#100 Han Gyeong-yeong's Press Conference. The foreign exchange crisis sweeping through East Asia was now affecting Japan after Korea.
“After you go back to America and have your meeting, come back to Korea. I’ll control the attack on Japan myself.”
“Japan, you say. Do you think America will just stand by and watch Japan collapse? The prevailing opinion on Wall Street is that the attack on Korea was a choice made for the investment banks that suffered losses from the stock market crash.”
What Han Gyeong-yeong said was true. But even in the original history where we hadn’t intervened, the attack on Korea had come just the same.
“They won’t let it collapse completely. The hyenas of Wall Street will accept the proposal. We just need to attack moderately and then hand over the initiative to Wall Street. This time, we’ll go in with the mindset that it’s okay if we don’t profit.”
“Is there a need to overdo it for something that brings no profit?”
“Because there’s no need to limit the battlefield to Korea. We need to let them know that if they mess with what’s mine, they can get hit too. Well, they probably won’t even figure out that I’m behind it.”
Han Gyeong-yeong, who had been looking at me with concern, nodded his head.
“I understand for now. I’ll go to America as soon as the Jungwoo Group negotiations are finalized.”
“Tell the US government to keep its promise, and they’ll know what you mean. Tell them we’ll pull out after doing a moderate amount, so they should just watch.”
Han Gyeong-yeong agreed with this.
“If Wall Street helps, the US government won’t side with Japan for the time being. The Clinton administration is rather friendly to Wall Street.”
The reason Korea was given breathing room, despite being able to be pressured more, unlike Thailand, was because of North Korea’s existence. The Clinton administration must have given orders to the IMF and Wall Street.
“Japan is a more important ally to the US than Korea. Their intervention might be quicker than we think. We have to shake them as much as we can as quickly as possible and get out.”
“You mean you’re going in prepared for a loss?”
“Yeah. I’m planning to take a loss this time. A loss is an investment, after all.”
If we lost money in Japan, we could just make it back in Russia. At the chaotic end of the 20th century, it was an era where one could make money as long as they had information.
“For now, let’s finish the negotiations with the Korean government first before we make a move. It’ll be busy after the acquisition, but the talented people within Jungwoo Group are the real gems. The problem is Chairman Park Dae-ho.”
Han Gyeong-yeong nodded as if he understood.
“I felt it during these acquisition negotiations, but Jungwoo is better known in other countries than Ilseong or Daehyun, though maybe not domestically.”
“That’s because Chairman Park Dae-ho overextended himself, reaching out here and there under the banner of globalization. Jungwoo’s name is particularly well-known in Eastern Europe.”
I planned to retain or promote most of the executives at Jungwoo Group, as long as they weren’t involved in major corruption. The title of ‘Jungwoo man’ was their pride, even after the group was dismantled and its affiliates were sold off here and there.
“The private jet is in production, right?”
“I’m scheduled to receive it next year.”
“Then for now, lease one and use it. Sign a short-term contract when you go to America. It’s inconvenient to have to travel all over the place.”
Han Gyeong-yeong gave a bright smile, and I couldn’t help but smile back.* * The domestic conglomerates, including Ilseong, mobilized the media to raise allegations of preferential treatment from all sides. I, too, had articles published with an opposing viewpoint, emphasizing that it was an unavoidable choice. Ultimately, Han Gyeong-yeong held a press conference. “Hello, this is Han Gyeong-yeong.” Flashes went off like a downpour, and questions from reporters followed. “We understand that Dreamhigh Investment’s funds are also American capital. Even if the person managing it is Korean, that fact does not change. The prevailing opinion is that national wealth cannot be handed over to foreign countries. We would like your response to that.” It was an aggressive question from a reporter who had been instigated by the conglomerates. But Han Gyeong-yeong answered with composure. “Yes. Our headquarters is in the United States. I will not deny that it is American capital. In that case, let me ask you a question in return. Is there any domestic capital, other than us, that can acquire all of Jungwoo Group?” “There is not. But isn’t there a way to save the sound companies by selling them to large domestic corporations?” Han Gyeong-yeong nodded at the reporter’s answer. “That is a way. But to do that, the precious tax money of the people, including yourself, reporter, must be used to write off the debts of the conglomerates. If that’s the case, I will back out of this acquisition.” “……”“The government requested the acquisition, and I simply accepted that request.” The reporter asked in a sharp voice. “Are you threatening us?” “A threat. You’re being too aggressive toward someone who is helping. If you’re going