Quite a few children from chaebol families attend Hankuk University. Therefore, it's not particularly uncommon to have soone from a chaebol family among your seniors or juniors in the sa departnt.
When I was a freshman, Go Jun-hyung was on a leave of absence. The first ti I t him was probably during the school festival. I rember being introduced to him along with Seon-ah back then.
I recall hearing he was from GH Group and feeling intrigued and envious.
How many years ago was that?
I looked at the man sitting across from . Then and now, the fact that he is the son of the president of GH Construction hasn't changed. If anything's changed, it's .
Unlike , who found it absurd, Go Jun-hyung's expression was serious. And Taek-gyu, next to , had a pleased expression.
He looked like he was glad he ca to this eting.
“…”
Why the hell is this guy so interested in my past love life?
I spoke calmly.
“I don't know what you might be thinking, but I have no feelings left for Seon-ah. Since we were close once, I'd rather hope she's doing well.”
“Th-then why…?”
“Because there's no reason to help. It's not like I'm running a charity.”
The reason I joined hands with Seosung, Eunsung, GM, Ford, CL, SSK, etc., was because it benefited us. But there's little gain in helping GH Group.
Go Jun-hyung still looked like he didn't believe . I spoke to convince him.
“Think carefully. If I still had personal feelings, would GH Group still be intact today?”
Go Jun-hyung’s eyes widened significantly at my words.
Seeing his expression, I continued.
“Maybe not Seosung Group, but a group the size of GH is simple. Just make a tender offer for the holding company, GH Holdings, secure friendly shares, and then kick out the chairman and president at the shareholders' eting. If I decided to take over GH Group, could you stop ?”
Startled, Go Jun-hyung almost shouted.
“GH Group is a company our family has dedicated their lives to building!”
“So what?”
Taek-gyu added a word.
“Should the nation and the people band together to help you pass it down through generations?”
Korea has a strong tendency to equate the controlling family with the corporation. But the owners of a corporation are its shareholders.
Managent must make its best effort to maximize shareholder profits. If they can't do that properly, they should step down. Indeed, it's common overseas for founders to be ousted from their companies.
Yet, in our country, controlling families with stakes often barely exceeding 10% act as if they own the company.
And the dia, rather than acting as a check, often portrays this as the natural order. If the head of the family is arrested for embezzlent or breach of trust, the dia clamors about disruptions to global strategy and the potential collapse of the national economy, fanning public fear.
The reason the chaebol system has been maintained in Korea thus far is that it had its own rationale.
The first generation of Korean chaebols were entrepreneurs. Much like today's startups, they built their companies from scratch.
The second generation helped the founding first generation grow the companies together. The oil shocks and the Asian financial crisis hit Korea, causing many groups to collapse, but the surviving companies grew into global corporations.
If Im Il-kwon hadn't inherited Seosung Group, could Seosung Electronics have beco the world's number one mory semiconductor company? If Han Min-goo hadn't taken over Eunsung Motors, could Korea have beco the automotive powerhouse it is today?
The problem lies with the third and fourth generations. They grew up in privileged environnts from birth, and their managent abilities are completely unproven. Yet, they inherit the companies as a matter of course.
While family succession isn't unheard of in foreign companies, it's unlike Korea where control is often passed down using various loopholes and questionable thods to heirs whose managent skills are unproven.
There's a joke pointing out the chaebol succession problem:
Im Il-kwon's son is Im Jin-yong. So, what's Bill Gates' son's na?
Bill Gates, as everyone knows, is the founder and forr CEO of Microsoft. He was once the world's richest person and is still actively engaged in philanthropy.
But surprisingly, almost no one knows the na of Bill Gates' son.
The reason is that Im Jin-yong directly inherited the chairmanship of Seosung Group after his father passed away, whereas Bill Gates retired at an appropriate ti and handed over the CEO position to Steve Ballr.
Actually, whether succession was inherited or a professional manager was chosen through a rational process isn't the important thing. Sony, once a Japanese electronics giant, was run into the ground by professional managers.
There are countless cases of companies being ruined by professional managers, just as there are cases of inherited successors doing the sa.
Like the saying, "It doesn't matter if a cat is black or white, as long as it catches mice," regardless of who takes charge or how, if they manage well, the company survives. If not, it gets eliminated by the market.
Go Jun-hyung bowed his head so low it almost touched the table.
“Please, CEO Kang Jin-hoo. If you help us this ti, I will never forget your kindness.”
“…”
Why on earth is he being like this with ?
A long ti ago, this situation might have felt satisfying… but now, I feel nothing.
And even if I help this ti, will the problem really be solved?
I sighed and said.
“Besides the losses already revealed, I hear there's an additional $300 million in bad assets at your overseas operations.”
“Wh-what are you talking about?”
Judging by his expression, it seed he didn't know.
You never truly know a company's financial statents until you ticulously examine every detail. When operations are overseas, grasping the current situation is inevitably harder.
For example, real estate listed as 10 billion won in assets on the books might only fetch 3 billion won in an actual sale. Notes or bonds assud receivable and not written off as losses might turn out to be defaulted or junk bonds.
As always, the financial sector has the fastest information. Foreign investnt banks, like Golden Gate, assessed GH Construction's financial status early on and started severing ties.
While you can hide things when holding onto it, putting it on the market for sale subjects it to various due diligence processes. This way, all the hidden liabilities are revealed at once.
