The Return of the Ruined Chaebol's Third-Generation Heir - Chapter 107

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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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Regression of a Fallen Chaebol’s Third Generation – Episode 107
One week later, in the Small Conference Room.
Lim Do-hyeon stood before the Whiteboard. Same seat, same composition as last week.
The difference was that Oh Jin-su, Director of the Management Planning Division, now occupied the head seat.
“I’ll share the status of our first week’s data consolidation.”
Lim Do-hyeon pulled up materials on the screen in the center of the conference room and organized them.
The conversion table was complete, and data from the Gunpo and Daejeon hubs, along with key Seoul Metropolitan Area facilities, had been submitted.
A few sub-terminals were still outstanding, but they were expected to be finished by the end of the week. The work was progressing smoothly now that the methodology was established.
“I’ll share the scenario progress. The sale scenario is being drafted by another team member, and today we have the initial draft of the investment scenario.”
Lim Do-hyeon looked at me.
“Kang Seon-woo, would you share it?”
I stood, pulled up the materials on the laptop connected to the display, and picked up the remote.
All eyes turned to me. I met each person’s gaze before beginning.
“I’ll share the initial investment scenario. Let me start with the market environment.”
I advanced the slide.
“The current domestic online shopping market is worth 25 trillion won. Annual growth exceeds 20 percent. Within this, a new category called social commerce is emerging—companies like Rocket Shopping, Wee Market, and Ticket Shop.”
In the future, these would become mere shopping malls selling goods, but at this moment, the emergence of social commerce was different.
They sold goods through group purchases within limited timeframes, offering prices at half price or more, gathering consumers through dramatic discounts.
“As this market grows, delivery volume will follow, and the current annual 1.2 billion boxes is expected to double within five years.”
I paused to collect my thoughts and gauge the room’s reaction.
“Based on the premise that the market will grow more than twofold, I propose four measures.”
[1. Establish a Chungcheong Region Hub]
“Currently, there are 14 hubs nationwide, including sub-terminals. When volume doubles, this network won’t be able to handle it. The Chungcheong Region is positioned to reach anywhere in the country within half a day and will become the critical artery for next-day delivery.”
[2. Automated Sorting Equipment]
“When volume doubles, humans cannot process it. Automation is not a cost reduction—it’s a survival condition.”
I advanced the slide and continued the presentation rapidly.
[3. Direct E-commerce Dealings]
“Online shopping companies don’t want the existing distributor-intermediary structure. Adding another middleman inevitably raises unit delivery costs. Direct dealings with courier headquarters reduce unit costs by 20 to 30 percent and allow us to capture volume. No other courier company is doing this right now. We must actively examine this approach.”
[4. Improve Courier Conditions]
“When volume doubles, we’ll face a shortage of couriers. Especially in the current competitive climate, how many couriers a company retains translates directly into how much additional volume it can capture. Couriers will flock to companies with better conditions. When couriers flock, quality is maintained. When quality is maintained, clients stay.”
After presenting these four points, I paused to survey the room. I saw nods of agreement.
“But.”
I took a beat, then looked at everyone again and continued.
“This is not enough.”
Eyes refocused on me.
“Even if volume doubles, per-unit pricing competition won’t end.”
The number strangling Seonjin Logistics right now was 70 won per shipment margin.
Unable to let go of that money, the company was paralyzed, unable to do anything.
A change in direction was necessary.
“We cannot break this structure through delivery alone.”
I advanced the slide.
[Fulfillment – Comprehensive Logistics Outsourcing Service]
“This is a model that Amazon, the massive American shopping platform, has been implementing since 2006.”
Some nodded as if they were familiar with the approach, while others looked as though they were hearing it for the first time.
“To use an analogy for our current situation, I’d say we’re like mail carriers. We receive letters and deliver them—that’s it. But fulfillment means becoming the post office itself. We store mail, package it, and handle the entire sending process.”
In the future, in our country, Rocket Shopping would bring this model and realize economies of scale.
Someone from the Operations Division narrowed their brow, concentrating on my words.
