The Return of the Ruined Chaebol's Third-Generation Heir - Chapter 17

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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 Heir – Episode 17
A week later, at Kim Seok-jun’s residence in Seongbuk-dong.
“Right, I heard from Jeong about it. A decent company came on the market?”
Kim Seok-jun set down his teacup and fixed his gaze on me. Beside him, Jeong Tae-sung sat rigidly in attendance.
“Yes. Sinhwa Welltech Co., Ltd. It’s a precision chemicals firm based in Ulsan, and their technical prowess is unquestionable.”
I gestured toward the briefing materials Jeong Tae-sung had prepared as I elaborated. Semiconductor Cleaning Liquid Refining Technology, business licenses and permits, and expansive factory grounds besides.
Kim Seok-jun nodded as he listened, then his hand stopped on the financial statements page.
“The technology is solid, but the situation looks grim. Three billion in debt, and the creditors want six billion for the sale.”
He clicked his tongue.
“If they’re asking six billion, even if we liquidated every won we have, it wouldn’t be enough.”
“Exactly. And even if we did manage an acquisition, without operating capital we’d have no future.”
“Then is there a way? What if we lowered our sights? If we looked for another firm with slightly weaker technology but a cheaper price, we could find something.”
Kim Seok-jun’s suggestion was reasonable. An overstretched acquisition would invite the Winner’s Curse. But I shook my head firmly.
“No. There’s nothing comparable to this. And we can acquire it without spending all five billion.”
“I’m listening.”
Kim Seok-jun leaned forward with interest.
“We’ll negotiate individually.”
“Negotiate individually?”
“Yes. Right now the creditors—the bank, the supplier companies, and the management—are unified and demanding a bulk sale. Six billion is the figure where all three are fully satisfied. But if we put all three at the same table, we’ll never reach a deal. None of them will make concessions.”
I held up three fingers.
“So we fragment them. Their desires and fears are different.”
I folded down the first finger.
“Stage one: we assume the bank debt of two billion.”
“Assume it.”
“Yes. We don’t need to pay the bank two billion immediately. They’ve already seized the factory and equipment as collateral. If I become the new owner and propose to take responsibility for this debt and repay it, they have no reason to refuse.”
From the bank’s perspective, they can’t recover the principal right now.
“The bank has almost certainly classified Sinhwa Welltech’s loan as non-performing. Once Restructuring proceedings begin, they’ll write off the principal.”
If interest keeps coming in on time, maintaining the loan is advantageous. Actually, if it goes to Court-ordered Receivership and proceeds to auction, recovery takes longer and headaches multiply.
“By assuming the debt, my out-of-pocket cash to the bank is zero right now.”
Kim Seok-jun nodded.
“Makes sense. The bank will want a reliable new owner. What about the unsecured creditors?”
I folded down the second finger.
“Stage two: we purchase the one billion in unsecured creditor claims at a discount.”
“A discount?”
“Yes. We’ll approach the supplier companies directly. They have no collateral, so if the company fails, that one billion evaporates. They’re the ones most gripped by fear.”
I spoke in a measured voice.
“We’ll tell them: ‘If the company goes into Court-ordered Receivership, your money becomes worthless paper. I’ll give you fifty percent in cash right now—hand over the debt.'”
“Hmm…….”
“They get nothing if they wait, but five hundred million is something. The remaining five hundred million can be repaid once the company stabilizes. When I become the new owner and promise to keep doing business with them, they’ll welcome it with both hands.”
This way we can clear one billion in accounting liabilities with five hundred million in cash.
“Finally, stage three: we take the Management Rights for free.”
“You mean the founder?”
“Yes. I’ll propose: ‘I’ll assume the bank debt and settle all the supplier company debts, freeing you from all creditor hounding. In exchange, hand over Management Rights.'”
I folded down the last finger.
“Right now in that state, he can’t even pay salaries or fund research. Since he’s obsessed with research, if I guarantee him the Chief Technology Officer position and provide research funding, he’ll surrender Management Rights without hesitation. Just giving him ten to fifteen million in compensation for his existing equity stake would be enough.”
“Wait. Is that why you told me to look specifically for someone more interested in technology than management?”
“Precisely.”
“Ha ha. There are indeed such rare breeds. Buy a crumbling company’s stake for fifteen million, keep funding their research—a peculiar person might see real appeal in that.”
“Still, since this person will be valuable to us, if this proceeds, it would be better to attach a non-compete clause binding him to the company for the next ten years.”
As my explanation ended, Jeong Tae-sung looked at me with wide eyes.
Total acquisition cost: roughly two billion in cash. The remaining three billion could go straight into operating capital and R&D.
“Well, well.”
Kim Seok-jun stroked his chin in admiration.
“The plan is solid, but will it work? Will they really move separately so easily?”
“If you’ve read the report, you know this company collapsed three months ago. That’s when it came on the market too. But in all that time, not a single buyer has appeared.”
I answered with conviction.
“Time is on my side. Once next month’s lease payments default, it triggers insolvency. That’s the strongest card I’m holding at the negotiation table.”
“So it’s: accept my terms now or we all go down together next month.”
