» The Youngest Son of Sunyang
Chaebol's Youngest Son - Chapter 277
[277]Bowing My Head, Part 2
Unlike its neighboring Middle Eastern countries, Dubai, with virtually no oil resources, developed early on as the region's logistics hub.
Beginning in the 2000s, Dubai's growth, fueled by massive foreign capital borrowing and colossal civil engineering projects, became a symbol of hyper-speed development.
In July 2006, Dubai, an autonomous government within the United Arab Emirates (UAE), recognized the need for a company to oversee this immense reconstruction project and established DubaiWorld.
DubaiWorld is a state-owned enterprise that leads and directs this tremendous development. DubaiWorld announced the Dubai World Central plan, starting with the world's largest artificial island, Palm Jumeirah, the Palm Jebel Ali bridge construction, and the Burj Al Arab, known as a 7-star hotel.
Dubai World Central plans to create a literal global central city by constructing Al Maktoum International Airport and various facilities around it. Once completed, it is projected to handle 160 million passengers and 12 million tons of cargo annually.
Furthermore, it announced an investment of 2.6 billion dollars in logistics facilities in the Jebel Ali Free Zone, along with a massive urban redevelopment project to create a city of world-class skyscrapers, rivaling New York.
The confirmed amount alone reached 30 billion dollars, and with potentially much more capital still to flow in, this land of gold—no, oil—is currently luring companies from all over the world.
Jin Donggi found Lee Hakjae's proposal to join hands and proceed together in such a place rather welcome.
"I understand that Sunyang Construction, Civil Engineering, and Mulsan have poured a lot of resources into the 'Burj Dubai' construction, haven't they?"
Construction on the Burj Dubai, which began in 2004, is a symbol of Dubai's skyscrapers. Including its spire, it stands at 829.8m, or 828m by building height alone, with 163 floors. Once completed, it will be the tallest man-made structure.
Jin Donggi flinched at Lee Hakjae's words but maintained an unperturbed expression as he replied.
"We've only deployed a large number of manual laborers; our core personnel have plenty of availability."
If he could draw on HW Group for manpower, resources, and funds, he could move much more freely. But if he showed any weakness, the cunning Lee Hakjae might pull some trick.
Always appearing relaxed—that was paramount in negotiations.
"That's good then. Anyway, please give my proposal serious consideration."
"What scale does the Chairman envision? An airport? A new city? Or logistics?"
"Isn't more always better? If we can take it all on a turnkey basis, that would be even better."
As obvious remarks came from Lee Hakjae, Jin Donggi frowned.
"For someone who knows so much, you speak rather vaguely."
"I can provide as much funding as needed. We have Miracle, a solid financial backer, standing firmly behind us, and HW Group's retained earnings are also substantial. As I already mentioned, we lack experience, and our technology is a bit behind. That's what I mean. Isn't a consortium about complementing each other's shortcomings?"
Lee Hakjae then offered an option.
"I'm making this proposal out of old acquaintance, but if you're not inclined, please say so now."
Objectively speaking, he should seize this opportunity immediately. One should avoid those who ask for money for a good business plan, but no businessman would refuse someone offering ample funds for a partnership.
However, if one were to consider old acquaintances, it wouldn't be normal to make such an offer. Sunyang Group might have good memories, but the two Vice Chairmen of Sunyang would likely only have bad ones.
What was this man aiming for?
Lee Hakjae gave a bitter chuckle, watching Jin Donggi scrutinize him.
"If you're not inclined, we can pretend this conversation never happened."
"Don't you know this isn't something that can be decided in an instant?"
"I do, but our Vice Chairman's expression doesn't seem to welcome it."
"Who likes to share profits?"
"The pie is so large that you can't eat it all alone, so if you don't share, you might just have to watch. Anyway... think it over carefully and let me know quickly. We can't wait forever."
"If I refuse, you'll naturally join hands with someone else, won't you?"
"Of course. In fact, Daehyun approached me with this proposal first. They must have heard I was preparing to rally lower-ranked companies like Seongho Group and Namgwang Group."
Jin Donggi knew both claims were bluffs. He had simply changed a future intention into a past event.
It was a clear hint that if Sunyang refused, he would move in that direction.
"We'll expedite our positive review and contact you right away, Chairman. Still, isn't Sunyang Group your home turf, Chairman Lee? It would look best if we worked together."
"Just looking good won't cut it, will it? We both need to secure tangible benefits. Let's wrap up our discussion here and finish our meal."
The atmosphere remained pleasant during the rest of the meal. Yet, Jin Donggi couldn't shake the feeling that Lee Hakjae's proposal might somehow be a trap.
A mousetrap baited with delicious cheese.
But the shape of the trap remained unseen, only the savory aroma of the cheese lingered vividly.
* * *
"I'll pretend I didn't hear that unreasonable request, Uncle."
"Why is this unreasonable? Isn't it logical?"
"It's not a matter of logic or impropriety. It's beyond my authority."
Is it a characteristic of men, or perhaps just the men in our family, to become more shameless with age?
My second uncle was suggesting that the funds Miracle Investment was planning to invest in HW Group for the Dubai boom should be redirected entirely to Sunyang.
He must have known that I was aware of his meeting with Chairman Lee Hakjae, yet he had the audacity to try and cut me out like this.
