The Return of the Ruined Chaebol's Third-Generation Heir - Chapter 113

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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 Fallen Chaebol Third Generation — Episode 113
“Director, if you have a moment, there’s something I’d like to report.”
I knocked on the Management Planning Director’s Office door.
“Ah, come in.”
Lim Do-hyeon had documents spread across his desk.
They appeared to be handover documents, and since his position had expanded from team leader to director, there would have been plenty to take over.
“If you’re busy, I can report later.”
Lim Do-hyeon smiled and shook his head at my words.
“No, no. This never seems to end—talking with Team Leader Kang for a bit is actually a break for me. Sit down.”
Lim Do-hyeon gestured to the chair in front of him, and I sat down across from him.
“This came up in the meeting just now.”
“Seonjin Motors?”
“Yes.”
Lim Do-hyeon was quick as expected. It seemed he’d already anticipated this topic from the moment I entered the room.
“I was actually about to call you in myself.”
It was proof that even within Seonjin Logistics, this matter was being viewed as exceptionally unusual.
“I’ve been here ten years, and this happened in my first year. The logistics contract with the Seonjin Automobile Group.”
“Is that so?”
“Yes, I was in the Sales Division at the time, and there were no complications. It was contracted as if it were the most natural thing in the world.”
Hearing it from someone who had witnessed the contract, I could understand just how strange those within logistics found this situation.
“The Sales Division is saying lately that everyone’s competing on unit prices, so maybe the Seonjin Automobile Group is trying to cut costs too.”
Lim Do-hyeon spoke while looking at me.
“I think there’s a fifty percent chance of that, but the other half might be something else entirely.”
His expression suggested he needed an explanation. After thinking for a moment, I began to speak.
“If you don’t mind, I’d prefer this conversation between us not become public knowledge.”
“Of course.”
“Now I think it’s accurate to say that our Seonjin Group and the Seonjin Automobile Group are entirely separate entities.”
In my previous life, everyone’s perception would eventually shift as I had stated, but now they still viewed them as a single chaebol family bound by blood.
“What do you mean by that…?”
“Think back to when Seonjin Aluminum was attacking Seonjin Trading Company.”
Lim Do-hyeon’s expression hardened. At that time, the media and even within the group, it had been noisy with talk of family strife.
But ultimately it had been painted as the uncle’s greed after his nephew died.
“Then… are you saying we should now see ourselves as having no connection with the Seonjin Automobile Group?”
“Yes. The Chairman and I hold the same view—it’s just not yet public. Chairman Kang Tae-yong of the Seonjin Automobile Group thinks the same way.”
The changed premise made Lim Do-hyeon’s expression turn serious.
“Then does that mean your assessment is that this negotiation request doesn’t look like a simple cost negotiation, Team Leader Kang?”
“That’s correct.”
“If that’s the case, there should be alternatives—why are they discussing with Seyang?”
Lim Do-hyeon leaned back in his chair as he spoke.
“Seyang has less experience with large-scale logistics than we do.”
That made sense—Seonjin Logistics had been founded to transport goods for the Seonjin Group, which was based in manufacturing and heavy industry.
Seonjin Trading Company, too, had initially been established as a shipping company to transport cargo delivered by logistics overseas, and only later took on trading operations.
“So I have a hypothesis.”
After a moment of consideration, I opened my mouth.
“In the worst case, the Seonjin Automobile Group could announce they’re bringing logistics in-house.”
“In-house logistics?”
Lim Do-hyeon looked startled, leaning forward.
“Why would the second-largest group in the nation bother with a logistics company? They’re already having us handle it.”
“Large corporations internalizing outsourced logistics is a current trend. Handling logistics themselves reduces costs, and the contract renewal season is the most natural timing to implement that.”
Given the scale of the Seonjin Automobile Group, it wouldn’t be strange for them to establish a separate logistics company.
Seonjin Construction, Seonjin Auto Parts & Materials, Seonjin Machinery.
Even the affiliated companies alone had sufficient volume, and consolidating that volume would be enough to run a logistics operation.
‘In my previous life, that’s exactly what happened.’
The name of that company surfaced in my memory. The company that had taken cargo from Seonjin Logistics belonged to Kang Jin-ho, and that had been the beginning of everything.
