CH403 | Heir

The next day.

Vice Chairman Oh Yongjae reached out, and we arranged to meet at the annex of a traditional Korean restaurant run by Captain Kang.

“This must be the famous annex. I’ve heard it’s a place only those close to Chairman Kim are invited to.”

“I don’t know why such rumors spread, but this restaurant has little to do with me.”

“Please don’t underestimate Samsung Group’s intelligence network. While it may not match Taewoo Group’s, ours is far from lacking.”

There was no denying Samsung Group’s reach.

Over the years, they had built connections across a wide range of fields.
Within Korea at least, their intelligence network was stronger than Taewoo Group’s.

“I won’t deny that. Shall we begin with the meal?”

“No. Since yesterday I haven’t been feeling well and haven’t been able to eat properly. I don’t think I can eat until our conversation is settled.”

Vice Chairman Oh Yongjae was just as I remembered him—
a warm expression, an easygoing manner unusual for a man in his position.

Though he had not yet officially inherited the position and could not formally be called the head of the conglomerate, it was only a matter of time before he assumed that role.

“Then let’s get straight to the point. Yesterday, Chairman Oh Heegun asked me to assist with the succession process.”

“My father mentioned it to me yesterday as well. He told me to proceed with the succession under your guidance.”

“What do you intend to do? I’ll follow your decision, Vice Chairman. If you don’t wish for my involvement, I’m prepared to step aside at any time.”

Interfering in another company’s succession was always troublesome.

The term “succession process” sounded grand, but in reality it was little more than finding ways to reduce inheritance tax, sometimes bordering on outright tax evasion.

That was especially true for major conglomerates like Samsung Group, where the heir was already determined.

“I intend to follow my father’s wishes. In my entire life, I’ve never seen him praise anyone so highly. And it was the first time he had ever praised someone as young as you, Chairman Kim.”

“I can only be grateful that Chairman Oh thinks well of me. Whether I can live up to his expectations, I can’t say.”

“Then tell me, what should I do?”

I had already received a portion of Taewoo Group’s shares from Chairman Oh’s side.

The transfer went through in less than a day, handled swiftly, most likely by the chief secretary himself.

Since I had taken the advance, I needed to do the work.

But asking me for the method without laying down a single card of his own?

Did he think I was some kind of fortune-teller?
Well then, I might as well play the part.

“To resolve the succession issue, there’s no way around securing shares through a merger. Haven’t you been planning to merge Samsung Trading, which is the core of Samsung Group, with one of the affiliates where you hold a significant stake?”

“…Did that information leak somehow? Or did my father tell you directly?”

“Taewoo Group has the world’s top expert in mergers and acquisitions. Just by watching the trends in how Samsung Group’s shares move, it isn’t hard to figure out the succession strategy.”

Vice Chairman Oh Yongjae looked at me with clear disbelief.

Of course he did. It wasn’t knowledge I had obtained from any leaked information.

It came from memories before my regression—something no one but me could possibly know.

“Please, go on. What should I do?”

“It’s not a bad approach. To minimize inheritance tax, you’ll need to inflate the company’s value significantly in a short time. In the end, there’s no option other than the bio subsidiary.”

“You anticipated that much as well? No wonder my father told me to trust you.”

If I had taken the money, then I had to earn it.

The final decision, of course, would still rest with Vice Chairman Oh Yongjae.

“With that method, you can complete the succession process without too much difficulty.”

“That’s what I was thinking as well. It’s the strategy my experts came up with after months of work.”

“But there’s one very minor issue. It has nothing to do with succession itself, so you can ignore it if you’d like.”

Up to this point, I had only been repeating Samsung Group’s own strategy.

I hadn’t offered any new advice or insight. What I was about to say now—this was the part worth the money.

“What kind of problem is it?”

“It’s the kind of problem where Vice Chairman Oh would need to spend a short time in prison. Not long—about a year. Once that’s over, all issues with the succession will be resolved.”

“P-Prison? You mean I have to go to prison?”

“It’s not an issue right now, but once the administration changes, it will inevitably become one. Especially since you pledged twenty billion won to the Pyeongchang Olympic bid foundation, correct? With that added to the picture, you’ll face heavy attacks.”

In truth, the succession itself wasn’t such a big legal problem.

The method had been crafted by a team of Samsung Group’s legal and management experts, and from a legal standpoint, there was little room for issues.

But legality wasn’t the end of it.

Because the strategy could be seen as window dressing, public opinion would view it unfavourably.

The bigger issue was the Olympic bid foundation's support.

Since it was tied to succession, it could be interpreted as a bribe.

And so, between bribery and succession, Vice Chairman Oh Yongjae would eventually end up in prison.

“When such a large sum is contributed while succession is underway, it will inevitably look like a bribe. Accounting maneuvers might be overlooked, but bribery charges cannot be avoided.”

“Doesn’t Taewoo Group also plan to contribute twenty billion won, just like Samsung Group?”

“We’ve already completed our succession process. And we pledged to contribute in installments.”

“Even if it’s in installments, the total is still the same twenty billion, isn’t it? What difference does it make?”

The difference was enormous.

If the contribution was made as a lump sum now, the entire two billion would be spent at once.

