I had thrown out a massive bait, and Grandpa was cautiously testing the waters.
"So, you're saying we should merge Taewoo Chemicals with Taewoo Heavy Industries to create a mega-refinery and dominate the Korean oil market?"
"Aramco has promised to supply us with crude oil at a stable price. You know as well as I do, Chairman, that refinery companies generate high revenue and operating profits. If we don't enter the oil industry now, we'll miss a crucial opportunity."
Every year, car sales were increasing.
And as the number of vehicles grew, so did the demand for fuel—leading to higher refinery profits.
"But Taewoo Chemicals and Taewoo Heavy Industries operate in very different sectors. Taewoo Heavy Industries, in particular, is also involved in shipbuilding."
"That's exactly why I have a proposal. Establishing a joint venture requires significant capital. It also necessitates Taewoo Heavy Industries' technological expertise—but not its shipbuilding capabilities."
"You're suggesting we separate the shipbuilding division from Heavy Industries?"
"Why not negotiate with Ackman to sell off the shipbuilding division instead?"
This was Plan B.
Ideally, selling off Taewoo Heavy Industries entirely would have been best.
But Grandpa was never one to surrender anything so easily.
The next best option was at least stripping away the shipbuilding sector.
Shipbuilding accounted for over 50% of Taewoo Heavy Industries' business.
Selling it would dramatically lower the company's debt ratio.
And more importantly, it was the only way to persuade Grandpa.
"So, we sell off shipbuilding and enter the refinery business instead… Hmm. What do you think, Chief Secretary?"
"It's certainly a better option than losing Taewoo Heavy Industries entirely. But Taewoo Shipbuilding possesses world-class technology."
"Taewoo Shipbuilding's operating profit margin barely reaches 5% at best. During downturns, it even dips into negative figures. But a refinery business guarantees a minimum of 10% operating profit."
To strengthen my argument, I presented detailed financial reports.
I explained the refinery industry's growth potential and profitability to both Grandpa and Mr. Kim, the chief secretary.
"Operating profits again, huh…"
"This aligns perfectly with your belief in 'too big to fail,' Grandfather. The refinery industry is far larger than shipbuilding. If we establish gas stations across the country, we could have thousands of locations. The number of jobs we'd create would surpass those in shipbuilding."
"The refinery business… It's not that I wasn't interested in it before."
"There's a reason oil is called 'black gold.' It's because it makes money. Everyone else is trading in gold—shouldn't we start as well?"
Grandpa had always placed great value on manufacturing.
It was a characteristic of first-generation chaebol leaders.
After all, he had built this group from the ground up through manufacturing.
"Do you have any idea how much effort and hardship went into making Taewoo Shipbuilding the technological powerhouse it is today?"
"That's exactly why we can sell it at a premium price. And we can't grow this company on manufacturing alone forever. South Korea is advancing at an incredible pace. Just like Japan gradually moved away from manufacturing, the same will eventually happen here."
"That day will come, but not within the next 10 years."
"I'm looking ahead—10 years into the future. By then, the refining industry will have far greater growth potential than shipbuilding."
Grandpa's gaze drifted toward the nameplate on his desk.
'Chairman Kim Tae-jung.'
He seemed to be envisioning a time, ten years from now, when that nameplate would bear his grandson's name instead of his own.
"Indeed, in 10 years, you'll be sitting here. So, your opinion matters. But no matter how I think about it, I don't want to let go of Taewoo Shipbuilding."
"You can't have both the refinery and shipbuilding industries. This is a chance to give up one and gain five in return."
"You really believe refining will be five times bigger than shipbuilding?"
"I'm certain of it. If we establish a joint venture with Aramco, at minimum, it'll grow fivefold."
Getting verbal approval wasn't enough.
So, I took out a contract.
A contract stamped with the official seal of the Saudi royal family.
"I don't believe in mere verbal promises either. Just in case, I secured a contract."
"A contract? Hmm… Then your excuse about visiting a friend in Saudi Arabia was a lie. You went there specifically for the refinery deal, didn't you?"
"I do have an interest in the refinery business, but I wasn't planning to start one immediately."
"Were you planning to begin once you were in this chair?"
"...That's right. I believed that everything has its time. But the opportunity has come sooner than I expected."
Grandpa closed his eyes in deep thought.
He remained silent for over twenty minutes before finally turning to the chief secretary.
"Have the Secretariat, Planning Office, and Taewoo Securities conduct a feasibility study on this project. Time is of the essence, so I need results as quickly as possible."
"I'll begin immediately."
"And you—head to Saudi Arabia at once. We need to confirm whether Aramco is truly committed to forming this joint venture."
"I'll order the feasibility study and depart for Saudi Arabia right away."
Grandpa never made a move based on my words alone.
He was the kind of person who had to double-check every step before crossing a bridge.
***
Four days later…
The chief secretary returned from Saudi Arabia.
At the same time, Grandpa convened a board meeting with the company's executives and officially brought up the refinery project.
