» The Youngest Son of Sunyang
The Youngest Son of a Chaebol Family - Chapter 288
[288] A Labyrinth of Schemes, Sunyang Family 4
"So, you're saying you'll fill it up with as much money as we want?"
"Why are you so surprised? I believe Sunyang Financial Group already has a considerable amount in deposit, no?"
"That's precisely why I'm surprised. Our bank, of course, is nothing but grateful, but..."
The president of Jinhan Bank darted his eyes around, trying to hide the suspicion brimming within them.
Individuals deposit money in banks to earn interest, but it's different for corporations. Distributing investments across various institutions is standard practice, so it's natural to be suspicious about why they'd put more money in.
But refusing was even harder.
To meet year-end performance targets and capital adequacy ratios, he would have to bow his head even lower.
"I understood your situation was difficult, but it seems that's not the case. Seeing as you're hesitant, that is."
"Oh, no, Director Jin. You know well how dire our situation is, don't you? Branches nationwide are screaming that they're on the verge of collapse. While a large conglomerate like Sunyang has a solid foundation to weather this crisis, small and medium-sized enterprises are going bankrupt in droves. A mountain of non-performing loans is piling up this year."
The bank president, glancing at my expression, lamented his woes for a long time, then cautiously spoke.
"Director Jin. If there's something you want from Jinhan Bank, please speak frankly. Only then can I comfortably tell you the figures we need."
"I'll tell you when the time comes. So, Mr. President, tell me the figures you desperately want, right now. You can think about it later."
Perhaps it was an unexpected answer, as the bank president's eyes widened.
"This is between a corporation and a bank. We're not in a relationship where favors are granted without conditions. If it's reasonable to grant, and if there's an appropriate reward, isn't it perfectly fine to ask for a favor at any time?"
"Well, yes, but..."
"Just because I'm resolving your difficulties today, it doesn't mean you'll put your presidential position on the line to help me next time, does it? So, there's no point in me telling you what I want in advance."
The bank president showed a slightly displeased expression but quickly returned to his usual demeanor.
"I spoke too many unnecessary words, it seems. Haha."
Behind his awkward laugh, he stated the figures.
"To put it tightly, 600 billion won. If you can afford it, we'd appreciate around 800 billion won."
"I'll send someone. They'll come with 800 billion won."
The bank president bowed his head.
"Thank you, Director Jin. And I will certainly remember that it's not 'now,' but 'next time'."
"Next time...?"
"Didn't you say so? 'Next time'... I sincerely hope your request will be within the scope of me not losing my position as bank president. Haha."
The bank president, with a sly grin, disappeared.
A quick-witted old man.
A man who knows how to bow his head before the wealthy, a banker to his very bones.
And so, I met with the top bankers from the four major commercial banks, one after another.
* * *
Barack Obama, the first African American and Hawaiian-born individual to be elected as the 44th President of the United States, criticized corrupt Wall Street throughout his election campaign.
"The greed of Wall Street and Washington, and their abandonment of responsibility, drove Americans into a financial crisis."
However, President Barack Obama appointed Timothy Geithner, formerly of Goldman Sachs, as Secretary of the Treasury, and William Dudley as the new President of the Federal Reserve Bank. William Dudley had been the chief economist at Goldman Sachs.
In addition to these, most of the economic officials were filled with people from Goldman Sachs.
Whether his promise to reform Wall Street was sincere or not is unknown, but one fact is certain.
Washington is dominated by the American financial sector. Just as chaebols dominate Korea.
The new government's policy, termed 'business-friendly' – a much softer phrase than outright 'pro-chaebol' – essentially gave wings to the chaebols.
Just as the U.S. Treasury Department loosened Wall Street's shackles, the government unfettered various regulations, turning the entire nation into a massive construction site.
While the real economy crawled on the bottom, the construction industry enjoyed an unprecedented boom.
"HW Construction will grow even bigger before we swallow Sunyang Construction."
Chairman Lee Hakjae let out a hearty laugh, as if finding it absurd.
"Sunyang and Daehyun have gone all-in on Dubai, effectively just lending their names here in Korea. It's like the construction industry has entered the OEM era."
"It's coming soon. Can't you see Europe holding on by Germany's power?"
"The signs are already visible. Daehyun Construction has clearly dipped into the apartment pre-sale funds."
"What? Daehyun?"
"Yes. They kept delaying payments, so we pressed them hard. When the developer receives pre-sale funds, isn't payment to the constructor the top priority? But they delayed payments for apartment advertisements, design, and even the pop-up real estate agencies, all because they were pouring money into Dubai."
Finally, the stench of decay is wafting out.
"That means the money that should have come in from Dubai hasn't, doesn't it?"
"Exactly. The atmosphere on the ground in Dubai is really grim. European companies seem to be pushed to the brink, even willing to go to court. Their own economies are a mess, and if they lose money in Dubai, it's over for them. Since those guys are fighting for their lives, Sunyang and Daehyun can't even show their faces; they're just spectators."
This is welcome news. I need to prepare for when everyone gets thoroughly battered by Dubai's fierce sandstorm.
"Chairman, make sure to extract all the money we're owed from those two construction companies. I'll prepare for the acquisitions. I also need to prepare the ground with the higher-ups."
"Can we even get it? Will a ruined Dubai pay up?"
The amount was so astronomical that even the brave Chairman Lee Hakjae couldn't hide his unease.
"It will take time, but we'll get it all back. We might incur some losses on domestic apartments, but we can handle that much."
"Hoo.... For now, I have no choice but to trust your words. If HW is not to be swept away by this sandstorm, we'll need a solid supply of 'bullets'."
"Relax and trust me. I have plenty of money."
At my confident demeanor, Chairman Lee dropped his sigh and his expression relaxed.
