Samsung Group and Hyundai Motor Group.
Though they didn't seem like direct competitors, Samsung Group was already reaching into
Hyundai Motor's business.
Capital finance.
Hyundai Motor's Chairman Jang Kyung-jun had even come to me personally to ask for help, and the battle was far from over.
That was why Chairman Jang promptly responded to my meeting request, and we were able to meet today.
"Congratulations! I heard Taewoo Group secured the Charlotte Group site."
"Thank you. But it's daunting. We still need approval from the Air Force and Seoul city, and it's not easy."
"Getting permits is always tough no matter the business in Korea. But if you endure for a few
years, a way might open up."
"I hope so. I'm trying to wait patiently."
Chairman Jang's eyes showed envy.
Since he was hoping to build Hyundai Motor's new headquarters, his gaze felt heavy.
"How's the capital finance side going? I heard Samsung Group is coming on strong."
"They're throwing money around. Samsung Group's financial power is no joke. And with GM backing them, it's even tougher."
"Still, Hyundai Motor, as a finished car manufacturer, should have the advantage, right?"
"That's true, but in the end, the side with more ammo usually wins. I'm quite worried."
It was clear the fight was still intense.
But to me, it hadn't escalated into full-scale war yet.
"It's awkward to say in this situation, but Taewoo Motor and Kia Motor can't afford to exclude capital finance companies."
"That's obvious. How many people can buy a car without financing?"
"So, we're planning full openness. We'll sign agreements with all capital finance firms and
partner with the company offering the best terms."
"But Taewoo Group already has a capital finance firm. Why partner with others?"
Taewoo Group naturally had its own capital finance subsidiary.
It was common for automakers to have financing arms, but Taewoo's finance firm hadn't yet
allied with foreign capital and was not very large.
"Taewoo Capital alone can't handle it. And it's too late now to partner with foreign capital, so we have no choice but to join forces with other capital firms."
"How about partnering with our Hyundai Capital? We can offer the best terms in the industry."
"I'd like that, but such a decision isn't mine alone to make. We need to review all offers and
choose the best."
"Then so be it. But no one will beat the terms Hyundai Capital offers."
The capital finance war hadn't yet broken into full open conflict.
To hasten its start, I dangled the bait of a partnership with Taewoo Motor and Kia Motor.
After finishing the meeting with Chairman Jang Kyung-jun, I headed to the old mansion where the Gwanghwamun Bear once lived.
The mansion hadn't changed a bit from the past, but the person sitting in the pavilion was different.
It was Lee Young-han, the grandson of the Gwanghwamun Bear.
Beside him sat three men who once shared control of Myeongdong.
"Long time no see! Vice Chairman Kim, why is it so hard to see your face these days? Don't
neglect us old folks who don't have many days left!"
"How could I neglect you? I've been constantly thinking about how to better take care of
Chairman Lee and the elders."
These were former loan sharks whose expressions changed instantly.
Especially Lee Young-han, still the lord of Myeongdong's loan business, rubbed his hands
together, waiting eagerly for what I'd say next.
"What do you intend to take care of? If it's something Vice Chairman Kim orders, Myeongdong is always ready to step up."
"You all know that Samsung Group and Hyundai Motor Group are heavily clashing over capital finance, right?"
"Of course. It's like whales fighting and the shrimp getting crushed—we're the ones getting
squeezed."
The three of them jointly managed the tertiary financial sector.
Naturally, they owned capital finance companies too, and were struggling greatly against large corporations bringing in foreign capital.
"This time, Taewoo Motor and Kia Motor are planning to sign partnerships with capital finance firms."
"Are you saying they want to partner with us?"
"No matter how much I respect you elders, if I sign a partnership without a legitimate reason, I could be charged with breach of trust and end up in prison. I'm not ready for that yet, so please understand."
"Bah! Fine, fine. Why say that if you're not going to offer anything? Even big companies partner with foreign capital for their capital finance. How can we possibly win if we fight alone?"
Disappointment showed clearly on the faces of the three Myeongdong men.
But their expressions would change once more after I continued.
"That's why I'm going to bring foreign capital to you. Specifically, Wall Street capital."
"Oh! If investment money from Wall Street flows in, it might be worth a shot. So, how many
bullets can you provide?"
"I can provide about 100 rounds."
"100 rounds? What good is 10 billion won for anyone?"
"What kind of joke is that? Of course, I mean 10 billion dollars. That's roughly 12 trillion won."
In the financial world, amounts in the trillions weren't unusual.
But receiving 10 billion dollars at once was rare, especially when over 10 trillion won flowed into the tertiary financial sector — it could instantly change the game.
Samsung and Hyundai Motor might be backed by foreign capital, but their support didn't exceed 5 trillion won.
Moreover, their funding was split, so yearly support might be less than 1 trillion won.
What if the tertiary finance capital received more than ten times that amount?
"Isn't that too excessive? I thought the capital finance market size was less than 10 trillion won annually."
