Golden Spoon Investment Portfolio - Chapter 396

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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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396. The smaller house is going to end up bigger than the larger one.

October 27, 1997. Mapo Daeheung Group Headquarters.
In the spacious Chairman’s Office, Park Tae-hong sat centered on a leather sofa with his eldest son Park Jin-hyung, president of Daheung Textile, and Gil Seong-ho, the Chief Secretary, seated on either side, engaged in conversation.

“What’s the exchange rate today?”

As Park Tae-hong asked while resting his arm on the sofa, Gil Seong-ho, receiving his attention, answered immediately.

“It’s been fluctuating wildly since this morning. I heard it climbed to 1,489 won.”
“My goodness. 1,489 won? Who would have predicted the dollar would skyrocket like this when it was still at 890 won just earlier this year.”

Park Jin-hyung smiled faintly at Park Tae-hong’s words as he shook his head.

“Seok-won knew, didn’t he?”
“Hmm? Ha ha ha! That’s right.”

Park Tae-hong burst into hearty laughter.
While everyone else was anxiously pacing as the exchange rate soared and liquidity dried up, he could afford to speak with such ease—all thanks to the dollars he’d stockpiled in his coffers.

“How much has the dollar risen in just a few months?”
“It’s surged more than 67 percent, sir.”

Park Tae-hong exhaled sharply upon hearing the answer.

“If someone had foreign currency loans, their interest and principal would have ballooned just sitting there. It’s become a literal dollar debt.”

It was a common expression—when borrowing money at exorbitant interest, people would say they’d incurred a “dollar debt,” and he was using it metaphorically.

“Indeed, sir.”
“And these days, I hear you can’t even find dollars at the banks or the money changers in Myeongdong, even if you pay a premium.”

Park Tae-hong nodded slightly upon hearing this.

“Of course. The exchange rate shoots up like mad every time you sleep and wake up, so everyone’s just gripping what they have. Who’s going to sell?”
“You’re absolutely right, sir.”

Manager Gil Seong-ho glanced cautiously at Chairman Park Tae-hong before continuing.

“Fortunately, we have no immediate liquidity concerns thanks to our advance preparations, but I’m worried about the sharp decline in department store sales—our core subsidiary—as the economy has completely frozen due to the foreign exchange crisis.”
“You’re saying sales are sluggish even with the autumn sale and special promotions running?”
“Yes. Sales have dropped over 30% compared to last year, and the year-end season doesn’t look promising either.”

The year-end season, when Christmas arrived, was when department stores generated their largest sales.
At the mention that even this crucial year-end shopping period might disappoint, Chairman Park Tae-hong’s brow furrowed.
Under normal circumstances, he would have erupted in anger, but this time he couldn’t.
He understood that Midopa Department Store’s management hadn’t failed—rather, the foreign exchange crisis had caused customers to tighten their purse strings.
When everyone was struggling just to get by, there was no way Midopa Department Store alone could thrive.

“Ugh.”

Chairman Park Tae-hong let out a groan of frustration.

“There’s nothing we can do about the economy.”

President Park Jin-hyung interjected smoothly.

“For now, we should be grateful if we can maintain the status quo without posting losses.”
“That’s true. Compared to other department stores that are on the brink of collapse, we’re doing relatively well.”
“Exactly. There’s talk that Newcore Group, which has Newcore Department Store as a subsidiary, won’t survive the liquidity crisis and will soon file for composition.”

At Manager Gil Seong-ho’s words, Chairman Park Tae-hong’s eyebrows drew together.

“They aggressively expanded their store count over the past few years, inflating their size, and now look where they are.”
“It seems their strategy to preemptively seize the market against foreign discount retailers like Costco and Carrefour that entered the domestic market backfired.”

As his eldest son, President Park Jin-hyung, spoke, Chairman Park Tae-hong’s expression turned bitter.

“With conglomerate-affiliated department stores like Lotte and Utopia pressing down from above and foreign discount retailers surging up from below, they panicked.”

Chairman Park Tae-hong himself had felt the same way not long ago, so this didn’t feel like someone else’s problem.
Without the counsel of his second son, Seok-won, the Daeheung Group would surely have collapsed under the foreign exchange crisis just like Newcore Group.
Whenever such thoughts crossed his mind, Chairman Park Tae-hong felt a chill run down his spine.
He withdrew a cigarette from the wooden box on the desk and placed it between his lips; Manager Gil Seong-ho quickly flicked his lighter and lit it for him.
Leaning back in his chair, Chairman Park Tae-hong inhaled the white smoke deeply, then exhaled slowly as he spoke.

