The Return of the Ruined Chaebol's Third-Generation Heir - Chapter 112

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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 Heir — Chapter 112
June 2010, Seonjin Automobile Headquarters Chairman’s Office.
“…….”
Kang Jin-ho sat on the sofa, watching his father. Kang Tae-yong was reading the newspaper at his own desk, but he lingered on the same page without turning it over.
The silence was heavy.
Seven years had passed since he’d sat face-to-face with his father, and there was no welcome-home greeting, no “how have you been.” It was Secretary Kim who picked him up from the airport, and from there he’d come straight to this office.
“Hmm…….”
His father made a sound of discomfort as he continued reading.
Kang Jin-ho caught sight of the bottom of the newspaper’s front page in his father’s hands. Among the reversed lettering, a familiar name caught his eye.
[Kang Seon-woo, Seonjin Group Successor, Leads GS Investment in Seonjin Logistics]
[Kang Seon-woo Undergoing Successor Training? Demonstrating Management Prowess]
[Kang Seon-woo Promoted to Planning Team Head Three Months After Joining]
Kang Seon-woo.
Even after seven years, that name grated on him. He could still hear his father’s voice from the day he’d hurled his report card at him.
-You’re incompetent.
-I can’t believe you’re my son.
The day after hearing those words, he’d been dragged to the airport for a flight to America. And for seven years, he was never called back.
The fact that he was sitting here now meant his father had finally found a use for him.
Kang Tae-yong folded the newspaper.
“So GS invested in the logistics business.”
And for the first time since entering this office, he met Kang Jin-ho’s gaze.
“Became a team head in two months, and they say it was purely on merit—no family connections.”
“…….”
It was about Kang Seon-woo. Kang Jin-ho didn’t respond. He knew that if he reacted when his father brought up his cousin, he’d lose.
“If you harbor any resentment in your heart, cast it aside. I’ve looked into this myself.”
“I don’t think that way.”
Kang Tae-yong set the folded newspaper on the table as he spoke.
“Then how are you thinking about it?”
“I believe that if I’m given an opportunity, I can do just as well.”
Kang Tae-yong nodded at his son’s words.
“Sending you to America seems to have been the right choice.”
For all seven years in America, Kang Jin-ho had studied relentlessly. He understood he couldn’t escape his father’s scrutiny wherever he went. He’d endured those years believing that someday—when the call came—he would be ready.
“You’ve studied abroad and learned what you needed to learn.”
“Yes.”
“Now it’s time for you to do your part.”
Kang Jin-ho straightened in his seat. This was the moment his father had called him back for.
Kang Tae-yong gestured to the secretary, and the secretary placed a stack of documents on the table before Kang Jin-ho.
“Seonjin Global. It’s a subsidiary company that will handle logistics for our Seonjin Automobile Group.”
Kang Jin-ho picked up the documents.
He checked the establishment date. It was from a month ago—created even before he’d returned home.
He turned the next page. His hand stopped on the shareholder register.
[Shareholding Ratio – Kang Jin-ho 100%]
“It’s a subsidiary, but it’s registered as an independent company not under the Fair Trade Commission.”
Kang Tae-yong continued speaking.
“Your shareholding is 100%. In other words, it’s your company.”
Kang Jin-ho couldn’t take his eyes off the documents.
His father had never given him a company before. In fact, he’d never been given anything by his father.
He had memories of his test scores being thrown at his face, but he had no memories of receiving anything from his hands.
“Father, are you…….”
“I’m giving you work to do.”
It was a short answer. It also meant this was no gift.
“How much you grow this company will determine many things. It may even change the entire succession structure.”
“The succession structure…… are you saying?”
Kang Jin-ho pondered the word as he held the documents.
In his seven years in America, he had learned things in his MBA program.
The holding family funnels group business into their personal corporation. When subsidiary logistics flow in with no external competition, revenue is guaranteed.
As the company grows, as an independent corporation not registered with the Fair Trade Commission, there are no internal transaction restrictions or disclosure obligations.
The expanded company becomes his own.
