The Youngest Son Of A Rich Family Chapter 43

[043] First of all, warming up 2.

「A Study on Hando Steel’s Competitiveness and Mid- to Long-term Business Prospects」

1. Financial structure extremely weak.

2. Excessive financial costs due to excessive external borrowing.

3. Massive deficit sure.

4. Reckless investment that can have a significant impact on the national economy

5. Cooperation with Pohang Iron and Steel is inevitable for the survival and development of Hando Steel.

6. Conclusion.

Hando Steel, as well as the group as a whole, has a weak financial structure and group sales of KRW 1.3 trillion (KRW 590 billion excluding internal transactions). Considering the scale of real estate and the current market situation, self-financing according to this is considered unrealistic, and borrowing from financial institutions is also considered to be difficult without policy consideration.

If you summarized the thick report, it was something like this.

As of 1995, despite ranking 18th among 13 subsidiaries, actual group sales were only 400 billion won.

Hando Group, especially Hando Steel, was literally a sandcastle built with debt. It’s about a month left until this sandcastle collapses.

The fact that such a report came out from the Sunyang Group means that the bankruptcy of Hando Steel is already predicted by the business world.

However, no one knows that Hando Steel is just the beginning.

Why did President Jin throw this report at me?

Are you thinking about the post-bankruptcy of Hando Steel? Or is it an attempt to take over bankrupt Hando Steel?

The latter is most likely. If you think of Sunyang Heavy Industries, Sunyang Machinery, and Sunyang Motors, it’s enough to be greedy. Only if you take it for a low price.

Considering Sunyang Group’s in-house reserves, it is not difficult to acquire a bankrupt company.

Moreover, given Sunyang’s lobbying skills, it is not a big deal to include trillions of won in debt relief as the conditions for the acquisition. 10 key players, 1 billion each to them. If it is 10 billion won, where is it once or twice that the loss of trillions of won is tinkered with the people’s blood tax?

What worries us is the hot money on the US side, which amounts to 1 billion dollars among Hando Steel’s external borrowings. Now, with the exchange rate of 800 won, there is no great difficulty in paying interest or repaying the principal, but after one year, it will be impossible to pay.

Hando Steel is a poisonous frog.

The poison spreads slowly the moment it is swallowed, and if an antidote is not obtained, it can lead to death. The antidote is a dollar, a huge dollar.

The antidote is in my hands, so whoever swallows it can save me. The only questions left to decide are who will swallow them and how much they will charge for the treatment.

It’s an easy decision. I want to charge some affiliates of Sunyang Group for treatment, so I have no intention of stopping my grandfather from swallowing poison frogs.

* * *

“Production scale of 800,000M/T per year. The chairman and his family own 34.65% of the shares and control the management. Debt ratio exceeded 300% and debt dependence exceeded 50% due to losses in the construction sector since 1989. The creditors judged that it was impossible to recover.”

“Did you start collecting debts?”

“yes. In fact, it should have started a year ago… The creditors didn’t even budge at how much bribes they took.”

The topic of the meeting, which started at 7:00 am on Friday, was Hando Steel.

“How much is your total debt?”

“It is 3.687 trillion. Except for $1 billion on the US side.”

Chairman Jin looked at Lee Hak-jae and said.

“This manager. No matter how much I think about it, this makes no sense. How can you spend so much money to raise a steel mill?”

“If you look at Newcore in the US, 1.6 trillion won is overturned. Of course, even if the environment is different from ours, the introduction of low-cost facilities using the slump in the steel industry on cheap sites is not a turnkey basis, but rather an in-house engineering, such as purchasing the lowest price of appropriate facilities, so at least 1 trillion won or more has leaked somewhere.”

Inflating costs and stealing the money through insider trading is the specialty of chaebol groups, but Hando Group did too much.

More than half of the group’s total sales are internal transactions!

This is not an expedient, it is tantamount to ignorant robbery.

Chairman Jin, who naturally frowned, continued to ask questions.

“To what extent is debt relief possible?”

“First of all, we can make the asset management corporation purchase the debts of financial institutions and write off about 2 trillion won at this time. We buy bonds from Asset Management Corporation at half price. 800 billion will be enough.”

“Can’t it be dollars?”

“yes. Instead, an extension of repayment is possible. The government will guarantee payment.”

“YS… I’m picky, but will it work?”

“Hando Steel is the flagship company of the Hando Group. Anyway, the limit group will be disintegrated in the air, but the wavelength should be minimized. I will approve.”

Chairman Jin’s head started calculating.

If it is $1 billion, the total amount of 800 billion is 1.6 trillion. I had no intention of paying 1.6 trillion won of bloody money to take over.

When taking over, Sunyang’s funds can be temporarily used, but must be withdrawn immediately.

“When the limit group is torn apart, what do we need to take care of? Anything worth the money.”

“Out of 100,000 pyeong of land for Hando Steel’s steel bar factory in Busan, it is 80,000 pyeong excluding the logistics base. If you don’t allow creditors to touch it and put up an apartment on the site and sell it, you can secure it to some extent.”

“also?”

“The land in Jangji-dong is 40,000 pyeong and the land in Gaepo-dong is 10,000 pyeong. However, this land is owned by Hando Construction, not Hando Steel.”

The heads of the key members of the group who attended the study meeting diligently turned.

This is because they read all of the chairman’s intention to eat Hando Steel for free.

“President.”

Cho Dae-ho of Sunyang Motors, who hadn’t said a word until now, spoke for the first time.

“This is information that the Daehyun Group is also targeting.”

The study was so quiet that even the sound of Chairman Jin’s breathing could be heard.

Chairman Jin, whose complexion was flushed before he knew it, gritted his teeth.

