Golden Spoon Investment Portfolio - Chapter 483

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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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483. Saseong Group and Daekwang Group are pushing forward with a major deal.

Starting with Manyoung Machinery, Seok-won made the rounds to Hansan Heavy Industries, cement, and construction companies, meeting directly with union representatives and reshuffling the management. Now he was laying the groundwork to acquire his next target: Minguk Life.

“With Haecheon Group Chairman Shim In-yeol arrested on charges of foreign currency flight, Minguk Life—designated as a troubled financial institution—is increasingly being steered toward a path where the government injects public funds first to normalize it, then sells it off rather than relying on self-improvement.”

At Yu Hyun-seok’s explanation, Yun Ki-hun, seated across from him, adjusted his gold-rimmed glasses and spoke.

“The situation is certainly dire, but among twelve subsidiaries, Minguk Life accounts for 95% of the group’s total revenue. I doubt Chairman Shim will relinquish control so easily.”

Yu Hyun-seok responded without hesitation.

“As you point out, Chairman Shim will do everything he can to retain management rights. However, the recent due diligence revealed liabilities exceeding assets by a staggering 2.9 trillion won. The government won’t simply stand idle and do nothing.”
“True. If they dither and Minguk Life defaults, millions of policyholders will suffer massive financial losses. That would immediately tank the government’s and the Ruling Party’s approval ratings.”
“Exactly. That’s why the government appears determined to intervene swiftly before the situation deteriorates further.”

Seok-won, seated at the head of the table with one leg crossed, spoke up.

“How much public funding do you expect will be injected?”

Yu Hyun-seok answered immediately.

“Considering that we need to cover at least 60 to 70 percent of the net asset deficit that’s been revealed to normalize the company, they’ll likely need to inject between 1.7 and 2 trillion won.”

At the staggering sum, Yun Ki-hun shook his head slowly.
Seok-won, seated on the sofa with his arms crossed, spoke.

“If that much public funding goes in, the minimum bid when it’s sold later will be at least 2 trillion won.”
“That’s right. If they sell it for less than the public funds invested, they’ll be accused of a fire sale by the opposition and the public alike.”

Following Yu Hyun-seok’s response, Yun Ki-hun added his opinion.

“Considering Minguk Life is the third-largest life insurance company with assets reaching 14.04 trillion won and millions of policyholders, they’ll be even less inclined to sell it cheaply.”
“I’d do the same if I were them.”

Seok-won nodded slightly and turned his gaze to Yu Hyun-seok, asking a question.

“If public funds are injected as expected, how will Chairman Shim’s shareholdings be handled?”
“The existing shareholders, including Chairman Shim, will have their shares forcibly written down completely, and then public funds will be injected in the form of capital contribution.”
“So the existing shareholders’ shares become worthless paper. Is there no legal issue with that?”
“As you say, there is potential for infringement on private property rights. However, the company is already in a state of capital erosion due to excessive debt, and policy holders are increasingly canceling their contracts. There’s even a risk of a liquidity crisis if left unchecked, so it appears the government has decided to administer drastic medicine.”

Seok-won tapped the armrest of the sofa lightly with his fingertips as he continued.

“Even though Chairman Shim In-yeol has been removed from active management due to his arrest, he’s still trying to exercise control by bringing in outside forces and won’t let go of Minguk Life. So they’re trying to execute a complete write-down to strip Chairman Shim of his shareholder rights entirely.”
“There’s certainly that aspect to it as well.”

Seok-won raised one hand to his chin and murmured thoughtfully.

“The problem is that even if the government pushes this through, Chairman Shim doesn’t seem like he’ll quietly give up and step back.”

Then Yun Ki-hun, seated to his right, spoke while looking at him.

“If he loses Minguk Life, which generates most of the revenue and profits and essentially sustains the group, it will naturally lead to the dissolution of Haecheon Group. He’ll definitely resist.”

Seok-won frowned and clicked his tongue in disapproval.

“Tsk. He’s been draining Minguk Life’s funds like extracting seeds from a dried persimmon, recklessly using them to plug holes in other subsidiaries’ debts, and even committing massive embezzlement to leave the company in ruins, yet he still can’t abandon his greed and obsession. It’s truly pathetic.”

The two men shared the same sentiment, but since Seok-won himself was a member of a chaebol family, they wisely held their tongues.

“If the government injects public funds and executes the forced write-down, it will be difficult to resell Minguk Life quickly.”
“That’s likely to be the case.”
“I agree.”

After hearing Yun Ki-hun and Yu Hyun-seok respond in turn, he smacked his lips and wore an expression of resignation.

“Then unfortunately, we’ll have to put the acquisition of Minguk Life on hold and wait and see until the situation stabilizes.”

He then turned his head to look at Yu Hyun-seok and gave an instruction.

“Keep the task force team in place and continue monitoring how things develop.”
“Understood.”

Seok-won raised one arm to check the watch on his wrist and spoke.

“We’ve been talking so long that time has gotten away from us. Let’s wrap up today’s meeting here.”
“Yes.”

The two men rose from their seats, bowed respectfully, and exited the President’s Office.
As I remained seated on the sofa, gathering my thoughts, my cell phone suddenly rang.
I stood, retrieved the phone from my desk, checked the number displayed on the screen, and answered immediately.

