Golden Spoon Investment Portfolio - Chapter 524

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

524. Is there truly any need for you to do such a thing?

“Did you request that the new high-speed patrol boats be deployed to the 2nd Fleet?”

Commander Ryu In-jung asked back with a puzzled expression, and he answered immediately.

“Yes, I did.”

The 2nd Fleet was a naval fleet under the Naval Operations Command, with its home port in Pyeongtaek, Gyeonggi Province, tasked with protecting the West Sea waters around the Korean peninsula.
Faced with this entirely unexpected request, Commander Ryu In-jung and his subordinate officers wore bewildered expressions.
Observing their reactions, Seok-won explained his pre-considered reasoning in a measured voice.

“The 2nd Fleet is precisely the crucial fleet protecting Seoul, the heart of South Korea, and it oversees the Five Islands of the West Sea, where tensions run perpetually high due to constant confrontations with North Korea, does it not?”
“….”
“In fact, just a few months ago, actual combat erupted in the waters off Yeonpyeong Island in the West Sea against North Korean naval patrol boats that deliberately violated the NLL.”

When he mentioned the Yeonpyeong Naval Battle that had occurred on June 15th of that year, Commander Ryu In-jung and his subordinate officers’ expressions stiffened slightly.
Though they had achieved a decisive victory by countering the enemy’s preemptive strike, resulting in one North Korean torpedo boat sunk, one patrol boat half-destroyed, three others damaged, and 130 enemy casualties, their own forces had also suffered with seven servicemen wounded and urgently evacuated to the Armed Forces Capital Hospital.

‘It was the Second Yeonpyeong Naval Battle—North Korea’s meticulously planned retaliatory provocation, born from the lessons of their earlier defeat.’

Learning from their previous defeat, North Korea had mounted powerful 85mm tank cannons on patrol boats and launched another surprise preemptive strike, leaving our high-speed patrol boats helpless against the assault.

“Thanks to the brave servicemen of the 2nd Fleet confronting the enemy, we were able to conclude the naval battle in victory, but the Five Islands of the West Sea remain a powder keg of danger, where North Korea could provoke us again at any moment, would you not agree?”

Observing Commander Ryu In-jung and his subordinate officers listening with grave attention, Seok-won continued.

“I am aware that intervening in vessel deployment constitutes an infringement upon the naval command’s authority. However, if possible, my hope is that the latest high-speed patrol boats would be assigned to the Five Islands of the West Sea, the front line facing North Korea.”

As Seok-won expressed his intention respectfully and without rudeness, Commander Ryu In-jung paused in thought for a moment, then gave a small nod.

“It seems you genuinely care for our Navy. As you say, it would indeed be proper for servicemen serving in those dangerous waters, where combat could erupt at any moment, to have priority access to the new high-speed patrol boats.”

The officers present also nodded in agreement.

“I can’t give you a definitive answer here, but I’ll speak with the Chief of Staff and do my best to arrange for the new high-speed patrol boats to be deployed to the 2nd Fleet as you wish.”
“Thank you.”

At Commander Ryu In-jung’s moved response, Seok-won broke into a broad smile and replied.

“Not at all. This is a request for our Navy, so of course I should help. Moreover, since Chairman Park is personally funding the construction and donating these patrol boats, the Chief of Staff will surely agree to it.”

Having received such a positive answer, Seok-won smiled, his white teeth gleaming.
If the newly constructed high-speed patrol boats were deployed to the West Sea Fleet 2 as desired, replacing the older Chamsuri-class vessels, then even if North Korean Navy launched a surprise attack as history dictated before my return, I could overwhelmingly crush them with minimal casualties.
Imagining the North Korean forces in panic upon encountering the new high-speed patrol boats equipped with powerful naval guns and thick armor, Seok-won’s smile deepened further.
Most importantly, if this meant even a single one of our soldiers could survive without losing their precious lives, the enormous construction costs were not wasteful at all.
As I continued conversing with Commander Ryu In-jung, engineers from both South Korea and the United States flooded onto the Severstal, which had now come to a complete stop.

****

“Chairman. Go Young-il Bank President has arrived.”

