CH127 | Heir

Even after the foreign exchange crisis, the country remained embroiled in corporate insolvency issues.

The government had issued an ultimatum—there would be no further financial support. Companies had to negotiate with their creditors.

Large corporations, including Hyundai Construction, had been holding out, convinced that the government wouldn’t let them fail.

But then, the Financial Supervisory Service delivered a chilling message:

“Even if the government wanted to save you, there’s nothing we can do.”

Panic spread within Hyundai Group.

Even Chairman Jang Young-joo, who was supposed to be resting in the hospital, got out of bed.

“Useless fools... Huff... Huff...”

In Jang Young-joo’s hospital room, his breathing was labored and heavy.

Seated before him were Jang Young-joon and Jang Kyung-joon.

With his head bowed low, Jang Young-joon, the one in charge of Hyundai Construction, pleaded for his father’s help.

“I never expected Taewoo Group to go after Hyundai Construction. The plan was to seek temporary relief from our creditors and use that time to reduce our debt.”

“Why should Hyundai Construction suffer such humiliation?! Seeking help from creditors? Don’t fool yourself—that’s just another way of saying you’re handing the company over to them!”

Despite his worsening condition, Jang Young-joo displayed a fire reminiscent of his prime.

His attachment to Hyundai Construction was unwavering, and he absolutely refused to let it fall into the hands of creditors or Taewoo Group.

“There was no other way. We don’t have the means to save Hyundai Construction on our own.”

“That’s what you say as the chairman?! No other way? Then find one! That’s your job!”

“……I did everything I could. I even went to North Korea to secure the government’s support. I never expected them to turn their backs on us like this.”

“So that’s it? You didn’t expect it, so now you just give up?! A leader NEVER says ‘I didn’t know’!”

His breathing became even more strained.

At this rate, it felt like his father could stop breathing at any moment.

Sensing the danger, Jang Kyung-joon quickly intervened.

“I won’t let Hyundai Construction fall into another group’s hands. I’ll stop it.”

“Huff... That’s right... Brothers should help each other. Even if you’ve gone your separate ways, you’re still family. You must support each other.”

“I’ll negotiate with the creditors and acquire Hyundai Construction myself. It’s far better than letting Taewoo take it.”

“Is that really necessary? Couldn’t you just provide Young-jun with financial support instead…?”

Jang Kyung-joon turned to look at his father.

Even in this critical moment, his father was still prioritizing his younger brother.

Rage boiled inside him.

But then his gaze fell on the oxygen mask beside his father’s bed—and he suppressed his anger.

“Even if I give him financial support, will it change anything? He couldn’t even cover a 20-billion-won promissory note, leading to the first default. And merely injecting funds won’t resolve Hyundai Construction’s debt. To convince the creditors, the company’s ownership must change.”

“So, you’re blaming me for the first default? I did everything I could. What more do you expect me to do?!”

The heated tension in the hospital room made it seem as if the brothers were about to start fighting again.

Jang Young-joon raised his voice, his anger exploding toward his brother.

But Jang Kyung-joon ignored him completely, speaking only to their father.

“Hyundai Construction isn’t the only problem. Hyundai Electronics is also on the verge of bankruptcy. Especially the semiconductor division—we practically stole it from CL Group, and now it’s draining massive amounts of money.”

“Is that true, Kyung-jun?”

“……The semiconductor business has caused a rapid increase in debt. The IT bubble crash hit the semiconductor market hard.”

“Sigh… Hyundai Construction and now Hyundai Electronics… How did Hyundai Group end up like this?”

Jang Kyung-joon felt a heavy weight in his chest.

He wanted to scream that this was all because their father had chosen Young-jun as his successor instead of him.

But he held back.

For the sake of his father’s health—and for the sake of securing Hyundai Construction for himself—he had to stay calm and collected.

“Hyundai Securities is in dire straits as well. Some of its investment funds have dropped to -70% returns, and there are funds that promised principal protection. The company is facing enormous financial losses.”

“Even Hyundai Securities is in trouble?”

“Given this situation, what bank would still trust Hyundai Group and lend us money? If I were the creditors, I wouldn’t believe in us either.”

“So you’re saying you’ll take over Hyundai Construction?”

“It’s a hundred times better than letting it fall into someone else’s hands. Hyundai Motors’ exports are growing rapidly. It can hold out long enough for Hyundai Construction to recover.”

“I have one last request… Can’t you just provide the funding to your brother?”

Jang Kyung-joon looked at his father’s face.

Once, he was the architect of Korea’s economic rise, a man he deeply respected.

But the man lying in this hospital bed was no longer the father he once knew.

“Even if I wanted to, I can’t. I have no intention of going to prison again on embezzlement charges. I never want to set foot in jail again. My left knee is already bad—I can’t afford to ruin my right one too.”

“I’m sorry… I truly am. I should have gone to prison instead. You should never have taken the fall for me…”

It was all in the past.

Going to prison, handing over the group’s leadership to his younger brother—

Those were old wounds he could move on from.

But Hyundai Construction’s fate wasn’t just the past—it was the present and the future.

“What’s done is done. But taking over Hyundai Construction won’t be easy. If Taewoo Group comes in with their massive financial power, we won’t stand a chance.”