But if the foundation scandal erupted two years later, Taewoo Group would have only contributed less than half by that point.

This was not something I could explain.

No matter how powerful Taewoo Group’s intelligence network was, predicting the exact timing of political upheaval was impossible.

“While the total doesn’t change, if trouble arises before the full term is up, the amount already contributed will be smaller, won’t it?”

“Hm. I’ll need to go back and discuss whether Samsung Group can adopt the installment approach.”

“But the bigger problem lies elsewhere. Support given to the foundation may be considered with leniency, but any personal support will be seen as outright bribery. Haven’t you been asked for personal donations by someone from the foundation?”

Vice Chairman Oh nodded vigorously.

As expected, events were unfolding in line with history.

“You must never give personal donations. Even if someone in power requests it, you must refuse firmly. That’s the only way to avoid problems once the administration changes. Otherwise, the only option would be to provide support in a way where the channel cannot be traced.”

“Could you help with that?”

“That sort of help is not difficult.”

A request from those in power.

Even Samsung Group could not completely resist such pressure.

For conglomerates, a president might be just a five-year guest, but a guest with imperial authority. For those five years, they had no choice but to serve him well.

But then again, you couldn’t serve him too well—because the next guest might take offense.

“And as for manipulating Samsung Bio’s books to inflate net profits, that’s dangerous. The numbers need to rise not on paper but in actual sales. That’s the only way to avoid suspicion.”

“Everyone knows that, but it’s not a method we can use. How could we suddenly boost bio sales? Unless we develop a breakthrough drug, it’s impossible.”

Samsung Bio was a pharmaceutical company where Vice Chairman Oh Yongjae held a significant stake.

They produced biosimilars and had a structure very similar to Centurion.

With my help, Samsung Bio could rise in value the same way Centurion had, whose corporate worth had multiplied dozens of times in just a few years.

“There are ways to increase revenue besides new drug development. Just look at what Centurion did.”

“You mean securing exclusive rights to sell insulin and swine flu treatments in the Asian market? If that were possible, I would invest as much as needed. But pharmaceutical companies don’t budge at ordinary sums of money.”

Naturally.

No company would easily hand over such a cash cow.

In Centurion’s case, I had made it possible only because I had invested a huge amount at the perfect timing.

“I’ve heard that Centurion is struggling to cover the entire Asian market alone for insulin and flu treatments. Rumor has it they’re looking for a new partner. If you’d like, I can build that bridge for you.”

“Are you saying you could help Samsung Bio secure the rights to produce insulin and swine flu treatments as well?”

Of course, the best method would have been developing a new drug.

If Samsung Bio co-developed the new drug Centurion had essentially stolen from Novo Nordisk, their stock price could soar overnight.

But why would I do them such a favor?

No matter how much I respected Chairman Oh Heegun, or that I was being compensated with Taewoo Group shares—there was no way I would hand over a new drug.

The most I was willing to give was insulin and the swine flu treatment.

“Insulin and the swine flu treatment would be far more effective than manipulating the books.”

“The problem is time. Samsung Bio can’t just start producing insulin and swine flu medicine right away, can it?”

Heavy industry, electronics, automobiles, pharmaceuticals—none of them could simply begin production with just blueprints.

Know-how had to be built, and that required years of trial and error.

For Samsung Bio, which needed to raise sales immediately, this wasn’t entirely good news.

“I’ll suggest a very simple method. Samsung Group can purchase Centurion’s Plant No. 1. As for the staff, they can keep working there for two years and then return afterward. Wouldn’t that be sufficient?”

“Would something like that really be possible?”

“It’s more than possible.”

Of course it was.

The moment the new anti-obesity drug was developed, all of Centurion’s factories would have to dedicate themselves to producing it.

That meant insulin and flu treatments would be pushed aside, and Centurion could offload part of the production volume to Samsung Bio.

It was an arrangement that worked just fine for Centurion too—since Samsung Bio would be paying them massive royalties.

“But can you really share the production rights for insulin and the flu treatment with Samsung Bio at your own discretion?”

“If you’d like, I could make it possible for Samsung Bio to begin producing both drugs as early as this week.”

There was no issue at all.

With insulin, when we obtained approval for the new drug, we had secured all rights to insulin production in Asia.

In other words, we had the authority to manufacture insulin in the region entirely as we pleased.

“I think I finally understand why my father spoke so highly of you, Chairman Kim.”

“But there’s something you should be aware of. Advice is one thing—I can give that freely at Chairman Oh’s request. But sharing the rights to two kinds of drugs is different.”

In other words, I was asking for compensation.

No one knew that Centurion was developing a new drug.

From the outside, it appeared that I was incurring a significant loss by splitting the production rights for the two medicines.

“I’ll provide land that Centurion can use for a new plant. If Samsung Bio purchases Plant No. 1, Centurion will need to build another, won’t it?”

“That’s a little insufficient. Would it be acceptable if I were to request additional compensation later? Of course, I won’t make any unreasonable demands.”

“As long as it’s reasonable and fair, of course I’ll agree.”

There were things I intended to extract from Samsung Group in the future anyway.

That’s why I asked for a modest offer now—not for immediate profit, but to build rapport with Vice Chairman Oh.