Golden Spoon Investment Portfolio - Chapter 492

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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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492. Before that, I’ve obtained some valuable information, so I need to make use of it.

Seok-won, seated before a spacious desk, spoke as he watched the Female Secretary clear the teacups from the sofa table and exit the room.

“Are you certain about this?”
[Since this information came from the Blue House, the probability of it being true is quite high.]

The government, attributing the nightmarish foreign exchange crisis to reckless overexpansion and redundant investments by conglomerates, had made large-scale business restructuring—what they called the “big deal”—the top priority of their new administration from the outset.

‘Out of nowhere, they’re demanding that conglomerates exchange subsidiaries and divide up their businesses. For the major corporations, it was like a bolt from the blue.’

Naturally, the business community mounted fierce resistance, and despite the Blue House and government’s constant pressure, there had been almost no progress.
Losing patience, the President himself held a press conference where he exerted strong pressure on the five major conglomerates’ big deal, drawing a blade sharp with intent.

“It seems the Blue House tightened the financial noose through the banking sector, and the conglomerate chairmen finally couldn’t hold out any longer.”
[Though the situation has improved somewhat, liquidity remains insufficient. If the banks begin recalling loans, bankruptcy becomes inevitable. The conglomerates have no choice but to reluctantly accept the big deal.]
“That makes sense.”

Before my regression, such a thing would have been unimaginable, but even now the Blue House could mobilize banks to exert coercive pressure on specific corporations.
In fact, when a foreign consulting firm released an analysis concluding that Hyunwoo Electronics was the most suitable entity to consolidate the semiconductor industry, TG Group—which had been cultivating semiconductors as a future core business—vehemently protested at losing the sector.
Thereupon, the Financial Supervisory Commission publicly sent a fax to commercial banks nationwide stating: [Suspend all new credit facilities to TG Semiconductor and recover existing loans without renewal upon maturity.]

‘In essence, they were threatening to destroy the company unless it surrendered the business.’

Though the fax targeted only TG Semiconductor, the banks, reading the Blue House’s intentions, would become reluctant to extend new loans or renewals to other subsidiaries, potentially plunging the entire group into crisis.

[This morning, TG Group Chairman Woo Young-rok visited the Blue House and told the President directly that he would abandon the semiconductor business.]
“If that’s true, then TG Group has completely capitulated and surrendered unconditionally.”
[That would be a fair assessment.]

Lee Chul-gyun continued in his measured voice.

[An official announcement will come through the media this afternoon or by tomorrow at the latest.]

Seok-won’s eyes gleamed with interest as he adjusted his grip on the mobile phone in his hand and asked.

“If TG Group transfers its semiconductor company entirely and completely, the sale proceeds would reach at least several trillion won. How does Hyunwoo Group plan to secure the acquisition funds?”
[They say Hyunwoo Group will borrow acquisition funds from the banking sector and cover the shortfall by selling the non-semiconductor business division of Hyunwoo Electronics. Additionally, there’s talk that Hyunwoo Group could transfer its 6.21% stake in LineComm to TG as payment in kind.]
“A LineComm stake, I see. That’s certainly plausible.”

LineComm, the second long-distance and international telephone operator, had its shares evenly distributed among major conglomerates including TG and Hyunwoo Group, each holding over 5%.

‘But appearances are deceiving. When you combine all the friendly stakes, TG Group actually secures over 30% of the total shares. They essentially control LineComm’s management.’

LineComm was drawing considerable attention as a future growth industry, having launched Korea’s first commercial internet service alongside Korea Telecom amid the dot-com boom, making Hyunwoo Group’s LineComm stake more than worth coveting.
While the LineComm stake held substantial value, what truly captured Seok-won’s interest was something else entirely.

“If Hyunwoo Electronics sells off its non-semiconductor business divisions to secure acquisition funds, the automotive electronics division would be included in the sale, wouldn’t it?”
[We’ll need to wait a bit longer for confirmation, but it does seem quite likely.]
“I see. That makes sense.”

