» The Youngest Son of Sunyang
Reborn Rich - Chapter 291
[291]Splitting It Fairly? 2
Chairman Lee Hakjae requested a meeting with the creditors. The banks, who had been wary of the colossal corporations Sunyang and Daehyun, eagerly flocked to the summons. Since someone was stepping up to "bell the cat," there was no reason to refuse.
However, Lee Hakjae's words at the meeting sent shivers down their spines.
"I'm not that magnanimous. Why should I consider the circumstances of someone who has freely exploited others?"
At his declaration that he would dump all the bills of exchange he held, the bank presidents unanimously waved their hands in protest.
"Chairman Lee. We are well aware of the financial situations of Sunyang Construction and Daehyun Construction. If you dump all those bills, they won't be able to cover them. Bankruptcy is a certainty."
"Chairman, if they go bankrupt, debt collection will be impossible. And it could take years to normalize."
"We thought we gathered to find ways to recover our claims. We didn't gather to shut down these two companies, did we?"
Chairman Lee Hakjae shook his head at the startled bank presidents.
"Those who are meant to fail should fail. Have you already forgotten what happened when we gave leeway to these massive, rotten entities just because they were big?"
For the bankers, the memories of a decade ago were still vivid. Wasn't it back then that even banks, once thought of as "iron rice bowls," began to collapse?
"Furthermore, I don't need to get paid back, or rather, I don't mind not getting paid. Instead, I'll simply enjoy watching these two companies close their doors and end up on the streets, laughing wholeheartedly."
Everyone knew the unpaid amount was at least in the trillions of won. They also knew exactly where he got the audacity to throw that away. Such boldness could only come from having a solid backer.
But banks were different.
The moment bankruptcy struck, debt collection would be impossible, and the chain of defaults among the numerous subsidiaries tied to the two construction companies was practically a given, wasn't it?
Banks would once again suffer immense losses and reel, and some of the presidents among them would lose their titles.
The most terrifying prospect was the government toying with the idea of expelling and merging insolvent banks. The surviving banks would double in size.
However, wasn't it the unspoken loyalty within the industry to survive and prosper together, even if it meant eating a little less, rather than letting only the survivors thrive more?
Everyone desperately tried to appease Chairman Lee Hakjae and dissuade him, but he remained unyielding. Instead, he even called someone who shared his intentions.
When another figure appeared, the bank presidents realized that no one could stop them.
* * *
"You all must have quite a bit of debt to this young man."
Chairman Lee Hakjae introduced me to the bank presidents with these words.
"Debt? What do you mean...?"
One bank president bristled as if it were nonsense, but it wasn't a wrong statement.
"My money, I lent it to the bank, didn't I? Since I lent money, didn't the bank diligently pay interest? If it wasn't a loan, it would mean it was an investment, but do investors ever receive interest?"
All depositors are creditors, and their bankbooks are IOUs. Although it's subtly phrased as "depositing money with the bank" or "making a deposit," "lending" is the precise term.
That's why various financial products are created to entice depositors, who are essentially creditors. They must be lured with sweet promises of greater returns so that the borrowed money doesn't have to be repaid.
Since I am a simple depositor and not an investor in financial products, I am indeed a creditor.
"I lent a substantial amount of money to the banks. But if you're going to use that money to save companies that are clearly destined for bankruptcy, then I have no choice."
Perhaps anticipating my next words, the bank presidents' faces turned ashen.
"I want to withdraw all the money lent by Sunyang Financial Group, and all the money I personally lent. I will make the withdrawals as soon as banking hours begin tomorrow morning."
The bank presidents remained silent at Chairman Lee Hakjae's threat to dump the bills of exchange and my declaration to withdraw all deposits.
They sensed that persuasion would be futile, and that they needed to understand our true objective. They also knew very well that the two of us weren't so foolish as to stubbornly insist without reason.
After a long silence, they cautiously opened their mouths.
"Excuse me, Chairman Lee and Director Jin. Are we perhaps missing the real topic here?"
"Is this meeting not about bankruptcy countermeasures for Sunyang and Daehyun, but rather about discussing methods for acquisition?"
We didn't hide the smiles that naturally appeared on our faces.
"HW Group has poured in nearly ten trillion won. And I have lent trillions of won to your banks. If you convert that to time, it amounts to tens of billions of won per second. Now, it seems you won't waste our precious time with nonsense."
"So, you spent all that money to acquire these two construction companies?"
"Please call it an investment. You needn't be surprised, as I plan to recoup not only the principal but also a substantial profit."
The long sighs exhaled by the bank presidents were sighs of relief.
The prospect of being restructured due to bad debts had vanished, and the risk of losing their positions as bank presidents was gone. That is, if this acquisition could be concluded successfully.
"However, before we proceed with the normal acquisition process, please tell me how much you are willing to bear."
"What do you mean by that...?"
These old men, feigning ignorance despite understanding perfectly—truly typical of bankers who would never accept a loss.
"Are you pretending not to know? When reviving a bankrupt company, banks should also contribute. To what extent will you reduce the debt for these two construction companies?"
At the blunt question, everyone fell silent.
"An amount that anyone would deem reasonable. Banks must bear that much. Anyone thinking they can't reduce the debt by even a single won may leave this meeting. It would mean your bank is robust enough for me to withdraw all my funds, wouldn't it?"
Silence ensued once more.
"Oh, and just in case, abandon any thoughts of the government stepping in with bailout funds. Cheongwadae is absolutely not taking calls from the two construction companies. Even the aides to National Assembly members in Yeouido are avoiding their calls."
Not a single person was able to leave their seat.
Towards them, Chairman Lee Hakjae opened his mouth.
"As the largest creditor, I will take the helm. You simply need to row diligently in the direction my fingertip points. You have no objections, do you?"