“E-commerce companies don’t have warehouses. They have nowhere to store goods and nowhere to package and ship when orders arrive. If a courier company handles this, a 2,500-won-per-item delivery service becomes a comprehensive logistics service with entirely different unit pricing.”
A system where products are received into a warehouse, and when orders come in, the courier company retrieves and ships them based on order status alone.
“Not just internet shopping mall companies, but vendors within those platforms can source products from abroad, deliver them directly to our warehouse, receive orders online, and simply request shipment from us.”
Since everything is handled, naturally unit prices can only rise.
“The Chungcheong hub should be designed as a fulfillment center from the start. Not just a sorting facility, but a single location integrating storage space, packing lines, and automated sorting.”
The room fell silent. A question came from the Operations Division.
“If we’re also storing goods, field operations change fundamentally. Both workforce structure and spatial design.”
The comment sounded less like an objection and more like a valid point requiring verification.
“You’re right. We’ll need different design from existing hubs. I’ll develop those specifics.”
I answered and took a breath.
“Seyang is buying the market as it exists today. Acquiring Daesung to create a 34 percent market share means winning in today’s delivery market.”
Then Seonjin Logistics needed one thing. Following them meant falling behind inevitably.
“We must create the market five years from now.”
At my words, the corners of Oh Jin-su’s eyes, sitting at the head seat, twitched slightly.
“The greatest barrier to this investment is financing.”
I zeroed in on the most crucial point. Rosy futures don’t come free.
“Initial estimates for the fulfillment center construction suggest approximately 100 billion won in capital requirements.”
Everyone in the room exhaled audibly at my words.
This entire crisis had been triggered by the company’s lack of money, and 100 billion won wasn’t going to materialize from nowhere.
“I understand that we cannot handle 100 billion won solely from within the group. The parent company itself was rescued through restructuring, not investment.”
“…….”
“We can attract external strategic investors. Logistics infrastructure is an attractive asset for investors seeking stable returns. The group provides operational expertise and networks, while external capital handles construction and equipment. This is a structure that distributes investment burden while maintaining management rights for the group.”
Someone from the Finance Team raised their hand.
“European markets are unstable right now, and the domestic outlook is murky. What private equity fund would invest hundreds of billions in logistics at a time like this?”
It was a realistic counterargument.
“True. External investors might not materialize immediately. That’s why I’ve broken this into phases.”
It was the objection I’d anticipated, and I had prepared materials.
“Phase one is land acquisition. Chungcheong Region industrial complex land is cheapest now. With 100 to 200 billion won, we can secure land for the nation’s largest logistics center. This can be financed through group resources like loans.”
I advanced the slide and continued.
“Phase two, hub construction, will be financed through Project Financing using the secured land as collateral.”
Project Financing is borrowing money not based on a company’s current assets or creditworthiness, but on the future value and profitability of projects to be undertaken.
“As stated, if external investors like private equity funds come forward, we invest the full 100 billion won in fulfillment. If they don’t materialize, we need to raise 200 billion won to build a logistics hub.”
Everyone nodded as if convinced.
“For future investment, the Chungcheong logistics hub is a prerequisite we cannot skip.”
The room’s atmosphere shifted subtly. While 100 billion won was a figure that made you sigh, 200 billion was a number worth examining.
‘But we won’t need to go that far.’
External investors will come. I’ll make it happen.
SJ Holdings, Ribbon, and DK are in my hands. The ammunition is already prepared.
But this process mattered.
Even with correct reports and rational defense, in the end I lost support and everything was taken away.
Convincing the people in this room is doing what I failed to do then.
Money cannot buy what moves people.
“That concludes my presentation. Thank you for your time.”
As I bowed, the lights came on in the conference room, and Lim Do-hyeon spoke.
“Thank you for your hard work. If there’s nothing else to discuss, we’ll wrap up here. Please submit the outstanding sub-terminal data by next meeting, and our team will supplement and upload the scenarios.”
The meeting ended, and Lim Do-hyeon nodded to me approvingly.

* * *
“Team Lead Lim.”