Lee Chul-gyun, quick to notice my interest in Hyunwoo Electronics’ automotive electronics division, spoke up.

[Shall we look into the details of whether the automotive electronics division will be sold?]
“Find out how much they’re asking for and whether there are any other parties already in negotiations with them.”
[Understood.]

After ending the call, I set down my phone and tapped my fingers lightly on the desk, murmuring softly.

“If my memory serves me right, Hyunwoo Electronics’ automotive electronics division produces car navigation systems and car audio equipment.”

A car navigation system was essentially what people called a GPS navigator.
Before my regression, it was something used daily and commonly, but even now it was cutting-edge technology that had been in full domestic use for less than two years.

“Within Korea, only Hyunwoo Electronics and Lee Sung Information & Communications have completed precision electronic maps and system development to provide this service.”

Car audio technology wasn’t particularly superior, but it maintained stable revenue through exclusive supply to Hyunwoo Automobiles, a sister company within the same group.

“Considering that Hyunwoo Group acquired Kichang Automobile after it went bankrupt, future sales will only increase.”

Of course, it would depend on the acquisition terms, but since component supply chains couldn’t be easily changed, it could become a steady cash cow.

“And if we combine it with Manyoung Machinery, the automotive parts company we acquired recently, we could achieve significant synergistic effects.”

Korea’s largest automotive parts company could be created, potentially becoming a super-supplier that even complete vehicle manufacturers couldn’t easily disregard.

“Even if we acquire Hyunwoo Electronics’ automotive parts division, we won’t reach that level immediately. But with aggressive investment to build up our technological capabilities and scale, it’s entirely feasible.”

Since it was a division that consistently generated stable cash through internal transactions, the Hyunwoo Group would never have put it on the market unless they desperately needed massive acquisition funds for the semiconductor megadeal.

“In other words, it won’t come cheap, but it’s a golden opportunity to acquire a premium company.”

After running the calculations in my head, I made the decision to acquire Hyunwoo Electronics’ automotive parts division.

“But first, I’ve obtained valuable intelligence, so I need to put it to use.”

I reached out and picked up the phone receiver, then called Choi Ho-geun.

[Yes. This is Choi Ho-geun from the Fund Management Department.]
“It’s me. An announcement will be coming out soon that TG Group is transferring its semiconductor business to Hyunwoo Group.”

After hearing this, Choi Ho-geun let out a low hum, his reaction suggesting he’d been expecting this.

[So the Blue House applied strong pressure, and it came to this.]
“Once the megadeal is announced, stocks in Hyunwoo and TG Group will surge significantly. Let’s position ourselves ahead of time.”
[Understood.]
“But since this won’t be a long-term positive catalyst, exit once we’ve made reasonable profits.”
[Yes.]

With just this much guidance, he would handle it well on his own. I trusted him completely.
If he hadn’t possessed the caliber for such responsibility, I wouldn’t have placed him as head of the Fund Management Department, which now managed investment capital exceeding 1 trillion won.
After setting down the receiver, I stroked my cleanly shaved chin with one hand and methodically organized my thoughts on how to acquire Hyunwoo Electronics’ automotive parts division.

* * *

Choi Ho-geun, dressed in a white dress shirt at his desk, immediately stood up upon receiving my instructions and clapped his hands loudly together.

“Alright! Everyone stop what you’re doing and pay attention!”

The team members who had been conducting stock trades at their respective stations turned their heads to look at Choi Ho-geun.
Choi Ho-geun walked forward from his desk, placed his hands on his hips, and asked.

“What are the current stock prices for Hyunwoo Electronics and TG Semiconductor?”

Yu Seok-hyun immediately checked his monitor and answered.

