Grandpa had an incredibly busy day.
Just last year, he spent more ti abroad than in Korea.
But now, with Federation of Korean Industries (FKI) etings and governnt negotiations, he was so tied up in Korea that he hadn't even been near an airport lately.
"I don't know why people won't just leave alone. I feel like a punching bag, getting hit from every direction!"
"What happened today?"
"The governnt wants the FKI to orchestrate a Big Deal between companies. Do you know what they proposed?"
A Big Deal was, quite literally, a massive corporate transaction.
To overco the financial crisis, the governnt was pushing for large corporations to exchange subsidiaries, restructuring their business portfolios.
"Did they suggest swapping Taewoo Electronics for Samsung Motors?"
"How did you know?! Do they even understand how much effort I put into building Taewoo Electronics? And now they want to trade it for a car company?!"
This situation had played out in my past life, too.
Back then, however, Samsung Group refused the deal, seeing Taewoo Electronics' massive debt as too big a risk.
But this ti, the roles were reversed.
Thanks to the success of the InnoPhone, Taewoo Electronics' image had drastically improved.
My aggressive restructuring had also transford its stale corporate culture.
As a result:
Dostic and international market shares were skyrocketing.
Most importantly, Taewoo Electronics had zero debt.
So it made perfect sense for Grandfather to be furious.
"Swapping Taewoo Electronics for Samsung Motors would be a terrible deal for us. Just look at the debt ratio, revenue, and net profit margin—we'd be at a huge disadvantage."
"You think so too? That's why I slamd the table and walked out!"
"You did the right thing. Were there any other Big Deals discussed?"
"Yes. They want to rge CL Group's semiconductor division with Hyundai Electronics."
I couldn't help but salivate at the thought.
Like Grandpa, I had an insatiable hunger for corporate acquisitions.
"So CL Group's semiconductor division is going to Hyundai Group?"
"You sound disappointed. Back in the '80s, I tried to start a semiconductor business and got burned badly. But I never lost my desire for it."
"Semiconductors are a money pit. Of course, once they're stable, they beco a powerful cash cow, but getting there takes an enormous investnt."
"Everyone knows that. That's why Chairman Go of CL Group is furious. He spent all that money on early-stage investnts, and now they're taking it from him. I'd be angry too!"
The previous administration had a terrible relationship with Hyundai Group.
However, the current administration was much friendlier, making it highly likely that they were pushing CL Semiconductors into Hyundai's hands.
"Chairman Go must be devastated."
"He even threatened to withdraw from the Federation of Korean Industries (FKI). I barely managed to talk him out of it, but I doubt he'll be attending any etings for a while."
"Give him two or three years. His anger will subside."
"You clearly don't know Go. He's one of the most stubborn n I've ever t. When he sets his mind on sothing, he follows through to the end."
CL Group was known for its noble heritage.
And if there was one thing about nobility, it was their unyielding pride—once an enemy, always an enemy.
"Wouldn't his anger fade if Hyundai Semiconductors collapsed?"
"Ha! You think Hyundai Semiconductors is going to fail? Their technology is world-class!"
"That's only because Chairman Jang Ju-young is still around."
"I did hear his health is deteriorating…"
The Hyundai Group Succession War had already begun, quietly but inevitably.
In two to three years, it would erupt into full-scale conflict.
"Hyundai Group is bound to split apart. With so many heirs, the company will be divided."
"Chairman Jang wants his eldest son to inherit the group."
"Then, wouldn't it make sense for him to give the semiconductor division to one of the other heirs?"
"You think Hyundai Semiconductors will beco independent?"
"As I said, semiconductors are a money pit. The industry follows a boom-and-bust cycle. During the boom, companies rake in cash, but during the bust, they suffer massive losses."
Grandpa leaned in, intrigued.
I had just introduced him to the semiconductor cycle theory, sothing still relatively unfamiliar at the ti.
"Are you saying the industry goes through cycles of prosperity and downturn? And that a downturn is coming soon?"
"Yes. And when the industry hits its downturn, semiconductor companies depend on their parent groups for financial support. But if Hyundai Semiconductors becos independent, it will lose that safety net—forcing it back onto the market."
"And that's when we buy it?"
At that mont, Grandpa's expression lit up—the sa expression he always had when discussing corporate acquisitions.
"So, we'll end up acquiring both CL Semiconductors and Hyundai Semiconductors at an even lower price than now?"
"Haha, I like this. We need to hold onto enough capital to buy Hyundai Semiconductors when the ti cos."
"But what if I'm wrong? Are you really going to just sit on the cash?"
"When have you ever been wrong? Since the IMF crisis, I decided I'd believe anything you say."
Should I be happy about this?
Grandpa had changed too much—to the point where his trust in bordered on fanaticism.
"I could still make mistakes. I need your guidance."
"If you ever need my advice, of course, I'll give it. But so far, it doesn't look like you need any. You've acquired SS Oil, and soon, you'll acquire Kia Motors. What kind of advice would you even need?"
There was a reason for his unwavering faith in .
I wasn't selling off subsidiaries—I was acquiring them.
And despite all these acquisitions, the debt ratio wasn't increasing.
To Grandpa, my track record wasn't just impressive—it was almost divine.
