ready?”
“It was your last chance.”
He carefully reviewed the document.
“There won’t be any issues. It’s already been reviewed by Yoon & Jang. We just need to fill in the amount and sign.”
Chairman Jang finally signed the contract. I signed as well, and we each kept a copy.
“Thank you for the deal.”
“Please make the payment quickly.”
“Of course. We’ll prepare it and transfer by February 1st.”
The contract wasn’t with Chairman Jang—it was with Hyunbo Co., Ltd.
Even if Jang were arrested after the bankruptcy, the contract would remain valid. It had been reviewed and revised repeatedly by top lawyers.
“It was a good deal, Chairman Jang. Let’s meet again someday with smiles.”
“Sure. Let’s talk again after I put out this fire.”
There wasn’t a hint of defeat in Chairman Jang’s posture as he left.
‘Three days from now should be fun.’
“Young Master, the Chairman is waiting for you.”
“Alright, let’s go.”
At Chief Ha’s words, I entered Grandfather’s study.
“He seemed rather cheerful leaving. What happened?”
“I bought the real estate. It’s worth about 300 billion won, but I got it for 200. If Hyunbo is declared bankrupt between the 23rd and 25th, I’ll acquire it through the creditors.”
I explained everything to Grandfather in detail.
He smiled throughout.
“Well done. Land never disappoints.”
“It was the only thing worth taking.”
Nodding, Grandfather continued.
“If Hyunbo goes bankrupt... the aftermath will be unimaginable. The banks will suffer.”
“There will be a domino effect.”
“It’s serious.”
It really was, just as Grandfather said—but no one else seemed to think so.
On January 23rd, Hyunbo Steel failed to cover the 5 billion won promissory note. Chairman Jang signed the stock forfeiture, and bankruptcy was finalized.
This was the price for ignoring the creditors’ demands.
With the presidential election looming, the government was unwilling to offer any more aid.
Not since the forced dismantling of Kukje Group had a major conglomerate fallen like this.
And on the 25th, Hyunbo Co., Ltd., along with the entire Hyunbo Group, was officially declared bankrupt.
The day before Hyunbo’s bankruptcy—
I visited Chairman Song of Daehyeon.
“Don’t get greedy over Hyunbo, Chairman.”
“What?”
“You’ve been eyeing Hyunbo Steel, haven’t you?”
“Ha... you little punk, you can see right through me.”
“If you try to devour it, Daehyeon will be in danger too. It’s a frog laced with poison.”
As Chairman Song hesitated, I struck the final blow.
“I’ve already signed purchase contracts for all the land owned by Hyunbo Steel and Hyunbo Construction. There’s nothing left to take.”
“What? Is that true?”
“Yes.”
“You brat. Why’d you buy it? We could’ve had it for nothing!”
To a chaebol chairman, the plan was simple:
Wait for bankruptcy, then negotiate with the government to acquire the company, write off the debt, and sell the valuable assets.
All of it done using bank loans.
It was absurd—but in 1997 Korea, this was commonplace.
“At that point, there would’ve been too many competitors. I didn’t sign with Chairman Jang—I signed with the company. I’ll delay payment until February 1st. They can’t avoid bankruptcy. I know you’re attached to the Dangjin Steel Plant, but going after Hyunbo will endanger Daehyeon.”
“...Who else knows?”
“Besides Pyeongchang-dong, only you.”
“Don’t tell anyone.”
“I have no reason to.”
A mischievous glint sparkled in Chairman Song’s eyes.
He’d probably pretend to compete with Ilseong’s Chairman Seo, then flip the deal to him for a profit.
I was right.
* * *
The Federation of Korean Industries convened an emergency meeting over Hyunbo Group’s bankruptcy.
The heads of Korea’s top 20 companies were all there.
The only issue discussed: who would get what.
Not a single person expressed concern for Hyunbo’s collapse.
Smaller leftovers would be fought over by others, but the biggest players—Daehyeon, Ilseong, and Joongwoo—were focused solely on Hyunbo Construction and Hyunbo Steel.
“Daehyeon should back off, Chairman Song. Why are you here personally instead of sending your son, now that you’ve stepped back?”
“Oh, come on. That’s going too far.”
“Your era is over.”
It was Chairman Seo Yonggeon of Ilseong Group.
Chairman Song acted annoyed on the outside, but inside, he was smiling.
“You brat! I’m Song Youngjoo of Daehyeon! I helped build this nation’s economy alongside your father!”
“I know. So step aside now. Chairman Park and I will split Hyunbo.”
“Ha...”
Chairman Song looked at them both, stunned, and thought:
‘Muhyuk, you sly little fox.’
In the end, the emergency meeting concluded with Ilseong taking Hyunbo Construction and Joongwoo taking Hyunbo Steel.
“You’ll regret this. I’m not backing down that easily. Fine, let’s see who wins when it comes to money.”
Chairman Song’s warning would become a burden for both Ilseong and Joongwoo.
Meanwhile, at that very moment, Kim Muhyuk boarded a flight to Hong Kong.
<The Bankruptcy of Hyunbo Group> End.
