I Am the Third-Generation Heir of a Conglomerate - Chapter 419



Only Noblemtl

419.

Harvest Time (4)

This administration has been opposing government-led big deals.

However, this did not stop the private sector-led big deal, and a big deal was reached to resolve the succession issue of the Samjin Group.

Merger of Samjin Bio and Samjin Trading.

The merger of Samjin Trading, the main body of Samjin Group, and Samjin Bio, an affiliate of Vice Chairman Oh Yong-jae.

Because Samjin Bio’s value had risen significantly, Vice Chairman Oh Yong-jae was able to secure a large number of shares and ensure a stable succession.

“Vice Chairman Oh Yong-jae has been relieved of a great burden.”

“It was a succession process with absolutely no legal or accounting problems.

“There doesn’t seem to be any potential problem with a change in government at the moment.”

Vice Chairman Han’s analytical skills were truly the best in South Korea.

There was no doubt about his words, as he had experienced and carried out numerous mergers in Korea and on Wall Street.

“Vice Chairman Oh Yong-jae will have to treat us to a big meal.”

“I got a call anyway.

He said he would like to meet the chairman and have a meal together soon.

It seems that he wants to repay the favor by treating me with great hospitality.”

“Vice Chairman Han still doesn’t seem to know much about the conglomerate ecosystem.

“There is no need to ask for a meeting to repay a favor.”

A relationship where competitors and partners exist.

The conglomerates were passive in their actions because they did not know when they would turn into enemies.

But the fact that he contacted me so quickly meant that he wanted something else.

“The succession has been completed, so is there anything else you would like to ask of the Chairman?”

“You’ll know when you meet me.

Still, it’s not bad.

If you want something new, at least compensate for what came before.”

The trauma was only a one-time thing.

If you don’t pay the price for helping with the succession process, there will be no next transaction.

Vice Chairman Oh Yong-jae would not be a person without any special circumstances, so he would know the basic principles of such transactions well.

“And we created policies and pledges related to the Saemangeum Chemical Complex and Busan New Port and delivered them to the People’s Economy Party.”

“What was the reaction?”

“It was such a complicated matter that I said I would think about it for a few days and then give you an answer.

“I expect that Rep. Choi Jae-seok will come to see the chairman soon.”

It was by no means easy.

In the case of the Saemangeum Chemical Complex, we were able to turn civic groups into enemies.

In the case of Busan New Port, it was a policy that could turn the government into an enemy, as it was related to a big deal between two shipping companies.

So, in the end, we, the interested parties, had to meet and negotiate.

If I could just convince him, I could paint the picture I wanted.

“I will be hearing from Representative Choi Jae-seok in a few days.”

“I will try to coordinate the timing so that our schedules do not overlap.”

“First, let’s meet Vice Chairman Oh Yong-jae.

“I’d like to meet you tonight. Is that possible?”

“We will try to coordinate the time with the Samjin Group.”

“A vice president shouldn’t do something like that.

“Please just pass this on to the planning department.”

30 minutes later.

I got a call from the planning department.

I decided to meet Vice Chairman Oh Yong-jae at the Samjin Hotel.

***

Samjin Hotel.

It was a hotel that Vice Chairman Oh Yong-jae’s younger sister came to own in exchange for taking over Samjin Group.

“Chairman Kim, are you here?

First of all, I would like to thank you.

Thanks to Chairman Kim, the succession process was resolved very cleanly.

thank you.”

“It would be polite to say that I didn’t help much, even if it was just empty words, but Centrian’s stock price suffered a lot because it helped Samjin Bio.”

“However, I understand that the stock price has risen again this time due to the development of a diabetes treatment.

I’m really jealous.

“Isn’t it all thanks to Chairman Kim’s outstanding abilities that you have succeeded in developing a new drug?”

I guess there is something you really want.

It was Vice Chairman Oh Yong-jae who excessively put gold paint on my face.

It was Vice Chairman Oh Yong-jae who kept complimenting me and praising me even while we were eating, and it was only when we were finished eating and had a quick glass of wine that he slyly brought up the main topic.

“Although the share issue has been resolved, the succession process is not yet complete.”

“Everyone recognizes that Vice Chairman Oh Yong-jae is the new owner of Samjin Group.

But what other problems remain?”

“Not yet, but sooner or later the inheritance tax issue will arise.”

The inheritance tax issue was one of the biggest concerns for conglomerates.

It is not uncommon for a company’s management rights to be transferred to the state due to inheritance tax.

Because they had to sell their shares and pay inheritance tax, there were many cases where the National Pension Service or the Industrial Bank of Korea became the largest shareholders of the company.

“I guess the inheritance tax will be high.”

“Up to 10 trillion won.

Of that, the amount I have to pay is 3 trillion won, and I have to pay 500 billion won per year for 6 years.

However, I am very worried because I cannot personally use the Samjin Group’s reserve funds.”

Samjin Group’s reserves are approaching 100 trillion won.

However, since inheritance tax was a tax levied on individuals, it could not be used for corporate funds.

It had to be raised by selling Vice Chairman Oh Yong-jae’s personal assets or shares in Samjin Group.

And he wasn’t the only one paying the inheritance tax.

The inheritance tax that the owner’s family had to pay totaled 10 trillion won.

“If you want a loan, Taewoo Securities can lend you 3 trillion won without collateral at a very low price.

“Wouldn’t it be less of a burden if you spread it out over up to 20 years?”

