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CH134 | VOC
🕑 Added 2025-05-13 14:43:52 +0000 UTCI declared war on Daehoo, but I didn’t act immediately.
A wounded dinosaur was still a dinosaur.
Thorough preparation was essential.
“2.5 trillion won from Chunha Trading, 3 trillion won from Joongang Investment Corporation, and 1 trillion won from Hanho Savings Bank. A total of 6.5 trillion won.”
That was my war chest.
“Have you gathered any information on Daehoo’s recent activities?”
Park Jong-bum, reviewing the documents he had collected, said,
“Daehoo is primarily an export-oriented company. Chairman Kim Hoo-joong is aggressively expanding the business, advocating for global management. But they have something in common with us.”
Something in common with us?
“What do you mean? What do we have in common with Daehoo?”
“How should I put this? They’re like a minor league player in the major leagues.”
“Explain.”
“They’re seen as a second-tier company compared to Saseong, whether it’s electronics or automobiles. And unlike Saseong, which focuses on developed markets like Europe and the US, Daehoo primarily targets developing countries. They focus on the B-list markets that others ignore.”
Daehoo’s main markets were Eastern Europe and the Middle East, countries that were just beginning to develop economically.
“Oh?”
“And it seems to have worked out well for them. Developing countries are more welcoming of foreign investment and large corporations.”
I said with interest, “That’s right. B-list markets are often more profitable.”
Chunha Trading had also reached its current position by targeting the overlooked B-list markets.
“And Chairman Kim Hoo-joong is known for his aggressive management style. While most corporations downsized and focused on internal stability after the IMF crisis, Daehoo focused on external growth, even acquiring Ssangyong Motor Company last year.”
He was spending money while others were tightening their belts.
His aggressive approach, his willingness to take risks and control the game, was similar to mine.
But that didn’t mean I approved of his methods.
I was also aggressive, but I meticulously planned my attacks, while he seemed to be charging forward recklessly.
It was a risky strategy, especially in the current economic climate.
And he was unaware that I was watching him, waiting for the perfect opportunity to strike, with 6.5 trillion won in ammunition.
“Aggressive managers often have blind spots. Anyway, one thing is clear.”
I smiled. “Daehoo is short on cash.”
Few companies had ample cash reserves in these times, but Daehoo’s situation was likely to be even more dire.
The increasing short-term debt, the endless expansion, it all pointed to a cash shortage.
“So, Daehoo’s weakness is cash. And our strength is cash. Perfect. Let’s show them the power of money.”
“The power of money?”
“Yes, we’ll crush them with money.”
I chuckled and made a phone call.
[Hello.]
It was Kim Min-sik, now the CEO of Joongang Investment Corporation and the president of Hanho Savings Bank.
“This is Baek In-hwi. Thank you for testing the waters with Daehoo.”
[It was nothing, sir. Just a few faxes.]
“By the way…” I said, my eyes gleaming, “…are your teeth still sharp?”
He chuckled on the other end of the line. – Of course, sir.
“Why do you think I asked you to test the waters with Daehoo?”
He thought for a moment. – Are you planning to attack Daehoo?
I snapped my fingers. “Exactly.”
He muttered at the mention of attacking the second-largest conglomerate in Korea, – Daehoo, huh. Hmm.
“Are you scared?”
He said in surprise, – Me? Sir, I’m not afraid of anything.
I could almost picture him glaring.
[I don’t discriminate. I just bite whoever you tell me to bite. I was just wondering where to start, since they’re so big.]
I smiled at his confident response. “Good. I like your attitude. No limits. Use all available funds.”
Reporters from various media outlets flocked to the press conference hosted by Joongang Investment Corporation.
It was just a press conference by an investment company, but it seemed like every reporter in the financial sector was there. A rookie reporter from a prominent weekly magazine asked his senior,
“Is there a major announcement today, sir?”
“What do you mean?”
“There are dozens of reporters here. It seems like a big deal.”
His senior chuckled. “You wouldn’t know, being a rookie. Joongang Investment Corporation isn’t exactly a household name.”
“I’ve never heard of them.”
“Have you heard of Hanho Savings Bank?”
“Yes, it’s a savings bank in the Chungcheong region. Why?”
“Most people don’t know this, but Joongang Investment Corporation owns 70% of Hanho Savings Bank. And Kim Min-sik, the host of today’s press conference, is both the CEO of Joongang and the president of Hanho. And he’s quite a character. A bit of a lunatic, you could say.”
“A lunatic? The CEO of a financial company?”
The CEO of a financial company should be calculating and rational.
“Lunatic” didn’t seem like a fitting description.