* * *
Joo Taesik, Chairman of Daehyun Motors, let out a groan while reading the morning newspaper.
The media continuously covered the Dubai crisis, highlighting plummeting stock prices and amplifying the crises at Sunyang and Daehyun.
The fact that Daehyun Group and Sunyang Group, with all their power, couldn't stop the media reports meant the situation was irreversible.
As Chairman Joo Taesik put down the newspaper, he saw his younger brother sitting on the sofa, head bowed deeply.
"Is Dubai everything?"
"Hm?"
"If we just stop this, will everything be resolved?!"
Joo Minsik, the third son of the late Chairman Joo Youngil, who had inherited the construction division, couldn't answer. All the apartment constructions, redevelopment shopping malls, and other projects underway in the provinces were being financed through debt.
Though hushed, it was an open secret that there were gaping holes everywhere, so much so that they were resorting to "robbing Peter to pay Paul" with pre-sale deposits.
"The financial sector already knows the government is turning a blind eye. You have to stop this."
"Elder brother, if HW starts circulating the bills of exchange, we can't avoid bankruptcy. There's no other way but to resolve this at the group level...."
Joo Minsik managed to open his mouth, but all he received in return was his elder brother's cold response.
"Group level? Weren't you the one boasting about the Daehyun Construction Group? And wasn't I the one leading the automotive group? We are not one family. If it's a group-level issue, then the construction group should resolve it."
"Brother, that's not what I meant, is it?"
"I know it's not. But are we running a neighborhood convenience store? We have tens of thousands of employees. We can't all starve to save just you. We're different from Sunyang. We've already completed the affiliate spin-offs. Even if you fail, Daehyun Motors won't suffer."
"Brother! Construction is the very foundation of Daehyun, isn't it? To let it die is to dishonor our late father...."
"Nonsense! Since when have you cared about our father's honor? How dare you drag Father into this so carelessly! Get out, you bastard!"
Chairman Joo Taesik chased his brother out and fumed for a long time.
He wasn't angry because of Daehyun Construction's crisis. It was rage at his deceased father, who had bequeathed the group's foundational construction arm to such an imbecile.
When his agitated mind had somewhat calmed, his secretary quietly knocked on the door.
"Chairman, it's time for your appointment with Chairman Lee Hakjae. Shall we depart?"
"Let's go. He's not a man to be kept waiting."
* * *
"Oh, my dear brother. It's been too long!"
Chairman Lee Hakjae smiled brightly and firmly clasped Joo Taesik's hand.
"Chairman Lee. For a man who's lost an enormous sum of money, you look remarkably well. Seems you still have plenty of cash stashed away, huh?"
"Please don't say that. I'm practically dying. I'm racking my brains over all these unrecoverable bills of exchange I'm holding."
After a firm handshake, the two men smiled brightly at each other.
After a brief exchange of pleasantries and light conversation about their personal lives, they brought up the purpose of today's secret meeting.
"Chairman Lee. Is it certain that if this situation is resolved, everything will return to normal?"
"Of course. The U.S. government has already poured in astronomical sums. The money tied up in Dubai can be recovered, conservatively speaking, within two years."
"HW Construction seems to have dug in its heels in Dubai, I hear."
"Yes. If I didn't believe in its recovery, I would have pulled out too."
"If Dubai recovers, HW will certainly flourish. After all, they wouldn't ignore a company that showed loyalty."
"They're businessmen too. If there's no money, there's no loyalty or anything else, haha."
Chairman Joo Taesik, holding his teacup, gazed at Lee Hakjae with an envious look and spoke.
To lead a group with a reliable financial backer as its major shareholder, guiding the company with a long-term vision. It was a feat he himself was perfectly capable of, but he lacked the leisure due to the imminent succession battle among his children.
He briefly mused how wonderful it would be if a professional manager like Lee Hakjae worked for Daehyun.
"Anyway, brother, you truly have no intention of saving the construction arm, do you?"
"That's right. I can't do something as foolish as pouring astronomical sums into saving it. As you know, the automotive group also holds a construction company called Daehyun Industrial. It's better to use that money to fatten my own company."
"Then I'll take that as your acceptance of my proposal."
"That's why I'm sitting here, smiling and talking with Chairman Lee, isn't it?"
Now it was Chairman Lee Hakjae's turn to hear Chairman Joo Taesik's demands.
"Then, please tell me which companies you desire."
Chairman Joo Taesik pulled out a neatly folded piece of paper from his pocket.
"This is what my children strongly urged me to secure. Take a look."
As he unfolded the paper, it listed several company names and numbers representing their estimated value.
They were all subsidiaries of his third son, Joo Minsik: Daehyun Togeon, Daehyun Cement, Daehyun Development, among others.
"That's too much. Are you saying I should only take the construction arm?"
"Don't misunderstand. I've only listed the companies absolutely necessary for our Daehyun Industrial. It's not like I just picked the profitable ones. And I'll hand over all the core subsidiaries of Daehyun Construction intact."
"Of course we should take over Daehyun Construction's subsidiaries. We've spent all the money, we've blocked Cheongwadae. The banks are in our hands, so isn't this too stingy?"
"My friend, Chairman Lee. Our father built this. If I grit my teeth and step up, I could even protect Daehyun Construction. To call it stingy when I'm conceding that much? Just how much do you need to be satisfied? Surely you're not expecting half, are you?"
"Brother, in situations like this, closing your eyes and splitting it down the middle is the standard. Isn't that a rule even snot-nosed kids know?"
Chairman Lee had no intention of taking half. When dealing with the greedy Joo family, the strategy of making an audacious demand and then conceding a little always worked.
This time was no different; getting a couple more would make for a satisfactory negotiation.