Seok-won, who had been monitoring the movements of the Japanese and Hong Kong stock markets on several monitors installed on his desk, looked up at Na Seong-mi’s words.

“Show him in.”
“Yes.”

After Na Seong-mi left, Go Young-il Bank President soon entered through the wooden door, wearing a purple necktie.

“Welcome.”

Rising from his seat, Seok-won gestured toward the sofa in the center of the Chairman’s Office as he watched Go Young-il Bank President bow respectfully.

“Please, sit there.”
“Yes.”

Once Go Young-il Bank President was seated on the sofa, Seok-won also came around from his desk and took the central seat of honor.
Then, looking at Go Young-il Bank President seated to his right, Seok-won asked.

“What will you have to drink?”
“Anything is fine.”

As Go Young-il Bank President answered carefully, Seok-won turned in his seat and pressed the intercom button installed on the side table.

“Speak, Chairman.”
“Bring me two cups of that pu-erh tea I received as a gift last time.”
“Understood.”

Straightening my posture, Go Young-il gazed around the Chairman’s Office with an expression of profound emotion.

“Next week, and this office will be a memory.”

Leaning back against the plush sofa, I replied.

“I’ve grown quite attached to it, so there’s a touch of regret, I must admit.”
“But the group has expanded considerably, so relocating the office is surely a positive development, isn’t it?”
“Indeed.”

A subtle smile played at my lips.
The interior renovation work had been completed, and next week Daehung Venture Capital would be moving from the Gangnam office to the 63 Building.

“I heard the new office is on the very top floor. Since it’s the tallest building in Seoul, the view must be spectacular.”
“That’s precisely what I’m most looking forward to.”

A knock sounded at the door, and Na Seong-mi entered with steaming cups of pu-erh tea, setting them before us before withdrawing.

“It’s Hong Ren, one of the vintage pu-erhs. I’ve found it quite pleasant to drink.”
“I see. I’m not particularly knowledgeable about tea varieties, but the depth of aroma certainly suggests quality.”

Go Young-il lifted the teacup to his nose, savoring the fragrance before taking a sip.

“How is it?”
“Excellent. It truly has the character of a premium tea.”

Evidently pleased, Go Young-il brought the cup to his lips once more.
After exchanging light conversation to ease the atmosphere, I interlaced my fingers and fixed my gaze upon Go Young-il.

“I hear the Creditor Consortium has completed the acquisition of Daekwang Securities.”

Receiving my attention, Go Young-il leaned forward and responded.

“Yes. Through a stock transfer agreement yesterday evening, we have completely acquired the 15.08% stake in Daekwang Securities that was held by Daekwang Group’s subsidiaries. When combined with the 1.23% stake that Chairman Yu Chun-seok pledged as collateral, the total stake secured by the Creditor Consortium in Daekwang Securities amounts to 16.31%.”
“The second-largest shareholder, the British Hermès Fund, holds 7.71% of the shares, correct?”
“That is correct.”

Go Young-il continued speaking with an air of ease.

“Initially, we considered joining hands with Merrill Lynch, a major Wall Street securities firm, to acquire Daekwang Securities. However, the moment they heard that you—or more precisely, that Chairman Park—intended to acquire it, they immediately withdrew.”
“Interesting. I see.”

Go Young-il shrugged his shoulders.

“Even Merrill Lynch dared not make a reckless move once they learned that you had already set your sights on it. They simply gave up their ambitions.”

Since the foreign exchange crisis, foreign investors had descended upon Korea like an occupying force, sweeping up undervalued companies and real estate while exercising every conceivable form of corporate bullying.
Watching these same investors cower before Seok Won-han, unable to make a move and instead deferring to him, filled me with an exhilarating sense of vindication.
Go Young-il felt a refreshing satisfaction, as though he had just consumed a perfectly carbonated beverage.
At the same time, witnessing how even Wall Street investors—who wielded astronomical capital and could devastate entire national economies if they so chose—were reluctant to confront Seok Won-han naturally inspired a profound sense of awe toward his presence and stature.

‘Now that I think about it, I was truly foolish back then.’