to ostracize us for being foreign capital, then I’m saying we will simply act like other foreign capital. I would appreciate it if you could clarify your stance.” From Han Gyeong-yeong’s perspective, there was no reason to acquire Jungwoo Group if it wasn’t for Mu-hyeok’s directive. No, if there was a company he coveted, there would be no need to negotiate with the government. He could just jump into a hostile takeover. The economy was about competition. In a capital market where you eventually get eaten if you fall behind in the competition, Korea’s financial crisis was a large and dangerous piece of prey. The Korean government’s choice to fully open up to foreign capital at the IMF’s demand was a good option for American speculative capital. With the dollar expensive and the won cheap, the hotels in Seoul were bustling with representatives from private equity funds, as if they were on a Korean industry shopping tour. The reporter who had asked the question looked around in bewilderment, as if he hadn’t expected Han Gyeong-yeong to react this way, but no one came to his aid. After hesitating, the reporter asked another aggressive question. “Mr. Han Gyeong-yeong, are you saying you are different? In my eyes, you look like the same foreign capital.” “For the sake of Korea, which has received a bailout from the IMF, I, not a representative, came to Korea myself. Simply because it is the country of my birth. But now Korea itself calls me a foreigner.” For a moment, the hall went quiet. Han Gyeong-yeong added in an icy voice. “The large corporations you mentioned are also in a situation where they are selling off affiliates to pay their debts. Who in the world is going to acquire Jungwoo Group with what money?” “Are you mocking Korea?” The reporter was doing his best to frame it as a showdown between Korea and Han Gyeong-yeong. “I am not mocking the people of the Republic of Korea. I am mocking the conglomerates that still haven’t grasped reality and reporters like you who side with them. The people are rummaging through their closets to gather even a single coin of gold to pay off the foreign debt, while the people called conglomerates are looking for things to devour like hyenas.” As if he could see right through that thought, Han Gyeong-yeong smiled coldly. “Does only Jungwoo Group look like it’s in danger? If we put our minds to it, it wouldn’t be difficult to launch a hostile takeover on Ilseong, Daehyun, or anywhere else. Is that what you want?” Han Gyeong-yeong had always treated the media with courtesy. The other reporters, also flustered by his unusually sharp response, began to murmur. Han Gyeong-yeong shook his head as if he was fed up. “I am an investor. But I have no intention of dismantling Jungwoo Group for profit. We will restructure and liquidate the insolvent affiliates. But that is what all large corporations are doing right now to survive. I do not understand why the mere fact that we are foreign capital should be a reason for criticism.” Just then, another reporter raised his hand. “You said you would entrust the management to Koreans. Do you intend to keep the executives who were at Jungwoo? Are they not also free from responsibility for this Jungwoo crisis?” “They are not without fault, but in the end, the leader takes the responsibility. I believe it was Chairman Park Dae-ho’s mistaken judgment. We plan to utilize the internal personnel as much as possible and entrust it to them.” “There are rumors circulating in the stock market that you will delist the company. Is that true?” “It is true. Once the acquisition is confirmed, we plan to proceed with a capital reduction without compensation to forgive the debt.” The surprised reporters began to stir. Han Gyeong-yeong added with an impassive face. “Dreamhigh Investment is already the largest shareholder. I am also prepared to take a loss to repay the debt. Still, to minimize the damage to the public, we plan to make a public tender offer for the shares at 150% of the closing price on the day the deal is finalized.” Han Gyeong-yeong had opposed this idea of Mu-hyeok’s. When he asked if it was necessary to make a public statement and raise the stock price, Kim Mu-hyeok had answered simply. ‘It will be easier to work with public opinion on our side. We don’t know how long the government will be on our side, so we can’t just sit still, can we? It won’t amount to much anyway.’ Excluding Chairman Park Dae-ho and related parties, there weren’t many shares in actual circulation. Most of the circulated shares were held by Eva, Han Gyeong-yeong, and Kim Mu-hyeok, with the rest held in small amounts by institutions and foreign private equity funds. Twisting his lips, Han Gyeong-yeong said in a clear voice. “I will say one last thing. If you do not like the idea of Dreamhigh acquiring Jungwoo, please bring an alternative. I have joined hands with the government. Do not insult me with the frame of a traitor. If you want to see what the real power of money is, then keep going. This is a message for the conglomerates.” It was a declaration of war against the conglomerates. * *After a long time, I visited the top floor of the Mirae Building in Daechi District where Eva was.