No inheritance tax. No gift tax.
Later, if he takes it public, hundreds of billions would flow in.
That money would all become his assets. And that money would be absolutely crucial when inheriting Seonjin Automobile.
He could see the entire picture of the game his father had orchestrated.
“I think I understand what you’re saying.”
Kang Jin-ho gripped the documents tightly as he answered.
“You didn’t waste your time studying in America, it seems.”
Kang Tae-yong nodded with satisfaction as he spoke.
“The contract renewal season for Seonjin Automobile Group subsidiaries’ logistics is approaching. Secretary Kim, how much time is left?”
“Three months.”
At the secretary’s answer, Kang Tae-yong turned back to Kang Jin-ho.
“Do you know which company currently handles the logistics?”
“Seonjin Logistics.”
The moment he answered, everything clicked into place—why his father had created the logistics company.
Seonjin Global was built from the start to replace Seonjin Logistics.
And Kang Seon-woo was at Seonjin Logistics.
“That’s right.”
Kang Tae-yong looked at Kang Jin-ho.
“Take that company and beat Seonjin Logistics. I will not give you any advantage.”
His father would not use his authority as group chairman to back him up.
It meant he had to crush Seonjin Logistics with nothing but an empty Seonjin Global in hand.
Just as his younger cousin Kang Seon-woo had earned his promotion on merit alone.
“…….”
“Why no answer? Can’t you do it?”
“I can do it.”
When Kang Jin-ho answered with conviction, Kang Tae-yong nodded.
“Good. Do it right. Talk to Secretary Kim about anything you need to run the company. I’ll help.”
“Yes, understood.”
“Then your father has somewhere to be, so go to your company with Secretary Kim.”
With those words, Kang Tae-yong stood and put on his jacket.
“Come home for dinner. Your mother is eager to see you.”
Kang Jin-ho bowed at his father’s words, and Kang Tae-yong left the room.
“Kang Seon-woo…….”
Left alone in the office, Kang Jin-ho looked at the newspaper on the table.
“This is the moment I’ve been waiting for.”
Seven years ago, when his test scores were thrown in his face and he was dragged to the airport, he could never have imagined this scene. So this was why his father had called him back.
Kang Jin-ho placed the documents in his bag and began to move.

* * *
“Why are you so late? It’s not like you don’t know what day this is.”
At Ribbon Capital Office, immediately after work—but Han Jae-yi and Danny were already there. On the table, instead of the usual documents, were bottles of beer and snacks scattered about.
The moment I walked in, Danny threw out a complaint.
“There are set work hours, you know.”
“It’s ten o’clock at night. Now you’re off work?”
“Don’t even get me started.”
I tossed my bag aside and collapsed onto the sofa.
“Since becoming team head, leaving on time has become impossible.”
“That’s just your anxiety, Seon-woo.”
Han Jae-yi laughed as she spoke.
“Other people just leave and think ‘I’ll do the rest tomorrow,’ you know.”
“I know that too, but I can’t seem to do it.”
“Because it’s your own company.”
Danny picked up the thread.
“If it were me, and I thought about it being my company in the future, I’d probably do the same.”
“Danny, I appreciate your understanding.”
“Easy to say when you’ve never owned anything.”
Danny laughed, and I laughed along with him.
“By the way, Ribbon’s off today, right?”
Normally, the team members handling the American market would be in the office, but since today was their day off, we’d arranged to meet here instead.
“Yeah. Since today is the biggest achievement in Ribbon’s history, I said we should take the whole day off.”
“Good call.”
Today was Volta’s Nasdaq listing day, in fact. Ever since the listing was confirmed, the two of them had been more eager for this day than I was.
“Ryan Holt’s supposed to ring the bell. CNBC’s broadcasting it live.”
Han Jae-yi pointed at the screen.
The Nasdaq opening was still about thirty minutes away.
“What’s the IPO offering price? I’ve been so swamped I haven’t even checked that.”
“Seventeen dollars. Upper guidance.”
Han Jae-yi answered my question.
