#82 How would a servant know, when I, the owner, do?
“It will probably be difficult to pass it this year. There's a presidential election, and with the economic crisis and all, everyone will be busy managing their votes. Please put in some effort next year when the Interest Limitation Act is abolished.”
If the lobbying from the Blue Wind Association and my grandfather were combined, the law would likely pass without any issues.
“But Mu-hyeok, the head of the IMF, the foreign investment banks, they all say the Korean economy is not in a crisis. The people in the government are the same. They all just say there are no problems.”
Just as my grandfather said, interviews with people well-versed in the economy, including the current government, major foreign investment banks, and the heads of the IMF, were being featured prominently in the media every day. But for the crime of believing those words, many citizens lost their jobs in an instant, their companies went bankrupt, and their families were shattered.
Simply for the crime of trusting the government.
“The amount of money being poured into the exchange rate right now is immense. Eventually, the government's foreign currency reserves will hit rock bottom. From then on, we will become prey for foreign hedge funds. It will start with Southeast Asia. They are more vulnerable than we are.”
“Hmm…”
“And you know the owners of the media companies well, right? Please connect me with them.”
“The media?”
“There will be many things that require using the media starting from the end of the year, so I thought it would be good to get acquainted with them beforehand.”
“I understand. I'll arrange a meeting soon. They'll be completely different from the people you've met so far. They're the kind of people who think they are the class that moves the Republic of Korea.”
“Yes, I know.”
Before the internet developed and various portals appeared, all information was delivered to the public through newspapers and broadcasting. Public opinion shifted depending on the tone of each newspaper and broadcasting station. The media outlets that had survived by being the military regime's mouthpiece were now manipulating public opinion for their own benefit.
“I'll arrange it soon. It will be easier if I introduce you as my successor myself then.”
“Thank you.”
Just by using the prosecution and the media well, it was easier to get what I wanted. The conversation with my grandfather continued for a long time after that. A few days later, my grandfather arranged a meeting at a hotel owned by the Goryeo Daily.
“Chairman Cheon, it's been a while.”
“Yes, Chairman Ko, you've been well? I hear you've handed everything over to your children and are living a life of leisure these days.”
“Isn't it time for us to step back into the background? I heard you also entrusted everything to your grandson and stepped back. Rumor has it that Chairman Jang of Hyeonbo Group had a hard time because that grandson of yours is a bulldozer.”
“Haha.”
Chairman Cheon and the owners of five major daily newspapers exchanged greetings and shared memories, reminiscing about the old days.
“Today, my grandson said he wanted to see you all, so I asked you to make some time.”
“Oh, really?”
The gazes of all five men turned to me.
“How do you do? I am Kim Mu-hyeok.”
“You look young. How old are you?”
“I am twenty-four this year. It is an honor to meet the chairmen who have led an era like this.”
“Haha. He’s a polite young man.”
The atmosphere was not bad.
“The reason I asked my grandfather to see the elders gathered here is to inherit the connection that has been passed down since my grandfather’s time. I hope we can maintain a good relationship.”
“Hahaha. What power do old men in the background have?”
Chairman Ko of the Goryeo Daily, which boasted the highest circulation among the five media companies, continued to answer as if he were their representative.
“I believe the Republic of Korea has come this far without any major problems because of you elders. Just because you have stepped back from the front lines doesn't mean the things you've done until now will disappear. I look forward to your guidance.”
I bowed my head to them once more. I would probably be dealing with their sons rather than meeting them again, but for now, everything was still being controlled according to their whims. It couldn't be helped.
In the Republic of Korea, public opinion was still moved by the newspapers. If I made enemies of them now, I wouldn't be able to do anything. As I greeted them one by one, they each handed me a business card with nothing written on it.
Just five business cards. But this could become a powerful weapon capable of moving public opinion in the Republic of Korea. Of course, there were the reporters and editors who worked on the front lines, but they could be managed with steady bribes.
Soon after, I left first. The meeting between my grandfather and the media company owners continued late into the night.
At the National Assembly hearing on the Hyeonbo Steel bankruptcy, Chairman Jang's statement became a hot topic.
“There are prosecution statements from company executives that even with additional financial support, the company would have only lasted a few more months. What are your thoughts, Chairman Jang?”
“Haha, as for the funds, how would a servant know, when I, the owner, do?”
It was a statement that represented the thoughts of conglomerate owners. The idea that the owner of the company was himself, and the employees working under him were all servants. Those words, uttered without hesitation at a National Assembly hearing broadcast live, bought the public's outrage.
“He still doesn't get it. Tsk, tsk.”
Chairman Song shook his head as he watched the hearing on TV.
“He probably won't get it until the day he dies.”
“I suppose so. Right. What brings you here today?”
“What happened with Hyeonbo Steel and Hyeonbo Construction?”
At the mention of Hyeonbo Steel and Hyeonbo Construction, Chairman Song’s face brightened again.
“Those rascals, they put me in a difficult position, and after getting dragged through negotiations with the government, they ended up deciding to acquire it without any proper debt relief. I had told the creditor groups and government officials that I might intervene if it was sold for a ridiculously low price. Haha.”
Originally, Daehyun had acquired Hyeonbo Steel. It was a poisoned chalice carrying a total of five trillion won in debt, but Daehyun, having fallen out of favor with the regime, had no choice.
Despite writing off about 1.4 trillion won in debt, the acquisition of Hyeonbo Steel, which still had over three trillion won in debt, eventually became a boomerang that ate away at Daehyun.
“Ilseong and Jungwoo Group will soon be faltering. All you have to do, Chairman, is watch the show and enjoy the spoils.”
“What? Hahahaha.”
After laughing heartily for a while, Chairman Song looked at me with a gentle gaze.
