Golden Spoon Investment Portfolio - Chapter 432

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

432. I’ll just acquire it for 200 billion won.

Chairman Park Tae-hong furrowed his brow at this completely unexpected proposal and asked for clarification.

“You’re saying we need to demolish the Nasan Department Store Nonhyeon Branch?”

Seok-won met his father’s gaze directly and nodded.

“Yes.”

Park Jin-hyung, sitting across from them, interjected with obvious confusion.

“Why would we tear down a perfectly sound building?”
“Because it’s not sound.”
“What?”

While Park Jin-hyung wore a bewildered expression, Chairman Park Tae-hong fixed Seok-won with a look demanding explanation. Seok-won then spoke in measured, deliberate tones.
Seok-won then spoke in a clear, measured voice.

“If you check, you’ll see that Nasan Department Store Nonhyeon Branch was built with a flat slab structure without installing steel beams on the upper floor. They tried to squeeze in more floors within the height restrictions by taking advantage of the fact that this reduced construction costs and eliminated the need to secure height for beam installation.”

Yet he reasoned that his second son wouldn’t bring this up without good cause, so he listened intently.
However, thinking that there must be some reason for his second son to act this way, Chairman Park Tae-hong quietly lent an ear.

But the flat slab structure has a fatal weakness. It’s vulnerable to horizontal loads, and if a problem occurs, the collapsed ceiling structure can cause a chain collapse by bringing down the floors below it one after another.

Seok-won paused for a moment, glancing back and forth between his father and his older brother, then spoke again in a slightly subdued voice.

“…!”
“…!”

Chairman Park Tae-hong’s eyes widened as he asked gravely.
Park Tae-hong, the chairman, asked with a serious expression, his eyes wide open.

“Are you saying that Nasan Department Store Nonhyeon Branch is in danger of collapsing right now?”

Park Jin-hyung, seated across from him, also stared at his younger brother with a stern expression.

“Yes. If you conduct a safety inspection, you’ll be able to confirm that the building has many structural issues.”

Seok-won nodded with conviction.

“Hmph.”

Park Tae-hong, who had never even considered such a possibility, exhaled sharply.
Then, his eyes filling with suspicion, he straightened his upper body.

“How do you know that?”

Seok-won knew this because several months later, subway Line 7 construction near Gangnam-gu Office Station would cause severe cracks in the underground parking garage pillars.
As a result, the building would be designated as a disaster-risk facility, operations would be suspended, and the entire structure would be sealed off.
With the owner, Nasan Group, having defaulted, various complicated issues became entangled, and the building was left abandoned for over a decade.
It wasn’t until 2008 that demolition finally began, though that process proved far from smooth.
During demolition, the building couldn’t withstand the weight of the heavy machinery and collapsed, burying two excavator operators in the rubble.
I recalled how people whispered that if the building hadn’t been closed immediately after the Sampoong Department Store collapse, it would have become a second Sampoong.
But since Seok-won couldn’t tell the truth directly, he added a plausible reason instead.

“Right after the Sampoong Department Store underwent a collapse-risk inspection, a list of buildings suspected of shoddy construction circulated as underground pamphlets. The Nasan Department Store Nonhyeon Branch was on that list.”
“There was something like that? I’ve never heard of it.”
“This is the first I’m hearing of it as well.”

When Park Tae-hong furrowed his brow, Park Jin-hyung also responded with bewilderment.
Seok-won felt a pang of guilt internally, but showed no sign of it outwardly as he continued his vague explanation.

“If operations continue as they are and a problem occurs, there’s a risk of casualties. Moreover, with the wounds from the Seongsu Bridge collapse still fresh, it would inflict a fatal blow to the Midopa Department Store brand.”
“But not all buildings constructed with a pillar-less structure would have problems, would they?”
“If it had been constructed properly according to regulations, that would be true. But if it was built with shoddy workmanship like Sampoong Department Store, it’s no different from a house of cards—you never know when it might collapse.”
“Hmm.”

