He is Already a Tycoon at a Young Age! - Chapter 76



Only Noblemtl

#076

March 3, 1997, the presidential office at the Blue House.

“What did you just say?”

The president, who was sitting on his chair, suddenly stood up and asked the senior secretary for civil affairs at the Blue House.

“Seungbo Steel is finally going bankrupt. It is said that the size of Seungbo Steel’s bad loans amounts to 6 trillion won.”

It would not be an exaggeration to say that the illegal lending scandal at Seungbo Steel and the fraudulent accounting of the Daewoo Group were the signal flares for the IMF.

And the bankruptcies of the two groups each led to the bankruptcies of more than 1,000 affiliated companies.

This was inevitable because Korean companies and groups paid their money with bills rather than cash transactions.

“6 trillion? The size of bad loans is 6 trillion?”

The president was terrified.

“Yes, that’s right. They say it’s a bad loan, but it’s an illegal loan. The banks that lent money to Seungbo Steel, or rather Seungbo Group, are also bound to suffer a huge blow.”

Until now, it has been true that banks can never fail.

However, the banks that lent money to Seungbo Group ended up in the worst possible state of insolvency.

“Illegal lending?”

“Yes. And it seems that Mr. Kim Han-cheol was deeply involved in the Seungbo Steel illegal loan case.”

“Hancheol?”

Kim Han-cheol, the president’s second son, was called the “little president” in Yeouido and exercised his influence, literally being no different from a shadow power broker.

“Yes, that’s right.”

The reason Seungbo Group was able to receive 6 trillion won in illegal loans was because they joined hands with Kim Han-cheol.

“It seems like the opposition party will soon demand a special prosecutor.”

“Hmm!”

The president could not help but groan.

* * *

March 5, 1997, Pacific Investment Finance CEO Office

“It is expected that the repercussions on the financial world will be significant as Seungbo Steel’s insolvency is confirmed.”

Kim Eung-soo, head of the Pacific Investment Finance Strategy Planning Office, spoke carefully to me, and the presidents of Taean Group affiliates looked relaxed, as if they had guessed the seriousness of Seungbo Steel’s bankruptcy.

“In particular, a chain of bankruptcies of more than 1,000 subcontractors is expected.”

Since payment was made by promissory note, if the large company that issued the promissory note goes bankrupt, the subcontracting companies will naturally collapse like a domino effect.

‘One of the most serious problems of the South Korean economy.’

It’s a bill of exchange payment.

“The steel industry requires a lot of investment. That’s why there were so many illegal loans.”

The Seungbo Steel bankruptcy, as I recall, had a major impact on the business world, but it also had a huge aftershock on the political world.

‘Since Kim Han-cheol, the second son of the president, was called the little president.’

Because Kim Han-cheol, who was called the little president, had influence on all businesses that were within the president’s permission authority.

The chairman of Seungbo Group, who knew this better than anyone, asked Kim Han-cheol for a favor, and all four major banks in South Korea provided illegal loans to Seungbo Group.

“Yes, that’s right. Just from what we’ve confirmed ourselves along with news reports, the size of Seungbo Group’s bad loans amounts to 6 trillion won.”

I already knew that 6 trillion won of illegal loan funds were used for investment in Seungbo Steel.

‘At first, they announced that about 2 trillion would be involved!’

As the steel business began, the project cost increased to 6 trillion won.

And all that money was financed through illegal loans, yet no one has raised an issue so far.

‘This is the biggest political and business collusion and illegal lending in South Korea.’

South Korea will be in an uproar because of the Seungbo Group, and because of the Seungbo Group, the country’s credit rating will fall sharply.

At the same time, the banks that had lent money to the Seungbo Group fell into serious default.

“We don’t have steel?”

At my words, the executives’ eyes turned into surprise.

The groups that belong to us here are, of course, the Samjeong Group and the Taean Group.

The Samjung Group has become the center of the electronics industry.

Taean Group is growing rapidly through Taean Telecom.

“Yes, that’s right.”

The head of Pacific Investment Finance’s strategic planning office, who focuses on factual reporting, answered me.

“Besides, Samjung Heavy Industries is being pushed out by the shipbuilding industry.”

“That is true too.”

“You could say that a large company centered on heavy industry must have steel and shipbuilding, right?”

I can’t tell my grandfather to take over Seungbo Steel.

The funds that Samjung Group is accumulating will be used to pressure GL Group into acquiring its semiconductor and display divisions when it faces a crisis.

‘But what if you take out the semiconductor division and display division from GL Electronics?’

Only the shell remains.

“Sir, to acquire Seungbo Steel, we need a huge amount of money and we have to take on the debt that Seungbo Steel has.”

My great-uncle, the president of Taean Electronics, spoke to me as if giving me advice.

‘That’s a look of no return.’

right.

What other major companies absolutely cannot touch at this point is Seungbo Steel.

Of course, later on, Daehyun Steel acquired Seungbo Steel at a cheap price.

It is also true that it was acquired at a dirt-cheap price, but we know very well that it took on a certain amount of debt that Seungbo Steel had.

“Since Seungbo Steel has significant bad debts, the government will inject public funds. The president will want to wrap up the case quickly, as his son is also involved.”

It would likely be the first time a president’s son has been arrested during his presidency.

“Accordingly, I think there is a possibility that we can pay off enough debt and take over.”

“ah······!”

Everyone looked worried.

