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CH128 | Heir
🕑 Added 2025-04-21 13:50:14 +0000 UTCAcquiring Hyundai Semiconductor was essential.
But paying an exorbitant price for it was out of the question.
That was precisely why Dimon had been working on this for the past six months.
“What would be the ideal acquisition price for Hyundai Semiconductor? CL Group sold its 60% stake for 2.5 trillion won, right?”
“Including the debt assumption, the real acquisition cost was 6.5 trillion won. If we want a better deal, we should let it fall into the creditors’ hands first, then buy it from them.”
“Are you sure no one else will snatch it up?”
“Considering this year’s projected losses exceed 2 trillion won, I highly doubt anyone would want it.”
Hyundai Electronics’ semiconductor division was nothing short of a poisoned chalice.
Before my regression, it had languished for over a decade, unable to find a buyer, leaving the creditors stuck with it.
Even CL Group had abandoned it—what more needed to be said?
Hyundai Electronics had forcefully taken the semiconductor division from CL Group, yet the massive losses had made CL Group refuse to take it back.
They had even infamously declared:
[We’ve learned how to live without semiconductors.]
“Could we acquire it for half the price? 3.5 trillion won sounds just about right.”
“There is a way. We just need to use the same tactics Hyundai Group used against CL Group.”
“You mean leveraging government intervention to strong-arm them?”
“Of course, government support will help, but that’s not all. When Hyundai Group acquired CL Semiconductor, they refused to pay a management premium and only offered the market price for the shares. Since there’s a precedent, we can do the same.”
This was why CL Group went around claiming their semiconductors had been stolen.
Hyundai Group had deliberately ignored the management premium, insisting on acquiring CL Semiconductor’s shares at market price.
“How much has Hyundai Semiconductor’s stock dropped?”
“It peaked at over 30,000 won in 1998, but now it's down to 3,000 won. It’s hitting the lower limit daily, and at this rate, analysts predict it will be a penny stock within a year.”
And they were right.
I remembered it crashing to 280 won per share.
Hyundai Semiconductor had become a playground for stock speculators, treated like a toy.
“Then let’s let the creditors hold onto it for now. That way, the government will have a justification to intervene.”
“Hyundai Semiconductor accounts for nearly 4% of Korea’s total exports. The government will definitely step in to save it.”
“Dimon, make sure to shake things up in the background. The faster the stock price falls, the better.”
“It’s already plummeting on its own, but I’ll ensure it drops even faster.”
Now, it was time to pass the baton.
The groundwork had been laid.
And for the final push, it was best to leave it in my grandfather’s hands.
When it came to dealing with the government, creditors, and corporate leaders, my grandfather was far more effective than I could ever be.
* * *
One month later
Chairman Kim Tae-jung convened a Federation of Korean Industries (FKI) meeting.
Since the foreign exchange crisis, the FKI's membership had undergone significant changes.
Many companies had gone bankrupt, causing a reshuffling of the corporate rankings.
However, major conglomerates like Taewoo, Hyundai, Samjin, CL, and KS remained intact, allowing the meeting to proceed without much disruption.
“I appreciate everyone taking time out of their busy schedules to attend this meeting. In particular, I’d like to thank Chairman Go Seung-taek of CL Group for gracing us with his presence today.”
All eyes turned to Chairman Go Seung-taek.
Ever since CL Semiconductor had been forcefully taken by Hyundai Group, he had never once attended an FKI meeting.
His sudden presence today could only mean one thing—a major bombshell was about to drop.
“As you all know, the foreign exchange crisis is far from over. Yet, the government keeps pressuring the FKI to handle struggling companies. That’s why I had no choice but to call this meeting.”
“Is the government requesting another Big Deal?”
Chairman Chae Jung-han of KS Group spoke up with interest.
Unlike other conglomerates suffering from cash shortages, KS Group, backed by its lucrative KS Telecom, had ample funds at its disposal.
“They’re targeting Hyundai Construction and Hyundai Electronics. The government has promised to buy us some time by coordinating with the creditors and the Industrial Bank of Korea, but they expect the FKI to handle the root of the problem.”
“I will take over Hyundai Construction. I’d appreciate the support of my fellow chairmen in securing a reasonable acquisition price.”
Chairman Jang Kyung-joon of Hyundai Motors bowed his head as he spoke.
Hyundai Construction had already fallen into the hands of the creditors, and Hyundai Motors was in negotiations to acquire it.
“Hmm, Hyundai Construction does seem intriguing. Once the failing parts are cut off, it wouldn’t be a bad asset.”
Chairman Go Seung-taek had spoken.
Since CL Group already owned a construction firm, his interest didn't seem entirely out of place.
“Chairman Go!”
Chairman Jang Kyung-joon protested immediately.
“Why shouldn’t I acquire it? If we merge CL Construction and Hyundai Construction, we’d be able to compete for the top spot with Taewoo Construction, wouldn’t we?”
“Hyundai Construction is the foundation of Hyundai Group. I ask for your understanding.”
“What’s the point of appealing to me? The creditors will make the final decision, won’t they? Hahaha.”
There was a clear reason for Chairman Go Seung-taek’s attendance today.
He wanted revenge for Hyundai Group’s forceful takeover of CL Semiconductor.
“Let’s set the Hyundai Construction issue aside for now and move on to Hyundai Electronics. I heard they’re planning to separate the semiconductor division and hand it over to the creditors. Is that correct?”
"That's correct. The losses from Hyundai Semiconductor have become unsustainable, leaving us no choice but to make this decision."
Chairman Jang Young-joon spoke with a hollow tone.
