CH422 | Heir

March had come.

As the weather eased, people bustled about.

At Taewoo Group, no one was busier than Vice Chairman Han.

“We got another call from the Blue House chief of staff yesterday. They check in at least once a week, asking how the negotiations over the real estate PF are progressing.”

“The election is just around the corner. What do they expect us to do now? Just stall them.”

“That’s what I’ve been doing. I told them American financial firms are against a government-led project, so persuading them would take time.”

Time was on our side.

In fact, it felt as though the government itself was helping us.

The administration was paying close attention to the real estate PF. The ruling party seemed to believe they might seize it as a state-led project, which was why they never attacked it.

“So the real estate PF won’t be a problem. But what about Saemangeum? Still noisy?”

“Citizen groups and local organizations are clashing head-on. In Honam regional news, Saemangeum is always the lead story.”

“The fact that it’s making news means the local groups are pushing back hard. That’s not a bad thing.”

“Representative Choi Jaeseok has been touring Honam, rallying support. He’s been warning that if the citizen groups win, investments worth trillions will go up in smoke.”

The effectiveness of a message depends on the strength of the speaker.

In politics, few were better amplifiers than Representative Choi. In Jeonbuk, there wasn’t a soul who hadn’t heard about the trillions set to be invested in Saemangeum.

“As the weather warms, the protests will only get more intense.”

“They already had a major clash yesterday. Local residents pinned their ID cards to their foreheads and staged a mass protest against the civic groups, shouting, ‘Where are you from, to stand in the way of Jeonbuk’s development?’”

The civic groups had drawn members from all over the country.

There’s a saying that even a mutt has the home-field advantage in its own yard. With the general election right around the corner, the residents’ home-ground advantage was something that couldn’t be ignored.

“The fiercer the protests, the greater the attention. As long as they don’t turn violent, continued demonstrations only work in our favor.”

“Some protesters have even declared they’ll vote for the People’s Economy Party out of anger, saying it’s the only way to get their voices heard. That’s exactly why our support is climbing as the protests go on.”

It was an excellent development.

The People’s Economy Party was naturally sinking its roots into Honam.

“How’s the shipping big deal coming along?”

“The situation is getting very interesting. Whether it’s Hyunjin Shipping or Hyundai Merchant Marine, the real owners are the creditors. They’ve demanded self-rescue plans from management, but the proposals so far are disappointing.”

The bar set by the creditors was extremely high.

Before my return, there had been no choice but to accept those demands or submit to court receivership. But now, another path existed.

“If they’re dissatisfied with the plans, they’ll move to bankruptcy or force a sale.”

“The losses are so deep that no one has shown interest in buying a shipping company. But the moment Taewoo Group signaled it would consider a purchase if the big deal came together, the creditors perked right up.”

Among the creditors, the organizations with the greatest leverage were the government-owned financial institutions.

The Korea Development Bank, the National Pension Service—institutions that could mobilize massive sums—held the largest share of the debt.

But because they had to move in line with government policy, they were in no position to make independent decisions.

The private financial institutions were different.

They wanted whatever would maximize returns, and they knew very well that selling the company, not letting it collapse, was the option that minimized their losses.

“The private creditors are pressing the government to move forward with the big deal.”

“Of course. If the government steps in, part of their losses can be offset with tax money. That’s why creditors are desperate for state support.”

“The problem is, the government has signaled it’s leaning toward saving just one shipping company instead of pursuing a big deal.”

After all, the Korean government couldn’t afford to abandon the country’s shipping industry entirely. But neither could it justify pouring huge sums of taxpayer money into two companies. Their choice was to keep one alive and let the other go.

“We need to make sure the creditors push back. If they want to limit their losses, they’ll have to convince the government to accept a big deal.”

“And for that, management has to present much stronger, more realistic self-rescue plans. If I were on the creditor side, I wouldn’t be willing to make concessions while management does nothing.”

Management, creditors, government.

Each had its own stake, and only if all three took losses would the big deal be possible.

“The government’s stance will change depending on the election results. And if management benefits from the real estate PF projects, they’ll be forced to put forward tougher self-rescue measures. Once that happens, the creditors will naturally move toward debt write-offs.”

“I’ve already leaked a bit of information to Hyundai Group and Hyunjin Group through the Finance Tower.”

“Then they’ll be calling soon. Keep handling things just as you are.”

The more complex the issue, the more important it was to resolve it step by step.

And once the general election was won, the whole knot could be untangled far more easily than expected. That thought kept me from worrying too much.

“And one more report, Chairman.”

“Judging by your face, I take it this is good news.”

“There’s a shortage of our new drug in the U.S. People are going as far as visiting out-of-the-way pharmacies trying to get their hands on Yugobin.”

The Yugobin craze was still going strong.

Demand was exploding far beyond what we had predicted, and every batch produced at Centurion was being sucked into the U.S. market like a black hole.