"To shake up the landscape, that amount is necessary."
"And what if it fails?"
"You don't have to worry. Just pay back the principal later."
"Paying back the principal is a given. Haha, so there will come a day when I can borrow 10
trillion won without a single cent of interest."
Capital finance companies rarely went bankrupt.
Especially those from Myeongdong would find a way to recover the principal no matter what.
By lending 10 trillion won temporarily, I could shake up the entire capital finance industry.
"There's only one thing I ask. Make sure Samsung and Hyundai Motor's capital arms pour
money into the market as much as possible."
"So you have some hidden agenda. You want us to be the bullet catchers, huh? 10 billion dollars might just be pocket change."
"Call it compensation or not, I'll push the used car market for you."
The real use of the 10 billion dollars was to dry up the opponents' funding sources.
If the tertiary finance sector entered the capital market with low-interest rates, large corporations would inevitably have to follow by pouring money in.
Simply put, it was a chicken game.
By provoking a chicken game in the capital finance market, Samsung and Hyundai Motor groups would lose the means to bid for the KEPCO site.
"Well, it's not a bad plan. Though we have to fight big corporations, 10 billion dollars is worth it."
"Just by fighting the big companies, our reputation will rise. Myeongdong will support you
wholeheartedly."
Lee Young-han promised backup fire.
Myeongdong's financial power, the three elders, and 10 billion dollars — these were enough
conditions to kick off the capital finance war in earnest.
SAVE Investment Company had multiple paper companies under its control.
Among them was a ghost company located on Wall Street.
From there, 10 billion dollars were sent to the three Myeongdong elders.
It took only three days.
Just three days for the 10 billion dollars to be deposited into the companies of the Myeongdong trio.
Meanwhile, the Taewoo Group's Planning Office secretly began a promotional campaign.
"All newspapers published advertisements announcing the 10 billion dollar fundraising."
"Well done. Try running radio and TV commercials as well."
"I have arranged for ads to run by next week at the latest."
"How did Samsung and Hyundai Motor groups react?"
"There was chaos. Both Samsung and Hyundai Motor, along with their capital finance offices, have had their lights on 24 hours a day."
The reaction was as expected.
What was anticipated to be a two-way conflict had expanded into a three-way war.
Naturally, all plans had to be revised, and the scale of capital injected needed to increase.
"The fire hasn't spread widely yet. Spread news through all media outlets that Taewoo Motors and Kia Motors are signing partnership agreements with the new capital finance company. We need to pour lava on their heads, not just a spark."
"I'll start immediately. But Taewoo Securities President Park seems a bit unhappy."
Taewoo Capital was under Taewoo Securities.
So naturally, Taewoo Securities wasn't thrilled.
They opposed the idea of Taewoo Capital partnering with outside companies.
"Ask him to endure this time. Tell him we will reward him with bigger projects soon."
"President Park trusts your words so much, he'd believe anything—even if you said you could turn red beans into tofu. I'll convey that well."
One by one, we revealed our cards.
In response, the Myeongdong trio launched a new car installment plan with interest rates 1.5% lower than before.
Soon after, Samsung and Hyundai Motor also rolled out cheaper new car instalment plans.
But that wasn't the end.
The Myeongdong trio even introduced discounted interest car loans.
Samsung and Hyundai Motor's capital finance arms had no choice but to follow, albeit
reluctantly.
A month passed like that.
The capital finance war grew fiercer over time, with products offering interest rates 3% lower
than before beginning to appear.
While the Myeongdong trio and the big corporations fought fiercely over the capital finance
market, we concentrated all our efforts on preparing for the public bidding of the KEPCO site.
Grandfather, in particular, practically lived in the planning office, personally overseeing the
public bidding preparations.
"It looks like we might need more funds than expected. Although Samsung and Hyundai Motor are pouring money into their capital finance arms, can't we secure around 4 trillion won separately?"
"No matter how high the current market price for the KEPCO site is, it's at most 2 trillion won. Four trillion won, double that, is an extraordinary amount."
"I'm still worried. If it were up to me, I'd spend three times as much to definitely secure the site."
It wasn't a bad idea.
Before the regression, Hyundai Motor had purchased the KEPCO site for 10 trillion won.
Even three times the current estimate would be just 6 trillion won—still 4 trillion won cheaper than before the regression.
But there was no need to do a favor to KEPCO.
If we intended to spend 6 trillion won, we wouldn't have started the capital finance war in the
first place.
"Four trillion won is enough to secure the KEPCO site."
"Do you have a separate plan?"
"It's not that I have a plan. Hyundai Motor will propose one."
"What if Hyundai Motor doesn't propose anything?"
"Then, according to your wishes, we'll use six trillion won."
Four or six trillion won—
The possibility of saving a full two trillion won depended on Hyundai Motor's moves.
Whether they would act as I wished was uncertain, but judging from Chairman Jang Kyungjoon's personality, it seemed very likely they would.