“Yes, a lunatic. A mad dog. Those are his nicknames.”
“I see.”
The senior continued, seeing his rookie’s dubious expression, “He might be quiet now, but last year, many companies went bankrupt because of him. Have you heard of Daemun Group?”
“Yes, the conglomerate that collapsed last year.”
“That was his doing.”
“What?!”
The senior enjoyed his surprise. “He offered them short-term loans with their office supplies as collateral and then paralyzed their operations.”
“Is that even possible?”
“Well, the government implemented countermeasures, so it’s not possible now, but it was back then. He even drove healthy companies to bankruptcy, not caring about his own losses. He’s done all sorts of crazy things. This is his first press conference. Everyone’s curious what he’ll do next.”
“I see…”
The rookie reporter still couldn’t believe it.
Would the CEO of an investment company, managing trillions of won in assets, act like a lunatic at an official event?
‘Or maybe he’s a brilliant strategist using his ‘lunatic’ persona to his advantage?’
The image of Kim Min-sik he had heard from his senior was vastly different from the image of a typical financial executive.
As he was pondering this, the moderator stepped onto the podium.
“We’ll now begin the press conference. We’ll take questions after CEO Kim Min-sik’s announcement.”
As the reporters settled down, a middle-aged man with an ordinary appearance appeared on the stage, smiling brightly.
“There he is, CEO Kim Min-sik,” his senior said.
“That’s him? He looks normal.”
“Don’t judge a book by its cover. It’s strange for the CEO of a financial company to be smiling at a press conference. They usually maintain a poker face, regardless of the news.”
“Ah, that’s true.”
The rookie realized he had never seen a CEO smiling at a press conference before.
Kim Min-sik tapped the microphone. “Mic test. Can you hear me? Welcome, everyone. I’m Kim Min-sik, CEO of Joongang Investment Corporation and president of Hanho Savings Bank.”
He looked around the room. “I’ve called you here today for an important announcement.”
Just as the reporters were preparing to take notes, he suddenly said,
“We’ve been looking for new investment opportunities recently. And we found a promising export company. Not bad. With the current high exchange rate, it’s natural for export companies to perform well. But there’s a problem.”
“What’s he talking about?” the rookie asked.
His senior put a finger to his lips. “Shhh, you never know what he’ll say next. Just keep taking notes.”
“Yes, sir.”
Kim Min-sik continued,
“The government and the IMF are pushing for corporate restructuring. It’s a painful process, with many people losing their jobs, but it’s necessary for the long-term health of our economy. It’s like removing unnecessary fat. But this company… they’re ridiculous.”
He scoffed. “Everyone is trying to slim down, but they’re obsessed with growth. I don’t understand their strategy. It’s a decent company, but their management is taking unnecessary risks. It would be a great investment opportunity if it weren’t for their reckless behavior. It’s pathetic. So I’ve decided…”
He slammed his hand on the podium. “…to replace their management team.”
“What is he saying? He hasn’t even invested in the company, how can he replace the management?”
His senior frowned. “Stop asking questions. I’m trying to listen.”
“Sorry, sir. It’s just that he’s not making any sense…”
Then Kim Min-sik dropped the bombshell.
“We’re proposing a consortium to acquire Daehoo Group!”
The reporters gasped.
“What? Daehoo? He was talking about Daehoo all this time?”
“Acquiring Daehoo? That’s insane!”
Unlike other countries with active M&A markets, hostile takeovers of Korean chaebols were almost impossible due to their complex circular ownership structures.
And Daehoo was one of the largest chaebols.
The reporters, who were knowledgeable about the Korean economy, knew it was a ridiculous proposition. But Kim Min-sik continued,
“Of course, you think I’m crazy.”
He smiled, seeing them nod unconsciously. “Is that so? Joongang Investment Corporation, a member of this consortium, is prepared to invest 5 trillion won. And here’s the interesting part: we’re only dissatisfied with the management, not the company itself. We’re willing to give up management control to our partners.”
The 5 trillion won figure was shocking, but his willingness to relinquish management control was even more so.
“You must have some idea of who wants to acquire Daehoo. We’re just offering them 5 trillion won to help them achieve their goal. If the acquisition cost is 20 trillion won, just bring 15 trillion won. If it’s 30 trillion won, bring 25 trillion won. We’ll be a friendly shareholder.”
He smiled slyly. “And it doesn’t have to be another company.”
He spread his arms. “We welcome anyone with a stake in Daehoo, even internal factions. The second or third in command, anyone. Come and join us. We’re just investing, we’re not interested in management. How about it? Let’s carve up Daehoo together.”