I already knew that institutions had poured in during the pre-IPO phase, but the fact that it was confirmed at the upper end meant they wanted it that badly.
“If we hadn’t stepped in when the company was on the brink of bankruptcy, this moment wouldn’t exist.”
Danny sipped his beer as he spoke.
“Remember back then? We went to find the company and there were barely more than ten employees, and even then only Ryan Holt and one COO were actually in the office.”
Two years ago, in Palo Alto, California. I’d first met Ryan Holt in a two-story building converted from a warehouse. I remembered walking between empty desks.
Now that man was about to ring the bell on the Nasdaq.
“Let’s look at it first based on the offering price.”
Han Jae-yi tapped her calculator.
“Once they list, 13.3 million new shares will be issued. That brings the total issued shares to 91.6 million, and our shares stay the same, but our shareholding ratio dilutes to the 24% range.”
We had been in the 28% range before; as the total share count increased, our percentage decreased.
It wasn’t that our shares had shrunk—the overall pie had grown. In exchange for the cost of listing, our stake had thinned, but now the market was assigning the value directly.
“At 17 dollars per share, market cap of 1.56 billion. Our 24% is…….”
Han Jae-yi stopped reading the numbers.
“370 million dollars?”
“……that’s right?”
Danny asked. Han Jae-yi tapped the calculator again and nodded.
“Yes. That’s 370 million dollars just at the offering price.”
Seventy million dollars had become 370 million dollars. In Korean won, roughly 85 billion had become 450 billion.
With just the listing, we’d achieved a five-fold return.
“What happens when trading starts?”
Han Jae-yi looked at me and asked. I kept my eyes on the screen as I answered.
“You’ll see when it does.”
10:30 PM. The screen changed.
Ryan Holt was standing on the CNBC broadcast. Smiling in front of the Nasdaq display.
Two years ago, even while being called a scam, the man who insisted he’d make electric vehicles was now ringing the bell with cheers.
“Trading started!”
Han Jae-yi shouted as she bounced, and everyone’s eyes fixed on the screen.
As trading began, the opening price appeared.
[Volta $19.04 ▲12%]
It opened two dollars above the 17-dollar offering price.
“19 dollars? Up 12% right from the start.”
Han Jae-yi’s voice rose. But the stock didn’t stop there.
[Volta $20.11 ▲18%]
[Volta $21.03 ▲24%]
“……wow.”
Han Jae-yi was at a loss for words.
On the right side of the Bloomberg Terminal was the Dow index, and it was red.
The entire U.S. market was down over 2% from the European crisis fallout, so none of us had dared to hope for this.
We just hadn’t spoken it aloud.
But Volta’s stock was rising with terrible momentum. As if unmoved by the market’s decline.
“Market cap just broke 1.9 billion dollars.”
Han Jae-yi tapped the calculator again.
“Our stake…… 460 million dollars.”
That was 560 billion won.
Han Jae-yi’s voice trembled. Unlike the frantic trembling during the flash crash last month, this was different.
Danny said nothing.
His usual bravado had vanished; he was just watching the screen. He seemed to be looking at Ryan Holt’s face on it.
“70 million dollars…….”
Danny slowly opened his mouth.
“……it’s gone up six times right now, hasn’t it?”
No one answered right away. The numbers were on the screen, and the market had barely been open.
“Kyaa!”
Han Jae-yi came to her senses, shrieked, and bounced around the room. Danny stood up and embraced her.
I smiled watching them.
‘Even though I knew the future already, it’s thrilling.’
If I—who’d been spoiled with the ending—felt this way, what must they be feeling?
Han Jae-yi, who had been bouncing around, came to her senses and looked at me.
“Will you liquidate any of it? The lock-up period ends in six months.”
The lock-up period was a mechanism that prevented early shareholders from selling their shares for a set time after the listing.
“I won’t sell.”
“Why? At this rate, it could go up seven times.”
At Han Jae-yi’s words, I turned away from the screen to look at them both.
“I need to hold the Volta stake so Ochang keeps running.”
“……so you’re saying you won’t sell?”
“Right. It’s a kind of collateral.”