“Can I ask why you suddenly had that thought?”
I answered Lim Do-hyeon’s question calmly.
“The phrase ‘condition negotiation’ bothered me. If it were just cost negotiation, they’d simply present a price, but bringing the entire set of conditions to the table means they want to change the existing structure.”
It wasn’t wrong, but I couldn’t tell him the real reason.
Lim Do-hyeon folded his arms and fell into thought for a moment.
“Right now it sounds like a bit of a conspiracy theory, but I have to admit your logic seems sound. I know the Seonjin Automobile Group’s cargo accounts for over thirty percent of our sales?”
“Yes, I’m aware. I’ve instructed the team to calculate the exact revenue ratio.”
“The critical point is that if the Seonjin Automobile Group does what you suggest—pulls their volume and creates a new logistics company—then we’d be in trouble again.”
Even a ten percent loss in revenue would make the company stumble, let alone losing a client handling thirty percent.
“On the other hand, if it really is just cost negotiation, it’s a client we absolutely must retain.”
“Yes, I’ll develop countermeasures based on both scenarios.”
“Good. In that case, it would be best if you personally handle the preliminary meeting as well. I’ll let the Sales Division know.”
I bowed at Lim Do-hyeon’s words.
“Understood.”
“I’ll report to the CEO right away and consider the company’s response strategy. We’ll talk again after the preliminary meeting.”

* * *
-I wrapped up the Euro positions.
I received a call from Han Jae-yi while sitting in my room after work, thinking about various things.
She had been reporting on Ribbon Capital’s remaining positions in the Euro short and Credit Default Swap.
-The Euro seems to be at its lowest point just like you said, so I picked the liquidation timing.
“Well done. How did the Credit Default Swap go?”
-That’s wrapped up too. Full liquidation at 1,032 basis points.
Since Greece’s bailout had been agreed upon, the Credit Default Swap premium had been fluctuating.
A bailout occurs when a country reaches the point of being unable to repay its debts, and international organizations or other countries lend it money.
The European Union and the IMF announced they would provide 110 billion euros to Greece, and the market briefly felt reassured by the news.
Credit Default Swaps were essentially betting that a country would collapse, so when a bailout emerged, that direction would waver.
However, I knew this bailout wasn’t a fundamental solution. Greece would need two more bailouts afterward, and the European crisis would spread to Ireland and Portugal.
But now was the right time to exit. Liquidating while it was above 1,000 basis points was correct.
-The profits are 50 million dollars from the Euro short, 416 million from the Credit Default Swap. Combined, that’s 466 million dollars.
Han Jae-yi paused briefly.
-In our currency, that’s roughly 560 billion won.
It was an staggering amount. Enough to recoup all the money invested in the Ochang Science Industrial Complex, DK Capital, and Seonjin Logistics, with plenty left over.
“You did great work, senior.”
-…That’s it? 560 billion won?
“Have the team distribute performance bonuses, and we’ll grab a meal together later, my treat.”
Han Jae-yi’s tone changed.
-What’s wrong with your voice? Did something happen?
“No, just tired.”
My mind was elsewhere, and despite my efforts not to show it, it apparently came through.
-…Okay. Don’t push yourself too hard.
“Thank you, senior. You did great.”
I hung up and set the phone down beside me.
“Kang Tae-yong is making his move.”
Grandfather Kang Man-ho had divided his businesses among his three sons.
To the eldest, Kang Tae-yong, he gave the Seonjin Automobile Group; to his younger brother, Seonjin Shipbuilding and Seonjin Chemical; to his youngest son, my father Kang Tae-jin, he gave the Seonjin Group; and to my aunt, the Seonjin Foundation.
Management rights were completely separated, and the Kang Family split into three households.
For Kang Tae-yong, that was unbearable.
Despite holding the title of second-largest group in the nation, the legitimate Seonjin name belonged to his younger brother.
“That was Kang Tae-yong’s complex. He never spoke of it publicly, but he coveted the Seonjin Group until the day he died.”
After Kang Tae-yong’s death, his son Kang Jin-ho attacked to seize what was mine.
“Seonjin Global was likely the beginning.”
