» The Youngest Son of Sunyang
The Youngest Son of a Chaebol Family - Chapter 286
Den of Intrigue, Sunyang Family 2
My jaw dropped as I watched the desperate Jin Taejun.
"60 billion won?! Wow... Taejun hyung, you're loaded!"
"Are you making fun of me? You're the truly wealthy one. Why are you pretending to be surprised?"
"I'm not rich enough to lose 60 billion won, you know."
"Hey! Stop rubbing it in!"
He yelled, as if my smiling face was burning him up inside.
"Have you tried asking Youngjun hyung, by any chance? If it's Sunyang Electronics, they could probably pull out about 60 billion won as a secret fund, couldn't they?"
Jin Taejun immediately waved his hand.
"Are you crazy? You know what kind of person he is, don't you? He's absolutely not the type to help anyone else. Instead, he'd just string me along, teasing me with the promise of a loan and burning me up inside."
"Is that really the reason? Or is it that you didn't tell Youngjun hyung because you're afraid the news of you losing 60 billion won would eventually reach our second uncle's ears?"
"Are you becoming like Youngjun hyung too? Stringing me along, trampling on my pride... Do you really want to see me agonize like this?"
This was the limit of Jin Taejun's patience. He had caused a colossal mess involving 60 billion won, yet he expected a simple request to be enough to resolve it. It was difficult to expect the tenacity of an ordinary person, who would set aside their pride and relentlessly cling on.
"Do you see me as family, hyung? Do you truly consider me your cousin?"
"What do you mean by that?"
"Are you pretending not to know? I'm constantly bickering with our second uncle over shares, you know. We're hardly on terms where I'd genuinely help you, are we?"
Jin Taejun, who had lost his patience and was scowling, now wore a grave expression.
"If I'm that desperate, isn't that your answer?"
The money had to be paid this month. He had either continuously delayed payments to his suppliers or he had been rolling over promissory notes. After barely holding on for several months, he could no longer put it off.
Any further delay would corner him to the point where everyone would discover he had lost 60 billion won.
"There's Myeongdong, you know. With Sunyang's credit, there shouldn't be any problem, should there?"
"That would immediately reach my father's ears. Does that answer your question too?"
I glanced at his grave expression for a moment before smiling and speaking.
"Six months. No interest, but keep the deadline."
Jin Taejun's expression brightened.
"Dojun."
"It's fine. Just buy me a meal later."
Waving my hand at him, I picked up the receiver.
"Vice President Jang. Please prepare for a withdrawal of 60 billion won."
As Jin Taejun let out a long sigh of relief, I spoke to him.
"Hyung, prepare Sunyang Construction's promissory notes."
"Huh? Ah... I see. You need a loan agreement, is that it?"
"Isn't that the most certain way to ensure the deadline is met? And wouldn't a promissory note be better for you, Taejun hyung? No worries about getting caught for touching public funds."
His complexion flushed crimson.
"I forgot how quick-witted you are."
"Don't worry. I'll keep your secret. At least, we don't dislike each other enough to snitch, do we?"
I winked at him.
I even felt a fondness for my cousin, enough to be grateful for the 60-billion-won bomb he had handed me as a gift.
* * *
As candlelight vigils against the import of US beef, primarily led by high school students, began to gather one by one, the 18th general election was held.
The opposition party, which had appeared so listless that one might have wondered if they were truly the ruling party until the previous year, predictably suffered a crushing defeat.
Although the voter turnout was only 46.1%, the worst in the history of national elections, the ruling party and its supporting factions nevertheless seized control of the parliament.
Although the true tsunami of the financial crisis had not yet engulfed Korea, while the entire nation was preoccupied with politics, the less resilient provincial areas began to falter first.
Given their fragile financial state, they couldn't withstand even a slight tightening of the money supply by banks. And the void left by their collapse was gradually devoured by large corporations.
"Human greed knows no bounds. Doesn't it?"
Chairman Lee Hakjae, who had returned from his first dinner with businessmen and the new president, shook his head repeatedly as he spoke.
"Are you referring to Vice Chairman Jin Donggi?"
