Golden Spoon Investment Portfolio - Chapter 260

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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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260. That’s absolutely not an option.

April 12, 1996
In the Chairman’s Office at Mapo Daeheung Group Headquarters, Chairman Park Tae-hong sat in the center of the sofa with Seok-won and Park Jin-hyung, the textile division president, on either side, along with Chief Secretary Gil Seong-ho and Finance Director Seo Jin-hyung.

“So the results of yesterday’s 15th general election ended in a ruling party victory, just as you predicted.”

Seok-won answered Chairman Park Tae-hong’s remark matter-of-factly.

“It’s only natural. The opposition failed to unite and fractured instead, splitting the votes. Just look at Seoul—it had been an opposition stronghold, but this election they only secured 18 seats while handing all 27 remaining seats to the ruling party. That alone tells you everything.”

Chief Secretary Gil Seong-ho then interjected smoothly.

“Exactly. In most competitive districts, the Democratic Peace Party and the New Era National Conference came in second and third place, with the ruling party winning by only the narrowest of margins. That alone proves the opposition destroyed itself by failing to unify.”
“With things this way, President Kim Sung-gyu’s influence, which had been shaken by the defeat in the last local elections, will solidify again.”

At Park Jin-hyung’s words, Chairman Park Tae-hong nodded while crossing one leg over the other.

“That’s right. The President is truly a remarkable man. The way he navigates through seemingly precarious situations and overcomes each crisis—he’s got fortune on his side and his political acumen is genuinely impressive.”

He then turned his gaze toward Finance Director Seo Jin-hyung, who sat beside Chief Secretary Gil Seong-ho.

“We’re preoccupied with the equity struggle, but precisely in times like these, we shouldn’t neglect to show our congratulations.”

Finance Director Seo Jin-hyung, as if he’d been waiting for this, answered immediately.

“I’ve already prepared 1.4 billion won—10 million per elected official.”
“That should serve as adequate courtesy.”

Chief Secretary Gil Seong-ho and Park Jin-hyung then chimed in their agreement.

“Given the slush fund scandal involving the two former presidents that broke recently, it’s an appropriate amount—neither too little nor excessive.”
“I concur.”

As everyone reached consensus, Chairman Park Tae-hong gave a slight nod.

“Have Manager Gil send congratulatory gifts to the Ruling Party members. Make sure the arrangements are handled smoothly so there are no loose ends.”
“Understood, sir. You needn’t worry.”

Chairman Park Tae-hong took a sip of coffee, set down his cup, and turned his attention to Seok-won.

“By the way, today is the deadline for the public acquisition offer that the other party proposed. How is the Midopa Department Store matter progressing?”

Seok-won answered in a composed manner.

“We’ve acquired all 3.2% of Midopa Department Store shares held by Chairman Cheon of Myeongdong at 50,000 won per share.”
“Is that really true?”

Chairman Park Tae-hong straightened his posture in surprise, leaning forward from where he’d been reclining.

“That old man is no ordinary investor. You’re telling me he sold his department store shares—and at a price lower than what Donghae Group offered in their public acquisition?”

Finding it difficult to believe, he asked again, and Seok-won nodded matter-of-factly.

“Yes.”
“Impressive!”

Chairman Park Tae-hong let out a short breath of admiration, his eyes gleaming with respect.

“How on earth did you manage to convince Chairman Cheon?”

Park Jin-hyung, his older brother and president, along with the other two men, looked at him with curiosity.
Seok-won smiled faintly at the corners of his mouth as he spoke.

“Nothing special, really. I simply made a wager with Chairman Cheon.”
“A wager? What kind of wager?”
“It’s nothing significant enough to warrant your concern.”

Seok-won answered as if it were trivial.
If Chairman Park Tae-hong learned that he’d wagered a billion won on the collapse of Hansei Group, he would surely be taken aback, so I decided to gloss over the details without offering a full explanation.
Chairman Park Tae-hong noticed his evasiveness, but sensing there must be a reason for the secrecy, he merely narrowed his eyes and observed without pressing further.

