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CH84 | Heir
🕑 Added 2025-04-06 03:55:03 +0000 UTCBy December, the exchange rate had surged once again.
Having waited for this exact moment, I urgently summoned the Chief Strategy Officer.
"Today, we’re moving the entire $10 billion locked in our joint venture with Aramco."
"Have you determined that the exchange rate has peaked?"
"It won’t go any higher. We must clear Taewoo Group’s debt today. I’ve already contacted Wall Street—once the joint venture funds pass through them, the remaining balance, after settling our debts, will be transferred to Korea."
The exchange rate battle was all about timing.
Whoever moved first always had the advantage, so we acted swiftly.
In just one hour.
The entire ₩14 trillion in debt, consolidated under SAVE Investment Company, was fully repaid.
More than ₩5 trillion was transferred into Taewoo Group’s accounts.
"All transactions are complete. The $10 billion has moved, but the exchange rate fluctuation was smaller than expected."
"That’s because only a small portion of the dollars actually entered Korea."
Not all $10 billion had flowed into the country.
₩14 trillion worth of dollars had been sent to SAVE Investment to settle debts.
Only ₩5 trillion worth of dollars had entered Korea, minimizing the exchange rate impact.
"The Chairman is waiting for you. He asked that you come to his office once everything is finalized."
"It’s good news—he’ll be pleased."
Until now, every time I went up to the Chairman’s Office, I raced up the stairs, two or three at a time.
But today, I took them one by one, savoring the moment.
"How did it go? Everything settled?"
"As of now, Taewoo Group’s debt is ₩0. Our 400% debt-to-equity ratio is now 0%!"
"Hahaha! Wiping out all that debt in one stroke… It’s almost bittersweet. But more importantly, how much do we have left after settling everything?"
"A little over ₩5 trillion. Enough to acquire a solid company and still have surplus capital."
"Just as you predicted. You’ve done an incredible job. I’ve never been prouder of you than I am today."
My grandfather opened his arms and pulled me into a firm embrace.
It had been a long time since I’d felt the warmth of his embrace.
After enjoying the moment for a while, I brought up the next topic.
"The first company we acquire must be SS Oil."
"Isn’t an oil refinery not an urgent priority? Wouldn’t it be better to acquire Kia Motors or a construction company instead?"
"We need SS Oil to establish our joint venture with Aramco and build a proper refining company. That would allow us to secure massive dollar inflows from Aramco."
My grandfather took a step back, then moved over to the sofa, motioning for me to continue.
"Explain further. What do you mean by securing dollars from Aramco through an oil refining company?"
"We’ve signed a contract to establish a large-scale refining company by merging Taewoo Chemical and Taewoo Heavy Industries. Naturally, Aramco will have to purchase our stakes in these companies. And once the refinery is completed, Aramco has promised to provide a massive investment."
"So we’ll sell our shares to receive dollars and secure additional investment funds on top of that?"
"We can secure at least ₩3 trillion in dollars. With that, acquiring SS Oil would give us enough capital to acquire multiple companies, including Kia Motors."
Of course, the exact investment amount could fluctuate.
It would depend on how favorably the Saudi royal family viewed us.
"Then we must acquire SS Oil as soon as possible."
"But if we approach them first, we’ll lose the ability to negotiate a lower price."
"Nonsense! ‘Negotiate a lower price’? Call it what it is—a fair valuation. Besides, you don’t need to worry. Chairman Park Won-seok of SS Group has been calling me multiple times a day, begging for a meeting."
"Then may I join the meeting as well?"
"Of course! There’s a saying: Strike while the iron is hot—let’s have dinner together tonight."
"I’ll get ready."
***
SS Group – Ranked 7th in the Business World
SS Group was undoubtedly a major conglomerate, but its current chairman, Park Won-seok, was a second-generation chaebol.
He ran the group very differently from its founder and was now struggling under a mountain of debt.
That evening
My grandfather and I headed to a Korean fine-dining restaurant in Cheongdam-dong.
The manager guided us to the most secluded building in the restaurant complex.
Chairman Park Won-seok was already there, waiting for us.
"Chairman Kim, you’ve arrived! Thank you so much for meeting me."
"You’re laying it on a bit thick, aren’t you? Don’t embarrass me in front of my grandson."
"Ah, and your grandson is here as well! I’ve heard many stories about InoPhone. It’s truly an honor to meet you."
Despite being old enough to be my father, Chairman Park was treating me with utmost deference.
A clear sign of how desperate his situation was.
"It’s an honor to meet you, Chairman Park. My grandfather has spoken very highly of you."
"Oh, come now. What is there to praise? I’m nothing more than a second-generation chaebol tarnishing my father’s legacy."
"Are we just going to stand here exchanging pleasantries? Let’s talk over dinner."
"Of course! I’ll have them prepare the meal immediately."
Chairman Park personally stepped outside to call the manager.
Soon, a feast of delicacies filled the table.
As was customary, my grandfather picked up his spoon first.
Only then did Chairman Park and I begin eating.
"By the way, are you completely stepping away from politics? You fought so hard to get elected—aren’t you reluctant to give it up?"
“The group is on the verge of collapse—do you really think I can focus on my legislative duties? I resigned from my position as a National Assembly member on my way here.”
