» The Youngest Son of Sunyang
The Youngest Son of a Chaebol Family - Chapter 285
[285] Pandemonium, **Sunyang** Family 1
"Did your trip to the U.S. go well?"
"Yes."
"You were there for quite a while, weren't you? Was it related to the recent U.S. stock market crash?"
"That's right. Ah, the U.S. stock market didn't crash because of me, though."
"You're not influential enough for that. Just a prince of the periphery, you are. Hehe."
Chairman **Lee Hakjae**'s expression, though he was smiling as he spoke, wasn't entirely bright. Could something be wrong?
"The Korean stock market is a mess too, so if there's anything I absolutely need to know, tell me. Don't come blaming me later for being wrong."
"There will be liquidity issues, but I will make sure that's not a problem."
"For a businessman, if you have a reliable backer who solves money problems, it's game over. So, I'll stop worrying about it, then?"
"Yes. But is something the matter? Your expression seems dark."
Chairman **Lee Hakjae** rose from his desk and sat on the sofa next to me.
"Vice Chairman **Jin Younggi** looks like he's about to cause a big incident. No, it's certain."
A big incident? I couldn't help but sigh. What scheme was he cooking up this time?
"Are they plotting something again about a holding company or whatever? It'll be difficult unless Vice Chairman **Jin Donggi** and I, with our joint voting rights, raise our hands in agreement, won't it?"
"No. This time, it's about the **succession** process."
"What? **Succession**?"
Chairman **Lee Hakjae** nodded.
"I heard information that they've started the process of passing shares to his son. Those guys in their group's planning office are working on it in secret."
"What? To **Youngjun**?"
"Yes. You know that passing on shares is different from just passing on a house. It needs to be prepared slowly over a very long time, so it's not too early. **Youngjun** is already forty."
It's been so long since I've seen him that I'd completely forgotten. To think that guy is already forty.
"I can't make an immediate judgment. Since it's just my uncle's shares moving anyway, it doesn't seem like it would be a variable, does it?"
Chairman **Lee Hakjae** couldn't answer easily either. That meant it was a complex problem.
"Let's think about it this way. Just as you use **Miracle Investment**, what if **Jin Youngjun** establishes a new corporate entity, and Vice Chairman **Jin Younggi** sells a portion of his shares to that company?"
"The shares being sold would be shares of an unlisted company, wouldn't they?"
"Exactly. But that unlisted company would hold a lot of shares in **Sunyang Group**, wouldn't it?"
"Then the value of that newly established corporate entity would skyrocket."
"Right. The problem is, even if **Jin Younggi** only holds 51% of those shares, his control over the group remains strong. If they funnel a lot of work to that newly established entity or just let it act as a buffer in the middle, its performance will shoot through the roof...."
"So, if they list that corporate entity, they'll rake in a huge amount of money again. Because they only need to put 49% on the stock market."
This is how companies that merely hold shares proliferate and make money. By utilizing **Sunyang Group**, which directly earns money, countless unidentified companies that simply hold shares are born.
"With the money earned that way, they'll definitely start the second-stage strategy. Because it's a method I've used before."
Issuing convertible bonds and low-priced allocation of bonds with warrants are part of the second stage.
"Is there no possibility that their shareholding will increase?"
"It's difficult to give a definitive answer. They could probably hollow out a very low-tier affiliate, leaving only the shell. Because such affiliates are quite far removed from the influence of controlling stakes."
His tone lacked confidence.
"I don't think that's all, though?"
"To be honest, I'm not entirely sure. If one really smart guy found a loophole, they might use a new method. It's been a long time since I stepped away from that side of things. And the laws must have changed a lot.... In times like these, a single brilliant idea can become a huge variable."
Many thoughts came and went.
Perhaps it would be better for **Jin Youngjun** to acquire the shares. **Jin Youngjun** is an easier opponent than his father. Rich families tend to grow more ill-tempered and less patient with each passing generation. Because they've been raised that way since childhood.