“How are things with Hyeon-ji?”
“We meet occasionally.”
“Meet her often. Youth doesn't come again.”
“Yes.”
“How is the construction in Daechi District progressing?”
“Thanks to the help from Daehyun Construction, it's proceeding without any problems. It's scheduled to be completed soon.”
Chairman Song nodded. With the help of Daehyun Construction, the construction period had been significantly shortened, and all work was scheduled to be finished soon. If Chairman Song hadn't helped, I would never have been able to meet the completion date.
“I hear rumors that the Asin Group will go bankrupt soon. Have you heard anything, Chairman?”
“Hmm…”
Asin Group.
It was a large conglomerate with numerous affiliates, including Asin Motors, Asin Heavy Industries, and Asin Electronics. The number of people employed by Asin Group affiliates alone reached tens of thousands. But due to a severe credit crunch, rumors of its bankruptcy were circulating.
“Asin.”
Asin had a peculiar structure that was rare among large conglomerates. Unlike other corporations, Asin Group was not owned by a specific family. Its professional management system was well-established, to the point that it was well-known as a model case.
In 1993, Ilseong Group entered the automobile business and began a massive stock acquisition. Although they later sold some of it when public opinion grew noisy, it was an open secret that Ilseong was targeting Asin Motors.
“Ilseong is probably busy lobbying to take over Asin Motors. They'll be pressuring not only politicians but also banks to block financial support.”
Chairman Song nodded at my words.
“I know, but I have no justification or method to stop it.”
But in the end, Asin Motors would become Daehyun’s prize.
“Don't do anything. Just let things flow. It will be enough to move when the regime changes. Isn't the presidential election soon?”
Chairman Song looked puzzled.
“Even so, isn't it obvious the ruling party will win?”
It was true that in the approval rating polls, the ruling party's candidate was much higher than the opposition's. But I shook my head.
“I don't see it that way. The ruling party will be torn apart.”
“What?”
“The presidential candidate is setting himself up in opposition to the current president, isn't he? The current president probably won't support him at all. Instead, he'll throw his weight behind another side, and the ruling party's votes will be split. In the end, the opposition party will snatch victory by a fluke.”
“There's no way. They said the opposition would win the first presidential election after the Fifth Republic, but what happened in the end?”
“That's because the opposition's votes were split back then.”
“Huh... So you're saying the opposition will win this time?”
“Yes, if I were to bet, I would bet on the opposition party.”
Chairman Song’s deliberation grew longer. I had already established a line to the opposition party. Of course, it meant I had to contribute a massive amount of political funds.
“A change in government…”
“Other conglomerates are probably predicting a victory for the ruling party.”
Even with the ruling party's votes split, the opposition party's presidential candidate would win by a narrow margin of less than 500,000 votes. Moreover, a change of government was a distant prospect in this era. I could understand Chairman Song's concerns.
“It's better to bet early. I have already started betting on the opposition. Even if you make the choice, Chairman, don't forget my advice.”
“Alright. I'll think about it.”
“Yes. I'll be on my way now.”
Leaving the pensive Chairman Song behind, I got into the car with Section Chief Ma.
“Section Chief Ma. You asked me before, right? Why I give information only to Daehyun.”
A while ago, Section Chief Ma had asked me a question. Why I was putting so much effort into Daehyun.
“There's something I need to get from them later. This is the groundwork for that. Of course, my relationship with my grandfather also had an influence.”
What I was aiming for was Daehyun Electronics. It was a company that would later merge with Geumseong Group's Geumseong Semiconductor to become the successor to Ilseong Electronics, but it would eventually be separated from Daehyun Group after experiencing a liquidity crisis.
“I plan to use Asin Motors as bait to get Daehyun Electronics. I want to stay on good terms with Chairman Song.”
We had no connection in the past, but this time, we had formed a rather deep one. I had no intention of a forced merger and acquisition.
“Well, if he doesn't hand it over, I can just buy it when it's on the market later.”
I didn't hear Section Chief Ma's reply. The car slowly drove into the darkness. While everyone's attention was focused on Hyeonbo's hearing, the Jinbo Group, which had soothed the sorrows of the common people with soju, finally went bankrupt.
To prevent the successive bankruptcies of large corporations, the government led the creation of a bankruptcy moratorium agreement, but it could not prevent the bankruptcy of Jinbo Group. Six affiliates of Jinbo Group were designated as the first targets of the bankruptcy moratorium agreement.
In May, the government tried to attract foreign investors by expanding the foreign stock investment limit from 20% to 23%. But the string of bankruptcies continued as Sambo Foods, the country's largest bakery, was declared bankrupt.
While Korea was embroiled in an economic crisis, all my attention was on Thailand. — The hedge funds here seem ready to start an attack on the Thai baht soon. Han Gyeong-yeong had obtained information about the attack on Thailand and reported it to me, even without me saying anything.
“That's probably right. You should also start the attack, matching their position. How much can you move right away?” — I can move ten billion dollars.
The rest is all invested in stocks.
“Let's increase the funds by taking out a stock-secured loan. Get it up to twenty billion.” — Okay.
Are we following their lead this time?
“Yeah. The basic position will be the same as theirs. We'll take different positions with other corporations. Leave it to the employees, and you just wait for my orders. I'll take three, you take three, we're going to pour all the funds from six corporations into this.”
At that, Han Gyeong-yeong let out a dry laugh. — Going all in again?
“Of course.” — Ha…
What is your heart made of, steel? Aren't you afraid of losing?
“I am. But if you just run away because you're scared, you can never win. For now, get ready. It will start soon.”
The beginning of the Asian economic crisis was Thailand. An attack from America's Wall Street was imminent. How would a servant know, when I, the owner, do?
End