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CH88 | Heir
🕑 Added 2025-04-07 03:36:27 +0000 UTCGrandpa had an incredibly busy day.
Just last year, he spent more time abroad than in Korea.
But now, with Federation of Korean Industries (FKI) meetings and government negotiations, he was so tied up in Korea that he hadn’t even been near an airport lately.
"I don’t know why people won’t just leave me alone. I feel like a punching bag, getting hit from every direction!"
"What happened today?"
"The government wants the FKI to orchestrate a Big Deal between companies. Do you know what they proposed?"
A Big Deal was, quite literally, a massive corporate transaction.
To overcome the financial crisis, the government was pushing for large corporations to exchange subsidiaries, restructuring their business portfolios.
"Did they suggest swapping Taewoo Electronics for Samjin Motors?"
"How did you know?! Do they even understand how much effort I put into building Taewoo Electronics? And now they want me to trade it for a car company?!"
This situation had played out in my past life, too.
Back then, however, Samjin Group refused the deal, seeing Taewoo Electronics’ massive debt as too big a risk.
But this time, the roles were reversed.
Thanks to the success of the InnoPhone, Taewoo Electronics’ image had drastically improved.
My aggressive restructuring had also transformed its stale corporate culture.
As a result:
- Domestic and international market shares were skyrocketing.
- Most importantly, Taewoo Electronics had zero debt.
So it made perfect sense for Grandfather to be furious.
"Swapping Taewoo Electronics for Samjin Motors would be a terrible deal for us. Just look at the debt ratio, revenue, and net profit margin—we’d be at a huge disadvantage."
"You think so too? That’s why I slammed the table and walked out!"
"You did the right thing. Were there any other Big Deals discussed?"
"Yes. They want to merge CL Group’s semiconductor division with Hyunjae Electronics."
I couldn’t help but salivate at the thought.
Like Grandpa, I had an insatiable hunger for corporate acquisitions.
"So CL Group’s semiconductor division is going to Hyunjae Group?"
"You sound disappointed. Back in the '80s, I tried to start a semiconductor business and got burned badly. But I never lost my desire for it."
"Semiconductors are a money pit. Of course, once they’re stable, they become a powerful cash cow, but getting there takes an enormous investment."
"Everyone knows that. That’s why Chairman Go of CL Group is furious. He spent all that money on early-stage investments, and now they’re taking it from him. I’d be angry too!"
The previous administration had a terrible relationship with Hyunjae Group.
However, the current administration was much friendlier, making it highly likely that they were pushing CL Semiconductors into Hyunjae’s hands.
"Chairman Go must be devastated."
"He even threatened to withdraw from the Federation of Korean Industries (FKI). I barely managed to talk him out of it, but I doubt he’ll be attending any meetings for a while."
"Give him two or three years. His anger will subside."
"You clearly don’t know Go. He’s one of the most stubborn men I’ve ever met. When he sets his mind on something, he follows through to the end."
CL Group was known for its noble heritage.
And if there was one thing about nobility, it was their unyielding pride—once an enemy, always an enemy.
"Wouldn’t his anger fade if Hyunjae Semiconductors collapsed?"
"Ha! You think Hyunjae Semiconductors is going to fail? Their technology is world-class!"
"That’s only because Chairman Jang Ju-young is still around."
"I did hear his health is deteriorating…"
The Hyunjae Group Succession War had already begun, quietly but inevitably.
In two to three years, it would erupt into full-scale conflict.
"Hyunjae Group is bound to split apart. With so many heirs, the company will be divided."
"Chairman Jang wants his eldest son to inherit the group."
"Then, wouldn’t it make sense for him to give the semiconductor division to one of the other heirs?"
"You think Hyunjae Semiconductors will become independent?"
"As I said, semiconductors are a money pit. The industry follows a boom-and-bust cycle. During the boom, companies rake in cash, but during the bust, they suffer massive losses."
Grandpa leaned in, intrigued.
I had just introduced him to the semiconductor cycle theory, something still relatively unfamiliar at the time.
"Are you saying the industry goes through cycles of prosperity and downturn? And that a downturn is coming soon?"
"Yes. And when the industry hits its downturn, semiconductor companies depend on their parent groups for financial support. But if Hyunjae Semiconductors becomes independent, it will lose that safety net—forcing it back onto the market."
"And that’s when we buy it?"
At that moment, Grandpa’s expression lit up—the same expression he always had when discussing corporate acquisitions.
"So, we’ll end up acquiring both CL Semiconductors and Hyunjae Semiconductors at an even lower price than now?"
"Haha, I like this. We need to hold onto enough capital to buy Hyunjae Semiconductors when the time comes."
"But what if I'm wrong? Are you really going to just sit on the cash?"
"When have you ever been wrong? Since the IMF crisis, I decided I’d believe anything you say."
Should I be happy about this?
Grandpa had changed too much—to the point where his trust in me bordered on fanaticism.
"I could still make mistakes. I need your guidance."
"If you ever need my advice, of course, I’ll give it. But so far, it doesn’t look like you need any. You’ve acquired SS Oil, and soon, you’ll acquire Kia Motors. What kind of advice would you even need?"
There was a reason for his unwavering faith in me.
I wasn’t selling off subsidiaries—I was acquiring them.
And despite all these acquisitions, the debt ratio wasn’t increasing.