“For now, survival is the priority. Tell each affiliate to avoid overextending themselves and focus on maintaining the status quo.”
“Understood.”

At that moment, Jung Yun-kyung knocked and entered, wearing horn-rimmed glasses and a one-piece formal suit.

“I apologize for the interruption.”
“What is it?”
“Park Seok-won, the president of Daeheung Investment, has arrived.”

Park Tae-hong’s face brightened as he straightened his posture.

“Show him in.”
“Yes.”

After Jung Yun-kyung left, Seok-won appeared with a smile on his face.

“I’m here.”
“Don’t stand there gawking. Sit down.”

Park Tae-hong gestured toward the empty seat with a cigarette between his lips.
Seok-won exchanged a nod with Gil Seong-ho, the Chief Secretary across from him, and sat beside his older brother, Park Jin-hyung.

“Shall I prepare some tea for you?”
“No, thank you. I’ve already had coffee.”
“Very well.”

As Jung Yun-kyung stepped out and closed the door, Park Tae-hong regarded his second son with gentle eyes and asked.

“You’ve come by unexpectedly. What’s this about having something to discuss?”
“I’m acquiring a company, and I wanted to inform you before the news breaks.”
“You’re acquiring a company in times like these?”

Park Tae-hong’s expression turned puzzled.

“While there are certainly struggling enterprises, the foreign exchange crisis has driven quality companies to bargain prices. It’s an excellent opportunity to pick up gems at a discount.”

Park Tae-hong nodded, as the logic was sound.

“Money could be an issue, but that’s not a concern for you. It’s not a bad move.”

Chairman Park Tae-hong, who had agreed, held a cigarette between his fingers as he asked.

“So, which company did you acquire?”

President Park Jin-hyung and Chief Secretary Gil Seong-ho also looked over with curious expressions.
They all knew Seok-won’s exceptional eye for talent, so they were eager to learn what kind of company had earned his selection.

“I’ve decided to acquire Ilhan Bank, Hansung Bank, and three finance companies—Shinchang, Goryeo, and Gyeongnam Finance—all together as a package.”
“…!”

For a moment, silence fell over the room as if it had frozen solid.
Chairman Park Tae-hong, still holding the cigarette to his lips, blinked his eyes.
Did I… mishear something?

“Did you just say you acquired Ilhan and Hansung Bank?”

Seok-won nodded and replied.

“Yes. Along with the three finance companies I mentioned earlier.”
“Huh.”

Confirming he had heard correctly, Chairman Park Tae-hong let out a bewildered laugh.
President Park Jin-hyung and Chief Secretary Gil Seong-ho, standing beside him, made no attempt to hide their shock.
Both Ilhan and Hansung were among the Big Five major commercial banks in the domestic market—the fact that he had acquired not just one but both of them simultaneously was nothing short of astounding.
Chairman Park Tae-hong, who had straightened his posture and leaned forward, asked again with eyes still filled with disbelief.

“Is that really true?”
“Yes. The official announcement should come out within two or three days.”

Now fully convinced this was no joke, Chairman Park Tae-hong muttered in disbelief, “This is insane…”

“This is like being hit with a club in the middle of the night out of nowhere.”

The other two men wore expressions of utter bewilderment.
They had assumed he would cherry-pick the finest companies, but banks? Banks, of all things?
After finally regaining his composure, Chairman Park Tae-hong asked, dying of curiosity.

“How on earth did this happen?”

I couldn’t even fathom what kind of maneuver could allow someone to acquire a bank.

“I met with Minister Choi not long ago and made a deal to purchase foreign bonds worth 10 billion dollars, including the acquisition price.”
“!”

Chairman Park Tae-hong’s jaw dropped at the answer.
President Park Jin-hyung and Chief Secretary Gil Seong-ho widened their eyes and unconsciously swallowed hard.
It was understandable—they were casually discussing a deal worth 10 billion dollars, no small sum.
Chairman Park Tae-hong stubbed out his barely-smoked cigarette in the ashtray and spoke to Chief Secretary Gil Seong-ho.