“Don’t worry too much, everyone. It’s something we’ll consider after things heat up a bit and Seungbo Steel and Seungbo Group are in shambles. However, with Pacific Investment Finance leading the way, Taean Group will eventually enter the steel and shipbuilding industries.”

Taean Group Chairman Lee Jin-ho nodded at my words.

“Do you agree, Taean Group Chairman?”

“If we acquire steel, we can occupy a very advantageous position in the shipbuilding and automobile industries. If the CEO wants to acquire Seungbo Steel in order to enter the shipbuilding and automobile industries, I think it would be right to acquire Daenam Special Steel before acquiring the large Seungbo Steel.”

“You mean Daenam Special Steel?”

“Yes, Daenam Group has also finally gone bankrupt and will soon enter court receivership. According to my understanding, the chairman of Daenam Group is planning to sell Daenam Special Steel, a key subsidiary of Daenam Group, to secure funds and then escape court receivership.”

“If it’s special steel, auto companies will be drooling.”

“That’s right. Unfortunately, Taean Group doesn’t have an automobile subsidiary. In fact, I think Daenam Special Steel is more helpful to Taean Group than Seungbo Steel.”

I nodded at Chairman Lee Jin-ho’s words.

“And this is my guess, but since Taean Electronics has established a battery division and is making large-scale investments, I think the CEO has decided that the core affiliate of Taean Group will be an electric car company along with Taean Telecom. In that case, Daenam Special Steel is needed more than Seungbo Steel.”

When the topic of electric vehicles came up from the mouth of Taean Group Chairman Lee Jin-ho, everyone present at the meeting could not hide their surprise.

“I’m thinking of electric cars?”

“If you rush into the acquisition of Seungbo Steel, you will be heading toward the shipbuilding industry. If you jump into the acquisition of Daenam Special Steel before Seungbo Steel, you should seek to enter the electric vehicle industry.”

“As expected, you are amazing.”

We are also thinking of entering the electric vehicle industry. That is why we have established a battery development division.

“Head of the Strategic Planning Office.”

“Yes, sir.”

“The strategic planning office should collect and analyze all data related to the steel industry. Also, analyze how much money would have to be invested if we acquired Seungbo Steel. Also, start analyzing the acquisition of Daenam Special Steel, a key subsidiary of Daenam Group.”

If there are a ten-thousand won bill and a thousand won bill lying on the ground, which one should you pick up first?

Of course, you have to pick up both.

* * *

GL Group Vice President’s Office.

“Seungbo Steel has finally gone bankrupt?”

Vice Chairman Koo Seong-mo asked Executive Director Moon Dae-ho with a serious face.

“Yes, I think it will have enormous influence on the business and political world.”

“I don’t care about the influence of the business or political world. What matters is what effect it has on the Korea Composite Stock Price Index.”

That would be the case.

GL Group Vice Chairman Koo Seong-mo had made an investment against the derivatives product in which Ji-sung had invested.

And, if Ji-sung’s investment is successful, a contract was signed stating that GL Group would guarantee any amount of profit.

[Do I have to do this?]

The Vice Chairman of GL Group, Koo Seong-mo, couldn’t help but recall what his father had said.

[This is a derivative investment that can only succeed if South Korea faces a national bankruptcy situation. On the surface, it is a derivative investment by Pacific Investment Finance, but it is no exaggeration to say that it is ultimately an investment by Samjung Group.]

[That makes sense, since they are collateral.]

[You can definitely win.]

[Are you sure?]

[Yes, Father.]

[Your brother was the eldest son and a perfect born, but he lost everything after being defeated by the Samjung Group. You will be no different.]

[I will keep that in mind, Father.]

‘I am a hunting dog after all.’

It was Vice Chairman Koo Seong-mo who knew exactly what the Chairman of GL Group thought of him as an illegitimate child.

“It’s the worst possible scenario.”

“How serious can it get?”

Executive Director Moon Dae-ho was faithfully carrying out his role as Vice Chairman Koo Seong-mo’s slush fund manager and financial advisor.

“First of all, since Seungbo Steel has gone bankrupt, the Seungbo Group cannot be left intact as a result.”

Currently, the opposition party is demanding a hearing and special prosecution from the Blue House.

“That’s right. In fact, it would have been difficult for a company that built and sold apartments to enter the steel industry.”

It would not be an exaggeration to say that the Seungbo Group grew after successfully building and selling the largest apartment complex in Korea, Eunma Apartment, in Daechi-dong, Gangnam-gu, Seoul.

“and?”

“There is a high possibility that more than 1,000 subcontracting companies related to Seungbo Group will go bankrupt like a domino effect. In addition, the banks that lent money to Seungbo Steel are likely to fall into the worst possible insolvency.”

“Then the composite stock index will plummet.”

“Yes, but isn’t it important how far it falls?”

“Even in this situation, it would be difficult for it to plummet below 400 points?”

“I think so.”

“Why?”

“The president’s second son, Soteoryeong Kim Han-cheol, is involved in the Seungbo Steel illegal loan scandal. So the president will try to resolve the Seungbo Steel situation as quickly as possible.”

“Large-scale public funding injection?”

“If only Seungbo Steel could pay off its debt, it would become one of the top five steel mills in Asia.”

GL Group Chairman Koo Seong-mo nodded in response to Executive Director Moon Dae-ho’s words.

‘I should get insurance just in case.’

While Executive Director Moon Dae-ho said there was no need to worry about South Korea’s national bankruptcy yet, GL Group Vice Chairman Koo Seong-mo had a slightly different view.