“So adding Chairman Cheon’s shares to what we already held means we’ve now secured 31.2%.”

As Park Jin-hyung murmured this calculation, he added further comment.

“We’ve been buying additional shares on the market to deceive the other side, so it’s around 31.5%. When you factor in friendly shareholders as well, I’d estimate we’re looking at roughly 35%.”

Chairman Park Tae-hong crossed his arms, his expression growing slightly rigid.

“We’ve increased our stake considerably, but it’s still not at a level where we can feel secure.”
“Considering the rumors circulating about our group’s financial difficulties, more and more individual investors are responding to the Donghae Group’s public acquisition offer.”
“How much of a stake has been submitted for the public acquisition?”
“We won’t know for certain until we open the box after today’s market closes, but we’re estimating it’ll be somewhere around 10 to 20%.”

At that, Seo Jin-hyung, the Finance Director, interjected, unable to hide his anxiety.

“The Donghae Group must have purchased additional shares on the market during this time as well. If you add all of that together, won’t the other side end up holding more shares than us?”
“That’s likely.”

At the casual response, Seo Jin-hyung’s expression grew even more troubled.
If the other side convened an extraordinary shareholders’ meeting and replaced the management as things stood, they would simply seize Midopa Department Store—there was no way around it.
Of course, he knew there was a plan to reverse the situation, but he couldn’t help feeling anxious.
As if reading his thoughts, Chairman Park Tae-hong spoke in a grave voice.

“I know we’re deliberately allowing the Donghae Group to acquire shares, but if we delay too long, the rice will burn.”

Seok-won nodded as if he understood the concern embedded in the warning.

“That’s why we’re planning to announce before the afternoon session begins today that Midopa Department Store will be selling its textile holdings to a venture capital firm.”
“The other side will definitely try to block the share sale by raising legal objections. How do you plan to handle that?”

Seok-won answered with confidence.

“They’ll certainly object as you say, but according to our legal review, if the sale is conducted to secure funds for defending management rights, there should be no legal issue.”

No matter what was asked, the answers came back flawlessly, yet Chairman Park Tae-hong maintained his grave expression.

“Even so, if the textile holdings slip away, our plan to swallow the entire group through the department store will completely fall apart, so they’ll fight tooth and nail to prevent it.”

Gil Seong-ho, the Chief Secretary, also added his thoughts in a serious tone.

“Once the announcement goes out, the Donghae Group will undoubtedly file for a preliminary injunction to block the share sale.”

Park Jin-hyung, the older brother serving as President, and Seo Jin-hyung, the Finance Director, nodded in agreement.

“Of course I won’t just sit idle, but if we confirm another disclosure coming up alongside our ascent, it will be difficult to pour all our strength into Midopa Department Store.”

At that, Chairman Park Tae-hong’s eyes gleamed as he leaned his upper body forward.

“Are you thinking of detonating the Donghae Oil card at the same time?”

At the slightly excited tone, Seok-won also laughed with a mischievous expression.

“To deliver maximum impact, it’s most effective to strike all at once and leave them unable to recover their senses.”
“Right. Staggered attacks certainly deal damage, but a barrage of heavy blows—if executed properly—can knock the opponent into a daze in one fell swoop.”

President Park Jin-hyung also wore an expression of keen anticipation.

“I thought we were just pressing them, but imagining the moment they realize they’ve been robbed blind and panic—it’s already exhilarating.”
“The back of their head will be ringing.”

Even Chief Secretary Gil Seong-ho, who rarely expressed emotion, shared the same sentiment as everyone else.
Only then did Chairman Park Tae-hong ask with a somewhat reassured expression.

“How much of Donghae Oil’s shares have we secured so far?”
“Over the past few days, we’ve acquired an additional 0.5% on the market, bringing our stake up to 18%.”

At that, Chairman Park Tae-hong tapped the armrest of the sofa he was sitting on with his fingertips, revealing his frustration.

