Seok-won, who was sitting in a black leather chair reviewing a report, looked up at the sound of the door opening.
Executive Director Yoon Kihoon, a slim man with gold-rimmed glasses, entered cautiously and approached the desk. He bowed his head respectfully before immediately speaking.
"We just received a call from the creditors' committee."
Setting down the report he'd been reading, Seok-won gestured with his chin toward the sofa in the center of the president's office.
"Have a seat."
"Yes, sir."
As Seok-won got up and walked around the desk to take the main seat, Director Yoon, who had been standing by the side, followed and sat on the sofa to the right.
Crossing his legs, Seok-won looked calmly at Director Yoon and asked in a composed voice, "What did they say?"
Sitting up straight under Seok-won's gaze, Director Yoon answered immediately.
"They agreed to sell the four key subsidiaries of Hansan Group under the terms we proposed."
The Hansan Group subsidiaries that had expressed interest in acquisition by the creditors committee were Manyoung Machinery, which manufactures major automobile parts; Hansan Heavy Industries, which operates a 1.5 million-ton shipyard and industrial machinery plant with plant facilities in Yeongam, Jeonnam; Hansan Cement; and the construction division.
As this was the expected response, Seok-won nodded slightly, his face expressionless.
"I thought it would take them a few days, but they responded rather quickly."
"The overseas sale they were working on essentially fell through because of the Rothschild Fund incident, so they were in a bind. When we made our acquisition offer, they must have thought this was their chance and quickly jumped at it."
"That could be true."
While Seok-won responded with a faint smile, Director Yoon cautiously expressed his concerns.
"I can understand acquiring Manyoung Machinery, Cement, and Construction since they're all profitable businesses, but are you sure about taking on Heavy Industries as well? Perhaps you should reconsider."
Seok-won interlaced his fingers and asked leisurely, "Are you worried that taking on Heavy Industries—which played a decisive role in pushing Hansan Group to the brink of bankruptcy with its repeated large-scale deficits—might become a burden?"
"Yes, that's right. Though their order backlog in shipbuilding is large, profitability is low. Last year alone, they posted a loss of 47.8 billion won, and both the heavy equipment and plant divisions are suffering management difficulties due to collapsing sales caused by the economic downturn in Southeast Asia."
Leaning forward with a grave expression, Director Yoon continued, "Besides, when you factor in the 2.5 trillion won of debt, their financial condition is so serious that the risks could outweigh the benefits."
"I see things differently."
"?"
Seok-won spoke as he saw Executive Director Yoon Kihoon's puzzled expression.
"Though they are struggling due to worsening profitability, that's a problem that will be resolved over time. The excessive debt, which is the main cause of the losses, will be completely wiped out this time through the creditors' committee's debt forgiveness and paid-in capital increase. We can even expect a turnaround to profitability within a few quarters."
Yoon Kihoon couldn't understand how shipbuilding, which peaked in the early 1990s and has been in a prolonged slump since, could suddenly turn profitable.
But it was clear that the burden would be reduced by the debt relief, and seeing Seok-won speak that confidently, he sensed there must be some other plan behind it.
Satisfied with this explanation, Yoon Kihoon added,
"However, Rothschild Fund has declared they will take legal action regarding the notice of termination they received from the Asset Management of the Debt Adjustment Fund and the creditors' committee for their entrusted Hansan Group restructuring contract."
"Even if they do, nothing will change. Don't worry about that and proceed with the bidding."
At Seok-won's indifferent reply, Yoon Kihoon nodded.
"Understood."
***
In a spacious office, Chairman Peterson of the Rothschild Fund grimaced at the news from Korea.
"You're telling me Eldorado Fund is trying to acquire all four subsidiaries of Hansan Group?"
Jonathan Lord, the Chief Investment Officer of the Rothschild Fund, stood by the desk and answered with a grim face,
"That's correct. Although the acquiring entity is Daehung Venture Capital, considering that Chairman Park Seok-won owns 100% of its shares, it's practically the Eldorado Fund making the acquisition attempt."
"Those bastards. Things are already a mess, and now they're sticking their forks into someone else's plate!"
Chairman Peterson shouted angrily.
He had laid out the entire plan, and now not only was it falling apart at the end, but it looked like he might lose everything completely.
Watching Peterson's fierce breathing, CIO Lord cautiously began to speak.
"It looks like we have been outmaneuvered."
"What do you mean?"
"As soon as the scandal broke out in Korea and we were unilaterally terminated from the Hansan Group restructuring contract, the Eldorado Fund moved in as if waiting for this moment to swoop in and snatch up Hansan Group's subsidiaries. There are too many suspicious coincidences to call it mere chance."
Chairman Peterson narrowed his eyes and asked,
"So you're saying all this was orchestrated by the Eldorado Fund?"
"There was no sign at all before the sudden exposé in the newspapers, which itself is suspicious. Above all, even though you personally met with Commerce Minister Vincent to request his influence, he stalled with one excuse after another. Isn't that strange?"
Hearing this, Peterson recalled his meeting with Minister Vincent.