Of course, I knew that the attack on Seonjin Trading Company through Seonjin Aluminum had also been instigated by Kang Tae-yong. But then it was simply to drain our strength, and Kang Tae-yong would obviously be calculated in targeting Seonjin Group methodically.
In my previous life, he did everything to weaken our position, and Seonjin Global was part of that scheme.
“Seonjin Global had two purposes.”
The first was, as I said, to drain our strength.
The logistics that the Seonjin Automobile Group’s affiliated companies had entrusted to Seonjin Logistics were diverted to the new company.
The revenue lost from Seonjin Logistics was staggering, and our group’s strength was correspondingly depleted.
“And they’re probably preparing for Kang Jin-ho’s succession.”
The second was Kang Jin-ho’s succession.
If Kang Jin-ho, owning one hundred percent of the entity, monopolizes the group’s logistics, revenue is guaranteed.
When the company grows, it can go public on the stock market, and once listed, Kang Jin-ho would gain billions in assets.
Since it wasn’t registered with the Fair Trade Commission, there were no intracompany transaction regulations or disclosure obligations.
A loophole succession with neither inheritance nor gift taxes.
“With one company weakening us while simultaneously resolving the succession for his son.”
In my previous life, I learned this structure much later.
The collapse of Seonjin Logistics was slow and merciless.
One by one, logistics from the Seonjin Automobile Group’s subsidiaries shifted to the new company.
Seonjin Construction, Seonjin Auto Parts & Materials, Seonjin Machinery. Revenue that had come automatically each year disappeared.
Without corporate logistics, we couldn’t survive on courier services alone, and despite the group’s efforts, we eventually had no choice but to sell.
“That’s when the Seonjin Group’s strength began to crumble significantly.”
The fortunate thing was that this life had taken a different path. Seonjin Logistics was receiving investment and building new logistics centers, undergoing structural reform.
“The most important thing is that I’m in logistics.”
And knowing what would happen, I had confidence I wouldn’t fall victim to it this time. I ended my thoughts, picked up my phone, and sent a text to Jung Tae-sung.
[Please check if the Seonjin Automobile Group has recently established any new logistics entities. More specifically, dig into Kang Jin-ho’s side.]

* * *
“The Seonjin Automobile Group’s cargo volume accounts for approximately thirty-seven percent of annual revenue. Back when the economy was booming two years ago, it sometimes exceeded forty percent.”
A few days later, ahead of the meeting with the Seonjin Automobile Group, I was receiving a report from a team member.
“The Sales Division reports that if the Seonjin Automobile Group’s volume disappears, there’s no replacement available.”
I nodded at the team member’s words.
“Yes, I understand. Let’s organize a bit more and discuss again.”
The team member bowed and returned to his seat just as—
Buzz—
My phone vibrated, and checking the screen, it was Jung Tae-sung.
I stood up and left the office, heading to the break room on the rooftop.
Confirming no one was there, I sat on a bench and pressed the call button.
-Chairman.
“Director Jung, go ahead.”
-I’ve confirmed what you mentioned.
Jung Tae-sung delivered his report.
-The company name is Seonjin Global. It’s registered as a logistics business.
“Who’s the representative?”
-Kang Jin-ho. One hundred percent ownership.
‘Exactly as expected.’
It matched my memory perfectly.
“Fair Trade Commission registration?”
-None. It’s an independent entity that appears to be an affiliate of the Seonjin Automobile Group but isn’t registered with the Fair Trade Commission.
“When was it established?”
-About two months ago. The office is confirmed to be in Seocho-gu, and currently there are only a few employees.”
“Has there been any confirmation on what kind of personnel are attached?”
-Yes, most appear to be employees from the planning division of Seonjin Automobile Headquarters. And there was recently a job posting for operational staff to handle cargo sales and logistics management.”
It seemed like a company that had been carefully prepared, waiting only for Seonjin Logistics’ contract renewal season.
“Understood. From now on, I want you to investigate everything about that company.”
-How far should the investigation scope extend?
“I want to know everything—where the funding came from to establish it, and even how many copy machines are inside.”
-SJ Security’s CEO Choi Sung-hun will be involved as well.
“Yes.”
With that, I hung up and stood from the bench.
“They won’t take it easily, and I need to show them that the path they want won’t be the smooth garden they’re hoping for.”

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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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