Golden Spoon Investment Portfolio - Chapter 519

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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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519. It’s a great blessing when children get along well with one another

“Handle this matter as planned.”
“Yes, sir.”

Chairman Park Tae-hong, having covered the approval document and handed it to Chief Secretary Gil Seong-ho seated to his right, leaned back against the plush leather sofa and spoke.

“By the way, I heard that Hyunwoo Group’s Honorary Chairman Jung promoted his fifth son, who oversees electronics, to co-chairman.”
“Yes, sir. I understand there’s been considerable discussion in business circles regarding that matter.”
“Of course there is. Everyone assumed that Jung Yong-gil, the second son, would inherit Hyunwoo Group. Now that a competitive dynamic has suddenly emerged, it’s only natural they’d be caught off guard.”

Until now, Hyunwoo Group had maintained its position as the top conglomerate, far surpassing Saseong Group.
However, the group had faced significant trials when its founder, Chairman Jung Tae-ho, suddenly declared his entry into politics.
When he established a new political party and secured 31 seats in the 14th general election held just a month later, forming a parliamentary negotiating group, it seemed he was achieving great success in politics with the same bulldozer-like momentum he’d shown in business management.
But the crisis began when Honorary Chairman Jung Tae-ho, having confidently thrown his hat into the ring, finished third and lost in the 14th presidential election.
Having incurred the displeasure of President Kim Sung-gyu, with whom he’d competed during the campaign, his two sons and key executives of the group were summoned to the Prosecution one after another for investigation, enduring a difficult period.
Honorary Chairman Jung Tae-ho himself had to face the humiliation of standing before the Prosecution’s cameras, accused of slush fund creation and illegal election campaigning.
After that, he completely withdrew from politics, but under continued pressure from the Blue House, he stepped back to the position of honorary chairman and entrusted each subsidiary to his children to lead the group.
Naturally, succession discussions began to emerge.
Given that Honorary Chairman Jung Tae-ho was born in 1915 and was now 84 years old, one could say the succession was actually overdue.

“He’s been managing Hyunwoo Automobiles well, and considering the strict family culture of Hyunwoo Group, I naturally expected the principle of primogeniture to be upheld, with Jung Yong-gil, the second son, becoming the successor. It was quite unexpected.”

Having lost his eldest son in a traffic accident, Jung Yong-gil, the second son, had been fulfilling the role of eldest son.

“Perhaps because the family was poor and he only finished elementary school, he’s always been particularly fond of his fifth son, who earned a master’s degree in business administration from a prestigious American university.”

Chairman Park Tae-hong continued, his expression turning smug.

“But no matter what, that boy Seok-won can’t compare to my second son, who graduated top of his class from Harvard, the finest of the finest universities.”

Chief Secretary Gil Seong-ho smiled slightly at Chairman Park Tae-hong’s behavior, which, contrary to his usual stern demeanor, became almost childlike whenever he spoke of his second son.

“That’s right. No matter how impressive a master’s degree is, it can’t compare to graduating top of the class from Harvard.”
“Exactly. You said it.”

Chairman Park Tae-hong, who had been satisfied moments before, soon adopted a grave expression.

“He must know that suddenly backing the fifth son when the succession structure had solidified around the second son would inevitably breed discord. It seems Chairman Jung Tae-ho has made a miscalculation.”
“Surely he’s not thinking of breaking the principle of primogeniture and handing the group over to Chairman Jung Jae-won at this late stage?”

Chairman Park Tae-hong answered in a heavy, measured tone.

“How could I possibly know what’s truly in Chairman Jung’s heart? But one thing is certain—when you abandon natural order and resort to desperate measures, problems inevitably arise.”

Chief Secretary Gil Seong-ho, understanding full well what discord could mean, held his tongue and said nothing.

“We haven’t fully recovered from the aftermath of the foreign exchange crisis. If Hyunwoo Group, the nation’s leading conglomerate, is shaken by a management rights dispute, the ripple effects will be substantial.”

Chairman Park Tae-hong, who had always respected Honorary Chairman Jung Tae-ho—a titan of industry who had built the nation’s top conglomerate from nothing through relentless determination—could not help but feel regret at what seemed to be a misjudgment in his final years.
Recalling how his own resolve had wavered considerably when faced with his second son’s exceptional abilities, despite his eldest not being incompetent, made this situation feel all too familiar.

‘If Seok-won hadn’t chosen to separate and establish his own ventures rather than inherit the group first, I too would have faced considerable anguish.’

Whether it was an act of consideration for his older brother or a genuine desire to pursue his investment talents freely without being bound to Daeheung Group, Chairman Park Tae-hong felt grateful that Seok-won had prevented what could have become a serious rift between brothers.
Chairman Park Tae-hong lifted the teacup before him, took a sip of the properly cooled green tea, set it down, and looked at Chief Secretary Gil Seong-ho with a question.

“Now that Daeheung Textiles has been sold, I’m thinking of calling Jin-hyung to headquarters to oversee the management of the entire group. What do you think?”

Chief Secretary Gil Seong-ho, receiving his gaze, answered immediately.

“For the smooth operation of the newly acquired large-scale discount mart business, it would be better for President Park to relocate to headquarters. It seems like a sound decision.”
“Indeed.”

Chairman Park Tae-hong nodded slightly as he spoke.

“Then I’m planning to promote my eldest son to vice chairman and have him oversee HomeMarket and Korean Tongun. Keep that in mind and prepare accordingly.”
“Understood.”

