The Return of the Ruined Chaebol's Third-Generation Heir - Chapter 108

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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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The Regression of a Ruined Chaebol Heir — Episode 108
“You’ve been well, I hope?”
After work, I met Jung Tae-sung at a café in Gangnam. I’d chosen a crowded place deliberately — somewhere people minded their own business and paid no attention to others.
Jung Tae-sung, already seated in the corner by the window, stood and bowed slightly. I sat across from him.
“I’m as I always am. How have you been, sir?”
We spoke by phone every day about business, but meeting in person to catch up had been a long time coming.
“Look at my face. I’ve been fine.”
“Your face looks quite exhausted, if I may say so.”
“What office worker isn’t exhausted? In any case, I’m glad you’ve been well. Should we get straight to business?”
Jung Tae-sung leaned forward, focusing intently on what came next.
“A Normalization Task Force has been organized for Logistics. Today I presented the investment scenario at the full meeting, and I’ll be submitting a report structured around attracting outside strategic investors.”
Jung Tae-sung paused from his notes to look at me.
“……That investor is us, then?”
“Yes. That’s how it needs to be. Right now, it’s difficult to bring in outside capital.”
The “us” I mentioned encompasses three entities.
SJ Holdings, Ribbon Capital, and DK Capital.
Money flows through all three companies, but the connections between them remain invisible from the outside.
“If that’s the case, there will be things we need to hide. There are several approaches.”
Jung Tae-sung immediately began proposing implementation strategies.
“First, we create a new Logistics-specialized Private Equity Fund. SJ Holdings invests as a Limited Partner, and we establish a separate General Partner to make it look like an independent fund.”
In a Private Equity Fund, those who contribute capital and those who manage it are separated.
The Limited Partner list remains confidential, so only the General Partner is visible publicly, and it’s difficult to trace who actually provided the funds. Jung Tae-sung’s proposal was to use this structure to hide SJ Holdings.
“Second, we route it through DK Capital. We’d structure it as a U.S.-based investment fund under Danny’s name investing in Korean logistics infrastructure.”
I shook my head as I listened.
“Either way, we’d end up having to create more companies or use shell entities, and that doesn’t seem appropriate.”
The more corporations we added, the greater the management risk and the more traces we’d leave behind.
“Then we’d have to use one of the three existing entities.”
Jung Tae-sung continued, looking at me.
“SJ Holdings is registered under Executive Director Kim Seok-jun’s name. As a limited company, the interior isn’t visible, but if we use it to invest in Seonjin Group subsidiaries, Kim Seok-jun comes to the forefront again.”
He was right. Unlike joint-stock companies, limited companies don’t publish shareholder registries, and the corporate registry shows investor information only in limited form.
Thanks to this, no one yet knows who the real owner of SJ Holdings is.
However, Kim Seok-jun had previously participated in defending Seonjin Trading Company using SJ Holdings, and he currently serves as an outside director, which draws media and family attention.
If anyone dug deeper, traces would surface no matter how well we’d concealed things, making the risk highest.
“Ribbon is known in America for the Volta investment, but it’s strictly a U.S.-to-U.S. investment firm. Suddenly moving into Korean logistics stands out.”
Ribbon’s name had begun circulating in U.S. circles. This was largely because Volta was in the process of listing, publicly disclosing its internal shareholdings, and Ribbon was the second-largest shareholder.
However, as a private equity fund based in the Cayman Islands, its actual structure remained the most opaque of the three.
“DK is entangled with Seonjin Trading Company, so that won’t work.”
“Right. We invested before, so if we show interest again, Seonjin’s internal team will find it odd.”
All three options had problems, so Jung Tae-sung furrowed his brow.
We were running into walls precisely because we were trying to hide.
The structure was such that no matter where we put it, the tail would get caught.
If that was the case, we needed to change approach.
“Then let’s bring a real major investment bank into the game.”
My words stopped Jung Tae-sung’s pen.
“We need to make the board bigger, not smaller.”
If a global investment bank like GS stood at the front, no one would suspect the investor list behind it.
‘A tree is hardest to see inside a forest.’
“What do you…….”
Jung Tae-sung looked at me, and I smiled as I spoke.
“We have Danny’s network and the money. It should be doable.”

* * *
“This concludes the presentation of the sale scenario.”
Two weeks later, in the Seonjin Logistics Conference Room.
It was the day the Normalization Task Force reported on a month of work. My mother, the Logistics CEO, and directors were seated in the meeting, and Lim Do-hyeon had just finished presenting the sale scenario out of the two options.
“Well presented. In the end, if we choose the sale scenario, the most critical things are inflating our valuation and finding a buyer.”
“That’s correct.”
Lim Do-hyeon answered my mother. The sale scenario came with a condition: if chosen, it had to be completed within six months.
“Good. Shall we hear the next scenario?”
At my mother’s words, Lim Do-hyeon nodded toward me.