"Including him."
"Did the side dishes at Cheongwadae not suit your taste, sir? You seem to have a lot of complaints. Heh heh."
"Everyone was making a fuss, asking to loosen regulations because they want to jump into provincial apartment construction."
"Why the sudden fuss? It's not as if they couldn't enter the market due to regulations before. Haven't major corporate apartments already been built in every province?"
"Because all the places with good scenery and excellent locations are greenbelts. If they just loosen those regulations, wouldn't it be a bonanza? Since they're development-restricted areas, land prices are dirt cheap, and if you just build apartments, the profits will be incomparable to what you'd get in the metropolitan area."
"So, what did Cheongwadae say?"
"'Actively review.' Meaning they'll do it. Since the provincial economy is bad, they're going to use that as a stimulus package, but...."
"That's good. Don't the provinces value apartment brands highly? With the names Sunyang and Daehyun, you wouldn't be outdone anywhere, would you?"
Chairman Lee Hakjae understood the true meaning of my words and smiled subtly.
"You're clearly determined not to miss this opportunity, aren't you?"
"Because it's an opportunity that won't come again. You discussed it with our second uncle, didn't you?"
He nodded his head.
"Yes. With the Burj Dubai completed this time, Sunyang Construction's prestige is enough to overshadow Daehyun. It's the world's tallest building, after all. The stock price has soared quite a bit too. Jin Donggi also doesn't want to miss this opportunity."
"What he wants is for our HW to handle the construction, right?"
"Yes. The money from Dubai is still a ways off, and he's already sunk all his existing funds into Dubai. He's in no position to even contemplate it, yet Cheongwadae is making the strongest demands."
"Anyway, Sunyang Construction will eventually fall into my hands, so why don't we just give him what he wants?"
"Well... something interesting has come up. There's no need to decide so readily."
"Interesting, you say?"
"Daehyun also made the exact same offer."
"What?"
I had forgotten. Daehyun also went all-in on Dubai, and their financial situation was no different from Sunyang's. Daehyun Group's several sons had divided the group amongst themselves, each lying in wait for an opportunity, gripping a knife to their chest, ready to stab and seize at any moment.
"If I had to choose one of the two, it would be Daehyun. If your prediction about the collapse of Dubai is correct, then Daehyun Construction will go bankrupt. They have 2.8 trillion won tied up in Dubai alone; how can they possibly hold out?"
"Why Daehyun and not Sunyang?"
"A cold, hard corporate evaluation. Sunyang Construction isn't yet on par with Daehyun."
"Then, what if we acquire both? A super-large construction company would be born, though it wouldn't work if management proved too challenging."
Chairman Lee Hakjae wasn't particularly surprised. As I had stated, with an opportunity like this, one that wouldn't come again, and with so much capital at hand, acquiring a company on the verge of bankruptcy would be as easy as eating cold porridge, wouldn't it?
"Seeing how confident you are, it seems you've made a lot of money in the US, haven't you?"
"I've made a fair bit. Enough to acquire both construction companies, easily."
Chairman Lee Hakjae's gaze sharpened.
"I'll start the review. Acquiring both companies and then selling off or reorganizing overlapping divisions should work out."
"But can HW Construction handle all of this? Aren't we woefully short on manpower and equipment?"
"If we just provide the money, there are countless companies willing to work under us. In the current construction economy, we're like a welcome rain after a drought."
"If we can control the weather with money, then it's not just a welcome rain; even a downpour is possible."
We looked at each other and laughed, then discussed the aftermath of acquiring both companies.
And two giant American corporations, on the verge of collapse, desperately pleaded with Rachel Arieff, CEO of Miracle Investment's New York headquarters.
* * *
"Just admit it already. Collateralized debt obligations are worthless. Isn't it common knowledge in this industry that if the default rate exceeds 15%, it's over? It's currently over 60% and still plummeting endlessly."
"We're not denying it. We're just asking for a little more time."
"It sounds like you're asking for time to liquidate all your remaining assets and secure yourselves enormous severance packages, doesn't it? Am I wrong?"