“It looks like the market’s been heated up enough. We can start promotions now and move into mass distribution.”

“Most of Centurion’s inventory has already been shipped to the U.S. I’ll give the order to start two-shift production.”

“The new plant can start running too, right?”

“They’ve already succeeded with test production, and staffing is complete. Large-scale production can begin as early as today.”

In a way, Yugobin was like the iPhone.

A premium product priced well over a million won, with an exceptionally high operating margin.

“Once we go into mass production, the margins will grow even more.”

“At present, the operating margin is in the 30-percent range. Once mass production begins, projections put it as high as 45 percent.”

“The pharmaceutical business really does print money.”

“Compared to manufacturing, where average margins are under 10 percent, it’s extremely high. But drug development itself is incredibly difficult.”

There was a reason new drug development was often called striking gold.

Hit the jackpot with a single blockbuster drug, and a company could live off the profits comfortably for at least a decade.

Especially with treatments for chronic conditions like diabetes or obesity, where demand was endless.

“Revenue will spike this year, but real demand will explode starting next year.”

“I’ll make sure everything is in place so sales run smoothly.”

“Soon, Taewoo Group will be overflowing with money. And when there’s too much money, the flies inevitably start swarming. Which means we’d better spend it quickly, don’t you think?”

“If you bury it somewhere without a smell, the flies won’t come.”

Vice Chairman Han looked as if he’d just been spooked.

But there was no denying his instincts were sharp. He was already preparing a plan on a completely different scale than Saemangeum, the shipping merger, or the real estate PF.

“Starting next year, we’ll be spending a tremendous amount of money. So make sure you squeeze every possible profit out of Brexit in the meantime.”

“I’ll do everything I can to ensure nothing disrupts your plans. May I ask how much you intend to use?”

“Possibly most of the profits we earned from the oil war and the short attack on China.”

“That much?”

“Maybe even more.”

“I’ll head straight back to Financial Tower at once!”

Han bolted out, eager to make money.

But this time, I hadn’t been exaggerating just to scare him. We really were going to pour astronomical sums into the next move.

***

The 20th National Assembly election was held today.

From the morning, huge crowds poured into polling stations, and the news reported that voter turnout was expected to be higher than the last general election.

I wrapped up my work at ease, then headed to Captain Kang’s office with Vice Chairman Han to watch the ballot counting broadcast.

“I’ve got cold beer and instant noodles ready for a late-night snack.”

“You didn’t already cook the noodles, did you? They have to be firm and chewy to taste right.”

“Would I not know your taste, Chairman? I only boiled the water. Haven’t cooked them yet.”

There was no late-night snack better than ramen.

We boiled five packs and shared them while watching the exit poll results.

Since the three major broadcasters were releasing their polls simultaneously, we switched channels to compare. With his chopsticks in his mouth, Vice Chairman Han worked out the average.

“Taking the average of all three networks, the ruling party gets 85 seats, the opposition 75, the new party 10, and the National Economy Party 130! We didn’t secure a majority, but we’ve risen to become the largest party!”

“So in the end, no outright majority.”

“Still, it’s an incredible achievement. The National Economy Party held 92 seats in the last election. This time we’ve gained about 40 more. And whether it’s the ruling party or the opposition, if they join forces, they’d have enough numbers for a constitutional amendment.”

It wasn’t the best possible result, but it was close to second-best. The numbers were enough for Representative Choi Jaeseok to maintain political momentum even if he became president.

“The ruling and opposition parties together do exceed a majority. But since they don’t have the numbers to drive through a constitutional amendment, it’s not much of a threat.”

“Even with the new party added in, they still fall short of the threshold.”

Exit polls always had margins of error. Even giving the National Economy Party the most favorable numbers, 140 seats was the upper limit, while the worst-case was 120.

“So the National Economic Party has firmly established itself as a new pillar now.”

“Yes. Instead of the traditional two major parties, the National Economic Party has risen to become the largest party, while the ruling and opposition parties have been pushed down to second tier. Of course, if you look at national approval ratings, the gap between them isn’t that big, so it would be more accurate to call it a three-party system.”

The old parties had history on their side, with hardened, concrete-like support bases. The National Economic Party was pouring its own concrete now, but it hadn’t fully set yet.

“Still, in a three-way race, the National Economic Party will have the advantage in the presidential election.”

“The margin isn’t wide, but it’s enough to win.”

“The actual vote count hasn’t even started yet. Let’s wait and see a bit longer.”

I still had one card left to hope for.

Exit polls were famously reliable in presidential elections.

But for parliamentary elections, they often missed the mark.

Who’s to say this time would be any different?

The National Economic Party might end up securing even more seats than the exit polls suggested.

Of course, the opposite could happen too. But with the amount of money I had poured into this election, could the result really turn against me?