As Lim Do-hyeon exited the conference room, he heard his name and turned. Oh Jin-su, standing before the Director’s Office, gestured for him to come in.
“You called for me?”
As Lim Do-hyeon closed the door, Oh Jin-su sat down and spoke.
“What’s your take?”
It was a blunt question, but the meaning was clear.
“Kang Seon-woo’s simulation logic is sound. Fulfillment is unfamiliar, but the direction is right.”
It was certainly an unfamiliar concept, but it was the right direction for an investment betting on the market five years hence.
“Moreover, narrowing essential financing to 200 billion won while accounting for the possibility of no investment—that was clever.”
Oh Jin-su listened quietly and nodded. His expression suggested judgment on the content was already complete.
“I think the same way. But if Kang Seon-woo’s name is attached, the CEO will be uncomfortable.”
This was a different reaction from Oh Jin-su than before. Rather than simply checking the CEO’s mood, it sounded like he was seeking a way to overcome it.
“As I mentioned before, the report will be submitted under the name of Planning Team 2.”
“Won’t Kang Seon-woo feel slighted? Think about it. He prepared all this, and his name disappears from the byline. Who’d like that?”
“I’ll discuss it with him. Right now this isn’t robbing Kang Seon-woo of his accomplishment.”
Oh Jin-su nodded.
“Fine. I’ll leave that to you then.”
Oh Jin-su pulled his body forward from the backrest and placed his arms on the desk.
“With 200 billion won for investment, if we play our cards right, the CEO can make the decision and report to the chairman. Then the chairman won’t be able to refuse.”
When Lim Do-hyeon heard that figure in the meeting, he realized Oh Jin-su had already made his decision.
“Leave it to me. Packaging this is my job.”
Lim Do-hyeon listened quietly.
“Give it formally to Kang Seon-woo. The fulfillment part, fundraising—be more specific.”
“Understood.”
“If something solid comes out, I’ll take it to the CEO. Let’s push a bit longer.”
Lim Do-hyeon bowed and left the Director’s Office, heading back to his seat.
‘Interesting. Last time he wanted to shelve the report, now he’s saying he’ll wrap it up himself.’
Lim Do-hyeon recalled Oh Jin-su’s words.
‘This must be Kang Seon-woo’s effect.’
Oh Jin-su hadn’t changed as a person; how one employed such a person simply altered that person’s position.
Oh Jin-su now seemed to regard a newcomer more talented than the CEO—and a future successor to lead the group—as more valuable.
Having finished his thoughts, Lim Do-hyeon nodded to himself and walked toward Seon-woo, who was sitting at his desk.

* * *
“Kang Seon-woo, got a minute?”
As I was organizing materials from the presentation at my desk, Team Lead Lim Do-hyeon’s voice came through.
“Yes, Team Lead.”
Going to his desk, Lim Do-hyeon sat down and asked.
“About the financing matter. When the Finance Team pushed back, did you prepare that response beforehand?”
“Yes, I did.”
“Well done. Anticipating where counterarguments would come and preparing a plan—that’s excellent instinct on your part.”
I bowed slightly in acknowledgment.
“The draft was so solid I’m not sure there’s much to refine, but you can develop it properly, yes?”
“Of course.”
“By the way… the report will be submitted under Planning Team 2’s name. If you feel that’s unfair in any way, tell me now.”
I wasn’t concerned about that. Even if I’d led it, it made sense to put the team forward for various reasons.
“It’s fine.”
“Good. Then develop the fulfillment section more concretely into a model suited to the Korean market. Amazon’s case alone won’t be persuasive.”
“Understood.”
“And regarding securing external investors—what structure will be used and under what conditions will it proceed.”
“I’ll prepare as you’ve outlined.”
“Perfect. A week should suffice, yes? Let’s work hard.”
A week was sufficient time. I bowed to Lim Do-hyeon and returned to my seat, grabbed my phone, and left the office.
I walked down the hall, checked that the Break Room was empty, entered, and took out my phone from my pocket to dial a number.
The signal rang twice before the other party answered.
“Director Jung, it’s me.”

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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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