I Am the Third-Generation Heir of a Conglomerate - Chapter 429



Only Noblemtl

429. All-time (4)

Shortly after the executive meeting ended.

People’s Economy Party lawmaker Choi Jae-seok officially announced a 700 trillion won semiconductor city as his number one presidential election pledge.

“What is the atmosphere of Semiconductor City like?”

“Not only the media, but also real-time search terms and even SNS are all full of talk about the semiconductor complex. And it is said that land prices in Gyeonggi Province are starting to fluctuate.”

“You haven’t even announced where you’re going to build a semiconductor city, and you’re already talking about it?”

“It seems that since Rep. Choi Jae-seok served as the governor of Gyeonggi Province, they are expecting that a semiconductor city will be created in Gyeonggi Province.”

Vice Chairman Han gave a briefing with a complicated expression on his face.

He realized that now that the semiconductor city pledge had been announced by Rep. Choi Jae-seok, he was in a situation where he could not do anything about it.

“Why is your face so bad? That’s 140 trillion won a year. Can’t you afford that?”

“You need to make at least 140 trillion won in profit a year to break even.”

“Why are you thinking about excluding the money you have earned so far? Where did you lose the profits you made from the oil war and short selling in China?”

“Isn’t that money already in your possession? I think that if the money goes out again, it will definitely be a minus.”

It was a very desirable posture.

But is that possible?

Semiconductor City was not the end of my plans.

There were also plans to spend even more money than that, so no matter how hard Vice President Han worked to earn money, it would be difficult to increase profits.

“If we don’t want to lose money, we have to see a huge return from Brexit.”

“We are fully prepared. But there is still a month left until the referendum. There is still a month left to see any revenue, but it is frustrating that money keeps flowing out.”

“That’s a big deal for the shipping company.”

The shipping company’s big deal was on the verge of happening.

The president resigned, and the prime minister became interim president.

And unlike the president, the prime minister reacted positively to the shipping company big deal.

“Thanks to the help of the interim president, who has only 60 days left in office, the shipping company big deal has become possible. Negotiations with creditors, led by the Industrial Bank of Korea, and government officials have reportedly concluded.”

“The creditors will come to us soon.”

“I got a call this morning. They wanted to negotiate as soon as possible. Would you like me to negotiate on your behalf?”

“Is it true that the management of Hyunseon Shipping and Hyunjin Shipping are also participating in the negotiations?”

“Yes.”

“I heard that the conglomerate leaders are attending, so wouldn’t it be polite for me to personally welcome them? Try to arrange a place for them within this week.”

The Big 2 shipping companies are finally in my hands.

How could we leave such a joyful event in the hands of a vice president?

I felt like I would feel relieved if I met them in person and put an end to it.

“Actually, shipping company big deals don’t involve that much money, so I’m not too worried.”

“It would take about 10 trillion won to acquire two shipping companies. Isn’t that too much to ignore?”

“Is 10 trillion won a big deal compared to 700 trillion won? The problem is that 700 trillion won has already been spent, and 10 trillion won will be added to it.”

10 trillion won is certainly not a small amount of money.

And the acquisition of the shipping company alone cost 10 trillion won, and if you add in various debts including charter fees, the amount will be even higher.

It was a shipping company that would only see deficits in the future.

That’s why Vice President Han’s expression was not bright.

“Don’t worry too much. We can drastically reduce the size of the shipping company’s deficit. And if we run it well for a few years, we can easily turn it into a profit.”

“I don’t doubt the chairman’s ability. The chairman is the one who will make several times the profit by investing 10 trillion won.”

“If we keep talking about money going out, Vice President Han will collapse from stress today. So let’s talk about money coming in.”

I changed the subject for one vice president.

The diabetes treatment drug, Yugovin, was the target, and the expression on the vice president’s face brightened right away.

“Sales continue to increase significantly. Celebrities and entertainers are promoting us without us even asking them to advertise.”

“It’s thanks to Musk for getting things off to a good start.”

“In addition, with the added effect of media advertising including TV, we are recording tremendous sales. It is expected that sales this year will exceed 300 billion won.”

It was a vice president who smiled at the sales of 300 billion won.

The money going out was in the tens of billions, but they’re happy about earning hundreds of billions.

I held back my words because I thought that if I said something like that, it would only speed up Vice Chairman Han’s hair loss.

“Sales will continue to increase. We will easily be able to reach sales in the tens of billions next year.”

“I think so too. If we start in the US and add sales in Europe and Asia, I think we can increase our sales several times more than we have now.”

“Sales will increase by more than 200% every year, and in five years, we will grow to a scale reaching tens of trillions of won, so you can look forward to it.”

“These days, I check the sales figures of Yugovin before going to bed. I can sleep well after seeing the happy indicators.”

It wasn’t all good things.

As Yugoslavia’s sales increased, there were also some who were dissatisfied.

“What is Robo Nordisk’s response?”

“We have lodged an official protest. It was a protest demanding that Yugoslavia hand over some of its shares.”

“I guess a lawsuit will be filed soon.”

“It’s no use. We signed the contract. What can we do? We didn’t rob it. We paid a fair price.”

Actually, it wasn’t completely justified.

If we could only prove that we had intentionally contaminated the research data, we might be at a disadvantage.

But how can we prove it?

That couldn’t have happened unless we persuaded Director Cheon Min-jeong.

“You can’t even file a lawsuit until you find conclusive evidence. And if you do file a lawsuit, you’ll be the one who suffers.”