“The government will never allow it. If Taewoo takes over Hyundai Construction, it would be a monopoly.”

“Do you still not understand where the government stands? They’ve made it clear they won’t interfere in the market. Do you really think they’ll block a monopoly?”

Jang Kyung-joon looked down at his brother.

He still seemed so naïve, so clueless about how the world really worked.

“So what’s your plan?”

"We have to make a choice—do we let Taewoo Group take Hyundai Construction, or do we offer them another subsidiary instead?"

"Would giving up another subsidiary really be enough to block Taewoo's takeover?"

"Chairman Kim Tae-jung has always had a deep interest in semiconductors. If we hand over the semiconductor division, wouldn’t that do the trick?"

Honorary Chairman Jang Young-joo clutched his chest.

The very thought of giving away part of Hyundai Group made it hard for him to breathe.

"Haa… Yes, I suppose semiconductors would be better than construction. There's no way we can let Hyundai Construction fall into someone else's hands."

"And there’s another reason we should let go of the semiconductor division. As Young-joon mentioned, the semiconductor market is in a slump due to the IT bubble crash. That means Taewoo Group would have to pour massive amounts of money into it."

Jang Kyung-joon had aligned himself with Taewoo Group.

But that didn’t mean their alliance was permanent.

This was his chance to offload a financial bomb onto them.

"Young-joon, what do you think? Do you agree with selling the semiconductor division to Taewoo Group?"

"It’s not a bad plan. Just this year alone, the semiconductor division has racked up losses exceeding 300 billion won. And its total debt is over 6 trillion won."

"Six trillion won… Even for Taewoo Group, that’s no small sum."

"On top of that, the semiconductor market will likely remain in a downturn for the foreseeable future. It may look tempting on the surface, but it’s a poisoned chalice."

Jang Young-joon had long been skeptical about the semiconductor division.

In fact, Hyundai Electronics was in worse shape than Hyundai Construction.

And that was largely due to their acquisition of the semiconductor division from CL Group.

But if they could dump it onto Taewoo Group?

Then Taewoo Electronics would suffer the same nightmare that Hyundai Electronics had endured.

"Then it's settled. We’ll hand over the semiconductor division to Taewoo. Kyung-joon, will that allow you to secure Hyundai Construction?"

"I’ll need to negotiate with the creditors, but if Taewoo Group steps out of the acquisition race, my chances will skyrocket."

"Young-joon, don't dwell too much on this decision. Focus on using the money from the semiconductor sale to stabilize the other subsidiaries. If you can at least secure Hyundai Securities, the financial issues should resolve themselves soon."

"Understood."

A wave of relief washed over Jang Young-joon.

For far too long, Hyundai Construction and the semiconductor division had been nothing but dead weight.

Now, he no longer had to grovel to the banks or bow to lenders in Myeong-dong.

For the first time in a long while, he felt at peace.

* * *

The next day.

I met Dimon in Captain Kang’s office, bringing him some good news.

“Hyundai Group just informed us—they’ve decided to sell their semiconductor division to Taewoo.”

“They’re giving up on semiconductors faster than I expected. They must be in a serious cash crunch.”

“Of course, they are. Their heavy industries, securities, and construction sectors are all on the verge of collapse.”

“Looking at things now, selling Taewoo Shipbuilding was a brilliant move.”

It wouldn’t be an exaggeration to say Hyundai Group’s current crisis was my doing.

By forcing them to sell Taewoo Shipbuilding to Hyundai Heavy Industries, I had drained their liquidity.

In the securities market, we had released principal-guaranteed funds first, leaving Hyundai Securities no choice but to follow suit.

As for construction, SAVE Investment had leveraged its vast capital reserves to sweep up every government-led project, leaving Hyundai Construction with nothing to bid on.

“Now that Chairman Jang Kyung-joon has upheld his end of the deal, it’s time for us to do the same. Let’s ensure Hyundai Construction goes to him.”

“Hyundai Construction is practically in the creditors’ hands already. And among them, SAVE Investment holds the most sway.”

SAVE Investment had loaned Hyundai Group a significant amount of capital.

They had even financed Taewoo Shipbuilding’s acquisition, covering the entire cost.

All of that money had been borrowed in U.S. dollars, and when the foreign exchange crisis hit, the debt had doubled overnight.

The debt had then spread across multiple subsidiaries, ultimately making SAVE Investment one of Hyundai Construction’s major creditors.

“Don’t sell Hyundai Construction to Chairman Jang too cheaply. Play it smart and negotiate a reasonable price.”

“Of course. We’ll push them hard enough that Hyundai Motors won’t even have funds for new model development.”

“Just be careful not to push too hard. If Chairman Jang walks away, we’ll have a problem.”

“We’ll take them right to the edge—no more, no less. That way, Taewoo can secure the semiconductor division without issue.”

“Still, isn’t acquiring the semiconductor business too risky? The losses are astronomical.”

At this point, buying into semiconductors was practically suicide.

Even financial experts had openly called it insanity.

Did I not know that?

Of course, I did.

But I had a plan—one that made the semiconductor acquisition worth the risk.