Han Jae-yi nodded. Danny set down his beer and spoke.
“Congratulations. You know, when you first pitched Volta to me, I honestly thought why invest in this company.”
“…….”
“But this is genuinely the most thrilling investment of my life.”
I smiled and nodded.
“It’s thanks to you and Han Jae-yi. If you two hadn’t managed the follow-ups properly, this wouldn’t have happened.”
Danny had guided conversations with Ryan Holt so the listing would go smoothly.
Han Jae-yi had done the same. I didn’t think this was entirely my achievement.
“Come on, you’re making me happy saying that. Everyone, grab your beers.”
At Danny’s words, Han Jae-yi and I picked up our beers, and after a moment’s thought, Danny raised his voice in a loud cheer.
“To Ochang’s success!”
“To success!”
At Danny’s opening toast, Han Jae-yi and I laughed loudly and clinked our cans.

* * *
“Let’s get started.”
Planning Team 2 was fully seated. Kim So-mi sat in the front row with her notepad open, and the other team members were on standby with documents in hand.
Human nature is strange—two months since becoming team head, I’d already adapted to this place.
“This is our weekly briefing, so let’s go in order and keep it casual, shall we?”
I spoke those words, looking at Kim So-mi.
“Shall we start with you, Kim So-mi?”
“Yes. Status of the Ochang logistics hub. GS investment execution has begun, and first-round design consulting is scheduled for delivery within this week. Once the design consulting is approved, we’ll break ground within a month.”
The Ochang logistics hub was a project I’d initiated, introducing the unfamiliar concept of fulfillment.
We’d secured the land, and with GS’s investment coming in, things were moving faster.
“Kim So-mi, follow up on this and report progress at each stage.”
“Yes, understood.”
The next team member took over.
“Parcel logistics volume. June shows 4% growth month-over-month. We’re maintaining growth, but there are reports that Saeyang has dropped unit pricing to 2,200 won per shipment.”
Saeyang had been continually undercutting prices, backed by the group’s full support.
“Ask the sales team to confirm Saeyang’s unit price. Whether it’s rumor or actual contract pricing. If unit prices have actually dropped, we need to match them.”
With GS’s investment money, we could respond aggressively.
“Yes, understood.”
“Shall we look at the report that came up from the sales division?”
“Seonjin Automobile Group subsidiaries’ corporate logistics contracts expire this quarter.”
At the team member’s words, I furrowed my brow.
Already? These used to be ten-year contracts when my father was alive.
They were more of a family arrangement than a business contract, and now it was time to renew them again after a decade.
“Can’t we just renew on the same terms as before?”
Kim So-mi asked. It was a natural question. Seonjin Automobile Group was connected to Seonjin Group by blood.
“The thing is, Seonjin Automobile has requested a preliminary meeting this time. They want to negotiate the terms.”
Contract renewal usually meant checking existing terms and stamping them. The word “negotiate” meant they wanted to change conditions.
“Maybe they’re trying to cut the unit price? Everyone’s doing that these days.”
The other team members nodded at Kim So-mi’s comment. It was possible.
Since Saeyang was cutting prices, it was natural for shippers to demand renegotiation.
“Pull together the existing contract terms with Seonjin Automobile Group and prepare a summary of revenue figures. Include the percentage that Seonjin Automobile Group’s corporate logistics represents in our total revenue.”
“Yes, understood.”
“Good. Then let’s wrap up today’s meeting here.”
The meeting ended and the team members returned to their desks.
“The time’s come.”
In my previous life, around this period, Seonjin Automobile Group had founded a new logistics company.
“If my memory’s right, that would be Kang Jin-ho’s company.”
A logistics firm—they’d funneled all the cargo that used to go to Seonjin Logistics over to that one, and Seonjin Logistics had grown increasingly desperate.
And that had led to a sale.
“The terms negotiation is probably just the pretext. It might already be decided to go with them.”
I gathered up the documents and stood from my desk. I couldn’t just sit back and let the same thing happen again.
Not while I was here.
“I should report to Im Do-hyun first.”

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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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