InkBound
patreon
CH518 | GSI
🕑 Added 2025-10-04 17:12:38 +0000 UTCThe cat family, now fully part of the household, huddled together on the garden lawn, grooming one another and letting out soft meows.
“How can they get along so well?”
Madam Jo Deokrye said this with a fond expression, holding a teacup of black tea in her hand.
Watching the cats play beyond the living room’s wide glass windows naturally brought a warm smile to her lips.
Just then, Chairman Park Taehong, who had come home late the previous night after drinking heavily, opened the bedroom door and stepped outside. Madam Jo instantly narrowed her eyes at her husband with a sharp look.
“Just waking up now?”
“Urgh… yeah.”
Slumping down onto the leather sofa in the spacious living room, Chairman Park rubbed his stiff neck with one hand, his face twisted in discomfort.
“This hangover has my body in pieces.”
“You should have drunk in moderation.”
“Enough nagging. Bring me some honey water.”
“Honestly. Fine.”
Turning her head toward the kitchen, Madam Jo raised her voice.
“Gunsan-daek! Bring the Chairman a glass of honey water!”
“Yes, Madam.”
The maid in an apron replied from the kitchen, and Madam Jo set down the reading glasses she had been using to look over the newspaper.
Then, fixing her gaze on her husband seated across from her, she asked,
“What on earth did you drink so much for?”
“Phew. I ended up talking at length with the textile executives who are retiring this time.”
Chairman Park brushed his weary face with his palm as he answered.
“Managing Director Choi and Director Noh are also retiring, aren’t they?”
“That’s right.”
Seeing the bitter look on her husband’s face, Madam Jo Deokrye spoke in a worried tone.
“You must feel upset. They’ve been with you for such a long time.”
“I offered to find them positions at headquarters or in Korea Express, which we recently acquired. But they said they’d rather rest now, given their age.”
“Aren’t they both about the same age as you?”
“Director Noh is the same age, and Managing Director Choi is a year older than me.”
With a hint of regret, Madam Jo replied,
“Then isn’t it still too early for them to retire?”
“They’re saying they want to rest, but in truth, they’re stepping aside for the sake of the eldest.”
“What do you mean by that?”
“Starting next week, our eldest will be promoted to vice chairman.”
“Yes, I know.”
“He’ll be running the large discount store and logistics company we just acquired for now, but eventually he’ll take charge of the entire group. When that time comes, he’ll need close allies to support him. If the old guard keeps holding onto their positions, they’ll only get in the way.”
Realizing what her husband meant, Madam Jo nodded quietly.
“They said it’s like how the waves of the river push the earlier ones forward. Stepping aside naturally this time is what’s best for the eldest and for the group.”
At that moment, Gunsan-daek brought over a cup of warm honey tea, and the conversation naturally paused.
“They’re very thoughtful people.”
“Indeed.”
Chairman Park lifted the teacup, took a sip, and set it back down. Leaning into the plush back of the sofa, he spoke in a subdued voice.
“I told Chief Gil to prepare a generous severance package for them.”
“You did well.”
Even apart from their connection to their son, they had supported her husband for years and devoted themselves to the group. It was only right to see that they were treated well on their way out.
Glancing at her husband, whose expression was clouded with unspoken thoughts, Madam Jo’s face grew firm as she asked,
“I saw in this morning’s paper that Daekwang Group is entering a workout program. Did you already know about it?”
“Yes.”
Chairman Park Taehong’s expression was calm, as if he had already known in advance.
“I knew Daekwang Group was in trouble, but I never imagined it would come to this.”
“They should have stopped expanding and played it safe when the warning signs appeared, but their greed went too far.”
It was pointless to dwell on it now, but when Hanse Group collapsed—shattering the unwritten rule in business circles that a giant company never truly dies—things should have changed.
If not then, perhaps when the IMF crisis hit two years ago. They could have halted their reckless expansions like other conglomerates, cut down their debt, and strengthened their foundations. If they had done that, the outcome might have been different.
Instead, Chairman Yoo Choonseok chose to borrow even more and keep inflating the company’s size, and this was the result.
