Golden Spoon Investment Portfolio - Chapter 255

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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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255. The first time is always the hardest; everything after that becomes easy

Hanyang Country Club, Goyang, Gyeonggi Province.
Located just thirty minutes from Seoul, the club attracted no shortage of visitors even on a weekday afternoon, who now enjoyed golf beneath the bright, warm spring sunshine.
Beneath towering pine trees, male and female members in colorful golf attire practiced putting on the verdant practice green, while a group of distinguished figures entered the elegantly appointed clubhouse.
They were none other than Kwak Dong-hun, Chairman of Saseong Group, and Jung Tae-ho, Chairman of Hyundai Group—two titans of industry locked in a fierce competition for the top position in the business world.

“Your shots throughout the course today were absolutely magnificent. Considering your age, it’s truly remarkable that your driving distance hasn’t diminished at all.”

At this, Jung Tae-ho, born in 1915 and well past eighty, burst into hearty laughter while dressed in a purple polo shirt and white vest.

“Haven’t you heard the saying that life truly begins at eighty? I can still handle a couple of young fellows on my own.”
“Wasn’t it sixty rather than eighty?”

Kwak Dong-hun, Chairman of Saseong Group, wearing a white cap and charcoal gray trousers, posed the question, and Jung Tae-ho playfully clicked his tongue with an exaggerated sigh.

“This fellow. Why must you nitpick? Just let it pass.”
“Haha. My mistake. From today on, let’s say I’m eighty instead of sixty.”

At this smooth reply, Jung Tae-ho chuckled and gave Kwak Dong-hun a light pat on the back.
Though they competed for the top position in the business world, the two men appeared remarkably close and informal with each other.
Yet Kwak Dong-hun never overstepped his bounds and treated Jung Tae-ho with utmost respect—a natural courtesy given the significant age difference between them, enough that they could have been father and son.
Indeed, Jung Tae-ho’s second son was older than Kwak Dong-hun, so calling him a son-in-law of sorts was not entirely inaccurate.
Exchanging friendly banter, the two men moved with familiar ease toward a private room adjoining the clubhouse.
The private room, designed to allow VIPs to rest undisturbed by others’ gazes, featured a round table and plush rugs covering the floor, adorned elegantly with antique ceramics and landscape paintings.
Beyond the expansive floor-to-ceiling windows on the wall stretched the vast golf course, creating an open, airy atmosphere.
As the two men took their seats facing each other at the round table, a uniformed Female Secretary approached and placed the menu before them.

“What will you be ordering?”

As a frequent visitor, Jung Tae-ho spoke without even glancing at the menu.

“I’ll have the soft tofu stew. What about you?”
“Then I’ll have the clam and mallow soup.”

Kwak Dong-hun likewise flipped through the menu perfunctorily before making his selection.

“Just bring what I asked for.”
“Yes, understood.”

Once the Female Secretary left the room, Chairman Kwak Dong-hun removed his hat and set it aside.
Then, glancing sideways at Chairman Jung Tae-ho, who habitually lit a cigarette, he brought up the hottest topic of the moment.

“You’ve heard about Daheung and Donghae fighting over shares in Midopa Department Store, haven’t you?”
“Of course. That’s all anyone’s been talking about all week.”

Chairman Jung Tae-ho answered while flicking his lighter to ignite his cigarette.

“After Daheung announced their counter-offer, I heard Donghae immediately raised their purchase price to 70,000 won per share.”

Chairman Jung Tae-ho clicked his tongue disapprovingly.

“Paying seven times more for a stock that was worth less than 10,000 won—that’s madness.”

Seeing the disdainful expression on his face, Chairman Kwak Dong-hun leaned forward.

“While Midopa Department Store alone is an exorbitant price, the situation changes entirely when the entire Daheung Group comes as a bonus, doesn’t it?”

Chairman Jung Tae-ho exhaled white cigarette smoke and responded with a lukewarm expression.

“Even so, Chairman Woo’s greed has gone too far this time. There’s an unspoken rule that the business community has maintained all along, and if we cross the line like this, who will follow it in the future?”
“You’re right. Donghae Group certainly has overstepped in this regard.”
“Just when the slush fund scandal seemed to be dying down, something like this happens. Tsk.”

Chairman Jung Tae-ho tapped ash lightly into the crystal ashtray beside him and asked, looking at Chairman Kwak Dong-hun across from him.

“Who do you think will win this fight?”
“Hard to say.”

Chairman Kwak Dong-hun picked up a glass of mineral water and brought it to his lips as he shared his thoughts.

“Even accounting for friendly shares, Daheung Group’s stake is too low, and considering they’ve depleted their cash reserves by pouring all available funds into the Gangnam Branch land acquisition and construction, Chairman Woo appears to have the advantage.”
“I share that assessment. It seems they timed their attack remarkably well, striking when Daheung Group was at its most vulnerable.”
“Exactly—despite the lingering aftermath of the slush fund scandal, they made the bold move of pursuing the Midopa Department Store M&A.”
“Yes, that’s right.”

Jung Tae-ho nodded slightly and spoke.

“If Donghae truly swallows Daheung, our ranking in the business world will rise significantly.”
“While reaching the top ten might be difficult, we should comfortably secure a spot in the top twenty.”
“Though business conditions have been challenging lately, considering we have quality subsidiaries beyond just Midopa Department Store—including the industry-leading textile company and the securities firm we acquired recently that’s already turning a profit—it’s entirely feasible.”

Jung Tae-ho leaned back in his chair, tapping the cigarette held between his fingers.

“You’re well aware that business leaders are deeply concerned about this situation.”