“Manager Gil. My mind’s gone blank—how much is 10 billion dollars in Korean won?”

Chief Secretary Gil Seong-ho, hastily calculating in his head, looked at Seok-won with startled eyes before answering.

“Today’s exchange rate is 1,489 won per dollar, so it comes to approximately 14.89 trillion won.”
“….”

Shock and astonishment flooded everyone’s mind.
Not billions—trillions?
The trillion unit that comes after millions, billions, and hundred-billions?

“Did you say… fourteen trillion?”

Chairman Park Tae-hong’s voice trembled faintly as he repeated the figure.

“Yes, sir.”

Faced with an astronomical sum beyond comprehension, Chairman Park Tae-hong was momentarily speechless.
The Hanwha Group’s default, which had signaled the onset of the foreign exchange crisis, was only around 5 trillion won—so his shock was warranted.
Chairman Park Tae-hong turned his head sharply toward his second son, who sat there with perfect composure.

“Do you really have that much money?”
“Would I have made such a deal with the government without the funds to back it?”

Knowing full well that his son was not the type to make reckless promises he couldn’t keep, Chairman Park Tae-hong reluctantly nodded in acknowledgment.

“…I suppose that’s true.”

Then, suddenly shifting his expression, Chairman Park Tae-hong asked with concern.

“You didn’t borrow this money from somewhere, did you?”
“Ha ha. It’s all my own money, so there’s no need to worry.”

Chairman Park Tae-hong, who had been concerned that his second son might have recklessly taken out loans due to greed, finally nodded with relief.
Once the worry dissipated, what occupied Chairman Park Tae-hong’s mind was his second son’s staggering wealth.
He knew that Seok-won had made considerable money through successful investments, but he was astounded to learn that he possessed as much as ten billion dollars in cash.
Just then, Park Jin-hyung, who had barely regained his composure, looked at his younger brother with bewildered eyes before hardening his expression and speaking.

“I understand both banks are in a dangerous state with far too many non-performing assets. Won’t acquiring them just create headaches?”
“Right. If things go wrong, the cure could be worse than the disease.”

Chairman Park Tae-hong chimed in with a serious expression, but Seok-won remained perfectly composed.

“The government has already removed most of the non-performing assets before transferring them to us. And I’m planning to conduct a paid-in capital increase to inject new funds and normalize operations quickly.”
“If you’re doing a paid-in capital increase, you’re planning to put in additional money yourself?”

Seok-won nodded at Chairman Park Tae-hong’s question.

“Yes. That would be the fastest and most reliable method.”
“The scale of non-performing assets is so massive that an ordinary amount won’t even make a dent. How much are you planning to increase the capital by?”
“I think about one billion dollars should be enough to put out the immediate fires.”
“What? How much did you say?”
“One billion dollars.”

Chairman Park Tae-hong was left speechless by his second son’s answer, which exceeded whatever he could have imagined.

“Just how much money do you have?”

Then Seok-won replied with a mysterious smile playing at the corners of his mouth.

“I’m not entirely sure myself. It’s growing in real-time even as we speak.”

To others, it would have sounded like a joke, but Seok-won’s expression revealed the truth of his words.
All three men stared at Seok-won with dumbfounded expressions, as if they’d been struck by a bomb.
Chairman Park Tae-hong opened and closed his mouth several times before finally giving up on finding words, simply shaking his head in disbelief.

“Well. My goodness.”

Then he immediately broke into a pleased expression and spoke.

“When we’re struggling to spare even a single dollar, offering a whopping 10 billion dollars is something the government simply cannot refuse. Hah.”

Chairman Park Tae-hong broke into a wide smile, his lips curling with satisfaction.

“Once we add the venture capital fund and securities operations to the major bank, the smaller house will end up being bigger than the big one. Wouldn’t you say?”
“Indeed, sir.”

President Park Jin-hyung responded with a smile of his own.
If he had harbored jealousy or resentment over Seok-won’s success, it would have surfaced long ago.
Having recognized his younger brother’s talents early on, President Park Jin-hyung felt nothing but pride watching the independent Seok-won navigate his path with such effortless grace.

“The other chairmen will be absolutely stunned when they learn about this. I’m already looking forward to the next Federation of Korean Industries gathering.”

Chairman Park Tae-hong’s expression radiated unbridled excitement at the prospect of boasting about his son.

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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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