Starting with Manyoung Machinery, Seok-won personally visited the labor union leaders at Hansan Heavy Industries, cement, and construction companies, and after overhauling the management, he immediately began behind-the-scenes work to acquire Min-guk Life, the next target.
"Since Chairman Shim In-yeol of Haechun Group was arrested on charges of foreign currency evasion, Min-guk Life, which has been designated as a distressed financial institution, is likely to be handled not by self-financial recovery but by the government injecting public funds first to stabilize it and then selling it," explained Head of Department Yoo Hyun-seok.
Executive Director Yoon Ki-hoon, sitting across, adjusted his gold-rimmed glasses and said, "Though the situation is clearly not good, out of the 12 affiliates, Min-guk Life accounts for 95% of the group's total sales. I don't think Chairman Shim will easily give it up."
Yoo Hyun-seok replied calmly, "As you pointed out, Chairman Shim will try by all means not to lose control. But considering the recent due diligence revealed debts exceeding assets by as much as 2.9 trillion won, the government won't just stand by and do nothing."
"True. If the government hesitates and Min-guk Life goes bankrupt, millions of policyholders will suffer huge losses. That would also tank the government and ruling party's approval ratings immediately," Yoon Ki-hoon nodded.
"That's right. That's why the government wants to intervene quickly before the situation deteriorates further," Yoo added.
Seok-won, sitting at the center head seat with one leg crossed, spoke up, "How much public funding do you think will be injected?"
Yoo Hyun-seok answered without hesitation, "Considering that at least 60 to 70% of the revealed net asset shortfall needs to be filled to stabilize the company, between 1.7 trillion and up to 2 trillion won will likely be invested."
At the huge figure, Yoon Ki-hoon shook his head.
Seok-won, sitting on the sofa with his arms crossed, said, "If that much public money is put in, it means the minimum bid price at resale will be at least 2 trillion won."
"That's right. If they sell for less than the public funds invested, not only the opposition party but also the public will accuse them of selling it off cheaply," Yoo Hyun-seok responded.
Yoon Ki-hoon added his opinion, "Considering it's the third-largest firm in the life insurance industry, with assets worth 14 trillion won and millions of policyholders, they won't try to sell it cheap."
"I would think that way too," Seok-won nodded slightly and looked at Yoo Hyun-seok, asking, "If public funds are injected as expected, what happens to Chairman Shim's shares?"
"The existing shareholders, including Chairman Shim, will have their stocks forcibly canceled completely, and the public funds will be injected as equity," Yoo explained.
"So the existing shareholders' stocks would become worthless. Isn't there a legal issue with that?"
"There is a possibility of infringing on private property rights, as you said. But since the company is already insolvent with massive debts and policy cancellations are rising rapidly, leaving it as is could cause a liquidity crisis. It appears to be an urgent and drastic measure," Yoo concluded.
Tapping lightly on the armrest of the sofa with his fingertips, Seok-won continued speaking.
"Even though the arrested Shim In-yeol has stepped down from the front lines of management, he still clings to control and won't give up Min-guk Life until the very end, even bringing in external forces. That's why they're pushing for a complete cancellation of shares to strip Chairman Shim of his shareholder rights entirely."
"That's definitely part of it," Yoo Hyun-seok agreed.
Seok-won, stroking his chin with one hand, muttered to himself, "The problem is, even if the government pushes hard, I don't think Chairman Shim will surrender and step down willingly."
Executive Director Yoon Ki-hoon, sitting to his right, looked at him and said, "If they lose Min-guk Life, which generates most of the sales and profits and essentially supports the group, it would naturally lead to the breakup of Haechun Group. So he'll definitely fight to the last."
Seok-won frowned in displeasure, clicking his tongue.
"Tch. They've recklessly drained funds from Min-guk Life to cover debts of other affiliates like picking at dried persimmons, committed massive embezzlement, and wrecked the company, yet they still can't let go of their greed and obsession. It's truly pathetic."
Though the two men shared his sentiments, Seok-won himself was from a chaebol family, so he wisely kept silent otherwise.
"If that's the case, even if the government injects public funds and enacts forced share cancellations, it won't be easy to resell Min-guk Life quickly."
"That's very likely," Yoo Hyun-seok said.
"I agree with that," Yoon Ki-hoon also responded.
Hearing their answers, Seok-won smacked his lips and looked resigned.
"Well, then sadly, until things settle, we'll just have to hold off on acquiring Min-guk Life for now and watch closely."
He then turned to Yoo Hyun-seok and gave instructions.
"Keep the task force in place and keep monitoring the situation closely."
"Understood."
Seok-won raised one arm to check the wristwatch and said, "It's already this late while we were talking. Let's wrap up today's meeting here."
"Yes."
The two men stood up, nodded respectfully, and left the president's office.
Seok-won remained seated on the sofa, organizing his thoughts, when suddenly his phone rang. He stood up, picked up the phone from the desk, and checked the incoming number on the screen before answering immediately.
["Can you talk now?"]
