Chairman Park Tae-hong, montarily at a loss for words, furrowed his brows and turned to Seok-won.
"Explain it in a way that makes sense."
"It's exactly as I said. Let's make the shares they fought so hard to buy completely worthless."
Seok-won shrugged.
"And how do you plan to do that?"
At the chairman's repeated question, Seok-won smiled and answered calmly.
"Mido Departnt Store is at the center of the group's governance structure because it holds a 32.8% stake in Daeheung Textiles, right?"
"That's correct."
Daeheung Group's structure revolved around Chairman Park Tae-hong, with its two core subsidiaries—Mido Departnt Store and Daeheung Textiles—each overseeing several affiliated companies in a pyramid hierarchy.
At first glance, it seed like an ideal corporate structure.
However, problems arose when Mido Departnt Store beca the largest shareholder of Daeheung Textiles with its 32.8% stake.
This created a fatal vulnerability: anyone who gained control of Mido Departnt Store would automatically seize control of Daeheung Textiles and, by extension, the entire Daeheung Group.
"It may have been an unavoidable consequence of Mido Departnt Store supporting Daeheung Textiles during the textile industry downturn, but the weak point it created was far too critical."
Chairman Park Tae-hong was well aware of this issue.
However, since Mido Departnt Store was the only subsidiary consistently generating profits and bringing in large sums of cash, he had been hesitant to make any drastic changes.
"The fact that no hostile takeover has ever been attempted in Korea must have lulled the chairman and the group's executives into a false sense of security."
Pushing aside his thoughts, Seok-won t the intense gazes of the three n before continuing.
"If we transfer our stake in Daeheung Textiles elsewhere, wouldn't Mido Departnt Store's value as an M&A target plumt?"
The chairman and the other two n widened their eyes in shock.
"…!"
"Transfer the textile shares elsewhere…?"
Up until now, their sole focus had been on acquiring more shares to defend their control.
None of them had even considered such a strategy.
It was as if Seok-won had just struck them all over the head with a hamr.
Realizing what Seok-won was getting at, Chief Secretary Gil Sung-ho let out a quiet gasp.
"If we follow your plan, even in the worst-case scenario, we won't lose the entire group."
President Park Jin-hyung, still astonished, stared at his younger brother.
"How did you even co up with this?"
"It's simple. If we engage in a stock battle with Donghae Group, we might win, but the aftermath would be devastating."
President Park Jin-hyung nodded in agreent. That was precisely what had been worrying him.
"Exactly. The public tender offer price has already reached 40,000 won per share. If this fight escalates, who knows how much higher it'll go?"
"Even if we win at the shareholders' eting and retain control, it'll be a Pyrrhic victory."
Right now, the group was scraping together every available cent to finance the stock battle. Because of this, major business plans—like the expansion of the second factory in China—had been put on hold or indefinitely postponed.
That was the best-case scenario.
If they ended up borrowing money through bank loans or high-interest private financing to fund stock purchases, the burden would eventually co back to haunt them.
"Given that lenders are fully aware of the ongoing stock battle, it's obvious that any ergency funds we secure will co with exorbitant interest rates."
On top of that, considering the impending IMF crisis, waging a capital war against Donghae Group was the worst possible strategy.
Although Chairman Park Tae-hong and the others weren't aware of the looming IMF crisis, they did understand that the stock battle was nothing short of self-destruction.
Still, they had no choice but to pour in every available resource. If they lost control of the group, there wouldn't be a future to worry about.
"Donghae Group is also feeling the financial strain from this premature M&A attempt."
At this, the three n nodded in unison.
"They've thrown an enormous amount of money into acquiring shares. But what if, after all that, Mido Departnt Store turns out to be an empty shell?"
A smirk curled up on one side of Seok-won's lips.
It was undoubtedly a strategy that would deal a serious blow to Donghae Group.
However, Chairman Park's face grew even more rigid.