“Since we had to accumulate shares discreetly to avoid detection, we can shake them up, but we lack the shares for a fatal blow.”
“Since we’re not attempting a hostile M&A to acquire Donghae Group anyway, this level of stake is sufficient threat. Besides, now that we don’t need to hide our movements, if we release the cash we’re holding before the share acquisition disclosure and concentrate on buying, our stake will skyrocket.”
“Hmm.”

After a moment of thought, Chairman Park Tae-hong slightly raised one eyebrow.

“While we’re at it, what if we actually devour Donghae Group? Chairman Woo threw down the gauntlet first, so we have justification.”

As the number one company in the cooking oil and feed business, with a foothold in finance through securities, trusts, and safe deposit services, it was a substantial mid-sized conglomerate worth coveting.

‘If only the IMF weren’t looming ahead.’

With massive capital already flowing into the Gangnam Branch construction and additional expenditures for defending management rights, our financial condition was already dire. Coveting Donghae Group’s acquisition would be nothing short of a path to self-destruction.

“That’s absolutely not an option.”

Seok-won’s face hardened as he cut straight to the point without hesitation.
When Chairman Park Tae-hong’s brow furrowed at the uncompromising tone, Park Jin-hyung stepped forward to speak on his behalf.

“Chairman Woo’s stake at 27.6% is certainly significant, but he’s already depleted considerable funds acquiring Midopa Department Store shares. If we seize that opening and concentrate on buying up Donghae Oil stock, wouldn’t it be worth attempting?”

Seok-won exhaled inwardly and replied in a firm voice.

“It might be possible. But what comes after that?”

At that, not only his older brother Park Jin-hyung but also Chairman Park Tae-hong and the other two men found themselves unable to speak easily.
Seok-won, pressing his forehead internally, stated with a serious expression.

“You all understand well that we’ve suspended every business plan we were pursuing—including the China Manufacturing Plant expansion—and are literally pouring out money by scraping together our very soul to fight this equity battle. Even if we emerge victorious from this struggle, it will take considerable time to recover from all the wounds. If we covet the Donghae Group now, we’ll have to endure far greater losses. And even if we’re fortunate enough to swallow them whole, we won’t be able to digest them properly, and in the end, everything will fall apart.”

Then Chief Secretary Gil Seong-ho, gauging Chairman Park Tae-hong’s reaction, cautiously sided with Seok-won.

“The younger president is right. As regrettable as it is, the situation doesn’t permit it now. Let’s focus on ending this battle well first and then concentrate on strengthening the group’s foundation.”
“I share the same view. I apologize for bringing this up, but we simply lack the resources to pursue the Donghae Group.”

Seo Jin-hyung, the Finance Director, whose face had gone pale when Chairman Park Tae-hong first broached the subject and had only just recovered, also agreed.
As the person who best understood the current state—where the group’s coffers were being scraped bare to the bottom—he desperately wanted to dissuade him.
With not only his second son but also the two executives dissuading him, Chairman Park Tae-hong swallowed hard with a reluctant expression.
However, Chairman Park Tae-hong was well aware that the group’s financial situation was dire, so he chose not to persist stubbornly and let the matter go.

“Now that I think about it, I was being too greedy. Let’s forget what I just said.”

Seok-won, who had been inwardly worried that he might continue to be greedy and push forward, finally exhaled in relief.

I’m grateful he knows how to maintain reasonable boundaries.

Seok-won spoke in a soothing tone toward Chairman Park Tae-hong.

“If you exercise patience and wait for the right moment, a better opportunity to make the group leap forward will come before long.”
“I hope it turns out exactly as you say.”

Then Seok-won spoke with a subtle smile on his face.

“It will happen exactly as I say.”

If I could quickly end this equity battle and solidify the financial position during the remaining time, then after the International Monetary Fund crisis struck like a direct hit and conglomerates collapsed en masse, I could acquire the prime companies and significantly expand the company’s scale.

‘An incredibly abundant buffet awaits ahead. It would be foolish to throw away such an opportunity just to covet something like the Donghae Group.’

Seok-won chuckled softly to himself, murmuring these thoughts inwardly.

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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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