CH135 | VOC

Despite Kim Min-sik’s near-declaration of war at the press conference, the stock market remained relatively calm.

Usually, a hostile takeover attempt would send the target company’s stock price soaring, but the problem was that the announcement had come from Kim Min-sik.

Individual investors, unaware of the situation, started buying Daehoo shares, but institutional investors and market analysts were cautious.

“Does he really intend to acquire Daehoo?” one analyst asked.

His colleague shook his head. “No way. A hostile takeover is not that easy, and it’s Kim Min-sik. He must have another motive.”

Market experts were skeptical.

Hostile takeovers were difficult, and Kim Min-sik’s credibility in the financial world was near zero.

People were advising against accepting any offers from him, even if they were free. Who would partner with him on a major acquisition like Daehoo?

He had claimed to have no interest in management control, but no one believed him.

“Maybe Joongang Investment Corporation is profiting from this somehow?”

“That’s the most likely scenario. It’s a big story. Let’s investigate thoroughly.”

The Daehoo acquisition issue seemed to be fading away.

But then, three days later, Chunha Trading’s press conference turned the tables.

“I, Park Sol, and Chunha Trading have decided to join the Daehoo acquisition consortium proposed by Joongang Investment Corporation,” I declared with a serious expression, facing the flashing cameras.

“Chunha Trading will contribute 2.5 trillion won. I’ll take your questions now.”

A reporter, stunned by the amount, asked, “Does Chunha Trading really have 2.5 trillion won in assets?”

“Yes, we do.”

“But Chunha Trading is a mid-sized company, isn’t it? I heard your annual sales are only a few hundred billion won. How is that possible?”

I handed out prepared documents to the reporters.

“It’s true that our annual sales in Korea are a few hundred billion won. But that’s only a small part of our overall business. This document is a sales certificate issued by the Chinese Ministry of Commerce. Chunha Trading’s annual sales in China are…”

I smirked slightly. “…over 10 trillion won.”

It was mostly the gross sales from the department store, and the actual net profit was much lower, but it was still a fact.

The reporters gasped at the astronomical figure. “10 trillion won?! Chunha Trading? The raw materials company?”

“That’s more than the sales of some of the top 30 conglomerates!”

“Is this a joke?”

Another reporter asked, “If your sales are that high, why haven’t we heard of you before? Is there something you’re hiding?”

I responded calmly to the aggressive question, “This press conference is about Chunha Trading joining the consortium, not about verifying our sales figures. But since you asked, I’ll answer. We’re primarily an export-oriented company. Most of our sales are generated overseas, and we pay taxes locally. And we’re a privately held company, so we didn’t feel the need to disclose our sales figures. Does that answer your question?”

“What’s your ownership structure?”

I frowned. “That’s not a relevant question. I’ll only answer questions about the consortium. Next question.”

A reporter asked eagerly, “Does this mean you’re joining forces with Joongang Investment Corporation and aiming for Daehoo’s management control?”

I smiled slightly, finally hearing the question I had been waiting for.

“That’s a good question. We’re not interested in Daehoo’s management control, unlike Joongang Investment Corporation. We’re willing to transfer our voting rights to our partners for a certain period.”

The reporter tilted his head. “Then why are you joining the consortium? Joongang is an investment company, so it makes sense for them, but not for Chunha Trading.”

I said with a serious expression, “To uphold justice.”

The reporters were taken aback.

Justice? In the cutthroat world of finance, where money and betrayal reigned supreme?

I calmly explained my connection with Kim Yong-tae, Chunha Electronics, and Daehoo Group.

“And I couldn’t just stand by and watch. I was just trying to help my mentor, and Daehoo Group is obstructing him for no reason. It’s a small company with only a few hundred billion won in capital. It was a lifeline for a struggling developer. And they’re trying to crush him, exploiting legal loopholes. Yes, it’s legal, but is that all that matters? Why do we have ethics and morals? Daehoo is a large corporation, a leader of the Korean economy. They should be setting an example.”

My voice filled with indignation, I continued,

“Is it so difficult to live by common sense and decency? That’s why I’ve decided to take action. The company might be unethical, but what about the employees? It’s the management that’s the problem. Our reasons might be different, but our goal is the same as Joongang Investment Corporation’s: to replace the management team. 2.5 trillion won is a small price to pay for ethical and sensible management. We have no interest in management control.”

The camera flashes intensified, but I didn’t flinch.

“I sincerely hope this will contribute to a healthier corporate culture in Korea. Neil Armstrong said, ‘That’s one small step for a man, one giant leap for mankind.’ 2.5 trillion won is a small amount compared to Daehoo’s size and the overall Korean economy. But I want to show them that there are consequences for unethical behavior. Why do some large corporations act so recklessly? Because they know they can get away with it as long as they stay within the boundaries of the law.”