"Are you telling
to give up Mido Departnt Store? Sure, if we transfer our stake in Daeheung Textiles elsewhere, we can prevent the loss of the entire group. But we'll still lose the departnt store and all the subsidiaries under it."
His voice was laced with displeasure.
"If the departnt store goes, along with Korea Economic Daily, our securities firm, and other subsidiaries, half the group will be gone."
Chief Secretary Gil Sung-ho also voiced his concern.
Technically, it was only "half" the group, but in reality, it was the most profitable half.
If they lost Mido Departnt Store, Daeheung Group's status would shrink drastically.
Daeheung Securities, which had been flourishing under Seok-won's leadership and posting consecutive profits, was also a subsidiary of Mido Departnt Store.
There was no need to explain further.
"It's certainly an unconventional and clever approach, but the losses seem greater than the gains if we give up the departnt store."
As everyone expressed their doubts, Seok-won remained unfazed.
"When did I ever say I was giving up Mido Departnt Store?"
"But you just said you'd transfer the textile shares elsewhere and make Donghae Group overpay for Mido Departnt Store stock."
"That's true. But I never said I'd actually hand over the departnt store to them."
"What?"
Chairman Park furrowed his brows.
President Park Jin-hyung shook his head, rubbing his temples, while Gil Sung-ho looked just as perplexed.
Under their scrutinizing gazes, Seok-won continued, completely unbothered.
"We'll drive up the tender offer price, forcing Donghae Group to overpay for shares. But before the special shareholders' eting, we'll make them cough up all those shares at rock-bottom prices."
Everyone's expressions scread disbelief.
Chairman Park was the first to challenge him.
"That's impossible. How do you plan to pull that off?"
"Because I—no, we—are about to loot an empty house."
Seok-won flashed a grin.
"Loot an empty house?"
Chairman Park Tae-hong frowned, tilting his head in confusion before finally losing his temper.
"You brat! Speak so I can understand!"
"It's exactly as I said. They're trying to steal Mido Departnt Store's managent rights. But instead of just defending, we'll turn their own strategy against them and attack Donghae Yuryang."
Chairman Park's eyes widened.
"Donghae Yuryang? That's the parent company of Donghae Group!"
"That's right. It controls all of their subsidiaries. If we strike there, we'll be targeting their Achilles' heel—one that could shake their entire group."
As the three n stared at him in shock, Seok-won continued in a calm, asured tone.
"Chairman Woo Yong-gap and his family own 27.6% of Donghae Yuryang. It's higher than the stake we hold in Mido Departnt Store, but it's still not enough to ensure complete control."
"...!"
For most chaebol (conglorate) families, even a 25% stake was considered a solid foundation for control.
However, if they beca the target of a hostile takeover—just like Mido Departnt Store—the situation would change completely.
"Once they've poured every last penny into acquiring Mido Departnt Store shares and find themselves stuck in a financial quagmire, we'll launch an attack on Donghae Yuryang. At that point, they'll have no way out."
Chairman Park's eyes glead with realization.
"That's right! If their headquarters is under siege, they won't have the luxury of attacking elsewhere."
Excited by the clever plan, Chairman Park slapped his knee in delight.
However, Secretary-General Gil Sung-ho remained cautious and pointed out a critical concern.
"But if they seize control of Mido Departnt Store before we've secured enough Donghae Yuryang shares, we'll be the ones in trouble."
President Park Jin-hyung nodded, sharing the concern.
"It's a brilliant idea, but the timing is tricky. And more importantly, they're not idiots—they won't just sit back and let this happen."
Even so, the strategy was undeniably a way to catch their rivals off guard.
Park Jin-hyung sighed in frustration.
"If only we already had a significant amount of Donghae Yuryang shares…"
"Wait, you don't an—?"
Seok-won's lips curled into a confident smile.
"We've already secured over 15% of Donghae Yuryang's shares, and we're still buying more."