Park Jin-hyung, who had narrowly escaped the Sampoong incident but had become acutely sensitive to building safety following the major Seongsu Bridge collapse, readily agreed.
Park Jin-hyung turned to Park Tae-hong with a grave expression and spoke.

“I think we do need to verify whether there’s a genuine risk of collapse.”

Park Tae-hong stubbed out his nearly finished cigarette in the crystal ashtray and replied.

“If there are safety issues, we’ll have no choice but to demolish it as Seok-won says. But there are contract issues with the tenants, and more importantly, constructing a new building won’t come cheap. How could the finances possibly work out?”

At that, Park Jin-hyung, the president who had been conducting a detailed investigation with the acquisition of Nasan Department Store in mind, adopted a skeptical stance.

“With all the other department stores sprouting up around the area and losing ground in competition, didn’t Nasan Group itself renovate the Nonhyeon Branch into a home interior and household goods specialty store and reopen it? Considering that, it won’t be easy to recover the investment.”
“I think the same way.”

Chairman Park Tae-hong leaned back in his chair and furrowed his brow.

“But we can’t just leave the building empty either, so this has become quite a headache.”
“Then give it to me.”

At the sudden voice, Chairman Park Tae-hong blinked and looked at Seok-won.

“Give it to you?”
“Yes.”

Park Jin-hyung, who had been sitting across the table, asked with a surprised expression.

“Didn’t you just say with your own mouth that the building is unusable?”
“That’s right.”
“Then what are you planning to do with it?”

As Chairman Park Tae-hong looked at him with curious eyes, Seok-won smiled and spoke.

“Tearing it down and building a new department store wouldn’t be profitable. But if you just look at the land itself, it’s a place where you could make money just by holding onto it.”

Chairman Park Tae-hong, sitting on the sofa, nodded slightly and responded.

“It’s true that the Gangnam-gu Office Intersection where the Nonhyeon Branch is located is a strategic location, being close to the Gangnam-gu Office and tax office, and adjacent to the wealthy neighborhoods of Cheongdam-dong and Apgujeong-dong.”
“Are you thinking of building an office building there?”

At his brother’s question, Seok-won shrugged.

“Well, that could be one option. I’ll think slowly about how to develop it later.”
“So you’re just going to buy it without even having a plan for what to do with it?”
“It’s not easy to acquire land of this size in the heart of Gangnam. So I want to buy it while the opportunity presents itself.”

Park Jin-hyung, who had been looking at him with an exasperated expression, was left speechless by such an audacious answer.
Then Chairman Park Tae-hong, who had been listening to the conversation, burst into loud laughter.

“Hahaha! That’s right. You have to stake your claim on good things first.”
“Good grief….”

Park Jin-hyung shook his head as if conceding defeat.

“Do as you see fit. There’s probably no one in Korea right now with more liquid cash than you anyway.”

Seok-won turned his head and gave Park Tae-hong a hopeful look.

“So you’re giving me the Nonhyeon Branch, then?”
“It’s the lowest-performing of the four retail locations, and with structural problems on top of that, it’s just a headache to hold onto. Take it.”
“Thank you.”

Park Tae-hong, who had readily agreed, soon curled the corners of his mouth upward slightly.

“I’d like to just hand it over to you, but once we acquire the Nasan Department Store, it becomes a group asset. You understand that’s not possible, don’t you?”
“Of course it should be that way.”

Park Tae-hong leaned back leisurely, placing one leg over the other knee.

“So then, tell me—what price are you willing to pay?”
“How about one billion won?”
“You just said it yourself that it’s a prime location in Gangnam, and you’re offering only one billion?”
“…Then how much do you want?”

Park Tae-hong held up two fingers as he spoke.

“Just two big ones—that’s all I need from you.”
“Two billion won?”

Unlike Seok-won, who wore a bewildered expression, Park Tae-hong replied with composure.

“The real estate market is sluggish now, but it’s still land anyone would covet, isn’t it? And as you yourself said, it’s not easy to find a plot that size in Gangnam. If we just sit on it, the value will keep climbing. Two billion isn’t really that expensive.”

Then he turned his head and sought agreement from his eldest son.

