Golden Spoon Investment Portfolio - Chapter 119

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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119. Absolutely not. We must never acquire them.

When Seok-won knocked and entered, Park Tae-hong, who had been sitting on the upper end of the sofa reviewing documents, gestured with his chin toward the empty seat on his right.

“You’re here? Sit down.”

Seok-won walked to the sofa, set down the cashmere coat he was holding beside him, and sat while unbuttoning his jacket.
Park Tae-hong removed the magnifying glasses he had been wearing and set them on the table along with the documents, then rubbed his tired eyes and took a sip of tea.

“Tsk. I prefer sweet coffee, but this green tea is so bland and insipid.”

Park Tae-hong grumbled with a frown.
His wife, Jo Deok-rye, had specially procured wild ginseng and was having him consume a medicinal tonic brewed from it, so a coffee ban had been imposed for the time being.
Park Tae-hong was someone who enjoyed coffee so much he drank five or six cups a day, so it was quite an ordeal, but contrary to appearances, he was a devoted husband and dutifully complied with Jo Deok-rye’s wishes.
Originally she had also forbidden him from smoking, but he had resisted that so firmly that they compromised on him merely abstaining from coffee.

“Father, she’s only concerned about your health.”
“If my health suffers from drinking a little coffee, what good is a medicinal tonic? Your mother must have been swindled. She’s always been gullible… How would I even know if that ginseng is genuine?”

Seok-won thought to himself that his father still did everything she asked, but he didn’t voice it aloud.
Park Tae-hong continued to grumble, venting the stress that had accumulated, and while leaning back against the plush leather sofa, he gazed intently at his second son before speaking abruptly.

“I received last month’s profit report. The returns weren’t bad this time either.”

O-Gwang Industries and Cheonho Steel, in which he had invested, continued their upward trajectory, and profits had increased by tens of billions in just one month.
This was not merely acceptable but extraordinarily good, yet Seok-won received the news without showing it, responding casually.

“The upward momentum has slowed somewhat, which is unfortunate, but given the gains we’ve made so far, it’s unavoidable.”

Park Tae-hong had expected his son to ramble on about how excellent these returns were and immediately counter his point, but instead, he was taken aback by how nonchalantly his son brushed it aside.
However, upon reflecting that such composure stemmed from confidence and composure, he felt quite satisfied.

‘That boy has inherited my audacity perfectly.’

Park Tae-hong, who had been gazing at his second son with such contentment, soon straightened his expression and broached the main topic.

“You’re aware that the Sampoong Department Store, which became a major issue last month, eventually closed down, aren’t you?”
“Yes.”

The Sampoong Department Store, where illegal expansions and shoddy construction were exposed and building collapse risks emerged, had remained shuttered under a business suspension order.
In the subsequent police investigation, multiple illegal activities including tax evasion were uncovered, and all executives, including the department store’s president, were arrested and underwent custody investigations before being sent to trial recently.

‘With public anxiety already high from the Seongsu Bridge collapse, an incident like this had to occur. The government deliberately made an example of them.’

In fact, articles appeared in newspapers reporting that the president himself had issued direct orders at a state council meeting to thoroughly investigate and punish such incidents to prevent recurrence.
Consequently, the prosecution, police, and even the tax authorities had no choice but to throw themselves into the matter with full force.

‘The banks, too, watched the government’s mood and immediately began recovering the loans they’d extended to the Sampoong Department Store and Sampoong Group, tightening the noose.’

With cash flow completely frozen due to the business suspension, massive tax evasion fines imposed, and burdened by loan repayment demands, the Sampoong Group finally defaulted last month.
It was essentially one company completely shutting down under comprehensive government pressure.
However, had it not been for this, countless people would have died or lost family members in a department store collapse, so there was no sense of apology or regret whatsoever.

“I saw an article saying that the Sampoong Department Store, which received a collapse risk assessment from the safety inspection, will eventually be demolished.”
“The shock from the Seongsu Bridge collapse is still fresh. We can’t just leave a department store that could collapse at any moment as it is.”

I wouldn’t set foot in a building with collapse risks either.

“But why are you suddenly bringing up the Sampoong Department Store?”

At Seok-won’s question, Chairman Park Tae-hong straightened his posture from where he’d been leaning back.

“I’m thinking of acquiring the Sampoong Department Store site that the banks plan to sell to recover their debts. What do you think?”
“…!”

Seok-won was completely taken aback by this unexpected proposal.

“…You’re saying you’d acquire the Sampoong Department Store site?”
“Yes.”

Chairman Park Tae-hong spoke calmly, nodding slightly.

“Though it closed due to unfortunate circumstances, it’s prime real estate right in the heart of Seocho-dong, which is the center of Gangnam. If we acquire it and build a new department store, success would be virtually guaranteed, wouldn’t it?”
“It’s close to Gyodae Station, which is an interchange for Lines 2 and 3, and the Seoul Express Bus Terminal and South Terminal are nearby, so the location is indeed optimal.”

According to the Third Metropolitan Subway Plan finalized a few days ago, Line 9’s Sapyeong Station was also scheduled to be constructed nearby.

“Beyond that, if we consider the purchasing power of potential customers residing in the emerging affluent areas of Seocho-dong and Gangnam, it would be the optimal conditions for establishing a luxury department store.”
“That’s exactly what I’m saying.”

As Seok-won displayed a positive attitude, Chairman Park Tae-hong also raised his voice with enthusiasm.

“Since this will be Midopa Department Store’s first foray into Gangnam, I’m planning to actively attract overseas luxury brands and operate it as a premium department store. By doing so, we can not only elevate our image but also secure a competitive advantage against Lotte and Utopia Department Store, which have been aggressively expanding their locations recently.”