Originally, he had intended to observe his eldest son for a few more years before promoting him to vice chairman, but witnessing the developments at Hyunwoo Group had changed his mind.

“It’s a great blessing when children manage their business without conflict and live in harmony with one another.”

With that, Chairman Park Tae-hong’s lips curved into a contented smile.

* * *

“Chairman.”

I opened my eyes at Andrea’s voice, having dozed off with the spacious private jet seat reclined back.
Andrea, dressed in a form-fitting skirt uniform, stood before me with her waist bent in a respectful bow.

“There’s an urgent call from Korea.”

I pressed the button installed on the armrest to straighten the seat as I spoke.

“Would you bring me a glass of cold water?”
“Of course.”

Andrea politely handed me the satellite phone she was holding and left her position.
Taking the satellite phone, I rose immediately and opened my mouth with a slightly hoarse voice.

“Hello.”
[This is Go Young-il, Chairman.]
“Has something happened at WB Bank?”

Go Young-il, the president of WB Bank, replied in a strained voice.

[It’s not us—the problem has emerged with Daekwang Group.]
“What do you mean?”
[It appears Daekwang Group will enter workout within the next two or three days.]

I furrowed my brow and straightened my upper body as I asked.

“Wasn’t the plan to observe their internal restructuring first, then implement workout around October for only the underperforming subsidiaries?”
[That’s correct. However, the liquidity shortage in core subsidiaries—including heavy industry and construction—has become so severe that we can no longer afford to wait.]
“And this is after we just extended them 4 trillion won in new borrowing and rolled over their short-term debt for another six months?”
[The restructuring announcement has caused the group’s credit rating to plummet, leading to a sharp contraction in operations and production. Receivables collection has also stalled, and their cash reserves are nearly depleted.]

Buyers placing orders and partner companies alike were now hesitant to conduct business or were delaying cash payments, fearing Daekwang Group might default at any moment.
Just then, Andrea returned with a cup of cold water and set it on the table before leaving.
I moistened my throat with the water while holding the satellite phone to my ear and spoke.

“Didn’t WB Bank recently agree to provide 2 trillion won in call funds through Daekwang Securities?”
[That’s correct. Given Daekwang Group’s deteriorating situation, we wanted to avoid expanding the loan scale if possible, but we had no choice given the government’s strong request.]
“Yet the liquidity crisis remains unresolved—it’s like pouring water into a bottomless barrel.”
[Moreover, when suppliers demanded payment from financial institutions, over 300 billion won in dishonored bills were rejected. There’s growing concern about a massive chain of defaults among suppliers.]
“This is truly catastrophic.”
[That’s why the Blue House decided to accelerate the workout plan without further delay.]

Seok-won nodded slightly, his expression hardening.

“If hundreds of suppliers trigger a chain of defaults, it could be fatal to an already struggling economy. The government had no choice but to prescribe drastic measures.”
[I agree with that assessment.]

Seok-won gripped the satellite phone more firmly and spoke again.

“I understand WB Bank has extended considerable credit to Daekwang Group. Won’t the losses be substantial?”
[Excluding the call funds we provided to Daekwang Securities, approximately 3 trillion won is outstanding. If the workout proceeds as planned, we’ll likely have to accept some loss of principal.]

Most of these loans had been extended before the merger, but they still represented a considerable blow.
However, since Daekwang Group’s default had been anticipated, Seok-won asked calmly without showing surprise or alarm.

“How long is the workout period expected to be?”
[The government’s plan is to freeze claims and debts for three months initially, then have the Creditor Consortium expedite the completion of the restructuring plan that was already underway.]

Seok-won’s reaction to this explanation was skeptical.

“If it were only domestic financial institutions, that would be one thing, but they’ve expanded operations globally and claim to conduct worldwide business, so there are considerable foreign creditors involved. I’m doubtful whether consensus can be easily reached.”
[Foreign creditors are indeed a problem, but including us, nearly all primary and secondary financial institutions domestically hold loans to them, and there are also numerous corporate and individual creditors, so we expect significant resistance.]
“Of course, corporate bonds and commercial paper aren’t included in the workout scope.”
[Exactly. The problem is that the confirmed scale of corporate bonds and commercial paper issued by Daekwang Group amounts to a staggering 22 trillion won.]
“If all of that defaults, it would be truly catastrophic.”
[Furthermore, foreign creditors are owed 9 billion dollars, so as you mentioned, negotiations won’t be easy, and the workout will likely take much longer than the government’s timeline.]
“That’s what I expect.”

Seok-won spoke in a measured tone.

“We should consider it certain that Daekwang Group will be dismantled.”
[That assessment seems reasonable.]

If the second-largest conglomerate in the business world collapsed, the shockwaves would be enormous—as clear as day.

“We’ll discuss the details once I arrive in Seoul. If anything important develops in the meantime, contact me immediately.”
[Understood.]

After ending the call, Seok-won set down the satellite phone on the table and muttered to myself with a heavy expression.

“Unlike before my regression, I poured over 400 billion won in cash into purchasing real estate, and yet it’s come to this.”

I had harbored hope that Daekwang Group might weather the crisis without collapsing, but the workout decision was merely delayed by a few more days—not even a month.

“When I consider the 57 trillion won in domestic and foreign debt, perhaps even my efforts amounted to nothing.”

As I contemplated the mass layoffs and cascading defaults among partner companies that would unfold from here, my mood grew heavy.
It was not the government or financial institutions who would bear the full brunt of Daekwang Group’s collapse—it was the group’s employees and countless partner companies.

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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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