The security here was made so tight that not even the National Intelligence Service, let alone the CIA, could get in.
“Mu-hyeok!”
Perhaps because it had been a while since we’d seen each other, I stopped Eva from rushing toward me and sat down. On the television in front of me, Han Gyeong-yeong’s press conference was playing.
“I did all the work, but some weirdo is taking the credit.”
Eva had a pouting expression, clearly displeased about something.
“It can’t be helped. It’s fine. You are buying up all the distressed properties put up for sale by the conglomerates, large corporations, and the rich, right?”
At my words, Eva stood up, went to the bed in the corner, and took down a picture frame that was next to it. After going through several security steps, she opened a safe inside the wall. What she took out from inside was a pile of documents.
“This is a building put up by Ilseong, this is a plot of land slated for redevelopment put up by Daehyun……”
There was no end to her words, showing just how much she had bought up.
“I’m buying up real estate as the Boss ordered.”
“It’s not enough, is it?”
Eva smiled, following my lead.
“What about the accounts?”
“Still sufficient for now.”
“Is there anything you want to buy?”
Eva hesitated for a moment, then spoke.
“I’m sorry about failing to acquire Jungwoo Group.”
“It’s fine. The government’s influence is still considerable in the Republic of Korea.”
“Thanks to that, it was easier to buy things up.”
Eva knew how to make proper use of her Mofia connections and the Yoon & Jang law firm. In the Republic of Korea, where anything was possible with money and connections, it was like giving Eva wings.
“So, what do you want to buy?”
“I want to own a bank. Rumors are rampant that Korea Exchange Bank is looking for investors. There are also rumors that they’ve already entered negotiations with an investment bank in Germany, and I heard Jesung Bank is also heading toward a foreign sale.”
Korea Exchange Bank and Jesung Bank. I hadn’t even thought about them.
“Who proposed it? It doesn’t sound like your idea, Eva.”
“As expected, Boss! Director Baek Seong-jin, who is the financial director, proposed it to me. As soon as he found out we acquired Peregrine. He said he would help us acquire it no matter what.”
“He must want something, though.”
“He’s probably just trying to earn his high salary.”
It seemed Eva hadn’t yet fully grasped how things worked in Korea. There was no way Baek Seong-jin, who was at the pinnacle of the Mofia, would have made a proposal to Eva without any benefit to himself.
“Eva, listen to me carefully. Don’t underestimate Baek Seong-jin and the other Mofia figures. They are people who will always try to use you to solidify their own power. Can you control them?”
Eva burst out laughing.
“Don’t worry. You think I don’t know their dark intentions? I also know they go around taking credit for the money the Boss spent as if it were their own. But if it helps get the job done, what’s the harm? It’s more convenient for Director Baek Seong-jin to make a move than for me.”
That was also true, so I gave a small nod at Eva’s words.
“I did receive the offer, but I also think it wouldn’t be a bad idea to own a bank in Korea. I need to use this opportunity to send a warning to the government.”
Eva, who seemed resentful that Jungwoo Group was handed over to Dreamhigh, was showing a hostile attitude toward the government of the Republic of Korea. It wasn’t a bad thing for me, so I didn’t say anything else.
“How much do you need?”
“He said the investment has to be made through Peregrine, so the money needs to go to Peregrine, not here. I’d probably need about 10 billion dollars, right?”
Commerzbank, which had invested in Korea Exchange Bank, had invested 250 million dollars. Was it 29.7 or 29.8? They received that much of a stake.
“How much of Korea Exchange Bank’s shares do we hold?”
“4.9 percent.”
According to Eva, that meant we could become the largest shareholder of Korea Exchange Bank for 250 million dollars. Currently, the largest shareholder of Korea Exchange Bank was the Bank of Korea. It held 32.39% of the shares.
“If you want to, go ahead. I’ll deposit 10 billion dollars into the Peregrine account.”
“Aaaah! Boss!”
Eva rushed over and showered me with kisses. I stood up from my seat.
“Boss, it’s been a while. Are you just going to leave?”
To Eva, who was trying to tempt me with a look of disappointment, I said in a firm tone.
“For the time being, our relationship must not be revealed. No matter how tight the security is, I can’t stay for too long. Not just you, Eva, but I am probably under surveillance as well.”
My prediction was not wrong at all.
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