When Seok Won-han first parachuted into Daehung Securities and established a separate investment team to manage, I had strongly opposed entrusting such enormous capital to an inexperienced novice, regardless of being the chairman’s son. The memory now filled me with embarrassment.

‘I was like a puppy barking at a master I could never hope to match, completely unaware of his true caliber.’

Go Young-il let out a silent laugh at the memory, then turned to address Seok Won-han, who sat with one leg crossed.

“Upon learning that we intend to fully integrate Daekwang Securities as a subsidiary, the Hermès Fund reached out to inquire whether we would be interested in acquiring their stake through a block deal.”
“They approached us first, proposing to sell their Daekwang Securities stake?”

Seok Won-han straightened his upper body in surprise and asked for clarification, to which Go Young-il immediately responded.

“That is correct.”

Seok Won-han furrowed his brow slightly as he asked.

“It’s a profitable company that consistently generates surpluses even in difficult circumstances, and if it undergoes complete subsidiary separation from Daekwang Group, the stock price will likely rise. Why would they want to sell their stake?”
“While it is indeed a profitable company, it has been providing substantial support to other subsidiaries, resulting in guaranteed payments from Daekwang Securities reaching as much as 2 trillion won. Additionally, rumors have circulated that after we acquire it, we plan to execute a large-scale paid-in capital increase to secure stable management rights and improve the financial position, followed by a merger with Bluehole Securities. It appears they made this decision based on such information.”
“They’re trying to sell their stake at a premium before the paid-in capital increase dilutes their share value.”
“Precisely. While future stock price appreciation remains uncertain and dependent on time, selling at a premium guarantees concrete profits. It’s not a bad decision at all.”

Understanding the Hermès Fund’s position, I nodded quietly.

“What premium are they asking for?”
“They’re seeking a 60% premium on the current share price.”
“60%… that’s quite a substantial premium.”

Go Young-il stepped forward with considerable enthusiasm.

“That said, when we consider the corporate value of Daekwang Securities and the stake the Hermès Fund holds, acquiring both would solidify our control considerably. I believe the premium is worth paying.”
“Hmm.”

I stroked my cleanly shaved chin with one hand, deliberating for a moment.
Considering the planned merger with Bluehole Securities, securing additional shares in advance seemed like a prudent move. I observed Go Young-il waiting quietly for my decision, then spoke again.

“Let’s acquire the Hermès Fund stake.”

Go Young-il brightened at the decision he’d hoped for.

“A wise decision, sir.”
“Still, try to negotiate the premium down as much as possible through the talks.”
“I’ll do that.”

I took a sip of tea, set down the cup, and asked as if something had just occurred to me.

“By the way, do you know what’s happening with the Advanced Technology Research Institute under the Daekwang Group?”
“No final decision has been made on its disposal yet, but since the Daekwang Group—which provided most of its funding—is being dissolved, it will likely be difficult to maintain it in its current form.”

The Advanced Technology Research Institute was a complex research institution for industry-academia collaboration that Chairman Yu Chun-seok had established after initially dismissing the need for independent R&D, believing technology could simply be purchased. As the group expanded, he came to recognize the critical importance of research and development.

“Then let’s discuss acquiring it with the other creditors.”
“It doesn’t generate much profit, so is it really necessary to go that far?”

Go Young-il objected, but I shook my head firmly.

“As we’ve seen with the dot-com boom, technological capability will become increasingly vital going forward. Especially as our nation achieves remarkable economic growth and our companies transition from chasing industry leaders to standing at the forefront themselves, R&D and technological prowess will become even more critical. From that perspective, the Advanced Technology Research Institute is something we absolutely must preserve.”
“Ah… now that you mention it, I see your point.”

Go Young-il nodded in agreement.

“Understood. Since no one else is interested, they’ll actually welcome it if we say we’ll take it.”
“Coordinate with the Creditor Consortium to finalize the acquisition of Daekwang Electromechanical Industries and Diners Club Korea as quickly as possible.”
“Yes.”

The dissolution of Daekwang Group, the second-largest conglomerate in Korea’s business hierarchy, was regrettable, but Seok-won wore an expression of profound satisfaction as he acquired the crown jewel subsidiaries at bargain prices.

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