But if something unexpected happens, as Chairman **Lee Hakjae** said, that would also be a disaster.
Should I stop them?
"Chairman. When you can't predict what might happen, wouldn't it be better to stop it early rather than just watching the situation unfold?"
"You're saying you'll stop the **succession** process? How?"
I smiled at Chairman **Lee Hakjae**, who was looking at me with surprise.
"Chairman. Could you make one last appearance at the prosecutor's office?"
"What?"
"This time, for a different reason than in the past. You'd be a witness, not a suspect. Instead of consistently saying 'I don't remember' or 'I don't know,' you would speak very thoroughly about what you do remember. As a witness."
At the mention of the prosecutor's office, he looked like he was about to panic. I quickly waved my hand, calming him down.
"Let's just consider it paying overdue taxes, shall we? If the inheritance my grandfather gave had to be taxed according to the law, what kind of expression would Vice Chairman **Jin Younggi** make?"
"You don't mean...?"
Chairman **Lee Hakjae** had already read my thoughts.
"I intend to reach a reasonable agreement with the National Tax Service. But Vice Chairman **Jin Younggi** will go through two **succession** processes, so his taxes would be double, wouldn't they? Of course, if he struggles to avoid paying taxes, his shady dealings will keep coming to light..."
"Then you might also have to pay hundreds of billions in taxes."
"Isn't that how it's always been? When a problem arises, they hold a suitable apology press conference, and throw a few tens of billions as 'social contributions' instead of penalties. But if I declare that I will pay my taxes, it would have more impact, wouldn't it? I'm even thinking of throwing in about five hundred billion."
Even if it's the same amount of money, a donation thrown under the pretext of 'social contribution' is better than paying it as taxes.
Taxes set a precedent and become an obstacle for future **succession** processes. Moreover, it would constantly stir up trouble regarding tax issues, being compared to the **succession** processes of other **chaebol** families.
It must remain a precedent that **chaebol** do not pay gift tax or inheritance tax.
"So? What do you gain from it?"
"I gain a great deal. Firstly, public adoration."
"What are you going to do with that? Become the first third-generation **chaebol** celebrity?"
"Of course not. Public adoration puts pressure on politics. If politics are pressured, public officials move."
Chairman **Lee Hakjae** let out a chuckle.
"The National Tax Service wouldn't be able to stay still, then. Hehe."
"This is also a matter of timing. I will hold a press conference at the most opportune moment. I will showcase the civic duty of voluntary tax payment."
"That timing refers to when **Sunyang Group**'s cash flow runs dry, right?"
"Yes. It won't be long now. If the U.S. financial system collapses, **Sunyang** will also face a drought."
* * *
Those who handle money are not only shameless but also vicious villains. In contrast, the general public is foolishly naive.
Ten years ago, it was the same during the **IMF Crisis**, and they are still being deceived now. The U.S. was in the midst of 5 trillion dollars evaporating due to the subprime mortgage crisis, and tents of homeless people were proliferating in New York's Central Park, yet Korea's KOSPI index surpassed 2,000, setting a new all-time high.
Investment firms and financial companies were flaunting that the Korean economy was cruising along, until they could offload the bombs in their hands to the general public. Both the media and politicians echoed the same sentiments, selling off securities whose life had already burned out to naive people.
Moreover, with the presidential election just around the corner in Korea, it was the perfect situation to conceal the U.S.-triggered financial crisis.
And it was the common people who firmly believed in the candidate who now, belatedly, vowed to revive the common people's economy, which had never been good even once.
Without even mentioning the U.S. financial crisis, the candidate who promised 7% economic growth and the creation of 3 million jobs received the overwhelming votes of these common people and was elected president.
In January 2008, even before that president held his inauguration ceremony, international oil prices (WTI) at the New York Mercantile Exchange broke through $100 per barrel for the first time in history, and prices began to skyrocket, but the news was plastered with the Sungnyemun arson incident.