“Isn’t that right?”
“Ah… Yes. That’s true.”

Park Jin-hyung, taken aback by his father’s uncharacteristic demeanor, nodded hesitantly.

“Look, your older brother agrees with me too.”
“Still, this is between father and son—20 billion won seems excessive.”
“Didn’t you yourself say last time that we need to clearly separate public and private matters when you were taking a 20% management fee?”
“Ugh.”

As Seok-won groaned, Chairman Park Tae-hong broke into a triumphant smile.
It felt exhilarating to finally assert his authority over his second son, who had always been extracting hefty commissions.
In high spirits, Chairman Park Tae-hong licked his lips and dangled a subtle bait before his second son.

“I’m thinking of having you manage the group’s surplus funds like last time. If you cut your commission, I’ll lower the price.”
“Hmm….”

Seok-won paused briefly before answering.

“I’ll just purchase it for 20 billion won.”
“What? You’re really going to buy the Nonhyeon Branch for 20 billion won?”

Chairman Park Tae-hong, who had expected him to haggle over the price, blinked in undisguised bewilderment.
Park Jin-hyung also stared at his younger brother in surprise as Seok-won spoke matter-of-factly.

“It’s a bit pricey, but the land value will keep rising, so I’ll treat it as an investment and hold onto it.”

In fact, considering that the Nonhyeon Branch land was sold at auction for 150 billion won after being abandoned as a derelict building for over a decade, purchasing it for 20 billion won was not a bad deal at all.

‘If I build a tall office building or mixed-use complex here, it would be worth significantly more.’

Considering that the Daekwang Building in front of Seoul Station had exceeded 1 trillion won in value, I could easily earn more than ten times my investment within a decade.

‘While I’m thinking about it, I should buy the Daekwang Building too if it comes on the market.’

During the IMF crisis, as many companies went bankrupt or underwent restructuring, prime real estate properties like the Daekwang Building were dumped at bargain prices.
Normally, foreign hedge funds would swoop in and literally pick up the rock-bottom real estate, then sell it at premium prices years later when the economy recovered, pocketing massive profits.

‘I won’t stand by and watch foreign hedge funds rake in easy money like that.’

Seok-won decided to establish a separate real estate management company and sweep up all the bargain properties flooding the market, mentally adding the Daekwang Building to his shopping list.
Meanwhile, Chairman Park Tae-hong addressed Seok-won with evident confusion written across his face.

“If there are issues with the building, we’d need to demolish it, so I could lower the price.”
“That won’t be necessary. If I acquire it too cheaply, there might be complications later, so I’ll pay the full amount.”

Chairman Park Tae-hong, who had intended to slash the price generously whenever someone complained it was expensive—all to secretly reduce the management fee for the Park Group’s reserve funds that he’d entrusted to his second son—found himself caught off guard by this unexpected response, and his expression soured.

“Tsk.”

The problem was that his son had far too much money.
Seok-won continued speaking rapidly, oblivious to Chairman Park Tae-hong’s repeated internal tongue-clicking.

“When the Park Group acquires the Nasan Department Store, I’ll have the Nonhyeon Branch separated out for me to acquire independently. That way it won’t be complicated, and it’ll look better from the outside.”
“…That does seem like the better approach.”

Chairman Park Tae-hong replied with a somewhat deflated expression.

“By the way, what did you mean earlier about entrusting the Park Group’s reserve fund management to you again?”
“That’s….”

Chairman Park Tae-hong reflexively opened his mouth, then suddenly wore a bitter expression.
If he brought it up now, that cunning second son of his would undoubtedly turn the tables on him—repaying the loss he’d just suffered with interest included.

“It’s nothing.”

Chairman Park Tae-hong smacked his lips and abruptly turned his head away.
In doing so, his eyes met directly with his eldest son, who was barely suppressing laughter that threatened to burst from his lips.

“Pfft… Ugh.”

President Park Jin-hyung hastily recovered his poker face, but it was already too late.
Chairman Park Tae-hong glared at his eldest son with irritation and clicked his tongue.

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