"Aramco has proposed forming a joint refinery venture with us. As you all know, SS Oil is already a joint venture between Aramco and a Korean firm. However, it seems they aren't satisfied with its current scale."
"But would they really establish another joint venture in Korea when SS Oil already exists?"
"If we acquire SS Oil, that issue disappears. By merging it with Taewoo Chemicals and half of Taewoo Heavy Industries, we can create a mega-refinery. What are your thoughts?"
Some of the executives were already aware of this information.
Particularly, Park Man-deok, the CEO/President of Taewoo Securities, who had been advising Grandfather from the start, was well-informed about the situation.
"I fully support this move. A refinery joint venture with Aramco would guarantee a stable crude oil supply. This is a business that simply cannot fail. It will undoubtedly be a stepping stone for Taewoo Group to become Korea's top conglomerate."
Park Man-deok's opinion carried significant weight.
As the one managing the company's financial strategy, his words were rarely opposed by the other executives.
However, not everyone was in favor.
The most vocal opposition came from Oh Kang-chul, the CEO of Taewoo Heavy Industries—the division most affected by this plan.
"Building a joint refinery is a matter for the future. Right now, the vultures of Wall Street are tearing into Taewoo Heavy Industries. We should be dealing with them first before discussing any new business ventures."
"The refinery joint venture and the current acquisition battle are related."
"How exactly are they connected?"
"We need significant capital for this joint venture. So, what if we sell off Taewoo Heavy Industries' shipbuilding division to Ackman's group?"
The Taewoo Securities CEO nodded in agreement.
Meanwhile, Oh Kang-chul, the head of Heavy Industries, tilted his head in confusion before suddenly raising his voice.
"Are you saying we should sell the shipbuilding division? Taewoo's shipbuilding technology is recognized worldwide! How can you even consider selling it?"
"Instead of shipbuilding, Taewoo Heavy Industries would take on the refinery business. Its size will grow more than fivefold. Do you still oppose it? I'm considering you as the CEO of the new joint venture."
"Even so, we cannot let go of shipbuilding! It is the very foundation of Taewoo Heavy Industries."
Oh Kang-chul was deeply attached to the shipbuilding sector.
He had been the driving force behind Taewoo Shipbuilding's technological advancements.
"Do you think I don't understand your feelings? I, too, want to protect Taewoo Heavy Industries and our shipbuilding legacy. But circumstances have changed. If we sit idly by, we may lose the entire company."
"I agree with the Chairman. Crisis often presents the greatest opportunities. If we trade the shipbuilding division for a strong foothold in the refinery industry, we are not at a loss. Taewoo Group would gain a massive cash cow."
"Park Man-deok! Do you only see business in terms of numbers? The value of shipbuilding cannot be measured by mere calculations!"
Oh Kang-chul was a man of unyielding conviction.
But was it truly conviction that drove him?
Or was there something more?
He seemed like a stubborn, steadfast man—like an old ox. But beneath that exterior lurked a cunning snake.
I knew better than anyone why CEO Oh Kang-chul was resisting so strongly.
In my past life, he had been on the blacklist I created. He was directly involved in the Taewoo Heavy Industries embezzlement scandal.
"I agree with CEO Park Man-deok's opinion. And if CEO Oh Kang-chul loves the shipbuilding business so much, why not take the CEO position at the newly separated Taewoo Shipbuilding?"
"CEO Kim Min-jae! What nonsense is this? Are you telling me to leave Taewoo Group?"
"Whether you choose Taewoo Group or the shipbuilding business is entirely up to you, CEO Oh."
I delivered my words in a cold, emotionless tone.
And I already knew what choice he would make.
He would most likely choose to become the CEO of Taewoo Shipbuilding.
Not because of his love for the shipbuilding industry.
But because that's where his siphons were buried.
The shipyard had numerous subcontractors, and Oh Kang-chul was the one overseeing them.
If I remembered correctly, his older brother was the CEO of one such subcontractor.
His younger brother ran a labor supply company.
And wasn't his cousin in the welding business?
Oh Kang-chul had not just one, but dozens of siphons plugged into Taewoo Shipbuilding.
There was no way I could allow someone like him to remain in Taewoo Group.
If we were selling off Taewoo Shipbuilding anyway, we might as well get rid of him and his siphons along with it.
"Hmph. Whatever CEO Oh Kang-chul decides, I will respect his choice. Then, since we are all in agreement, we will proceed with negotiations for the sale of Taewoo Shipbuilding. Taewoo Securities, work with Ackman Fund to bring back the best possible deal."
"Thank you for entrusting us with this. I'll make sure we get every last penny out of them."
"Good. With that, this board meeting is adjourned. It's a difficult time, but let's all do our best. Once this crisis is over, Taewoo Group will rise to even greater heights!"
Finally!
We were about to offload one of our debt-ridden subsidiaries.
I couldn't sell all of Taewoo Heavy Industries, but Taewoo Shipbuilding's liabilities alone were staggering.
Now, we could cut that dead weight from Taewoo Group.
And if we managed to dump that mountain of debt onto its new owner…
We'd score two massive wins in one move.