CL Card falls into Taewoo Group's hands
Taewoo Card had returned home—bringing CL Card as its "wife."
Yet, Park Man-deok, CEO of Taewoo Securities, didn't look pleased.
"The scale of CL Card's card bonds is beyond imagination. Once we factor in the hidden
liabilities, the total surpasses 2 trillion won. The real issue is the card bonds themselves.
No bank is willing to accept them, and credit rating agencies have downgraded their ratings
across the board."
I nodded.
"Do we really need to issue card bonds? Can't Taewoo Securities handle this with its own funds?"
Park sighed.
"CL Card has issued over 20 trillion won in card bonds. Taewoo Securities alone can't cover that amount."
A credit card company pays merchants on behalf of customers.
Later, when customers repay their credit card bills, that money is used to settle the card bonds.
While 20 trillion won might sound enormous, it was simply a constantly revolving cycle of funds.
I smirked.
"So if we secure 20 trillion won in liquid assets, we won't need to issue any bonds?"
"That's true, but holding that much cash is inefficient. We're a corporation, not a bank."
"I'll handle that problem. For now, shouldn't we focus on lowering delinquency rates?"
Park's expression darkened.
"If we solve the delinquency issue, the liquidity problem disappears. We wouldn't need to issue excessive card bonds. But how do we recover 2 trillion won in overdue payments?"
At last, it was time for Myeong-dong to step in.
It would cost a hefty commission, but recovering even half of the 2 trillion won would be worth it.
"We'll resolve the overdue payments by contracting with a new debt collection firm."
Park frowned.
"CL Card already hired Korea's most renowned debt collection agency— and they failed."
I chuckled.
"I know the best debt collectors in Korea."
Park's eyes narrowed in confusion.
Leaving him in my vice chairman's office, I headed straight for Myeong-dong.
***
Gwanghwamun - The Bear's Mansion
At the pavilion, the Myeong-dong Trio and Lee Young-han were already waiting, sipping tea.
I approached them casually, only to be greeted by Baek Hal-mae's sharp tongue.
"Took you long enough! What kind of young man keeps us old folks waiting?"
I grinned.
"Apologies. I was delayed bringing a nice gift."
Baek Hal-mae snorted.
"Gift, my foot. You're just here to dump a pile of overdue debt on us."
I raised an eyebrow.
"Does that mean you don't want it?"
"Tsk. Just show me what you've got."
The Myeong-dong Trio already knew what was coming.
For them, this was a golden opportunity to rake in billions.
And for Lee Young-han, the kingpin of Myeong-dong loan sharks, it meant serious business.
"The debt collection firm registration is already complete. I've lined up Myeong-dong's top
enforcers."
Lee Young-han smirked.
"Over 2 trillion won is at stake. Do you really think a few loan sharks will be enough to collect it all?"
I spoke confidently.
"With the elders' help, we can manage this. I'm confident we can recover at least half of the
overdue payments within a year."
Baek Hal-mae chuckled.
"Looks like this old lady will have to dust off some of her tricks."
The loan sharks smirked.
Lee Young-han and the Myeong-dong Trio—they were all seasoned debt collectors.
To them, delinquent borrowers weren't just clients. They were opponents to be defeated.
These were the kind of people who could squeeze water from a dry rag.
I needed their expertise, but I had no intention of giving them full control.
I asked cautiously.
"But how do you plan to collect money from people who don't have any?"
Baek Hal-mae grinned.
"There's always a way. Don't worry, though—we won't be doing anything crude, like forcing people to sign away body parts or staging accidents for insurance claims. At worst, we'll send them off to work on shrimp boats. They won't die—just sweat a little."
If someone had no money, they could earn it and repay their debts.
But how long would that take?
Baek Hal-mae's shrimp boat plan was a solution, but it wasn't exactly efficient.
I had a better idea.
"Taewoo Group will provide decent jobs for able-bodied debtors."
Baek Hal-mae raised an eyebrow.
"You sure about that? We're talking about tens of thousands, maybe even hundreds of thousands, of delinquent borrowers."
I nodded.
"Taewoo Construction can hire them as laborers. Taewoo Electronics can create simple, repetitive jobs for them. And if that's not enough, we can utilize subcontractors."
Taewoo Electronics had over 100 first-tier suppliers alone.
If we included second- and third-tier subcontractors, that number soared beyond 1,000.
It wasn't high-quality employment, but it was enough to pay off credit card debt.
Baek Hal-mae smirked.
"Fine. If we find someone who truly can't pay, we'll send them your way. I never pegged you as the sentimental type. Didn't expect you to care about the struggles of delinquent borrowers."
I shook my head.
"It's not about sentimentality. The more we recover, the faster Taewoo Card can turn around."
Baek Hal-mae chuckled.
"Well, if you say so. Shall we start today?"
"Please do."
With that, the delinquency issue was as good as solved.
We hadn't even started debt collection yet, but the moment Myeong-dong took over, it was
practically a done deal.
***
The following day, I met with Jamie Dimon in Captain Kang's office.
Dimon was swamped, working on the Foreign Exchange Bank acquisition.
"Commerzbank just announced the sale of Foreign Exchange Bank."
I nodded.
"No domestic financial firms are interested, so they must be looking to sell it overseas."