“That method is good, but wouldn’t it be better to reduce the inheritance tax itself?”

“I see you’re thinking of a dangerous method.

“If you are trying to avoid taxes, I won’t stop you, but if you are trying to evade taxes, I can’t help you.”

The owner’s family resorted to tax avoidance and tax evasion to resolve the inheritance tax issue.

The easiest way was to illegally transfer shares in someone else’s name, and even if it wasn’t a problem right away, it would eventually become a problem.

“How can I ask you to help me with tax avoidance methods?

Let’s look into tax saving methods at the Samjin Group level.

“Could you help me just with the inheritance tax that came after that?”

“We will provide a credit loan from Taewoo Securities equivalent to the inheritance tax imposed on the owner’s family.

If Taewoo Securities is too burdensome, we can connect you with an overseas bank.

“Would you be okay with paying in 20 installments at a low interest rate of 1%?”

“If you could just help me out like that, I would really appreciate it.”

10 trillion won in credit loans.

Even if they are the owner family of Samjin Group.

It was not easy to borrow 10 trillion won with only unsecured credit loans.

If I sold the shares or used them as collateral, I could get a loan from a bank, but I would have to pay a high interest rate, and in order to secure management rights, it was more advantageous to get a loan from me than from a bank.

“And we can help you sell other stakes as well.

I heard that ASML is selling its joint venture stake.

Wouldn’t it be better for a Korean company to acquire it rather than a foreign company?”

“Taewoo Group’s information power is truly amazing.

“We were planning to sell our 1.6% stake in ASML.”

ASML located in the Netherlands.

It was a company that many people did not know about, but it was a company that anyone working in the semiconductor industry absolutely had to know about.

If we didn’t use ASML machines, we wouldn’t be able to make semiconductors.

ASML was the only company that made optical exposure process equipment.

Many companies have challenged ASML’s stronghold, but have failed to overcome the technological gap.

That is why ASML was in a super B position in the semiconductor market.

They even went so far as to extort money from several semiconductor companies in the form of investments in order to develop new technologies.

In the process, semiconductor companies acquired shares in ASML.

Both Samjin Group and Taewoo Group held joint investment shares that had absolutely no influence on management rights.

“Isn’t the stake held by Samjin Group more than 3%?

Taewoo Group can purchase all the shares.”

“The amount is not small.”

“I understand it is around 1.5 trillion won.

It’s been four years since we started joint investment, right?

“It has risen almost fivefold in four years.”

Every investor dreams of making a profit.

Samjin Electronics purchased a 3% stake in ASML for approximately 350 billion won.

It was natural to dream of taking profits since it had increased fivefold in four years.

“You know a lot.

In fact, I don’t want to sell it at its current value because I expect ASML’s stock price to continue to rise.

But I will sell it to Chairman Kim at the current stock price.

“Shouldn’t we repay the favor in this way?”

“Then, we will have Taewoo Semiconductor purchase ASML’s shares at the current stock price.

“We will send the staff to Samjin Group within this week.”

“I don’t think we’ve repaid the favor by selling our ASML stake.

If you need assistance from Samjin Group at any time, just let us know.

“If it’s a request from Chairman Kim, I will do my best to accommodate your request.”

It was Vice Chairman Oh Yong-jae who underestimated the value of ASML’s shares.

But ASML’s stake was worth much more than he thought.

First of all, the value of the shares was supposed to more than double within a few years.

Then I can earn over 1 trillion won just from the difference.

And there was more to it than just monetary value.

preference.

Priority for ASML-produced machines depended on the stake.

Now, everyone can share in the amount of machines ASML produces.

As time went on, more and more companies wanted ASML’s machines.

This meant that the situation was one where supply remained the same but demand increased, and priority was given based on the amount of stock held.

This meant that Taewoo Semiconductor was able to secure technological priority.

It meant that one could monopolize the market by being even half a step ahead.

I was grateful that they were selling the shares that contained such meaning at the very low price of 1.5 trillion won.

“I hope that our good relationship will continue as it is now.

“In Korea, they may be seen as competing companies, but when they enter the global market, ultimately, wouldn’t it be necessary for large domestic companies to join forces to compete with the world?”

“Very good words!”

We finished dinner in a very warm atmosphere.

I went straight back to work and called in a vice president who had been staying late working on Brexit-related matters in the UK.

“Buy ASML’s shares that are released in the US and Taiwan.

“Don’t actively show your intention to buy, just buy when they show their intention to sell.”

“There was already talk that Intel was selling about 10% of its stake in ASML.”

“Buy them all, regardless of price.

Even if you can’t make it, you can still make at least twice as much, and if you add additional value, you can easily make ten times as much business.

“It would be possible to purchase it for around 5 trillion won.”

“It’s a product that can earn 50 trillion won if you trade 10 times the 5 trillion won.”

“I will secure it even by force!”

Samjin Group wasn’t the only one dreaming of a comeback.

Both Intel in the US and Taiwanese semiconductor companies wanted to sell off their ASML shares.

On the other hand, since only Taewoo Group is seeking to secure shares, it was a situation that was advantageous to us.

“And then I got a call from Representative Choi Jae-seok.

“I hope to see you tomorrow.”

“I guess you sorted out your thoughts faster than I thought.

“I thought it would take more than a week because it was a difficult problem.”

The semiconductor problem has been solved.

Now it was time to solve the shipping industry problem together with Representative Choi Jae-seok.