A heavy silence filled the study as Chairman Woo Yong-gap sat with a cigarette between his lips, his expression stiff and unreadable.
After a mont, he turned his gaze toward his son, who had just dropped an unexpected bombshell, and spoke in a subdued voice.
"So, you're saying we should take over Mido Departnt Store through a hostile acquisition?"
Woo Ho-geun leaned forward and replied, "Yes. As outlined in the report, the Daheung Group's owner family holds only 19.6% of Mido Departnt Store's shares."
"..."
"While it's natural for an owner's stake to decrease as a company expands, this percentage is exceptionally low."
It was common in South Korea for conglorate families to maintain control over vast business empires through circular shareholding, even with relatively small stakes.
However, as Woo Ho-geun pointed out, the Daheung Group's ownership of Mido Departnt Store was unusually low, even by those standards.
"Moreover, considering that Mido Departnt Store serves as the group's primary cash flow source and a key pillar in its circular shareholding structure, their stake is shockingly inadequate."
"Even if their direct holdings are small, wouldn't their stake increase when combined with affiliated companies and friendly shares?"
Without hesitation, Woo Ho-geun responded confidently, "Even when everything is combined, it doesn't even reach 30%."
"Are you saying that's all they have?"
Chairman Woo furrowed his brows in disbelief.
"Yes. I was just as shocked when I investigated it. Their governance structure is so weak that it's almost hard to believe."
"Hm…"
Chairman Woo let out a low hum, crossing his arms while holding his cigarette between his fingers. Woo Ho-geun took this as his cue to continue.
"Hostile takeovers have never been attempted in Korea before. So, in a way, I can understand why they've been complacent."
Exhaling a thick cloud of white smoke, Chairman Woo spoke gravely.
"As you said, there's a reason such a thing has never happened here."
"You're referring to the unspoken agreent among business owners."
Chairman Woo gave a small nod.
"Yes. There are unwritten rules and an order that everyone abides by. Breaking them would lead to condemnation and isolation from the business community."
Despite his father's stern expression, Woo Ho-geun remained composed as he replied, "That's true. But if the potential gains from a hostile takeover outweigh those consequences, isn't it worth considering?"
"What do you an by that?"
Chairman Woo narrowed his eyes, and Woo Ho-geun responded with a knowing smile.
"You know that the two core pillars of Daheung Group are Mido Departnt Store and Daheung Textile."
Chairman Woo gave a small nod, prompting Woo Ho-geun to continue.
"At the top sits Chairman Park Tae-hong, and beneath him, the conglorate is structured like a pyramid, with its key subsidiaries in retail and textile manufacturing overseeing nurous smaller affiliates."
"That's not unusual. Most conglorates are structured that way."
"Of course."
Even Donghae Group, which Chairman Woo led, was structured similarly, with its holding company, Donghae Oil, at the center of a pyramid-like ownership structure.
"But there's one fatal weakness in Daheung Group's governance structure."
"A weakness?"
Before he realized it, Chairman Woo Yong-gap had leaned forward, intrigued.
"Yes. The key point is that Mido Departnt Store is the largest shareholder of Daheung Textile, holding a substantial 32.8% stake."
"...!"
"In other words, acquiring Mido Departnt Store ans we can take over the entire Daheung Group."
The unexpected revelation made Chairman Woo's eyes widen. Without thinking, he swallowed dryly.
This wasn't just about so minor company—Daheung Group was a conglorate ranked among the top 50 in the business world. It was a ga-changing opportunity.
"If we successfully absorb Daheung Group, our size will expand significantly, allowing us to break into the top 30 rankings."
Breaking into the top 30 wasn't just about climbing the rankings—it ant being recognized as one of the country's elite conglorates.
Naturally, the prestige and influence that ca with such status were imnse. For instance, at national events or etings between the president and corporate leaders, invitations were typically extended to the top 30 groups.
Chairman Woo had long harbored ambitions of elevating his company into that exclusive circle.
A hostile takeover would undoubtedly draw severe backlash and criticism from the business community, where such moves were considered taboo.
However, the potential rewards were far too tempting to simply walk away.
After a long mont of contemplation, Chairman Woo found himself unable to resist the lure. His gaze darkened as he looked at his son and asked,
"So, what exactly is your plan?"
A deep smile played on Woo Ho-geun's lips as he confidently laid out his strategy.
"It's quite simple. We secure a 50% 1 shareholding in Mido Departnt Store, convene an ergency board eting, dismiss the current managent, and take control."
Chairman Woo frowned. For all his son's confidence, the plan seed almost too straightforward.
"Chairman Park isn't a fool. The mont we start acquiring shares, he'll notice and take counterasures. What then?"
Woo Ho-geun, unfazed, responded with ease.
"Of course. But we'll use Donghae Peregrine Securities as a front, making it appear as a foreign investnt. anwhile, we'll have our allied entities discreetly acquire shares on our behalf. That way, they won't suspect us imdiately."
His voice carried the certainty of soone who had ticulously refined this plan in his mind countless tis.
"By the ti they sense that sothing's off, we'll have already secured a significant stake. At that point, even if they see what's happening, they'll be powerless to stop it."
As the cigarette burned almost to the filter, Chairman Woo Yong-gap ground it out in the crystal ashtray and spoke.