Who should take responsibility for this?
“Being incompetent isn't a sin. But an incompetent person occupying a position is.”
An incompetent CEO harms not only employees and shareholders but also the national economy.
Taek-gyu nodded as if in agreent.
“Right. That's why I avoid being a CEO, so I don't commit that sin.”
If President Go Jin-gwang steps down, it will be impossible for Go Jun-hyung to keep his position either. Swallowing his pride like this, coming to and bowing his head – is it to save the company, or to protect his own position?
A chaebol heir who loses managent control is like a kite with its string cut.
He wouldn't need to worry about re-employnt, but it would be difficult to ever hold a key position within the group again. President Go Jin-gwang's siblings, who control other affiliates, wouldn't sit idly by either.
“I, I…”
“Let say one more thing. You do realize it's extrely rude to just show up like this and start talking about my personal feelings, right?”
Go Jun-hyung, who was about to say sothing, lowered his head deeply.
It was quite a while before he spoke again.
“I apologize. I misspoke many tis today. Please forget about it.”
I nodded.
“I can't offer help, but I hope things work out well for you.”
Though it's obvious they won't.
He stood up from his seat and turned around.
One's perspective changes depending on their position. The person who seed so imposing when I first t him at university now sohow looked small and pitiful.
After he left, Taek-gyu asked.
“Are you really not going to help him?”
“I told you. There are no personal feelings left.”
“I thought you were just saying that.”
“…”
How did you interpret my words?
If I still had feelings for Seon-ah, I would have helped GH Construction. Conversely, if I resented her, I would have taken action long ago.
But since it's neither, I have no intention of doing anything.
“How about taking over GH Group like you ntioned earlier? If you announced you were going for managent control, wouldn't the shareholders welco you with open arms?”
“They probably would.”
This isn't because I'm more just or morally superior than the controlling family. It's because it would benefit the stock price. Money knows no good or evil.
I shook my head.
“Forget it. What's the use in acquiring it?”
There's little real benefit to taking it over. It's likely to just end up being a waste of money.
Selling the construction division would improve the group's overall financial structure, but it wouldn't be enough to revive its declining fortunes.
GH Group's two pillars are oil refining and construction.
GH Oil remains, but its sales decline is as clear as day due to the economic slowdown and the increasing adoption of electric vehicles. The shrinking market itself is a problem, but its dostic market share is also falling under pressure from SSK Innovation and A-oil.
If nothing had changed, there would have been no problem. They would have just continued doing what they were doing and could have maintained their current position. But in a rapidly changing environnt, the managers made poor decisions, and the situation deteriorated to this point.
Even when industry conditions are bad, opportunities can always be found if you look. But just how terribly mismanaged must the company have been for a once-healthy enterprise to fall into capital impairnt?
Nevertheless, the only reason they could hold onto their positions until now is this: because they are chaebol.
A professional manager would have been fired long ago.
The self-driving electric cars made by CarOS are already changing the world. The VR sex devices made by FaceIt have shaken up not only the adult industry but also the dating and marriage markets.
VRMMORPGs will affect not just gaming but people's lives, and traveling wave reactors will change the course of the energy industry.
I muttered as if to myself.
“Neither people nor companies can live forever. Reading the changes and adapting ans survival; failing to do so ans death. That's the law of nature.”
***
The market now accepted the sale of GH Construction as a foregone conclusion.
President Go Jin-gwang flew to the Philippines for negotiations, but with the local Special Purpose Company (SPC) bankrupt, collecting the paynt was difficult. The situation got so tangled because the contract was flawed from the beginning.
As concerns about capital impairnt grew, the stock price plumted to the daily limit down. Interested companies weighed acquisition.
I t Ellie during lunchti.
“They say 'too big to fail,' but even a company that large is going under. Seeing this makes think the saying 'It's not the strong who survive, but those who survive who are strong' is true.”
“Survival of the fittest.”
“It's often used when explaining evolution, but did you know Charles Darwin himself never actually said that?”
“Really?”
Wasn't that sothing Darwin said?
While we were talking, a call ca in from an unknown number. I instinctively knew who it was.
As I hesitated whether to answer, Ellie said.
“It's okay, go ahead and take it.”
“Okay.”
I pressed the call button.
“Hello.”
After a mont, a voice ca through.
[Hi. It's .]
Just as I expected.
The mont I heard her voice, past mories surfaced. We didn't date for very long, but looking back now, they were fun and happy tis.
“What's up?”
[If you have ti, can we et?]
The last ti we t was before she got married. My first love was now married to another man and had beco a mother.
It's a common enough occurrence for anyone.
I know what she wants to talk about. And she probably knows what my answer will be.
Yet, she contacted like this because she couldn't let go of that sliver of hope, perhaps.
I refused flatly.
“No. I'm busy these days, I don't think I can.”
The reply ca after a long pause.
[…Okay.]
I said sincerely.
“Take care.”
[You too.]
After I hung up, Ellie asked.
“Are you sure you're okay not eting her?”
“It's better for Seon-ah this way.”
Ellie smiled at .
“You know what?”
“What?”
“That Jin-hoo is very kind, and that I like that about you.”
“Ah, thank you.”
Feeling embarrassed, I needlessly scratched my cheek.
Ellie clapped her hands and said.
“Alright, so, where should we go for lunch?”
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