The two lawyers, representing Merrill Lynch and AIG Insurance, recoiled at Rachel's sharp retort, while the chief mortgage bond accountants from both companies, who had accompanied them, began to stare blankly into the distance.
"Do I look blind to you? I know Merrill Lynch's deficiencies exceed 50 billion dollars. Our Miracle Investment's swap agreement is for 2.3 billion dollars. It's obvious you can't cover 50 billion dollars, so do I look foolish enough to just watch your ship sink?"
"Rachel. To be frank, Merrill Lynch is currently in negotiations with Bank of America. They will undoubtedly acquire us. The larger our actual losses, the more unfavorable the negotiations become. Miracle's 2.3 billion dollars will be paid by Bank of America, not us."
As Merrill Lynch's lawyer spoke in a hurry, Rachel snapped her fingers.
"Oh, right. We also have over 1.9 billion dollars to receive from Bank of America, so I suppose I'll have to hurry. Before they acquire Merrill Lynch with its 50 billion in bad debt. Definitely!"
As Rachel's gaze sharpened, the men began to sigh once more.
"Normally, I would have considered your circumstances and deferred the swap claim. I, too, would prefer the shockwaves to be minimal if possible. After all, the collapse of Wall Street is certainly not desirable for Miracle Investment either."
At her somewhat hopeful words, a glimmer of expectation appeared in the men's eyes. However, her expression grew even sharper.
"Chairman Stan O'Neal, he officially retired yesterday, didn't he?"
"Yes. It's now operating under an interim board of directors."
Merrill Lynch's representative replied.
"How much was his severance package?"
"What?"
"If it's 50 billion dollars in bad debt, he should have been dismissed, not retired, shouldn't he? Isn't that right? But since it was an honorable retirement, he must have received a severance package, mustn't he!"
The representative became silent again, as if struck dumb.
"He took a whopping 160 million dollars as a severance package, didn't he? Even if he were to take responsibility for 50 billion dollars in bad debt and disgorge all 45 million dollars of his annual salary from his time in office, it would barely be enough for forgiveness, yet he pocketed an additional sum exceeding three years of his salary? What exactly are you people doing? You commit such immoral acts and then dare to ask me for a deferral! Have you no shame?"
A CEO who earned an annual salary of a staggering 50 billion won had generated 50 trillion won in bad debt, yet he feigned ignorance and pocketed a severance package approaching 200 billion won.
"Do you know that the price for hundreds of families losing their homes, their jobs, and even their retirement pensions is precisely a 160-million-dollar severance package?"
Her anger turned towards AIG.
"Isn't it the same for you people? AIG is burdened with nearly 200 billion dollars in bad debt. Yet, President Joseph Cassano, far from being fired, took up a bizarre position as a 'consultant' who does nothing but loaf around?"
"Th-that... Chairman Joseph Cassano took responsibility for this situation and resigned, and until the very end...."
"'He tried his best until the very end'? Does such a person fly off in a private jet to a villa in the Bahamas? While receiving over a million dollars in consulting fees every month?"
AIG's bad debt was too enormous for any company to acquire them.
Credit default swaps are a type of insurance, and AIG, befitting its status as the world's largest insurer, had entered into massive swap agreements. No other entity had taken on as much risk from the subprime mortgage crisis as AIG.
However, the "Too Big To Fail" principle would undoubtedly come into effect. If 180 billion dollars in bad debt were to explode, the impact would be irreversible. Ultimately, saving AIG by injecting emergency bailout funds would be the Bush administration's final act.
"I feel my mouth would get dirtier if I said more, so I'll stop here. All of you, leave. And don't ever forget. If our money isn't in the account at the start of business tomorrow morning, I will immediately proceed with a lawsuit."
At the word "lawsuit," the men broke out in a cold sweat.
Bank of America isn't foolish enough to acquire a company entangled in a lawsuit. And the same applies to AIG. If a lawsuit were ongoing, it was obvious that even if the government attempted to inject emergency bailout funds, Congress would block it.
The two companies hastily bolted out. They had to quickly secure the money to prevent that relentless Rachel's next move.