Since Sampoong Department Store had also achieved considerable success with a luxury department store strategy, it was a plan worth considering and had high feasibility.

‘Last year, Sampoong Department Store’s annual revenue reached 220 billion won.’

It was nearly double the revenue of Midopa Department Store’s flagship Myeongdong location.
Even if the department store’s operations underperformed, considering only the real estate value that would skyrocket in the future, this was an unconditional money-maker.

‘Just holding onto the land alone, it wouldn’t be difficult to pocket at least two to three times the investment within a decade.’

However, there was one thing that troubled me.

‘The problem is that the International Monetary Fund crisis—called the greatest economic catastrophe since Dangun—is about to strike.’

Undertaking a large-scale investment project amid a national insolvency crisis where major corporations were collapsing one after another carried considerable risk.
For a moment, I tried to recall whether the Daeheung Group had coveted the Sampoong Department Store site in the original timeline, but I soon shook my head.

‘If things had proceeded as originally, there would have been the collapse accident, all of Sampoong Group’s assets would have been seized, and everyone would have been too occupied with punishing those responsible. There’s no way they would have been interested.’

If my memory was correct, the sale of the Sampoong Department Store site didn’t proceed until next year.
However, due to various troublesome issues entangled with victim compensation and tenant business operator settlements, the sale only went through after several failed auctions.

‘The fact that the sale is progressing this quickly and Chairman Park Tae-hong is showing interest is ultimately a butterfly effect I’ve created.’

I felt a slight unease as the facts I originally knew gradually began to diverge, bit by bit.
However, I couldn’t simply turn a blind eye to countless people losing their lives, so I harbored no regrets about what I had done.
Clearing away distracting thoughts, I calmly asked Chairman Park Tae-hong.

“It’s prime real estate in Gangnam with a substantial area, so the asking price must be quite considerable. What’s the estimate?”
“The total area, combining the commercial-zoned land and the remaining site, comes to 30,502 square meters. It hasn’t been finalized yet, but the estimated bid price is expected to be around 320 billion won.”

It was a substantial sum, but considering the difficulty of acquiring land with such prominence and extensive area in the heart of Gangnam, it wasn’t unreasonably expensive.

“Besides us, both Lotte and Utopia will certainly participate in the auction. The actual winning bid will likely be higher.”
“Of course it will be.”

Given that Lotte and Utopia were aggressively investing in the department store business lately, there was no way they would simply overlook such prime real estate.

‘Perhaps that’s why Father is willing to push so hard to acquire the Sampoong Department Store site.’

Midopa Department Store was already showing signs of being outpaced by the onslaught of the conglomerate giants Lotte and Utopia, so he must have felt the need for some turning point to reverse the situation.

“If the competition intensifies, I’m prepared to go beyond 400 billion won.”
“400 billion won?”
“That’s right.”

Park Tae-hong appeared fully resolved to wage a serious battle.

“Isn’t that pushing too hard?”

When Seok-won asked with concern, Park Tae-hong spoke with a grave expression.

“You know as well as I do that our Midopa Department Store is struggling against Lotte and Utopia.”
“Yes.”
“Thanks to you acquiring the duty-free shop business rights, we caught our breath, but the situation remains dire.”

The rigid tone of his voice revealed just how grave the crisis felt to Park Tae-hong.

“If we continue like this, we’ll gradually lose market share and slowly wither away, or we’ll be relegated to a second-rate department store barely clinging to existence. Before the situation deteriorates further, I need to play a decisive card to solidify our position.”
“So acquiring the Sampoong Department Store site is the card you’re thinking of to overturn the game?”

Park Tae-hong nodded in response.

“If we win the bid on that land and build a luxury department store according to plan, we’ll be able to continue competing without being overshadowed by Lotte and Utopia.”

It wasn’t a bad plan in Seok-won’s assessment either.
In fact, if successful, it could become a masterstroke that would allow them to establish a solid foothold and survive amid the fierce onslaught of Lotte and Utopia.
But the problem, as always, was the International Monetary Fund.
Seok-won asked calmly, concealing his inner thoughts.

“The land acquisition cost is already a burden, but even if we win the bid by beating out the competition, constructing a luxury department store as you’ve described will require substantial construction expenses. How are you planning to secure all of that?”

Park Tae-hong answered without hesitation, as if he had already given it thought.

“Since we’re short on cash right now, I plan to use the Myeongdong flagship store and the Cheongnyangni branch as collateral for the land acquisition, and then secure additional loans using the acquired site for the construction costs.”
“So essentially, it’s all bank debt.”

Park Tae-hong responded as if it were obvious.

“That’s how business is done.”

I had anticipated this to some extent, given that the Midopa Department Store—which served as the group’s cash cow—and the textile division were experiencing declining sales, straining our financial position.
And until the IMF crisis, borrowing money to conduct business—what was called leveraged management—had been standard practice, so I hadn’t even considered it problematic, just as Park Tae-hong’s reaction suggested.

‘With the IMF looming just ahead, he’s taking out hundreds of billions in loans to build a new department store. This is like strapping on firewood and jumping into a burning pit.’

If something went wrong, even if we managed to fend off the hostile takeover that was about to unfold, the terrifying tsunami of the IMF that would follow immediately after would sweep away not just the Midopa Department Store but the entire Daeheung Group.
Seok-won looked directly at Park Tae-hong and spoke in a strained voice.

“Then I believe acquiring the Sampoong Department Store site is a reckless move. We shouldn’t go through with the acquisition while taking on such massive bank debt.”

This was something that had to be stopped by any means necessary.
The moment Seok-won finished speaking, a heavy silence descended upon the study room.

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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