"Miracle wouldn't lose out, would it? What more could it be than just a cushion for HW Group? Sunyang is the main player in this project, after all."
"I know, Uncle. But Miracle Investment Korea now operates based on decisions made by its board of directors, under the final approval of the US headquarters. That decision was made by the US side after CEO Oh Sehyun essentially retired. I can't even attend the board meetings of Miracle Investment Korea. My role is merely that of an investment manager."
"In my opinion, you have more decision-making power than that."
"Yes, I have more. I'm an investment manager with strong speaking rights. That's all."
I put my foot down, facing his suspicious gaze.
"And Miracle is HW's major shareholder. Why would we prioritize Sunyang over looking after our own family's livelihood?"
"Is that so? Well... I had some unwarranted expectations for a moment."
His expression changed, but it wasn't one of disappointment.
"Then how about we do this?"
This was it. My second uncle's true purpose in testing me would emerge now.
"As you know, the Dubai new city construction requires a massive upfront investment. The consortium that Chairman Lee Hakjae proposed means he wants to be our financial backer. HW, the former Dae-A Construction, is useless for such large-scale projects. It's a trick to provide some money and then steal Sunyang's know-how."
He was terribly mistaken, but I nodded in agreement and listened intently.
"Money can be found anywhere. But I don't see any reason to bring in external capital."
"That's right. We can use group funds and only bring in what's missing."
"But the heavy industries division has already poured money into the Middle East. They have no financial leeway. The remaining areas are electronics and finance."
Was it true?
Had the funds of the core construction and heavy industries truly dried up?
"Drawing funds from electronics is a bit... difficult. So, how about you prepare the money from the financial sector? Then we wouldn't need to involve HW."
I had to answer carefully. I still didn't know if he genuinely wanted to use the group's internal funds, or if Chairman Lee Hakjae had approached him first because of me.
In such situations, the priority was to make it clear that it had nothing to do with me.
"I don't have any spare funds either."
Keep the answer short. Long explanations often sound like excuses or lies.
My second uncle's expression showed disbelief.
"A financial company has no money? Do you just not want to do business with me?"
"No, that's not it. It's true. For the past two years, I've invested all our spare funds in US derivative products. If you're suspicious, you're welcome to check for yourself."
"Derivative products?"
"It's a stable investment that consistently yields more than double the market interest rate of 4%."
"Not diversified, but all-in?"
"Yes. Diversification is standard, but there were no other options. That's what happens when you only select Triple-A rated investment products. Company funds mean safety is paramount, after all."
"Double the interest rate, Triple-A rated? That sounds too good."
What was this now?
When it came to making money, his eyes always lit up.
"Exactly. Why else would I have used all of the company's spare funds?"
If he couldn't use the group's funds, would my uncle choose Chairman Lee Hakjae? Or would he temper his ambition and proceed only with what he was capable of?
Choosing the easy path wasn't business; it was merely trade.
No matter what anyone said, wasn't Vice Chairman Jin Donggi a businessman?
* * *
"Take a look at this. It's the joint venture proposal Jin Donggi sent."
Chairman Lee Hakjae seemed a little angry. Reviewing the proposal, it was clear that he considered HW Group to be a complete pushover.
"You mean, 'just put up the money and take some profit,' don't you?"
"And it's only a little more than bank interest."
"The nuance is, 'take it or leave it,' isn't it?"
"Exactly. He shouldn't be in a position to act so nonchalant... I wonder if he just doesn't want to deal with me."
"He seems to be treading carefully."
"Checking? Me?"
"Yes. He's operating under the assumption that you wouldn't approach him with good intentions. There's clearly something going on, and not knowing what it is makes him uneasy."
Chairman Lee Hakjae shook his head slightly.
"HW and Sunyang Construction joining hands is a mistake. That fellow won't bite."
Then we'll have to make him bite.
"The bait must be too small. Let's throw in a massive one."
"What? He doesn't even want the money?"
"But he'd hate it even more if someone else made money."
"What are you talking about? Be precise."
He hadn't yet grasped the meaning of the smile on my face.
"Wouldn't he eagerly bite at around 300 billion won?"
His expression grew irritated as I continued to speak in riddles. Before he could get angry, I quickly explained.
"Let's consider 300 billion won a sunk cost and go in alone. And let me reiterate, we're not just pretending to go in; we're actually going in. We won't receive the construction payment anyway. No, we might receive it, but it will remain a non-performing loan for a very long time. But if we go in alone, he'll think we're serious."
He wasn't surprised even at the mention of throwing away 300 billion won.
Having nothing but money was truly convenient in times like these. It allowed one to freely use means that could change the entire game at any moment.
To others, it might seem insane, but that was the privilege and power of those with money.
"Let's use an even bigger bait."
Chairman Lee Hakjae said with a laugh.
"I've already thrown out a bluff, but if we turn that into reality, the stakes will get even higher. We'll bring in Seongho Group and Namgwang Group. Each puts in 300 billion... No, let's make it exactly 1 trillion won and enter Dubai. Vice Chairman Jin Donggi will surely exclaim, 'Ah, that's hot!'"
If three mediocre players gathered to feast, he would surely rush over, eager to play the leader. And since Chairman Lee Hakjae wouldn't be alone, his suspicions would also disappear....
I wanted to slap my knee in admiration.
Our Chairman Hakjae is truly a master player.