“I think so too. And with Yugovin’s sales increasing, Centrian’s stock price has started to skyrocket.”

Sentryon has become a stock that cannot be bought because it is not available on the stock market.

Since I owned most of the shares, there weren’t that many shares left on the market.

In such a situation, as demand exploded, stock prices had no choice but to rise at an incredible rate.

“This is just the beginning. Soon, Sentryon will be in the top 10 in the financial world on its own.”

“Is that really possible?”

“Because it is a Korean company, it will be undervalued due to the Korea discount, but it will still be able to easily rank 10th in the business world within 5 years. If the growth rate continues at the current rate, I think it is possible to rank 3rd in the business world.”

In fact, even the third place in the financial world was not enough.

Before the return, Robo Nordisk was the number one company in Europe through Yugoslavia.

“Just hearing the story makes me feel very reassured.”

“Don’t be afraid of losing a lot of money right now, because Yugoslavia will make huge profits in the future.”

“Okay. First, let’s schedule a meeting with the shipping company’s creditors as soon as possible.”

If you just hold onto your money, it will only grow to the level of the bank’s interest rate.

However, if you invest in good stocks, your money can increase several times or even dozens of times.

So, holding onto hundreds of trillions of won in internal reserves was something only a coward would do.

Of course, it was also a fearless investment because we knew what would happen in the future.

***

A few days later.

Everyone involved in the shipping company’s big deal came to Taewoo Group headquarters.

The creditors, including the Industrial Bank of Korea, and Hyunjin Shipping were attended in person by Chairman Cho, and in the case of Hyunjin Shipping, Vice Chairman Ko Seok-jin attended as a representative of the management.

After everyone was seated, the planning director led the meeting.

I was the first to get the chance to speak and give a welcoming speech as the owner of Taewoo Group.

“Thank you for coming such a long way. I have no intention of being too greedy here today. I hope that the negotiations proceed within a reasonable line.”

I looked at Lee Myung-geol, Chairman of the Industrial Bank of Korea, and said.

The outcome of this negotiation was ultimately going to depend on what decision the Industrial Bank of Korea made, and the chairman nodded as if he shared my opinion.

“The creditors, including the Industrial Bank of Korea, have no intention of being too greedy. They certainly have no intention of making a profit by selling the shipping company, and they only want to reduce losses as much as possible.”

“Then let me first present the conditions. I would like to acquire the shares of two shipping companies at the current stock price.”

“I will accept that condition. But isn’t the problem the deficit?”

It was natural to acquire the shares at the stock price.

The really important issue was the deficit resulting from the previous deficit.

Shipping companies borrowed money from creditors to cover their deficits, and the current merchant shipping industry alone was suffering from partial capital impairment due to deficits of nearly 4 trillion won.

The combined loss would amount to approximately 8 trillion won.

However, in the case of the current merchant ship, the market capitalization was around 500 billion won, and the market capitalization of Hyunjin Shipping was not much different.

These were shipping companies with debts several times greater than their market capitalization.

“The Taewoo Group cannot bear the entire deficit.”

“I agree with what Chairman Kim said. If Hyunjin Group and Hyunjae Group show sincerity, negotiations can proceed smoothly.”

“The current group will convert all of its shares into cash without any capital increase.”

It meant that the shares held were burned.

In that case, the value of the shares held by the bondholders will increase.

“Hyunjin Group will also issue a free stock reduction.”

“Well, giving up shares is not enough. The value of the shares held by the two groups is only in the hundreds of billions of won at best. You can’t just treat 8 trillion won in debt as nothing with just a few hundred billion won, right?”

Industrial Bank of Korea Chairman Lee Myung-geol applied pressure.

Chairman Cho of Hyunjin Group continued speaking with a look of resentment.

“We have already invested over 1 trillion won in Hyunjin Shipping.”

“Everyone is suffering losses. But how can you not have the determination to cut off even one arm? Do you intend to forever be at odds with the Industrial Bank of Korea and other creditors? And you must make a decision, even if it is to silence public opinion.”

If these negotiations fall through.

Hyunjin Shipping will enter court receivership and will soon begin bankruptcy proceedings.

In that case, all the blame would have been placed on Chairman Cho.

From Hyunjin Group’s perspective, something like that had to be prevented at all costs.

This could have resulted in a chain reaction of damage to various affiliates, including airlines and distributors.

“You can contribute up to 40 billion won of your own money. But anything more than that is really difficult.”

“How far can the current ship go?”

“I will contribute 30 billion won from my own funds and also invest the funds from selling current securities.”

In fact, if a stock company goes bankrupt, all you have to do is give up your shares.

However, in our country, listed companies were still considered to be private companies of conglomerates, and so it was possible to pressure them to contribute private funds.

Of course, it didn’t matter if you didn’t contribute private funds.

That is, if you never do business in Korea.

However, Hyunjin Group and Hyunjae Group still had subsidiaries remaining, and since they all had to operate in Korea, they had no choice but to make private contributions.

If you do not contribute your own funds and go through bankruptcy proceedings.

I had to show at least the bare minimum of good faith, because I didn’t know what disadvantages I might face in the future.

If they did not show such sincerity, they could have faced public criticism, retaliation, and targeted investigations.

“Hmm, good. I will have the creditors bear some of the losses as well.”

Now it is the creditors’ turn.

It would not be wrong to say that the success of the shipping company’s big deal depended on how much debt the creditors would forgive.