“When did you know?”

“I got a call this morning. A supplier of Daehyun Motors sneakily hinted. They entertained at the room salon, and they were talking nonsense.”

“Such sex……”

Daehyun Group is no longer a competitor. Chairman Jin, who already thinks of Hando Steel as his own, is just a group of brigands trying to rob his company.

“You know what Daehyun guys are doing. The acquisition strategy is reworked after that.”

The meeting is over. I had to do everything in my power to stop the hordes of bandits. When everyone got up and took the documents, Vice Chairman Jin Young-ki smiled and opened his mouth.

“Did you read the interview with Dojun?”

At the words of the vice chairman, the presidents of the affiliates did not miss out on the greetings they had forgotten.

“Congratulations. President. It was amazing.”

“I didn’t know that Do-joon would be a national player. congratulations.”

Chairman Jin’s expression, which had been hardened, was relieved and he nodded.

“I know. I didn’t even know he could get that kind of score. Isn’t that great?”

“By the way, Father. Does Dojunie really apply for law school at Seoul National University?”

“why? Are you afraid you will fall?”

“Can you do that with that score? Since my father cares about it, I thought it would be natural for me to major in business or economics.”

“He is the one who inherited Yoongi’s blood. How can I stop him from doing whatever he wants?”

“Should I meet Yoongi and try to convince him?”

“Leave it. It is not bad to have at least one prosecutor general in the family.”

To Jin Young-ki, who kept looking at him, President Jin shook his hand as if it was no big deal.

With this, Yi Bang-won’s vigilance will become even weaker.

“Where is Yeongjun right now?”

“I have been working in London since last year. You will be learning the practical business of finance.”

“Ask me to come in.”

“You mean London?”

Vice Chairman Jin Young-ki’s heart pounded, wondering if his son’s life in exile was over.

“okay. Participate in the takeover of Hando Steel. And you should get married too. Let’s have a ceremony next spring.”

“yes. I will prepare thoroughly.”

Yi Bang-won will now be vigilant.

***

“Was the homework too difficult?”

“……yes.”

After answering as if he was downcast, the grandfather showed even more curiosity.

“Do you know what homework is?”

“If Hando Steel goes bankrupt, isn’t it that the Sunyang Group will take over?”

Grandpa’s smile covered his curiosity.

“Why did you think the company was going out of business?”

“The contents of the report were very negative about Hando Steel.”

“Why did you think Sunyang would take over?”

“If I hadn’t been interested in taking over, I would have covered the impact of changes in the steel industry on the Sunyang Group after bankruptcy in more detail. When there is a fire in the house next door, the important thing is whether it spreads to our house or not, because it doesn’t matter why the fire started or whether there are expensive items in the house that burned.”

“Right. That’s right.”

President Jin hit his knee.

“But I can’t find the answer.”

“What were you trying to find an answer to?”

“The way Daehyun Group kneeled. If I had found it, I would have received the keys to the sports car today.”

I scratched my head as if regretting it and glanced at my grandfather. But why is your face like that? Have you gone too far? The startled grandfather’s intentions were fully revealed.

“Why did you think Dae Dae-hyeon would jump into the takeover battle?”

“If you are a company that handles iron, Pohang Iron & Steel Sunyang Daehyeon Ajin Sammi Dongguk. Among them, there are three companies that are big enough to take over Hando Steel, but Pohang Steel has no reason to be interested in Hando, and the only ones left are us and Daehyeon.

” There is a clear reason…”

“Ah, Grandpa was interested, but Chairman Daehyeon is going to stay still…”

The answer is to point out specific data and say that Daehyeon also wants Hando Steel, but a sensuous answer is best for now. am.

“We gave up the No. 1 position in the heavy industry sector, which was far ahead of Sunyang, so I don’t think we will let this opportunity go unnoticed.”

“No manager spends an astronomical amount of money to acquire a company out of ego.”

“Wouldn’t you like to tap for pride?”

Grandpa finally burst into laughter.

“Uh heh heh. yes. He’s a man who would take risks even for his pride.”

I waited for the pleasant laugh to stop before asking quietly.

“But isn’t it going to cost a lot of money to acquire this company? How many trillion won is the debt alone…?”

As if waiting for my question, my grandfather came to my side.

“Do-joon. Try saying ‘someone else’s money’ in English.”

“Someone else’s money? Other People’s Money?

okay. That’s business. Running with someone else’s money, not my own. But Korean conglomerates are a little different.”

“How?”

“As the English word implies, people use the people’s money.”

Are you talking about the people’s money tax?

“When you take over an insolvent company, you ask for debt relief from creditors, and you make up for that money with taxes. This is the surest way to increase the size of your group. And it always works.”

They think of trillions of won in public funds as cheap money. No remorse whatsoever. I don’t think it’s a dishonest way in the first place.

I knew the true nature of chaebol, but hearing it through my grandfather’s mouth gave me goosebumps.

The grandfather who tapped my frozen shoulder had the expression of a victor.

“It’s true, Do-joon. For the time being, let’s pretend that what you said in the interview was sincere. Understand?”

* * *

The last day of the year in ’96.

The entire family, including the grandfather, gathered at the Sunyang Hotel.

It was a place to congratulate me for ending the year with good results, and a place to welcome Jin Young-joon, who returned to Korea after ending his long overseas life.

“Hey, our youngest. I had an accident and hit it hard. I saw the interview. Congratulations.”

“Ah, Youngjoon hyung. thank you. And congratulations too. You returned home.”

My hand, which held his outstretched hand, trembled slightly.

“Future Prosecutor General, I will leave my expedient inheritance to you later. take care of it Hehe.”

My whole body trembled slightly as he whispered in my ear.

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