‘Perhaps it was like a car with broken brakes—burdened with so much debt that even if he had wanted to stop, he couldn’t.’
Even for the country’s second-largest conglomerate, the astronomical debt of over 57 trillion won had long since gone far beyond what Daekwang Group could manage on its own.
It was a structure like a pyramid scheme: if they didn’t keep expanding and pulling in new money, the whole thing would collapse.
Madam Jo Deokrye, watching her husband’s expression, carefully asked,
“Our group is safe, isn’t it?”
“Of course. We’ve had no problems, thanks to the advice from Seok-won before the financial crisis even hit.”
Chairman Park replied with confidence. Then, to ease his wife’s worries, he added in a playful tone,
“Besides, what is there to worry about when we’ve got the richest son in the world?”
“True, we’re lucky.”
Only then did Madam Jo look reassured. She stood up from her seat.
“I knew you’d be suffering from a hangover when you woke up, so I made some dried pollack soup. Come and have breakfast.”
“My stomach’s been burning anyway—just what I need.”
As his wife headed into the kitchen, Chairman Park was left alone. His gaze fell on the newspaper spread out on the table, the bold headline about Daekwang Group’s workout staring back at him. His expression grew heavy.
***
In the heart of Myeongdong, right beside the Utopia Department Store’s main branch, stood an elegant five-story building with a basement level, designed in the grand Neo-Baroque style.
This was the WB Bank headquarters. Built from pristine domestic granite, it stood out prominently, not only for its beauty but also because it was the first bank building in the country constructed through an international design competition. It was also the first to use steel-frame and reinforced concrete structures, making it a designated cultural property of Seoul.
After liberation, it had long served as the headquarters of Ilhan Bank. When Ilhan merged with Hanseong Bank, the new entity, WB Bank, continued to use the building as its main office, honoring both its historical value and its legacy.
Now, in the heavy atmosphere of the fifth-floor conference room, Seok-won sat at the center of a long table, surrounded by key executives of WB Bank, including President Go Youngil. They were gathered to discuss the fallout from Daekwang Group’s declaration of a workout program.
“First of all, with Daekwang Group entering a workout, considerable losses will be inevitable,” said President Go.
Wearing a perfectly tailored gray suit, Seok-won turned to him and asked,
“Specifically, how much in losses are we looking at?”
President Go replied in a stiff, formal voice.
“First, the loans we had classified as normal will now be considered non-performing, meaning that under the Financial Supervisory Service’s standards, we must immediately set aside provisions for bad debt.”
“If I recall correctly, the provision ratio for non-performing loans is twenty percent, right?”
“That’s correct. Normally, for healthy loans, the ratio is just 0.5 percent, and for those with potential problems, 2 percent is sufficient. But with the new asset classification standards being applied starting this year-end settlement, the ratio will jump significantly to twenty percent. We must comply with that.”
“Our total loans to Daekwang Group amount to 2.9 trillion won, if I’m not mistaken.”
“That’s right.”
“Then we’d need to set aside about 580 billion won as provisions.”
President Go quickly added,
“Fortunately, on your orders, we had already reclassified Daekwang Group’s loans as non-performing and set aside provisions in advance, so we won’t need to make additional allocations.”
“That’s good news.”
“But other banks, faced with the sudden provisioning requirements, will likely see their first-half profits wiped out and even fall into losses.”
“How much did the entire banking sector lend to Daekwang Group?”
“Roughly twenty-three trillion won, by our estimates.”
“Apply twenty percent, and that’s 4.6 trillion won. A disaster, no less.”
This was precisely why, the moment the workout was announced, banking stocks had gone into a freefall.
“The problem is, provisions for bad debt aren’t the end of it.”
President Go Youngil glanced at Seok-won’s expression before continuing.
Though Daekwang Group’s workout wasn’t his fault, he couldn’t help but feel uneasy.
“To resolve this crisis, the government is expected to demand that we, along with the other creditor banks, provide additional loans, forgive part of the debt, defer interest payments, and even convert loans into equity.”
