Seeing Seok-won's reaction, Deputy Prime Minister Choi Jin-woo quickly added,
"Of course, I'm not asking you to take on these deeply troubled merchant banks without any support."
"Go on," Seok-won said with a calm, cool gaze.
Choi leaned forward in his seat and continued,
"The three institutions we'd like you to acquire are Shinchang, Goryeo, and Gyeongnam."
"All three were heavily exposed to large loans to major conglomerates that defaulted earlier this year. Their capital bases have been wiped out," Seok-won replied, his assessment razor-sharp.
Choi coughed awkwardly, feeling a bit guilty as though he were offloading a burden.
"We plan to separate out 600 billion won worth of bad debts held by the three and transfer them to the expanded bad bank that's being set up for financial restructuring."
A bad bank was an institution designed to purchase and dispose of non-performing assets from the financial sector at discounted prices.
"That way, only quality assets and sound claims would remain. I believe someone like you could restore them to health."
Choi tried to make the proposal sound appealing, but Seok-won wasn't one to be easily swayed by flattery.
His response was reluctant, bordering on dismissive.
"If everything goes as you say, it would certainly reduce the burden. But the fundamental risks wouldn't disappear."
Interlocking his fingers, Seok-won continued calmly,
"The non-performing loans are one issue, but the core problem that pushed these merchant banks to the brink is their excessive short-term foreign debt. Leaving that untouched renders any effort meaningless. Especially in times like these, when the exchange rate is surging by the day."
Choi knew full well that what he was asking was unreasonable.
But these were not times for pride or principle—he had to push forward and persuade Seok-won.
"That's exactly why we're putting in public funds to clear out those 600 billion won in bad loans."
Seok-won shook his head.
"Bad loans can be resolved by recapitalizing and writing them off. But short-term foreign debt—most of it due within a few months to a year—is entirely different. Depending on where the exchange rate goes, the repayment amount could grow endlessly."
"That's… true," Choi mumbled, unable to refute the point. He knew short-term debt posed a much more dangerous liability.
"If you handle the short-term debt instead of the bad loans, I'll gladly take over the banks."
That, however, would completely defeat the government's purpose in handing the banks over.
Choi fell silent, a troubled expression settling over his face. The room was briefly overtaken by a heavy, uncomfortable silence.
Then, seeing the deputy prime minister unable to find a way forward, Seok-won finally spoke.
"Very well. The country is in crisis, and out of respect for you, Mr. Deputy Prime Minister, I'll take the three merchant banks as requested."
"You'll really do that?"
Deputy Prime Minister Choi Jin-woo's face lit up immediately as he asked,
"In return, do you have a condition of your own?"
Seeing Choi nod so eagerly, Seok-won inwardly smirked.
If they wanted to offload a mess onto him, it was only fair he got something worthwhile in return.
"Give me the Intelligence Command site in Seocho-dong."
The Seocho-dong site, which would later be renamed Seoripul Park, was located within a neighborhood park in Seocho and spanned an enormous 176,290 square meters—roughly 53,328 pyeong.
It was considered the last remaining prime real estate in Gangnam, surrounded by major institutions such as the Supreme Court, the Supreme Prosecutors' Office, the National Library of Korea, and the Seoul Arts Center.
Choi's brow furrowed at the unexpected request.
"I'm shouldering considerable risk here. Don't you think I deserve some compensation for that?"
"Well, yes, but…" Choi hesitated.
"I'm not asking for it for free. I'll pay market price for the land. But I'd like the military protection zone designation lifted and the zoning changed to semi-residential so I can develop it freely."
Still, Choi's expression turned even more conflicted.
Even selling off such a prime parcel at market price could be seen as an enormous favor.
Letting go of military protections and changing the zoning on top of that? Under normal circumstances, it would've been unthinkable.
Especially since at the time, there were no plans to relocate the Intelligence Command outside Seoul. That made the request even more difficult.
But these were not normal times. The country was on the brink of default.
Choi cleared his throat.
"I'd like to meet your request, truly. But the sale of the site would have to be coordinated with the Ministry of Defense. And more importantly, it could spark accusations of favoritism."
As Seok-won had expected, Choi wasn't going to agree so easily. He responded calmly.
"Of course. But we're in a national emergency, aren't we?"
"?"
Seeing Choi's puzzled expression, Seok-won leaned in slightly and spoke in a quiet, persuasive tone.
"In the midst of a foreign exchange crisis, where every dollar counts, selling off the Intelligence Command site to secure hundreds of millions in foreign currency would be a perfectly justifiable move."
For a brief moment, Choi's eyes flickered with hesitation.
"Of the $10 billion I'm providing, all but the amount used to purchase the government's shares in the financial firms will be structured as foreign exchange stabilization bonds. With interest. Wouldn't it be better to reduce the national debt burden even slightly—for the future's sake?"
To stabilize the won, the government was issuing dollar-denominated bonds called foreign exchange stabilization bonds, or forex bonds for short (외평채 in Korean).
Seok-won wasn't donating the money. He would be lending it at an annual interest rate of 10%.
Given that Korea's national credit rating had dropped sharply, the high rate was unavoidable.
Still, paying hundreds of millions in annual interest was a heavy burden.
That's why the prospect of lowering interest payments made Choi's ears perk up.
But it was not a decision he could make lightly. After much deliberation, he finally looked up and asked,
"If we transfer the Intelligence Command site… will you truly take on the three merchant banks?"
"Of course. After the acquisition, I'll make sure the short-term foreign debt issue is fully resolved."
As Seok-won responded without hesitation, Deputy Prime Minister Choi Jin-woo's expression brightened.