In this era, it was common for people to be involved in both politics and corporate management.
Even my grandfather nearly ran as a presidential candidate, and the chairman of Hyunjae Group had actually run for president.
Chairman Park Won-seok of SS Group was another figure who pursued a political career, successfully getting elected as a National Assembly member.
However, when the foreign exchange crisis shook his group, he resigned from his parliamentary position and dedicated himself solely to management.
“If you went so far as to resign, the group's situation must be quite dire.”
“It’s on the brink of collapse. We’re trying to hold on by selling off as many subsidiaries as possible, but it’s not easy. We desperately need Chairman Kim’s help.”
Chairman Park put down his spoon and lowered his head respectfully.
My grandfather clicked his tongue, seemingly pitying the situation.
“Tsk, tsk. You should have managed your debt better.”
“Who could have predicted things would turn out this way? Apart from Taewoo Group, is there any major conglomerate ranked in the top 20 that doesn’t have a debt ratio exceeding 400%?”
I felt a headache coming on for no reason.
If not for me, even Taewoo Group’s debt ratio would have surpassed 400%.
“Well, that’s true. I’ve known your father for a long time, and I’ve also had a longstanding relationship with you. I’d love nothing more than to help.”
“I’m willing to sell SS Motors. Please, acquire it.”
“I have no plans to acquire an automobile company. I just established a joint venture with Ford—taking on another car manufacturer would be too much to manage.”
“Then please let me know which subsidiaries interest you. I’ll adjust the price accordingly to make the sale happen.”
My grandfather paused, pretending to be deep in thought.
Seizing the moment, I naturally chimed in.
“How about acquiring SS Oil? Shouldn’t an automobile company own an oil refinery?”
“SS Oil… That could be a good option. What do you think? Are you willing to sell SS Oil?”
“I’m in no position to be picky. If you’re willing to acquire it, I’ll sell any subsidiary necessary.”
SS Oil was truly a valuable asset.
Since it was a joint venture with Aramco, SS Group couldn’t arbitrarily accumulate debt, keeping its debt ratio relatively low.
“However, I can’t offer too high a price. I’ll purchase SS Oil’s shares at the current market value, though I’ll pay a slight premium for management control.”
"If you're talking about the current stock price, that’s only 1 trillion won. Please consider SS Oil’s true value. This company generates more than 200 billion won in net profit every year."
A refinery was a cash cow, plain and simple.
While its revenue fluctuated with oil prices, it was a business that rarely ran a deficit.
However, SS Oil was currently in the red—not due to operational issues, but because of foreign exchange losses.
It took two months to refine imported crude oil, and during this period, refineries issued bonds to prevent cash flow from being tied up.
But as the exchange rate soared, the interest burden snowballed due to currency fluctuations.
"I heard the company posted a net loss this year. The days of earning over 200 billion won in net profit are long gone."
"If we can just survive this foreign exchange crisis, we’ll be back in the black in no time. I can’t let SS Oil go for just 1 trillion won."
"Hmm, very well. Then, in addition to 1 trillion won, we’ll also purchase the bonds. I believe SS Group has issued about 300 billion won in usance bonds."
Usance bonds—this was the term for bonds issued by refineries.
Since these debts were tied to SS Oil rather than SS Group, we would be taking responsibility for them.
"Are you really sure you can’t offer more? 1 trillion won won’t be enough to stabilize the group."
"You know as well as I do that acquiring SS Oil won’t be easy. We’ll have to absorb months—possibly years—of losses. Taking on that burden alone should be more than enough support."
"Then… could you pay the 1 trillion won in dollars?"
"If that’s what you want, we can arrange it."
Right now, the country was facing a dollar shortage.
Most corporate debts were denominated in dollars, and companies also needed them to import raw materials.
"In that case, I’ll transfer SS Oil’s shares to Taewoo Group on the condition that you take on both the 1 trillion won and the usance bonds. Sigh…"
"Come on now, a grown man shouldn't be shedding tears! If you can put out this immediate fire, SS Group will rise again!"
Chairman Park swallowed his tears.
My grandfather poured him a drink, offering comfort.
"Thank you. You're the only one willing to help, even in this way."
"I’d love to do more, but with Korea practically bankrupt, there’s only so much I can do. I’m sorry."
"No, I’m already deeply grateful that you’re acquiring SS Oil. But what about your relationship with Aramco? They’re a notoriously difficult company. Even if you take over the shares, managing them won’t be easy."
Chairman Park was actually concerned for us.
He must have endured quite a struggle running a joint venture with Aramco.
"We’ll deal with Saudi Arabia in due time. First, let’s finalize the SS Oil acquisition and handle the rest afterward."
"Actually, we can’t sell SS Oil’s shares without Aramco’s approval."
"You just need to sign the contract. I’ll personally fly to Saudi Arabia and take care of everything."
"I feel like I’m just taking and taking... I’m truly sorry. I’ll repay this favor one day."
A favor?
I’d be lucky if he didn’t come back seeking revenge.
We had already secured an agreement with the Saudi royal family.
Grandfather was indeed flying to Saudi Arabia next week, but that was for negotiating the specifics of a new joint venture.
This entire dinner meeting was nothing more than a staged performance.
A carefully scripted play, designed to wrest SS Oil away from Chairman Park of SS Group.