“That’s the simplest solution, so that’s likely how it will go.”
At this, Vice President Shin Seunghan, neatly groomed with gold-rimmed glasses, carefully interjected.
“Banks that have already received public funds will simply cover their losses with tax money and do as the government instructs. But for us, since we bear everything with our own capital, the burden will be significant.”
“I know it’s a frustrating situation. But what’s done is done. Instead of lamenting, the priority is to respond quickly and minimize the damage.”
Turning his head, Seok-won gave instructions to Executive Director Jang Junhyung.
“Even though we’re not listed on the stock market and don’t have to worry about falling share prices, depositors may still grow anxious because of this situation. Release a statement to the press emphasizing that we already set aside provisions in advance. That should reassure them.”
“Understood.”
After hearing the reply, Seok-won looked back at President Go.
“You said the creditors’ meeting for handling Daekwang Group is scheduled for tomorrow?”
“Yes.”
“Then push the discussion so that debt forgiveness is minimized, and instead, the loans we extended are converted into equity—allowing us to acquire Daekwang Group’s affiliates.”
President Go leaned forward in surprise.
“You mean… you intend to take over Daekwang Group’s affiliates?”
The other executives widened their eyes, staring at Seok-won, who gave a small nod.
“Make arrangements for us to acquire Daekwang Securities, Diners Club Korea, and Daekwang Precision Industries.”
Daekwang Precision Industries was a joint venture between Daekwang Group and U.S. automaker GM, producing more than forty essential automotive components—including braking, steering, and drivetrain systems, along with HVAC units, catalytic converters, automatic climate controls, airbags, and engine control systems.
Daekwang Securities, despite the difficult climate, had recorded 700 billion won in net profit in the first half of the year, making it both a core affiliate of Daekwang Group and the industry’s number-one securities firm.
Lastly, Diners Club Korea operated under the Korean license of Diners Club, one of America’s oldest credit card companies, and was run by Daekwang Group.
They were all valuable, prime assets, but President Go wore a troubled look.
“The government wants to hasten the sale of these affiliates to stabilize Daekwang Group, so debt-to-equity swaps and acquisitions won’t be too difficult. But if we do that, nearly 2.8 trillion won will end up tied up, which could significantly worsen the bank’s financial standing.”
He brushed off President Go Young-il’s concerns in an instant.
“Once we take control, I’ll personally buy back the shares of Daegwang Securities and Gijeon Industries, so there’s nothing for you to worry about. And if I inject an additional $1 billion into the bank to increase its capital base, wouldn’t that resolve any issues?”
“You would expand the bank’s capital by another billion dollars?”
“That’s right.”
President Go stared at him blankly, his mouth slightly agape.
To hear someone so casually commit to putting up a sum as vast as a billion dollars—it robbed him of words for a moment.
Not just Go, but every executive present couldn’t hide their astonishment at Seok-won’s seemingly bottomless wealth.
“If WB Bank is to become the leading financial group representing Korea, shouldn’t we at least have a credit card company under our wing?”
“The leading financial group representing Korea?”
Go muttered the words under his breath, eyes widening.
“Exactly. What? You don’t think we can pull it off?”
“N-no, of course not!”
Go swallowed hard and shook his head quickly.
“Now that I think about it, acquiring Diners Club Korea does seem like a necessary move!”
At that, Executive Director Jang Junhyung and the others immediately chimed in.
“You're absolutely right!”
“With solid funding behind us, this could be a golden opportunity to scoop up Daegwang Group’s prime affiliates at a bargain.”
“If we bring a credit card company into the group, it would complete the missing piece of the puzzle, just as you said.”
“I agree as well!”
The phrase “the number one financial group in Korea” seemed to ignite something in them. Faces flushed with excitement, the executives scrambled to voice their support.
Watching them, Seok-won allowed a faint smile to curl at his lips and nodded.
“Very well. Since we’re all in agreement, let’s move forward as discussed.”
“Yes, sir!”
President Go and the executives answered with spirited voices, their expressions flushed with anticipation.
Comments
Jordan selleck
Great chapter