"Was there anything else discussed at the eting?"
"They talked about reforming the chaebol governance structure. The governnt wants us to increase internal shareholding and form a board of directors to run our companies."
"That sounds like they want us to adopt the Arican system. Increasing treasury shares to boost our stake—that's actually a good idea."
"That's what I was thinking, too. Do you know why Taewoo Shipbuilding ended up going to Hyundai Group? Because I didn't own enough shares! If I don't want that happening again, I need to hold onto my stakes tightly."
After the IMF crisis, chaebol governance structures underwent massive reforms.
The era of ruling a conglorate with minimal ownership was coming to an end.
I had expected Grandpa to oppose this policy, but instead, he was fully on board.
Ironically, losing Taewoo Shipbuilding had reinforced the need for stronger ownership control.
"Ah! Also, through Taewoo Electronics, I'm planning to acquire a few music distribution companies."
"Are you really planning to enter the music industry too?"
"I'm planning to enter the digital music distribution industry. Soon, I'll be spinning off Taewoo Electronics' IT division and taking it public as a separate subsidiary to expand into internet-related businesses."
"Do as you see fit. You can even transfer our movie theater and multiplex businesses under that division if needed."
As expected, Grandpa was endlessly generous when it ca to corporate acquisitions.
To gain his favor even more, I had to succeed in acquiring Kia Motors.
Ti to check on Dimon and see how things were progressing.
***
When I arrived at Captain Kang's office, Dimon was already hard at work.
The mont he saw , he flashed a thumbs-up, signaling good news.
"Kia Motors has officially been put up for international bidding."
"How many companies have entered the race? I assu Hyundai Motors is one of them?"
"Of course. But there's more—Samsung Motors has tead up with GM to bid for the acquisition."
Wait, what?
That's different from the history I know.
In my past life, Samsung Motors partnered with Ford, not GM.
But this ti, they had joined forces with GM instead.
Was this… because of ?
Taewoo Motors had already ford a joint venture with Ford, aning Samsung Motors might have hesitated to work with Ford.
Instead, they likely saw GM as their best alternative.
"Samsung Group is taking a huge gamble. If they sit back and do nothing, the governnt's big deal policy could force them to give up Samsung Motors. So now, they're trying to secure Kia Motors to protect themselves. This won't be an easy fight."
"That's why SAVE Investnt and Ford have decided to join forces in the bidding war."
"Wait… Ford? Are they doing this just to block GM from getting their hands on Kia Motors?"
"I subtly nudged them in the right direction. I told Ford that GM was going to pull so dirty tricks to take over Kia Motors, and asked if they wanted to join forces. They took the bait imdiately."
I was glad I entrusted this to Dimon.
Bringing Ford in as a disruptor was a brilliant move.
"Make sure the other bidders completely lose interest in Kia Motors."
"I've prepared evidence of Kia Motors' accounting fraud. Plus, I don't even need to do much—their labor union is already on strike, which will naturally drive bidders away."
I left everything in Dimon's hands.
And he delivered results.
During the first bidding round, he leaked evidence of fraudulent accounting practices and militant union activity, causing the bid to fail.
During the second round, he escalated the chaos, even getting into heated argunts with the creditors.
Now, the third and final bidding round for Kia Motors was underway.
Since SAVE Investnt and Ford had harshly criticized Kia Motors during the second round and pulled out, the creditors were visibly nervous.
This was the perfect mont for my grandfather and to make our move.
The Taewoo Group was a new bidder, and for the creditors, we were like a lifeline thrown to a drowning man.
"Since everyone is busy, let's keep this short. If you agree to write off 5 trillion won in debt, we'll purchase Kia Motors for 3 trillion won."
Grandpa ca out aggressively from the start.
The creditors swallowed hard, hesitating before responding.
"A 5 trillion won debt write-off is too much."
"We know the conditions Hyundai Motors has proposed. 1.2 trillion won in cash and 2.5 trillion won in debt-to-equity conversion, right? Compared to that, wouldn't you rather have 3 trillion won in cash right now instead of shares that may or may not pay off in the future?"
At this stage, the strongest bidder was Hyundai Motors.
But they were cash-strapped, so they were offering to convert debt into company shares rather than pay upfront.
"Hmm… since you already know the details, we'll be frank as well. While cash won't co in imdiately, if Hyundai Motors takes over, Kia Motors' stock price will rise. In the long term, the debt-to-equity swap could be more profitable."
"I'm not finished yet. We won't pay in won, but in U.S. dollars. I know banks are desperately short on dollars right now. 3 trillion won in U.S. dollars should help, don't you think?"
"That's true, but… your conditions are still too extre."
The negotiation turned into a tense tug-of-war.
Grandfather handled the creditors like children, pressuring them while giving them just enough leeway.
Eventually, a compromise was reached.
"Fine. We'll increase our offer to 3.5 trillion won, all in U.S. dollars. That's far better than what any other company is offering. If soone else can offer a better deal, we'll walk away."
"We'll convene a creditors' eting and get back to you."
But did they really need a eting?
Samsung Motors and Ford had offered much less.
And Hyundai Motors didn't have the cash to beat our offer.
It was only a matter of ti before we sealed the deal.
TL/n -
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