"Even before the presidential inauguration oath, which declared, "I will uphold the Constitution and protect the state...", was finished, the U.S. dollar also plummeted."
Korea truly began to feel the U.S.-triggered financial crisis when the bankruptcy of Bear Stearns, the fifth-largest investment bank in the U.S., became known.
The ones who acquired information quickly, at least, were the wealthy.
**Jin Taejun**, who burst into my room, was trembling to his fingertips but feigned composure.
"Things are tough these days, aren't they? I should help you at a time like this, but there's not much I can do, is there?"
"I'm literally going crazy. I haven't been able to do anything and have been idle for a long time. You know, **Sunyang Securities** has completely shrunk back."
"I heard the rumors. They say all the employees have even used up all their vacation days, right?"
"Yeah. What's the point of working? Everything I touch just crashes."
"Still, compared to other groups, your performance wasn't bad, was it? Losses were small, and stock prices were defended well."
"Isn't it ironic? I thought if I just did nothing, I'd at least be average, so I've been idle since the third quarter of last year. But now I'm number one in the industry. Not because I'm good, but because the other guys are terrible. Haha."
**Jin Taejun** kept glancing at me, listening to my laughter.
"By the way, **Taejun**, do you have something to tell me? Your expression isn't looking too good."
He swallowed dryly and slowly opened his mouth.
"Actually, I invested in something, and it's causing trouble."
According to Vice President **Jang Dohyung**'s report, when funds poured out last September, **Jin Taejun** offloaded quite a large volume. Of course, it goes without saying that he suffered enormous losses.
"What kind of investment? Surely not financial derivatives, right? No... Wait a moment."
As I picked up the receiver, **Jin Taejun**'s eyes widened.
"**Dojun**, stop. Hang up. They don't know anything there."
Just as I thought. Now the real story comes out.
"Huh? You used another company besides **Sunyang**?"
"Not exactly... I diversified among several places. I sold off everything entrusted to **Sunyang**. But then, around October last year, when stock prices rose, I invested again. Because **Sunyang** had a negative outlook, I dealt with other companies."
After selling at a loss, the stock prices rose. He was so desperate to recover his initial investment, regretting it enough to beat the ground, that he plunged in again. Typical.
**Taejun**, who used to be so steady, had discovered the taste of gambling. Wasn't it said that gambling becomes even more exciting when you lose?
"Now, let alone breaking even, there's no one who'd buy it even if you put it up for a pittance, right?"
**Jin Taejun** nodded weakly.
Just how much money had he lost, and what was the source of that money?
Given that he came to me even though he knew I wasn't someone to trust, he must have dipped into company funds.
He desperately needed to fill the gap, but with no source for funds, he came to me feeling like he was grasping at straws.
"**Taejun**. I understand it's urgent, but there's nothing I can do to help you. Right now, all financial products and funds are trash. Think of it as selling scrap metal and dispose of it quickly. Later, you won't even get scrap metal prices."
"I know. I don't intend to dump it on you either."
"Then?"
"Lend me some funds. Not company to company, but individual to individual."
I quickly racked my brain. If I lend him money, is there anything I can get back from him?
If I leave him be, his tampering with company funds will be revealed, and there will be another huge commotion...
"Why don't you use a bank? I don't know how much it is, but private money dealings are a bit... uncomfortable."
"Would a bank give me a loan right now? They're all busy putting out fires at their own feet; they won't listen to a word."
His complexion grew darker and darker.
"How much? Did you put in tens of billions?"
Since he couldn't say it easily, it must be hundreds of billions.
"Tell me. Only then can I find a way."
"The urgent amount is 60 billion. That would be enough."
The urgent amount is 60 billion? This guy, so he embezzled 60 billion from company funds.
Of course, I should lend it to him. 60 billion would be roughly a hand grenade when it comes to bringing down **Sunyang Construction**.
Because the more bombs, the better.