'At a time when the Russian moratorium declaration and Japan's bad bank loans threaten a resurgence of the Asian financial crisis, interfering in an ally's internal affairs doesn't seem wise.'
'But Minister, sir—'
'Enough. Let's end this discussion here.'
The memory of Vincent pushing him away so bluntly made Peterson grit his teeth.
"They dare to toy with me."
Seeing Peterson's frustration, CIO Lord lowered his voice further.
"If the prediction is right, there's no hope left for us in Korea."
"Are you saying we should just give up?"
Peterson raised his eyebrows and shouted.
"The scandal here has grown too big to suppress, and without even the U.S. government backing us, there's not much else we can do."
"Ughhh."
Watching Peterson grimace in pain, CIO Lord spoke again.
"If we're not going to fight Eldorado Fund head-on, the best option now is to minimize the damage and exit Korea."
"Damn it!"
Peterson swore bitterly, his pride completely bruised.
Though known as a master of restructuring and making a name on Wall Street, he could not compare to Seok-won.
Not only did the Eldorado Fund have hundreds of millions of dollars ready at hand, but its influence far exceeded Peterson's, not just on Wall Street but in political and government circles.
Even from Minister Vincent's behavior, it was clear Seok-won held the upper hand.
Peterson's unwillingness to act further despite his fury was because he knew there was no chance of winning if they fought.
However, having poured almost a year of effort into this, Peterson muttered stubbornly,
"Is it too late to turn things around?"
"If it were only dealing with the Korean government, maybe. But with Eldorado Fund behind it, it's better to pull out before the situation worsens."
"Hmm."
Chairman Peterson let out a heavy sigh, deliberating for a long moment before reluctantly responding.
"Let's give up on the Hansan Group deal and focus on acquiring Minguk Life Insurance instead."
"About that…" CIO Lord hesitated, wearing a troubled expression.
"There are rumors that Daehung Venture Capital—no, the Eldorado Fund—is also showing interest in acquiring Minguk Life Insurance."
"What? Damn it!"
In the end, Peterson, his frustration boiling over, slammed his palm down hard on the desk and shouted.
"Are they deliberately trying to ruin me or what!"
***
A few days later.
Seok-won was sitting on the sofa in the president's office with Executive Director Yoon Kihoon.
They were waiting for the bid results to be announced for the four subsidiaries of Hansan Group.
However, there was no tense atmosphere; both wore relaxed expressions.
In fact, the bidding was just a formality since Daehung Venture Capital had submitted a sole letter of intent to acquire, so the result was essentially predetermined.
Originally, it wasn't supposed to be a sole bid. Companies like LaFaz from France, Bowater from the U.S., and UBS Capital had planned to participate to acquire the four subsidiaries.
But upon discovery during the prosecution's investigation that the Rothschild Fund had secret contracts, they withdrew from the bidding.
When a phone started ringing inside his coat pocket, Director Yoon quickly pulled out his phone and answered.
"Hello? Oh, it's me. Has the bid result come out? Okay. Got it."
Although the call was brief, Yoon's smile made it easy to guess the outcome.
"What's the result?" Seok-won asked.
"We were selected as the final acquirer," Yoon replied with a bright smile.
"Starting tomorrow then, get the prearranged task force moving and begin the acquisition process."
"Understood."
Director Yoon bowed his head, then as if he suddenly remembered something, said,
"By the way, Chairman Lim Jongmyung of Hansan Group contacted us again today."
At this, Seok-won slightly frowned.
"I told him I'm not really interested in meeting, but he keeps bothering us. What did he say?"
"He says he wants to discuss the promise to forgo shares made to the creditors' committee."
When Hansan Group entered court receivership, Chairman Lim Jongmyung promised that if the creditors wrote off some debts, he and the Rothschild Fund would work together to normalize the company, then he would step down from management and forgo all his shares.
'But in reality, they only said that. Through a secret agreement with the Rothschild Fund, they sold off the prime subsidiaries cheaply to foreign companies while quietly keeping all their shares.'
In the process, Lim's shares in Hansan Cement even increased from 16% to 30%.
While employees were losing their longtime jobs through harsh restructuring and being pushed out onto the streets, the owner was fattening his own pockets and securing profits—a typical example of selfishness.
Executive Director Yoon, clearly displeased with Lim's unethical conduct, let a slightly sharp tone slip through.
"It's like they say, people often feel differently when they enter the bathroom than when they come out. After putting out the fire and catching their breath, they probably regret giving up those shares."
Seok-won's tone, naturally, was cold as well.
"If that's the case, there's even less reason to meet him. Just tell him to follow the agreement made with the creditors' committee."
"Understood."
Seok-won took a sip of coffee from his cup and then set it down, saying,
"More importantly, let's arrange a meeting with the labor union representatives of the four companies we've just acquired."
"You want to meet the union reps in person?" Executive Director Yoon asked, surprised.
"Yes. To normalize the company quickly, the top priority should be to reassure the workers who are anxious about the new ownership. It will be far more effective if I talk with them directly rather than sending someone else."
"That makes sense."
"Coordinate with the union to schedule the meeting as soon as possible."
"Yes, I will do that."