During the Asian Financial Crisis, Foreign Exchange Bank had been sold to Germany's
Commerzbank.
But after the Hyundai Construction collapse and the credit card crisis, Commerzbank found itself struggling.
Selling the bank had become inevitable.
Dimon sighed.
"The problem is—no foreign banks are interested, either."
I smirked.
"Even if banks aren't interested, Wall Street hedge funds will be. If they acquire it at a bargain price and restructure it properly, they could make massive profits."
Dimon nodded.
"I considered that, too. But under Korean banking law, hedge funds aren't allowed to acquire banks."
I chuckled.
"There's an exception clause, isn't there?"
Dimon frowned.
"There's an exception clause allowing the sale of troubled banks with a BIS ratio below 8%, but Foreign Exchange Bank isn't in that bad of a situation."
He had clearly done his homework.
But despite his expectations, Foreign Exchange Bank would still end up being sold to the private equity firm Lone Star.
They would force the exception clause and buy the bank at a rock-bottom price.
I turned to Captain Kang.
"Captain Kang, do we have people inside the Financial Supervisory Service (FSS)?"
He smirked.
"We have people in every government agency. At the FSS, we have one senior official and three key staff members."
"Good. The bank president will soon submit the BIS ratio report to the FSS. Secure that report. I bet they've manipulated the numbers to push the ratio below 8%."
Captain Kang nodded.
"I'll handle it immediately."
Dimon, who had been listening quietly, looked puzzled.
"Sir, why would the bank president want to label Foreign Exchange Bank as a troubled financial institution? To sell it to a private equity firm, sure—but that would cut the sale price by more than half. Not just half. They'd be lucky to get 20% of the actual value."
I leaned back and smiled.
"If Foreign Exchange Bank is officially declared 'troubled,' it could be acquired for around 1
trillion won. Lone Star can then restructure and flip it for 6 trillion won. That's a 5 trillion won profit. And you know what happens when that much money is in play—everyone involved gets a piece."
Whether the bank president had deliberately adjusted the BIS ratio, I wasn't certain.
He was eventually investigated and arrested—but in the end, he was acquitted.
After decades in the banking world, he must have found a legal loophole to tweak the numbers.
Or maybe Foreign Exchange Bank really was in trouble.
It didn't matter.
All that mattered was that the bank was undervalued.
And once acquired, it could yield massive returns.
Dimon smirked.
"So, we're just going to swoop in and take the scraps Lone Star leaves behind?"
I shrugged.
"Isn't that how Wall Street works?"
He chuckled.
"They don't call Wall Street a pack of hyenas for nothing. Hyenas don't hunt—they just steal
what the real predators kill."
Dimon smirked.
It was the kind of smile that marked him as a true Wall Street player.
From our perspective, Lone Star was a gift.
They were doing all the dirty work for us—manipulating numbers, pushing the price down—and all we had to do was snatch the prize at the right moment.
Of course, that depended on whether we could cut in before they closed the deal.
Dimon's tone turned serious.
"It won't be easy. Lone Star has already built strong connections through lobbying. If we want to take this from them, we need to sever those ties—completely."
I nodded.
"Then we need a solid plan. Lone Star thinks all they have to do is tweak the BIS ratio, and the bank is theirs. They're so confident—so sure there's no competition—that they're leaving gaps wide open. With the right moves, we can slip in and take it from under their noses."
Dimon grinned confidently.
He wasn't just an expert in Wall Street tactics—he had also mastered the Korean financial
landscape.
His time in Myeong-dong had taught him exactly how things worked here.
He saw Lone Star's blind spots immediately.
"If needed, we can use Myeong-dong's influence. Backroom deals are what they do best."
Dimon nodded.
"I'll coordinate with CEO Lee Young-han. But if my plan works, we'll see a lot of government officials and financial regulators lose their jobs."
I chuckled.
"That's Lone Star's problem. They'll just find new positions for them. And when their seats
become vacant—well, that just means more room for our own people, doesn't it?"
Why should I worry about the people Lone Star had bought?
They would land on their feet.
People like them always do.
***
A few days later
Park Man-deok, CEO of Taewoo Securities, walked into my office with a thrilled expression.
"The debt recovery rate is surging!"
I raised an eyebrow.
"The collection agencies must be working hard."
"Yes, but liquidity is still a concern. We haven't fully stabilized our cash flow yet."
I waved a hand dismissively.
"Don't worry about that. We'll soon have a bank willing to handle our card bonds at a discount. Until then, just hold the line with Taewoo Securities' funds."
The moment we acquired Foreign Exchange Bank, the card bond crisis would no longer be an
issue.
On the surface, it would look like Dimon was acquiring the bank.
But in reality, I would be the one pulling the strings.
Park's admiration was evident.
"So you've already secured a bank? Incredible. Even Samsung Card couldn't solve the card bond problem, but you did."
I smirked.
"Samsung Card's situation wasn't as bad as the others, was it?"
Park nodded.
"They started preparing six months before the CL Card crisis. They tightened credit requirements, lowered cash advance limits, and carefully managed their bond portfolio. That's why they avoided the worst of it."
Classic Samsung Group.
Most card companies were collapsing, but Samsung had minimized its damage.
Still—one thing was certain.
They would never be number one in the industry.
That spot belonged to Taewoo Card.