“Next is the investment scenario report. Kang Seon-woo, an associate at Planning Team 2, will present it.”
As I stood and walked toward the front of the conference room, I felt my mother’s gaze on me.
I connected the laptop to the screen, picked up the remote, and brought up the materials.
“I’m Kang Seon-woo from Planning Team 2 of the Management Planning Department. I’ll now present the investment scenario.”
The lights dimmed, and I began my briefing.
“First is the rationale for investment. Why must we invest now?”
I started with market data showing parcel volumes would double within five years.
“Next is the investment structure. We must build a Mega Hub in the Chungcheong Region, but not simply as a parcel logistics hub — we need to transition to Fulfillment-model warehouse operations.”
I moved into Fulfillment, presenting a version tailored to the Korean market.
The proposal was to design the Chungcheong hub as a Fulfillment center where storage, packing, sorting, and shipping all occurred in one location. Reactions in the room were divided.
Some looked uncomfortable with the unfamiliar concept, while others seemed intrigued.
“Next is how we secure financing for the investment.”
Assuming we attract outside strategic investors, we would build a Fulfillment center with a budget of 100 billion won, but if external investment doesn’t materialize, Plan B requires a minimum of 20 billion won to secure land and build a parcel logistics hub in the Chungcheong Region.
“That concludes my presentation.”
With my presentation finished, I bowed slightly, the lights came up, and questions began naturally flowing.
“Fulfillment changes the operational model completely. Inventory management, shipping labor, damage liability — do you have contingency plans?”
It was the Operations Director’s question. A legitimate concern from someone who’d run the field for fifteen years.
“We’ll continue operating the existing hubs as parcel logistics hubs as they are now, and design the Chungcheong hub from scratch as Fulfillment-exclusive, implementing a new operational model.”
“I understand, but even with new design, we don’t have the personnel to run it. We’ve worked in sorting, but we’ve never managed storage, packing, or inventory.”
“We’ve allocated a separate personnel plan on page 23 of the report. We plan to hire someone with Third Party Logistics experience for the center director position and handle field staff expansion and training accordingly.”
The Operations Director flipped through the report to the relevant page, his expression one of assessing feasibility.
“You mentioned 20 billion for land acquisition, but based on Chungcheong industrial park prices, 15,000 pyeong or more would likely exceed 20 billion. Construction costs, facility expenses, initial personnel costs — land alone doesn’t complete the picture. What’s your total cost estimate if we don’t secure outside investment?”
Next came the CFO’s question.
“Based on prices in the Ochang and Cheonan industrial parks, we can secure 15,000 pyeong at 10 to 15 billion won. The remaining 5 billion covers design consultation and permitting costs. For construction, we’ll initiate Project Financing using the land as collateral, so the group’s additional cash injection will be minimal.”
I’d already included all the land prices from that region in the report.
“You’re assuming we attract outside investors — how much equity do we give up? What about Management Rights dilution?”
“The investor will be structured as a financial investor. I’d recommend either non-voting Preferred Stock or a Convertible Bond. The investor gets fixed returns and guaranteed exit opportunities at a specific point. The company avoids giving up immediate equity.”
A Convertible Bond is a bond that converts to stock if certain conditions are met.
From the investor’s perspective, principal is guaranteed while retaining a stock conversion option. From the company’s perspective, we avoid immediately diluting equity.
The CFO nodded and made notes. As the Q&A wound down, the room fell silent. All eyes turned to the head of the table.
There sat my mother, the chairwoman, and after a moment, she opened her mouth toward me.
“Can we beat Saeyang with this investment?”
The simplest question. Where earlier questions asked how, this asked whether we could do it at all.
In a way, it was the most owner-like question.
“Winning isn’t the goal.”
I took a breath and continued.
“Saeyang is buying market share in the parcel sector. Creating 34% by acquiring Daesung means winning the parcel game as it exists now. Playing the same game, we can’t win. Fulfillment isn’t parcels—it’s logistics services. We need to create a market Saeyang can’t enter.”
This had been the most crucial part of my thinking while writing the report from the start. If we just follow them, we’ll end up as neither fish nor fowl.
“Create a market Saeyang can’t enter…….”
My mother repeated my words quietly, then nodded.
“Good. Let’s conclude the presentation here.”
I bowed to my mother and the directors and returned to my seat.
“What’s your view, CEO?”
My mother turned to Logistics CEO Yoon Sang-chul.
“Both reports are well-prepared. The sale scenario and the investment scenario each have their own logic.”
He avoided committing. His face showed he didn’t want to decide either way.
I’d seen this type of person in my previous life. People who know the right answer but fear the weight of decision.
The ball ultimately returned to my mother. From the start, only one person in this room could make the decision.
My mother looked at the CFO.
“Is it viable if we initiate Project Financing?”
“To be frank, the Project Financing market isn’t healthy right now. Real estate PF defaults from savings banks have accumulated, and the entire market is contracting.”
The CFO paused and continued.