"Alright. Oh, right, I'll send an interior designer, so redo your house."
What's this now? Why redo the house?
"Have you seen the new 50,000 won bills?"
"Of course. Shall I show you?"
When I pulled out my wallet, Chairman Lee chuckled with a look of utter disdain.
"Not the bills, the boxes, you idiot. Heh heh."
As I merely rolled my eyes, still unable to grasp his meaning, Chairman Lee pulled out a bundle of 50,000 won bills from his drawer and tossed it at me.
They were crisp, new bills, released at the end of June this year.
"That's a hundred bills. A box of Vita 500 contains eleven of those bundles. An apple box can hold up to 1.2 billion won. Isn't that amazing?"
His expression was truly delighted.
After all, how many boxes full of 10,000 won bills had he delivered? Now, for most discretionary funds, a single Vita 500 box – no, just one bottle – would suffice, easily held in one hand.
An apple box, which could barely hold 200 million won, could now be packed with 1.2 billion won, and a 007 briefcase could hold over 300 million won.
I knew that well too. How many times had I lifted and set them down?
The number of times I had loaded boxes filled with 50,000 won bills into a car trunk was countless. For someone like me, the 50,000 won bill was a gift from the government. It reduced the arduous work to a mere one-fifth.
"What does that have to do with redoing my house?"
"About 1 trillion won worth of 50,000 won bills were printed for the first time this year. Just in case, I put some aside. Keep them at home and use them when needed. Didn't you say there were many places to 'apply medicine'?"
He's someone who couldn't possibly be unaware of the money in the slush fund accounts my grandfather left me. Doesn't he know there's no need for such a cumbersome task?
As if reading my thoughts, he spoke.
"Had a lot of construction work this year, did we? Opportunities like this rarely come around. The more cash, the better. You stash it away when you can."
"So, you're telling me to redo my house to create a space to stash cash?"
"Well, of course? Do you want to rent a warehouse to pile it up? Your house is spacious enough. Just listen to me."
Since these were the words of the man with the most experience in such matters in South Korea, I had no choice but to follow them.
"Yes. But how big does it need to be?"
"For now, I've secured 50 of them. You should aim to stash about 100 more in the future."
The word "for now" struck a fearful chord.
I also understood why it was so hard to find 50,000 won bills circulating.
"Then, while my house is being renovated, I'll have nowhere to sleep, so I suppose I'll have to stay at a hotel."
"It'll be done in a day. You won't have to vacate the house."
"Let's use it as an excuse to spend a few days at a hotel in Dubai. Oh, and Chairman, you too."
"What?"
"I'm not saying we'd share a room. I'll prepare a special suite, so let's go relax for a few days."
It was quite amusing to watch Chairman Lee, startled and clueless.
* * *
For over a month, the main conference room of the Sunyang headquarters had been occupied by Sunyang Construction and the Dubai TFT. As time went on, their darkening complexions weren't just due to accumulated fatigue.
"Vice-Chairman. If we go past the fourth quarter in this state, everything will come to a halt."
"It seems Chairman Lee Hakjae of HW has also sensed the crisis; he says further fund mobilization is difficult."
Vice-Chairman Jin Donggi already knew this well. Red warning lights had been flashing incessantly from the start, but isn't opportunity always found within crisis? One must navigate through bone-chilling risks to discover caves filled with gold nuggets.
However, the situation in Dubai was ominous. European companies seemed to have already accepted the signs of crisis as reality. Should they abandon the treasure and escape before the cave collapses and traps them?
To do so would be to waste all the resources and effort invested so far. The bigger problem was that it was unknown how much of it they could salvage.
To accurately resolve this unknown, they needed to negotiate with Dubai World, the client, with swords drawn.
Dubai World could hardly bear what would happen if Sunyang Construction halted the project. A half-built structure was nothing more than a grotesque heap of concrete. They had planned a world-class city, but only the desolation of a warzone, bombed out, would remain.
Instead, Sunyang Construction might futilely lose all the resources and money invested so far. They would have to suffer through extreme financial difficulties during the period it would take to receive payment and resume construction.
But in their current state, they would soon fall into financial distress anyway. Since they would face the same outcome, negotiating wouldn't make things any worse.
"From now on, simulate what would happen if we halt construction. And Taejun."
"Yes."
Jin Taejun was startled. His father had never once called him by his name, only his title, at the company.
How tormented must his father be inside to make such a mistake?
"You, draw up the cash flow accurately. Not even ten won should be out of place."
"Understood, Vice-Chairman."
Jin Donggi spoke, addressing no one in particular in the conference room.
"The Construction President is in Dubai right now, isn't he?"
"Yes."
"Tell him to send a warning to Dubai World. That we can withdraw at any time if they don't pay up quickly."
* * *
Dubai is where one can witness what happens when someone with an uncontrollable amount of money imagines the impossible.
During the drive from Dubai International Airport to the 'Burj Al-Arab' hotel, meaning 'Tower of Arabia,' the Dubai nightscape visible through the limousine window showed no hint of a desert. This was a paradise of the future.
Chairman Lee Hakjae clicked his tongue in disdain, watching me gape, unable to tear my eyes from the night view.
"Staring at numbers your whole life has made you a country bumpkin, hasn't it? This place right here is what happens when mere numbers transform into reality. Isn't it much better than just piling it up digitally?"
"You're right. I don't have as much money as oil dollars, so I can't build a city like this, but a tower might be possible. Once this work here is done, let's erect a tower. The HW Tower."
At my serious expression, Chairman Lee waved his hand dismissively.
"What can't you say? I was just saying it. Why would you engage in such waste?"
"Well, why not? There should be some fun in spending when you have plenty of money. And since a building remains, it's not waste."
The image of the HW Tower had already begun to form in my mind.