“Hyunwoo Electronics is trading at 25,700 won, and TG Semiconductor at 13,300 won.”
“Then starting now, buy up all available shares of Hyunwoo Electronics and TG Semiconductor, and sweep up as much of the TG Group affiliates’ stock as you can!”

Amid the bewildered expressions of the team members at the sudden directive, Jung Hwan-yeop, his tie loosened around his neck, leaned back from his chair with a knowing look on his face.

“Has the semiconductor megadeal been finalized?”

The other team members gasped in surprise in unison.
Choi Ho-geun, the sharpest-eyed among them, glanced at Jung Hwan-yeop and nodded, confirming the situation.

“That’s right. TG has agreed to transfer its semiconductor division to Hyunwoo. Before word spreads, we need to move fast and secure our position!”
“Wow, the stock market’s going to be in quite a frenzy when this announcement drops.”

Jung Hwan-yeop whistled softly and pointed upward with his index finger.

“There’s no way you could have uncovered such premium information yourself, sir. The Chairman must have told you?”
“That’s right.”

Choi Ho-geun shot Jung Hwan-yeop an irritated look for his unnecessary commentary.

“So move before the others grab up all the shares!”
“Yes, sir!”

As the team members’ hands flew across their keyboards, Jung Hwan-yeop rolled his shoulders and stretched.

“Hehehehe. It’s rare to get an easy opportunity to rake in a bonus like this.”
“Look at him, his eyes are gleaming with greed.”
“I’m getting married soon, so I need to save up carefully.”

Though his motives were questionable, Choi Ho-geun couldn’t argue with someone willing to work hard, so he settled into a resigned expression.
Just then, Noh Hee-won asked cautiously, as if confused.

“Sir, but if we’re doing the megadeal together, why are we buying all of TG Group’s stock while only purchasing Hyunwoo Electronics from Hyunwoo Group?”

Choi Ho-geun glanced away and answered in an offhand tone.

“Relinquishing semiconductors, a future-growth business, certainly stings. But in exchange, we’ll be receiving trillions of won in proceeds from the sale.”
“That’s true.”
“When such a massive sum flows in all at once, TG Group’s overall financial structure will improve, so the stock price will rise. Hyunwoo Electronics will attract buying interest from expectations of synergy effects following the semiconductor integration. Do you follow me so far?”
“Yes.”

Noh Hee-won nodded with sharp understanding.

“But unlike TG Group subsidiaries that benefit from the influx of trillions of won in acquisition funds, Hyunwoo Group will have to secure the funds to purchase TG Semiconductor instead.”
“Ah!”

Only then did Noh Hee-won let out a brief exclamation of realization.

“So since we’ll have no choice but to draw up the necessary funds from subsidiaries, the downward pressure will be greater than the upward momentum, is that what you’re saying?”
“Exactly.”

Choi Ho-geun smiled at her earnest, model-student demeanor, so unlike others.

“It’s truly impressive how you instantly analyze how stock prices will react depending on one’s position in the same event.”
“Hmm. Well, this much is standard.”

Choi Ho-geun, having received praise from Noh Hee-won like a youngest sibling, shrugged his shoulders with a smug expression.
When Jung Hwan-yeop burst into silent laughter at that, Choi Ho-geun quickly wiped the expression from his face and clicked his tongue.

“Why aren’t you buying up the shares already? What are you doing?”
“I’m on it right now. Don’t worry!”

Jung Hwan-yeop responded glibly, his fingers rattling across the keyboard.
As the Fund Management Department led by Choi Ho-geun launched a coordinated buying spree, the stock prices of TG Group subsidiaries including semiconductors and Hyunwoo Electronics surged dramatically from their previous sluggish performance.
Sensing something was afoot, investors began gradually joining the buying frenzy, and when rumors of the semiconductor megadeal spread through Yeouido via underground channels late in the afternoon, stock prices skyrocketed to the daily limit.
After the market closed, the megadeal between Hyunwoo Electronics and TG Semiconductor was officially announced through the media.

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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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