“However, that’s about residential PF from construction companies. Logistics infrastructure is different in nature. I believe it’s entirely feasible if we approach commercial banks or securities firms.”
The CFO’s point was valid. It was a different type of project from the housing market with confirmed defaults.
After a moment of silence, my mother finally spoke.
“Let’s proceed with the investment.”
At my mother’s words, I clenched my fist. It was a fight with solid odds, and I’d prayed she’d choose investment. She didn’t disappoint.
“We’ll support the initial 20 billion won from the group through inter-subsidiary loans. Start with land acquisition. CEO, submit the detailed implementation plan to the group.”
“Yes, understood.”
My mother stood, and simultaneously everyone rose and bowed.
Our eyes met, and she nodded to me.
“Thank you.”
I murmured softly and bowed deeper.

* * *
“I’ll report on the follow-up status of the Logistics investment.”
Four days later, in the Seonjin Group Chairwoman’s Office. Choi Dong-su, the group’s Planning Division head, opened a Document Folder and began.
“As instructed, we’re planning to provide 20 billion won to Seonjin Logistics in loan form.”
“Finding the funds will be difficult.”
The group had no money either. If the group had abundant capital, neither Trading nor Logistics would be in crisis.
“We’re proceeding with bank loans using the Seonjin Trading Company equity stake we hold as collateral.”
Choi Dong-su continued his report.
“Simultaneously with the capital disbursement, Logistics is proceeding with land acquisition. They’ve narrowed the candidate sites to the Ochang area in Chungcheong, and they plan to conduct a field survey next week.”
“What about outside investment?”
“They said they’re in contact with several investors.”
“Anything else to report?”
“That covers everything.”
As Choi Dong-su finished, Mother of Kang Seon-woo nodded and spoke carefully.
“How was Seon-woo’s briefing that day? I’d like your objective assessment.”
At Mother of Kang Seon-woo’s question, Choi Dong-su paused before answering.
“……To be honest, it’s beyond what an associate who’s been here two months could do.”
Mother of Kang Seon-woo remained quietly attentive, inviting him to continue.
“When he visited the chairwoman’s office before to report on the Logistics crisis, I noticed something. But this time—structuring Convertible Bonds, Project Financing, financial investor recruitment terms—it’s not easy even for planning personnel with ten years’ experience.”
Choi Dong-su paused to collect himself and went on.
“But how he knows these things, I can’t say. Even accounting for field experience, Fulfillment is an unfamiliar model—probably only Amazon does it at that level in the U.S. To design it for the Korean market…….”
Choi Dong-su trailed off. It wasn’t suspicion so much as something that defied explanation.
Of course he knew that Seon-woo, as the chairwoman’s son and designated heir, was sharp, but this exceeded imagination.
Mother of Kang Seon-woo nodded and spoke.
“How he knows isn’t what matters.”
Mother of Kang Seon-woo addressed Choi Dong-su.
“Whether it’s right is what matters.”
“If that’s the measure, he’s undoubtedly a highly capable talent. I’d even consider recruiting him for corporate planning.”
With such an assessment from Choi Dong-su, Mother of Kang Seon-woo could confirm that her reading of her son was correct.
She’d simply sent him to Logistics—a difficult division—for heir training, and he’d gone into the field and returned with solutions.
“Let’s watch and see. I’m curious how far that child’s abilities extend.”
“Yes, understood.”
The topic shifted. Mother of Kang Seon-woo raised another matter.
“What happened with that request to investigate the article in the Goryo Economic Daily yesterday?”
The previous day, the Goryo Economic Daily had run an exclusive: “Seonjin Logistics to pursue major Chungcheong logistics center investment.”
It was published just two days after the Task Force decided.
“It appears to have leaked from inside Seonjin Logistics. They say internal investigation is ongoing, but it’s difficult to identify which employee leaked it. Should we send the audit team openly?”
At Choi Dong-su’s question, Mother of Kang Seon-woo shook her head.
“It’s already happened, and it’s information that would have gone public anyway. There’s no need. Instead, prepare an official press release to prevent misunderstanding.”
“Yes, understood——”
Bzzt—
As Choi Dong-su was answering, a phone vibration sounded from his pocket. He pulled it out, checked the screen, and looked at Mother of Kang Seon-woo.
“Please, take it.”
Choi Dong-su bowed and answered the call.
“He’s going to report to the chairwoman……what?”
Choi Dong-su’s expression changed. He listened for a moment, then answered tersely.
“Got it. Tell him the chairwoman’s in a meeting right now, and we’ll discuss it downstairs afterward.”
He hung up and looked at Mother of Kang Seon-woo.
“GS has made an investment proposal for Seonjin Logistics.”
Mother of Kang Seon-woo’s eyes narrowed. GS? The world’s largest investment bank was proposing to invest in Seonjin Logistics?
“What did you say?”
“They’ve made contact expressing interest in investing in connection with Logistics’ business expansion.”

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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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