"Go ahead," Seok-won replied.
As always, Lee Chul-gyun's deep voice came through. Seok-won moved toward the window with the phone pressed to his ear.
["There is information that Sasung Group and Daekwang Group are pushing a big deal to swap cars for electronics."]
Standing before the large glass window, Seok-won's eyes sparkled as he asked back, "Is that certain?"
["Yes. It seems the mood has abruptly shifted toward Sasung Group giving up its automobile business as Hyunwoo Group takes over Kichang Motors, which went bankrupt."]
Seok-won nodded slightly.
"It's true that with Hyunwoo absorbing Kichang and Taepyeongyang Motors, and Daekwang acquiring Iseong Motors, the auto industry is consolidating into two giants. This has significantly squeezed Sasung, which only has the Busan plant left."
["There are even rumors that Chairman Kwak Dong-hoon of Sasung and Chairman Yoo Chun-seok of Daekwang have met several times recently at Seungjiwon in Hannam-dong for meals and talks. Looks like the negotiations are quite far along."]
Seungjiwon in Hannam-dong was one of the residences of Kwak Dong-hoon, the head of Sasung Group.
"Anything else?"
["That's all the info we have so far."]
"Okay. Let me know immediately if anything new comes up."
After hanging up, Seok-won gazed out at the high-rise buildings in the distance, deep in thought.
Sasung Motors had debts amounting to roughly 3 to 4 trillion won, and Daekwang Electronics, the swap target, had a similar level of debt, making it a suitable candidate for the big deal.
Both companies also had something in common—they were not very significant within their respective groups and ranked only about fourth or fifth in market share, which was quite low.
Although Sasung Motors was cherished by Kwak Dong-hoon, an auto enthusiast, it was identified as a culprit of the Asian financial crisis due to excessive and redundant investments, prompting the Blue House to intervene directly and pressure the five major groups toward a large-scale deal, leaving no other option.
"No matter how much they cherish the car business, they can't give up electronics, which is the core of the group. They have no choice but to enter the big deal reluctantly."
However, in the memories before the regression, Sasung Motors had been sold overseas, not to Daekwang Group.
"So that means the big deal between the two groups won't actually happen."
It was possible that Seok-won's own presence had disrupted the flow and that this time the big deal might go through—but that was something to be seen in time.
"One thing is certain: as soon as news of the big deal breaks, the stocks of both companies will fluctuate wildly."
Not wanting to miss such a favorable opportunity, Seok-won immediately picked up his phone and called Department Head Choi Ho-geun.
["Yes, sir."]
"Buy stocks related to Daekwang Group, including Daekwang Electronics, right away."
["Daekwang Group stocks, you mean?"]
Choi Ho-geun asked in a confused voice.
"Yes. News of a big deal between Sasung Motors and Daekwang Electronics will break soon."
Realizing the situation immediately, Choi quickly asked back,
["How much should we buy?"]
After a moment's thought, Seok-won replied,
"Put in about 100 billion won moderately, and once the price rises about 30%, sell off immediately."
["If the big deal succeeds, it's a huge positive, so why sell off so quickly?"]
Daekwang, a perennial fourth-ranked company in electronics, pushed out by Hyunwoo Electronics, would see its stock value spike rapidly if absorbed by Sasung Electronics.
Additionally, rumors of bankruptcy risk quietly circulating in the securities market would be dispelled by this big deal, causing Daekwang Group stocks, previously depressed, to surge strongly.
["As you know, Daekwang Group stocks have been heavily suppressed until now. So when the positive news breaks, there's a high chance of overshooting as major players and individual investors jump in."]
"I know. But it'll be an excessive short-term rise. Once the good news disappears, the price will break sharply and plunge down in the opposite direction."
Seok-won's calm reply surprised Choi Ho-geun.
["Are you saying the big deal between the two groups will fall through?"]
"I'm not a fortune teller, so how could I know the outcome? But it means it will be a difficult and challenging task. So there's no need to hold onto the stocks for long—just make a modest profit as if it's pocket money and get out quickly."
["Hmm. I understand what you mean."]
"The related rumors will probably start circulating in Yeouido by this afternoon at the latest, so finish the stock purchases before then."
["Yes, I will."]
After ending the call, Seok-won turned his gaze to the view beyond the window.
"This will bring the long-rumored big deal among the five major conglomerates fully to the surface. That will heat up the business world and the stock market as well."
It was a clear fact that the five major conglomerates in the business world had as many as 264 affiliates combined, with an average debt ratio exceeding 400%, showing severe overlapping and excessive investments.
However, even so, it was inevitable that having the Blue House directly intervene and forcibly push through a big deal in an unbelievably short and urgent span would cause side effects.
"The backlash from this hastily forced big deal will inevitably end up as the winner's curse."
Knowing what the future held, Seok-won wore a bitter expression.
But since the cause was just, and above all this was an initiative President Kim Jae-chun was zealously pursuing, he could not oppose it recklessly.
"Maybe this too is one of the severe growing pains to overcome the IMF crisis."