Kwak Dong-hun responded with a more cautious expression.

“If Donghae Group truly succeeds in acquiring management rights to Midopa Department Store, the same thing could happen with other groups, so their vigilance is understandable.”
“Exactly. One misstep and a company you’ve painstakingly built could be stolen right before your eyes. Who could possibly feel at ease?”

Like Hyundai Group, Saseong—the other major conglomerate representing the business world alongside Hyundai—also had its owner family controlling the entire group with minimal shareholding, so Kwak Dong-hun nodded in agreement.
Meanwhile, Jung Tae-ho’s expression darkened as he frowned.

“Frankly speaking, we didn’t go public because we wanted to list our company on the stock market.”

Kwak Dong-hun smiled bitterly at the obvious resentment.

“You’re referring to the May 29 Special Measures implemented back then.”
“Right. No matter how arbitrary the military regime was, forcing a private enterprise to list on the market—and at rock-bottom prices no less. Even now, thinking about it makes my blood boil.”

Jung Tae-ho, genuinely agitated, gulped down the water in his glass.

“The government’s listing requirements at the time were to keep the offering price at or below par value and set the major shareholder’s stake below 51%, correct?”
“Exactly. Back then, the standard par value was typically 500 won per share. To demand we list at a lower offering price than that—only a madman would agree to such terms.”

Jung Tae-ho set down his cup with a sharp clink, speaking irritably.

“Following the government’s demands meant listing shares that were trading at 2,000 to 3,000 won per share over-the-counter at less than half that price.”
“Selling shares at a loss was already infuriating, but being forced to release holdings to meet the major shareholder stake requirement made it absolutely maddening.”

At that time, only a handful of companies were listed on the exchange, and trading volume was incomparably lower than it is now.
Moreover, without going public, companies could obtain sufficient low-interest loans through banks under economic development policies, so businesses were reluctant to pursue stock market listings.
Of course, among the various concerns, the greatest was the weakening of control due to reduced owner shareholding.
However, as companies succumbed to repeated government pressure and listed one by one, the number of listed stocks—which stood at only 50 until 1971—surged to 128 in just three years, establishing a proper stock market in Korea.

“Still, when other companies waved the white flag and went public, Hyunwoo Construction held out until the end, and only listed on the stock exchange after the new military regime took power, didn’t it?”

It was an attempt at consolation in its own way, but Chairman Jung Tae-ho furrowed his brow and let out a snort of derision.

“What good does that do? We listed at a mere 850 won per share with just a 70% premium on the 500 won par value. When you think about how Hyunwoo Construction shares were trading at 3,500 to 4,000 won per share in the over-the-counter market back then, it was practically giving it away. Absolutely giving it away.”

Watching him grumble with a face full of grievance, Chairman Kwak Dong-hun dredged up old memories.

“So the subscription competition ratio exceeded 10 to 1 at the time, didn’t it?”
“If you could just get the shares, you’d make four or five times your money sitting right there. Of course it had to be that way. Even now when I think back to those days, it makes my heart ache.”

Chairman Jung Tae-ho frowned and lit cigarette after cigarette.
In the 1980s, Hyunwoo Construction was one of Korea’s premier blue-chip companies, much like Sasung Electronics would later become, so it was only natural.
In fact, Hyunwoo Construction shares surged immediately after listing, earning substantial profits for the investors who had received allocations.
Just then, there came a knock at the door, and two female secretaries wheeled in a mobile cart, set down the ordered food, and left again.
The pungent aroma of soft tofu stew stung the nostrils and stimulated the appetite, prompting Chairman Jung Tae-ho to stub out his cigarette in the ashtray.
Chairman Kwak Dong-hun, seated across from him, also picked up his spoon and resumed the conversation that had been briefly interrupted.

“As you say, the company’s public offering resulted in considerable losses. If we’re not careful, this incident could lead to rampant, indiscriminate M&As aimed at seizing management control in the domestic market.”
“That’s likely. Once the first time happens, the second time becomes easy, doesn’t it?”

It was the same principle as how a single piece of trash falling on a clean street soon leads to garbage overflowing everywhere.
Chairman Kwak Dong-hun picked up some spinach seasoned with sesame seeds sprinkled on top, set down his chopsticks, and spoke in a serious tone.

“That’s why I’m suggesting this—what if the Federation of Korean Industries gets involved in this incident and sorts things out?”
“Are you saying we should jump into the equity fight?”
“Of course, not direct involvement. Rather, we provide financial support to the Daheung Group and lend them strength.”
“Hmm.”

Chairman Jung Tae-ho crossed his arms and wore a contemplative expression.

“At the same time, if we create public opinion condemning the Donghae Group’s actions in trying to attract foreigners to purchase a domestic company, wouldn’t Chairman Woo find it difficult to continue being greedy?”

At that, Chairman Jung Tae-ho nodded in agreement.

“True. This isn’t the kind of incident we can simply watch from across the river without getting involved.”
“Exactly. To ensure such incidents don’t happen again in the future, I believe we need to demonstrate the business community’s united front.”

Speaking with conviction in his voice, Chairman Jung Tae-ho didn’t deliberate long before making his decision.

“I share your sentiment. If we’re going to provide financial support to Daheung, I’ll put forward one billion won.”

Once Jung Tae-ho made a decision, he executed it decisively—that was his nature.
Chairman Kwak Dong-hun’s face brightened upon hearing the answer.

“If Chairman Jung commits to this, the others will be more than willing to join in.”

Jung Tae-ho then let out a bitter laugh, speaking as if tossing the words aside.

“They’re probably worried their management rights could be threatened. I’d wager they’ll all roll up their sleeves and step forward.”

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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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