"!"
All three n looked utterly stunned.
Chairman Park leaned forward, eyes wide, demanding an explanation.
"How the hell did you manage that?"
"I just used the sa tactic that Donghae Group did."
Realizing what he ant, Secretary-General Gil Sung-ho gasped sharply.
"Then… you disguised yourself as a foreign investor to acquire shares?"
"That's right. You rember how I warned long ago that Donghae Yuryang's weak governance structure made it vulnerable to a hostile takeover, don't you?"
"I do."
Chairman Park Tae-hong nodded slightly, his face full of regret.
"Just in case, I set up a few paper companies in Hong Kong. The mont I found out that Donghae Group was targeting Mido Departnt Store, I imdiately started acquiring Donghae Yuryang shares."
"Huh..."
Chairman Park let out a low exclamation. President Park Jin-hyung and Secretary-General Gil Sung-ho, too, couldn't hide their admiration for Seok-won's quick thinking and decisive action.
While they had been scrambling to respond to Donghae Group's M&A attempt, Seok-won had already foreseen the situation and made the first move.
As their impressed gazes focused on him, Seok-won calmly continued his explanation.
"If we acquire just 5% more on top of what we already have and call for an ergency shareholders' eting, Donghae Group will be under enormous pressure."
"That's for sure."
"At that point, they'll have to make a choice—either continue the risky takeover of Mido Departnt Store or abandon the M&A and co to the negotiation table with us."
"Hah!"
Chairman Park, whose face had been tense monts ago, burst into laughter.
"Here I was, thinking we'd be stuck on the defensive. But instead, we're about to smack them from behind. Just imagining it is satisfying!"
"Exactly. Donghae Group would never have expected to be caught in their own trap like this."
President Park Jin-hyung, now more relaxed, nodded in agreent.
Just then, Secretary-General Gil Sung-ho adjusted his gold-rimd glasses and spoke up.
"But there's still one issue left."
"What is it?"
"To execute this plan, Mido Departnt Store's textile shares need to be sold to soone else. But none of our affiliates are in a position to take them. If we use any questionable thods, Donghae Group will seize the opportunity to challenge us."
"Ah, don't worry about that—I'll take them myself."
Seok-won replied nonchalantly, causing Chairman Park to blink in surprise.
"You'll take them?"
"Yes. More precisely, I plan to acquire them through Daeheung Venture Capital."
Hearing this, Secretary-General Gil Sung-ho tilted his head in doubt.
"Even at a low price, it would still cost at least several hundred billion won. As far as I know, Daeheung Venture Capital doesn't have that kind of spare capital."
"It does now. I made an additional investnt and increased its capital by $400 million."
At this, Chairman Park's expression shifted, as if sothing had clicked in his mind.
"With your own money?"
"Yes. Now that it's officially my private company, I figured it was ti to grow it properly."
Since all three of them were well aware of Seok-won's substantial wealth, they nodded in understanding.
For so reason, Seok-won shot a brief sideways glance at his older brother, President Park Jin-hyung, before revealing the final piece of his plan.
"Once we secure the managent rights, and after everything settles down, we'll exchange these shares with the group's securities holdings."
"You're saying you'll swap them for securities shares?"
"You were planning to give
the securities division anyway."
Seok-won said with a sly smile.
"Well, that's true, but..."
Chairman Park Tae-hong trailed off, then suddenly turned to look at his eldest son as a thought crossed his mind.
"Since we were going to separate the affiliates eventually, this might be a good opportunity to reorganize the shares."
Everyone imdiately understood that Seok-won was being considerate of his older brother, Park Jin-hyung. Now that Daeheung Venture Capital—Seok-won's private company—was set to beco the major shareholder of the textile company, he was ensuring that no unnecessary misunderstandings would arise.
"Yes, that would be for the best."
Chairman Park nodded in agreent, his gaze softening as he looked at both his sons.
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