I subtly used the word “crime” to paint Daehoo as an unethical and shameless company.

“I want to send them a message. Thank you.”

I had established both the moral high ground and a plausible motive.

As I answered the reporters’ questions, I thought,

‘Daehoo, you’re screwed.’

The news that Chunha Trading was joining the consortium shook the business world.

People were surprised for two reasons:

They hadn’t realized Chunha Trading was such a large company, and they were also surprised that we, like Joongang Investment, weren’t interested in management control.

And Daehoo Group was equally surprised.

“First the Chinese, and now Chunha Trading. They’re ganging up on me.”

Chairman Kim Hoo-joong of Daehoo Group gritted his teeth, reading the newspaper article.

“What? Unethical? Justice? What kind of nonsense is this?”

Kim Sun-woong, his eldest son and vice chairman, said calmly,

“They’re just small fry, acting out of their league. Just ignore them, and they’ll go away.”

“Ignore them?”

“Yes, their combined assets are 7.5 trillion won. I doubt they even have that much money, and even if they do, it’s not a problem. We control the majority of the shares. This might even be a good thing. The stock price will go up if the consortium starts buying our shares.”

He smiled. “Why would we stop them from setting themselves on fire?”

As he had said, Daehoo’s ownership structure was solid.

Although Chairman Kim’s personal stake was only 4%, he controlled up to 40% of each subsidiary, including friendly shareholders, through a complex web of circular shareholdings, with Daehoo Corporation as the holding company.

The consortium might be able to acquire a large number of shares, but they couldn’t gain management control.

“Chunha Trading is the most annoying. Their sales might be impressive, but they’re still just a junkyard. They used to collect our trash, and now they’re challenging us.”

Chairman Kim clicked his tongue at his son’s nonchalant attitude. “…You fool.”

“What? What do you mean?”

“Do you think this is a simple matter?”

His son looked flustered. “But Chairman, they’re still just small fry. They can buy some shares, but they won’t have any influence at the shareholders’ meeting.”

“If that’s all you can see, you’re not fit to be my successor.”

His son was silenced by the mention of succession.

He still couldn’t understand why his father was so worried.

Chairman Kim continued in a serious tone, looking at the newspaper article,

“If they were ordinary raiders, you would be right. But they’re not. Their goal is different.”

“…”

“They’re targeting our internal structure. A normal external attack would strengthen our internal bonds, but they’re tempting our friendly shareholders. They’re saying they’re not interested in management control, just in removing the current management. They’re offering them a partnership.”

“But Chairman, do you think anyone would betray us?”

Daehoo Group’s friendly shareholders were all long-time allies and relatives.

He couldn’t imagine them being swayed by outsiders.

“There are no absolutes. Let’s be honest. What if you weren’t the vice chairman, and it was your brother, Sun-yeop?”

Kim Sun-woong gulped at the mention of his younger brother, a managing director.

“Your stake is smaller than his, and I’ve been favoring him. You’ve practically given up on the successor position. And now, an external force with 7.5 trillion won is offering him a chance to take over Daehoo, claiming they’re not interested in management, just in profit. In that situation…”

Chairman Kim said with a grim expression, “Are you sure you wouldn’t be tempted?”

His son’s face hardened, finally understanding the situation.

7.5 trillion won wasn’t enough for a hostile takeover, but it was more than enough to support an internal rebellion.

Daehoo Group’s market capitalization was 45 trillion won.

The consortium could acquire 5-10% of the shares with that kind of money, even with the premium for a hostile takeover.

And if such a powerful force supported him, wouldn’t he be tempted?

“Even you, my own son, would be tempted. What about the others? Do you think they’re my allies out of loyalty? They’re stuck as second or third in command. Do you think they would pass up a chance to become number one?”

Chairman Kim threw the newspaper on the table. “I’ll handle your brother. Focus on internal affairs. Visit every single friendly shareholder and reassure them. Understand?”

“Yes, sir.”

“And how much cash do we have left?”

“We don’t have much left after establishing the subsidiary in Ukraine.”

“Gather as much as you can. We might have to buy back our shares to defend our management control.”

His son said in surprise, “You’re going that far…?”

“You still don’t understand? That was the optimistic scenario. If they try to carve up Daehoo, it’ll be even worse. Our market cap might be 45 trillion won, but if they target specific subsidiaries, they could acquire a much larger stake. And what if they then join forces with the traitors within the company and replace the management team? And then declare independence?”

Chairman Kim’s face was covered in sweat. “Daehoo will be split in two.”