It was only natural. The biggest sticking points in the ongoing negotiations with the IMF delegation were the mishandling of insolvent merchant banks and the excessive short-term foreign debt.
Even if it didn't resolve everything, if Seok-won were to take on the worst of the troubled merchant banks—including Ilhan and Hansung Bank—and bring in a fresh influx of $10 billion in foreign currency, it would certainly provide some breathing room.
In addition, while it might not grant them full leverage in the IMF talks, it would at least prevent them from being dragged along unilaterally.
That made Choi all the more desperate to finalize the deal with Seok-won.
Seemingly having reached a decision, Deputy Prime Minister Choi Jin-woo spoke with firm resolve.
"Understood. Give me a few days—no, just one more day."
"By all means."
Seok-won nodded without hesitation.
***
The Next Morning
As usual, Seok-won left his house and got into the waiting large Mercedes sedan that would take him to the office.
Sitting in the back seat with one leg crossed, he was staring out the window when a news report on the radio caught his attention.
[Due to management difficulties caused by the foreign exchange crisis and uncertain business prospects, many companies are either canceling offers already extended to new hires or postponing final announcements.
Auto manufacturer Gichang, which has filed for court receivership, has not only canceled its plans for new hires but has also sent cancellation letters to 200 candidates who had already passed the final round of its recruitment drive.
The financial sector is no exception. Troubled merchant banks, along with even commercial banks, are cutting or canceling recruitment plans, citing the uncertainty of next year's business outlook.
As a result, the number of college graduates securing employment this year has dropped significantly due to the ripple effects of the currency crisis…]
"Come to think of it, it's recruitment season for the second half of the year. How many new hires did we bring in this year?"
Han Ji-sung, who was in the front passenger seat, turned his head slightly to respond.
"I believe a total of 20 candidates—men and women combined—received final offers."
"How about Daheung Securities?"
"They had 90. But as you know, given the current situation in the securities industry, I heard they scrapped their entire hiring plan and notified all the successful candidates that their offers had been revoked."
"I see."
Seok-won nodded slightly.
As the radio news had reported, with the economic recession overlapping the foreign exchange crisis and the country forced to accept IMF bailout funds, nearly every company had entered austerity mode, suspending or canceling new hire recruitment.
It was understandable—companies were on the brink of collapse and even current employees faced layoffs, so there was simply no room to hire new staff.
But Seok-won's expression darkened as he thought about how harsh a time this was for young people, so-called the "IMF generation," who had suddenly found the job market shut tight and faced financial hardship.
Moreover, even those lucky enough to secure a job no longer had the promise of lifetime employment and were forced to endure unstable working lives.
It had become so bad that half of people in their twenties were unemployed, earning nicknames like "Itaebaek" (20s unemployed), "38 Line" referring to those facing retirement at 38, and "Saojeong" (meaning people in their 40s who faced layoffs at 45).
"During the IMF crisis, so many people lost their jobs and became self-employed that stores with signage flourished like never before."
Still able to work, many had lost their jobs and were left only with their severance pay, so they opened their own businesses.
But there was no way those stores could thrive amid a deep recession.
Eventually, many ended up losing even their meager severance pay and sinking into heavy debt.
Seeing this bleak future vividly in his mind, Seok-won closed his eyes with a bitter feeling.
After a while, he arrived at the office and immediately took the elevator up to the CEO's office.
"Please bring me a cup of coffee."
As he took off his jacket and handed it over, Na Sung-mi replied promptly.
"Yes, right away."
Seok-won sat at his desk and habitually moved his mouse to check the New York stock market and exchange rates but suddenly stopped.
"Hmm..."
Frowning in thought, he let out a soft sigh and pressed the intercom button to call Na Sung-mi.
[Yes, sir. How can I help you, CEO?]
"Please connect me to CEO Ko Young-il."
[Understood. Please hold for a moment.]
Seok-won released the button and leaned back.
"No matter how I think about it, I can't just let this go."
Soon the intercom bell rang with a chirp, and Seok-won picked up the receiver.
[This is Ko Young-il.]
Hearing the voice of Ko Young-il, CEO of Daheung Securities, Seok-won spoke.
"You're wrapping up the tender offer smoothly, right?"
[Yes. With the additional funds you provided, we completed the purchase of all the excess shares requested. Your ownership has increased to 71.5% in the end.]
"Good work. By the way, I heard you halted new hiring this year and sent cancellation notices to those who had already been accepted."
[Ah, yes.]
CEO Ko Young-il answered in a slightly subdued tone.
[I'm sorry about that, but as you know, the economic situation is poor, so as part of our austerity management, we had no choice but to make that decision.]
"I understand the reasons well enough. But unlike others, Daheung Securities isn't in such bad shape that it can't hire new people, is it?"
[That's true, but when thinking about the future…]
"The foreign exchange crisis won't last long. And to overcome this difficult time and make a big leap forward, talented people are the most important. Go ahead and continue with the new hiring as planned."
After a brief silence, Ko Young-il spoke cautiously.
[Still, wouldn't it be better to respond a bit more carefully?]
"Soon, it won't be about cutting back but about needing more hands. Trust me on this."
Surprised inwardly, Ko Young-il opened his mouth to say something but stopped.
Seok-won's predictions had never been wrong so far, and more importantly, after this tender offer, he had become the owner of the vast majority of shares.
[If that's your wish, I will follow your orders.]
Ko Young-il obediently accepted Seok-won's instructions.
After ending the call and putting down the receiver, Seok-won muttered with a much more relaxed face than before.
"It might be no big deal for me, but for those whose employment was confirmed then canceled, this should give them a great hope."