To Grandpa, my track record wasn’t just impressive—it was almost divine.
"Was there anything else discussed at the meeting?"
"They talked about reforming the chaebol governance structure. The government wants us to increase internal shareholding and form a board of directors to run our companies."
"That sounds like they want us to adopt the American system. Increasing treasury shares to boost our stake—that’s actually a good idea."
"That’s what I was thinking, too. Do you know why Taewoo Shipbuilding ended up going to Hyunjae Group? Because I didn’t own enough shares! If I don’t want that happening again, I need to hold onto my stakes tightly."
After the IMF crisis, chaebol governance structures underwent massive reforms.
The era of ruling a conglomerate with minimal ownership was coming to an end.
I had expected Grandpa to oppose this policy, but instead, he was fully on board.
Ironically, losing Taewoo Shipbuilding had reinforced the need for stronger ownership control.
"Ah! Also, through Taewoo Electronics, I’m planning to acquire a few music distribution companies."
"Are you really planning to enter the music industry too?"
"I’m planning to enter the digital music distribution industry. Soon, I’ll be spinning off Taewoo Electronics' IT division and taking it public as a separate subsidiary to expand into internet-related businesses."
"Do as you see fit. You can even transfer our movie theater and multiplex businesses under that division if needed."
As expected, Grandpa was endlessly generous when it came to corporate acquisitions.
To gain his favor even more, I had to succeed in acquiring Kia Motors.
Time to check on Dimon and see how things were progressing.
***
When I arrived at Captain Kang’s office, Dimon was already hard at work.
The moment he saw me, he flashed a thumbs-up, signaling good news.
"Kia Motors has officially been put up for international bidding."
"How many companies have entered the race? I assume Hyunjae Motors is one of them?"
"Of course. But there’s more—Samjin Motors has teamed up with GM to bid for the acquisition."
Wait, what?
That’s different from the history I know.
In my past life, Samjin Motors partnered with Ford, not GM.
But this time, they had joined forces with GM instead.
Was this… because of me?
Taewoo Motors had already formed a joint venture with Ford, meaning Samjin Motors might have hesitated to work with Ford.
Instead, they likely saw GM as their best alternative.
"Samjin Group is taking a huge gamble. If they sit back and do nothing, the government’s big deal policy could force them to give up Samjin Motors. So now, they’re trying to secure Kia Motors to protect themselves. This won’t be an easy fight."
"That’s why SAVE Investment and Ford have decided to join forces in the bidding war."
"Wait… Ford? Are they doing this just to block GM from getting their hands on Kia Motors?"
"I subtly nudged them in the right direction. I told Ford that GM was going to pull some dirty tricks to take over Kia Motors, and asked if they wanted to join forces. They took the bait immediately."
I was glad I entrusted this to Dimon.
Bringing Ford in as a disruptor was a brilliant move.
"Make sure the other bidders completely lose interest in Kia Motors."
"I’ve prepared evidence of Kia Motors' accounting fraud. Plus, I don’t even need to do much—their labor union is already on strike, which will naturally drive bidders away."
I left everything in Dimon’s hands.
And he delivered results.
During the first bidding round, he leaked evidence of fraudulent accounting practices and militant union activity, causing the bid to fail.
During the second round, he escalated the chaos, even getting into heated arguments with the creditors.
Now, the third and final bidding round for Kia Motors was underway.
Since SAVE Investment and Ford had harshly criticized Kia Motors during the second round and pulled out, the creditors were visibly nervous.
This was the perfect moment for my grandfather and me to make our move.
The Taewoo Group was a new bidder, and for the creditors, we were like a lifeline thrown to a drowning man.
"Since everyone is busy, let’s keep this short. If you agree to write off 5 trillion won in debt, we’ll purchase Kia Motors for 3 trillion won."
Grandpa came out aggressively from the start.
The creditors swallowed hard, hesitating before responding.
"A 5 trillion won debt write-off is too much."
"We know the conditions Hyunjae Motors has proposed. 1.2 trillion won in cash and 2.5 trillion won in debt-to-equity conversion, right? Compared to that, wouldn’t you rather have 3 trillion won in cash right now instead of shares that may or may not pay off in the future?"
At this stage, the strongest bidder was Hyunjae Motors.
But they were cash-strapped, so they were offering to convert debt into company shares rather than pay upfront.
"Hmm… since you already know the details, we’ll be frank as well. While cash won’t come in immediately, if Hyunjae Motors takes over, Kia Motors' stock price will rise. In the long term, the debt-to-equity swap could be more profitable."
"I’m not finished yet. We won’t pay in won, but in U.S. dollars. I know banks are desperately short on dollars right now. 3 trillion won in U.S. dollars should help, don’t you think?"
"That’s true, but… your conditions are still too extreme."
The negotiation turned into a tense tug-of-war.
Grandfather handled the creditors like children, pressuring them while giving them just enough leeway.
Eventually, a compromise was reached.
"Fine. We’ll increase our offer to 3.5 trillion won, all in U.S. dollars. That’s far better than what any other company is offering. If someone else can offer a better deal, we’ll walk away."
"We’ll convene a creditors' meeting and get back to you."
But did they really need a meeting?
Samjin Motors and Ford had offered much less.
And Hyunjae Motors didn’t have the cash to beat our offer.
It was only a matter of time before we sealed the deal.