"I'm not sure if such an obvious tactic will be enough to deceive Daheung Group."
"The law allows foreign investors to acquire up to 15% of dostic companies, and with foreign investnt actively flowing into the stock market, even if we start accumulating shares, they won't imdiately find it suspicious."
"Hm. Even Donghae Yuryang has its foreign ownership maxed out at 15%."
At Chairman Woo's nod, Woo Ho-geun agreed.
"The sa applies to other conglorates, so Daheung Group likely won't raise any major concerns either. Before we exceed the 15% limit, we'll transfer the shares to ourselves or trusted allies, ensuring they remain unaware for as long as possible."
Woo Ho-geun, his expression serious, locked eyes with his father and asserted firmly.
"As you ntioned, a hostile takeover has never been attempted in Korea. Even if their stock price rises and share movents occur, it will take them quite so ti to realize our true intent."
"That's likely."
After all, before hearing this plan, Chairman Woo hadn't even considered the possibility of a hostile takeover himself.
"While they scramble in confusion, we'll tighten the noose and seize control. This is a battle we cannot lose."
Leaning forward, Woo Ho-geun pressed his case.
"We have a feast laid out before us. If we let this opportunity slip through our fingers, we'll regret it for the rest of our lives."
"..."
Chairman Woo tapped the armrest of his sofa with his fingers, lost in deep thought.
"How much capital do you estimate we'll need to acquire Mido Departnt Store's shares?"
"Around 300 billion won should be enough to secure a majority stake."
As expected, the hefty sum made Chairman Woo's expression tighten.
"To raise that amount, we'd have to scrape together every bit of spare cash the group has."
Lowering his voice, Woo Ho-geun subtly suggested,
"There's no need for that. We have idle funds sitting in the safe."
"Idle funds? Don't tell
you're referring to the CDs left in our care by the in-laws."
Chairman Woo's face darkened as he shot his son a sharp look.
"They're no longer in-laws. Seo-ah has already divorced her husband. And with the slush fund scandal, forr President Noh's camp isn't in a position to demand the CDs back. That money is as good as unclaid."
"Drop it. Don't be greedy."
Chairman Woo's voice was firm, his expression sour.
"Even if he's a toothless tiger now, a predator is still a predator. If he mobilizes the connections he still has in politics and governnt, it could beco a major headache."
"Then we just borrow it temporarily and replenish it later."
"..."
"They aren't leaving that slush fund untouched out of goodwill toward us. They simply can't touch it because the prosecution is breathing down their necks, investigating every corner."
Indeed, when the slush fund scandal broke, both Chairman Woo Yong-gap and Chairman Moon Byung-kwon of ST Group, once in-laws, had been the first to be summoned by prosecutors under suspicion of helping to hide the funds.
Chairman Woo had insisted during questioning that he had never received any special treatnt—on the contrary, he claid, their in-law relationship had only brought him unnecessary trouble. He vehently denied ever holding onto hidden funds.
However, in reality, he was safeguarding a staggering 100 billion won in slush funds, all stored as cash and certificates of deposit (CDs), allowing him to evade prosecution.
"Even banks charge interest. Think of it as borrowing the money in exchange for safekeeping it."
Despite his son's persistent persuasion, Chairman Woo couldn't make up his mind. Deep wrinkles ford between his brows as he struggled with the decision.
Forr President Noh was a concern, but what troubled him even more was the possibility of rekindling the slush fund investigation, which had seemingly been put to rest after the imprisonnt of two forr presidents.
'That must never happen.'
However, the thought of letting this opportunity slip away was unbearable. Mido Departnt Store—no, the entire Daheung Group—was too tempting a prize.
After much deliberation, Chairman Woo Yong-gap finally made up his mind. His expression hardened as he spoke firmly.
"We need to make sure there are no loose ends for the prosecution to follow. The laundering must be airtight."
At last, he had given his approval. Woo Ho-geun flashed a wide grin.
"Don't worry. We'll disguise it as capital flowing in from Hong Kong through Peregrine Securities, which is working with us. No one will suspect a thing."
Seeing that his son had already devised a way to conceal the source of funds, Chairman Woo nodded in approval.
"Have you decided where to place the friendly shares?"
"I'm considering Baekje Industries."
"A solid choice. When it cos to critical matters like this, family is the only one you can truly trust."
Baekje Industries was owned by his wife's family, making it, in a way, a family business.
"I'll assign Chief Secretary Jeon to assist you. Work with him and push this forward."
At the ntion of Jeon Hae-cheol, Chairman Woo's most trusted aide, Woo Ho-geun hesitated for a mont.
It felt as if his father didn't fully trust him and was placing a watchdog to keep an eye on him.
Still, he suppressed his discomfort and bowed his head in response.
"Understood."
After discussing the details for a while longer, Woo Ho-geun finally left the study.
Now alone, Chairman Woo picked up the file in front of him and flipped through the pages once more.
"To think he'd co up with sothing like this… It seems his ti in Hong Kong wasn't just wasted."
The son who had once been nothing but trouble was finally proving to be useful.
"If this all goes according to plan…"
As the thought of swallowing Daheung Group whole took hold, his eyes glead with insatiable greed.
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