Unable to meet the gaze of CL Group’s Chairman Go Seung-taek, he lowered his head.
“Tsk tsk, you stole CL Semiconductor, and now look at the mess you've made.”
"With the foreign exchange crisis and the IT bubble bursting, there was nothing we could do."
"Then why did you greedily take what you couldn't even swallow? Tsk tsk tsk."
Chairman Jang Young-joon's face turned red.
He wanted to refute Chairman Go Seung-taek's words, but he couldn't—because they were true.
“Is there any company interested in acquiring Hyundai Semiconductor? What about KS Group? I’ve heard you were looking into the semiconductor business.”
“Hmm, we are interested, but an acquisition is difficult at the moment. The telecom industry is engaged in a brutal price war, and our financial resources are stretched thin.”
Chairman Chae Jung-han’s words were laced with thinly veiled sarcasm.
It was a clear jab at Taewoo Telecom, which had been causing financial strain on KS Telecom.
Chairman Kim Tae-jung, pretending not to notice, turned his attention to Chairman Go Seung-taek.
“Then, would CL Group consider reacquiring it? A consumer electronics company owning a semiconductor firm seems like a natural fit.”
“CL Electronics has learned how to survive without semiconductors—thanks to Hyundai Group.”
No one in the room was unaware of the massive losses Hyundai Semiconductor was incurring.
A company bleeding 2 trillion KRW in annual losses was not an attractive acquisition target.
Even if offered for free, most would still hesitate.
“Hmm… It seems no one is willing to take over Hyundai Semiconductor.”
“May I say something?”
The speaker was Lee Soo-hyun, President of Korea Exchange Bank, who stood up from his seat.
As the representative of Hyundai Group’s creditors, he had been given the right to speak at the FKI meeting.
“When Hyundai Electronics acquired CL Semiconductor, it took out massive loans from multiple banks, using Hyundai Construction and other subsidiaries as collateral. If the semiconductor issue is not resolved, the entire Hyundai Group will collapse—and CL Group, which circulated promissory notes for them, will also face repercussions.”
"I understand Hyundai Construction was used as collateral, but why would other subsidiaries of Hyundai Group be at risk?"
“Hyundai Electronics also signed contracts with its U.S. factories, committing to purchase their entire production output. If they fail to meet this obligation, the financial burden will shift to Hyundai Shipping, Hyundai Heavy Industries, and Hyundai Trading.”
To acquire CL Semiconductor, Hyundai Group had leveraged the entire conglomerate as collateral.
At the time, the semiconductor market had been red-hot, and just before the foreign exchange crisis, DRAM prices had soared to 8 USD per unit.
However, with the crash, prices had plummeted to just 1 USD, leading to massive losses.
“Hmm… Has there been any acquisition interest from foreign companies?”
"Micron from the U.S. has expressed interest in acquiring Hyundai Semiconductor, but only for its profitable divisions. …They’re essentially saying they’ll take it if we give it away for free."
Chairman Jang Young-joon lowered his head as he responded.
He, too, had been trying to sell off the semiconductor division.
Rather than handing it over to a Korean company for a pittance, he had even considered selling it to a foreign company at a slightly higher price.
But foreign firms showed little interest.
Not only were they unwilling to pay in cash, but some even suggested acquiring it using their own stock as payment.
“Rumor has it that the U.S. government is maneuvering to turn Hyundai Semiconductor into an American company. Apparently, they’ve discreetly hinted that if we sell Hyundai Semiconductor at a bargain price, they’ll offer certain benefits to other Korean companies.”
“That’s outright thievery.”
“That’s why both the government and the creditors want a Korean company to acquire Hyundai Semiconductor.”
But no one had an answer.
The situation was far worse than expected.
Not a single conglomerate was willing to step up.
Even Chairman Kim Tae-jung had been on the verge of abandoning the idea.
At that moment—
The conference room door creaked open, and a wheelchair rolled inside.
“Chairman Jang! You should be in the hospital! How did you get here?”
"If I caused the mess, I should be the one to clean it up, shouldn’t I? It’s been a long time, everyone."
It was Chairman Jang Young-joo.
Once the driving force behind Hyundai Group’s rise to the top, he had completely withdrawn from management, spending his days in the hospital.
Yet, despite his frail health, he had forced himself to attend this meeting.
Turning toward Chairman Go Seung-taek of CL Group, he bowed his head.
“Chairman Go, I sincerely apologize. My greed led to this outcome.”
The room fell silent.
Seeing the once-mighty leader of Hyundai Group in such a weakened state left everyone solemn.
Even Chairman Go Seung-taek, whose anger and resentment had festered for years, found himself unable to voice his frustrations.
"Why did you have to be so greedy?"
"Was CL Semiconductor so desirable that you were willing to stake all of Hyundai Group as collateral?"
"It was all my greed. I just wanted to pass down a decent company to my children—nothing more than a father’s selfish desire."
“If you were going to be greedy, you should have done it properly. At least then, I could have resented you without hesitation.”
Chairman Go Seung-taek turned his head away.
If he kept looking at Jang, he felt he might lose his composure.
“Chairman Go, please grant me one last favor. I want to protect Hyundai Construction. Young-joon couldn’t do it, so I’d like to give Kyung-joon a chance this time. Will you honor my final request?”
"How could I possibly grant that request? The matter of Hyundai Construction needs to be discussed with the creditors—I have no say in it."
His words were a roundabout way of saying he wouldn’t participate in the bidding.
Having resolved one issue, Chairman Jang now turned to Chairman Kim Tae-jung.
"Chairman Kim, please save Hyundai Group."