[Is this a good time to talk?]
“Go ahead.”

At the sound of Lee Chul-gyun’s characteristically deep voice, I held the phone to my ear and walked toward the window.

[We have information that Saseong and Daekwang Group are pursuing a major deal to swap automobiles and electronics respectively.]

Standing before the expansive floor-to-ceiling window, my eyes gleamed as I pressed for clarification.

“Are you certain?”
[Yes. Since Hyunwoo Group acquired the bankrupt Kichang Automobile, the atmosphere has shifted sharply toward Saseong Group abandoning its automotive business.]

I nodded slightly.

“With Hyunwoo acquiring both Kichang and Pacific Automobile, and Daekwang taking over Shinchang, the automotive industry is being restructured into a Big Two format. It’s true that Saseong’s position has been severely weakened with only its Busan plant.”
[The fact that Chairman Kwak Dong-hun and Chairman Yu Chun-seok have met multiple times recently at Hannam-dong Seungji-won for meals and negotiations suggests the deal is quite advanced.]

Hannam-dong Seungji-won was one of the residences belonging to Kwak Dong-hun, the head of Saseong Group.

“Is there anything else?”
[That’s all the information we have at present.]
“Understood. Let me know immediately if anything new emerges.”

I lowered the phone from my ear and gazed out at the towering buildings visible through the window, lost in thought.
Saseong Automobile’s debt stood at roughly three to four trillion won, and Daeguang Electronics, the target of the swap, carried a similar debt burden—making it suitable as a major deal card.
Moreover, both companies held relatively minor positions within their respective groups and shared the common characteristic of extremely low market share, ranking around fourth or fifth place.
Of course, Saseong Automobile was a company cherished by Chairman Kwak Dong-hun, an automobile enthusiast, but the Blue House was directly pressuring the top five groups to execute major deals to address the excessive and redundant investments blamed for the foreign exchange crisis, leaving no other option.

“No matter how much he treasures automobiles, he can’t surrender electronics, the group’s core business. He has no choice but to proceed with the major deal, however reluctantly.”

However, in my memories before regression, Saseong Automobile had been sold to a foreign entity, not to Daekwang Group.

“That means the big deal between the two groups won’t go through.”

Perhaps Seok-won’s involvement could alter the course of events and make this deal happen after all, but that was something I’d have to wait and see.

“One thing’s for certain—once news of the big deal breaks, both companies’ stock prices will swing wildly.”

I couldn’t let such a golden opportunity slip away, so I immediately picked up my phone and called Choi Ho-geun.

[Yes, President.]
“Start buying shares in Daeguang Electronics and other Daekwang Group stocks right now.”
[You mean Daekwang Group shares?]

Choi Ho-geun asked in a bewildered tone.

“That’s right. News of a big deal between Sasung Automobile and Daeguang Electronics will break soon.”

Choi Ho-geun quickly grasped the situation and asked back.

[How much should we purchase?]

I thought for a moment before responding.

“Just invest around a hundred billion won, and once it rises about thirty percent, sell it all off immediately.”
[If the big deal goes through, it would be quite significant good news. Are you saying to liquidate that quickly?]

If Daeguang Electronics, perpetually ranked fourth and overshadowed by Hyunwoo Electronics, were absorbed by Sasung Automobile, its stock value would skyrocket overnight, making a surge in share price inevitable.
Moreover, the insolvency rumors quietly circulating through the Securities District would be resolved by this big deal, and the suppressed Daekwang Group stocks would all surge at once.

[As you know, Daekwang Group stocks have been heavily depressed lately. So when good news breaks and prices shoot up, institutional investors and retail investors alike will jump in, creating a high possibility of overshooting.]
“I know. But that’s exactly the point—it’s a temporary, excessive surge. Once the good news loses its impact, prices will crash immediately and plummet hard in the opposite direction.”

My expressionless response startled Choi Ho-geun.

[Are you saying the big deal between the two groups will fall through?]
“I’m not a fortune teller—how would I know the outcome? But it means the deal is that difficult and challenging. So there’s no need to hold onto it for the long term. Just think of it as easy pocket money, take a reasonable profit, and get out.”
[I see. I understand what you mean.]
“By this afternoon at the latest, rumors will start circulating in Yeouido, so finish the purchases before then.”
[Yes, I’ll do that.]

After ending the call, Seok-won turned his gaze toward the landscape beyond the window.

“This incident will bring the long-rumored Big Deal among the top five conglomerates into full view. Once that happens, not just the business community but the stock market will heat up considerably.”

It was undeniable that the top five conglomerates in the business world operated a staggering 264 affiliated companies with average debt ratios exceeding 400 percent, engaging in dangerously redundant and excessive investments.
However, rather than leaving matters to the industry’s self-regulation, the Blue House was stepping in directly to forcefully push through a Big Deal in an absurdly compressed timeframe—an approach that would inevitably leave collateral damage in its wake.

“The backlash from this hastily driven Big Deal will inevitably culminate in the winner’s curse.”

Knowing what results lay ahead, Seok-won’s face grew heavy with bitterness.
Yet because the justification was sound and, above all, because President Kim Jae-chun was pushing it forward with such determination, I couldn’t afford to step in and oppose it rashly.

“Perhaps this too is one of the severe growing pains we must endure to overcome the IMF crisis.”

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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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