“Yes. ‘If you don’t sell now, it goes into Court-ordered Receivership. Then I’ll pick it up cheap at auction.’ That’s my pressure strategy.”
What looks like a solid six-billion-won boulder is actually a sandcastle with cracks running through it.
If we wedge into those fissures and fracture it, each piece will come at a far lower price.
A deep smile spread across Kim Seok-jun’s face.
“Ruthless. Absolutely ruthless. That’s no strategy a high school student should be devising.”
“I’ll take it as a compliment.”
“But what if it fails? What if they hold firm at six billion?”
I shrugged.
“Then we simply let it go into Court-ordered Receivership.”
“…….”
“When it goes to auction, we can win with a bid around three to four billion. It’ll cost more than splintering the creditors now, but we can still keep it under five billion.”
Kim Seok-jun laughed aloud.
“Ha ha ha! You’ve plugged every escape hole. You’re right—they’re the ones in a bind, not you.”
At Kim Seok-jun’s words, I nodded and looked at Jeong Tae-sung.
“Jeong.”
“Yes, sir.”
“You’ll need to meet with the bank first. Once we’ve settled the bank and the unsecured creditors, then we move to the Management Rights negotiation.”
Since I couldn’t move openly, from now on this was Jeong Tae-sung’s time.
“I’ll prepare.”
“I’ll give you a proper documented plan, so there can be no mistakes.”
“I’ll make sure it’s done right.”
As Jeong Tae-sung lowered his head, Kim Seok-jun spoke up.
“When you meet the bank, feel free to drop my name. They already know this is my Family Office anyway.”
Done. The coordination was complete, and now I just had to watch whether the arrow I’d released hit its mark.

* * *
Sinhwa Welltech CEO Office.
CEO Park Jin-hyuk gripped the sweat-slicked receiver like a lifeline.
“Mr. Seo, please. Just one billion. If you could just bridge one billion for raw materials right now, we can get through this crisis and restart the factory immediately.”
Park Jin-hyuk’s voice carried desperation that had crossed into supplication. But the response from the other end was cold.
-Mr. Park, you think we don’t know the situation in your industry? We know semiconductors aren’t moving. Even if you restart the factory, who’s going to take the goods?
“We’re finding buyers now! You know the technology is solid. If we just break into vendors like Taesan Electronics or Hansung Semiconductor…….”
-Then call back after you’ve broken through. We don’t have capital loose enough to bury money in uncertainty.
Beep. Beep. Beep.
The call ended curtly.
Park Jin-hyuk set the receiver down with a hollow expression. That made ten rejections.
“……Sigh.”
A deep breath escaped him unbidden.
“Were you turned down again?”
The Finance Director, fidgeting anxiously beside him, asked carefully. Park Jin-hyuk answered only by dropping his gaze.
Disappointment and dread flickered across the Finance Director’s face simultaneously.
“Sir, we can’t hold on much longer.”
“…….”
“They notified us today that if we don’t pay the lease right now, they’re seizing the equipment. And the supplier heads are in a panic. The calls keep coming—their staff need wages, they’re begging for payment.”
Park Jin-hyuk went through the motions of washing his face without water.
It wasn’t just the suppliers in crisis. Sinhwa Welltech’s own employees hadn’t been paid for two months.
The agitation among the research staff was visibly mounting.
‘If we stop now, it’s over.’
All the time and passion he’d poured in would be wasted.
Just a little longer—just a little bit more and we could see the light. But money was strangling him.
“……Just one more day. Literally just one more day.”
“Sir.”
“Let me make some more calls. I’ll plead with contacts, and you beg the leasing company one more time. Please.”
The Finance Director bit his lip.
He knew it was hopeless, but the CEO’s eyes were too desperate. He could do nothing but nod.
“……Understood. I’ll do what I can.”
As the Finance Director left without strength, Park Jin-hyuk leaned his head back against the chair.
The ceiling seemed to spin.
‘Who should I call.’
He’d abandoned pride and dignity alike. But no matter how much he dug through his contacts, he found no name who could lend him money.
Still, he couldn’t stop.
He picked up the phone again with trembling hands.
Knock knock.
Just then, there came a knock.
“Come in.”
The door opened and his Secretary entered. Her expression was equally dark.
“Sir, there’s an outside call. Should I put them through?”
“A call? From where?”
“They say it’s SJ Holdings from Seoul.”
Park Jin-hyuk’s brow furrowed.
SJ Holdings? He’d never heard the name.
“What’s it about?”
“They said they’d speak directly with you.”
Park Jin-hyuk smiled bitterly.
‘Debt collectors.’
The bank or one of the suppliers must have transferred their claim to a secondary lender or collection agency.
SJ Holdings—a grand name on paper, but clearly a recovery outfit.
But there was no dodging it. Debts circulated.
“Put them through.”
After a moment, the phone on his desk rang.
Park Jin-hyuk took a deep breath and picked up the receiver.
He braced himself for abuse.
“This is Park Jin-hyuk.”
-Hello. This is Jeong Tae-sung, Director at SJ Holdings.
The voice through the receiver was unexpectedly courteous and measured.
Not the voice of a thuggish loan shark.
Yet Park Jin-hyuk didn’t lower his guard. He’d seen too many who spoke politely until money came up, then turned vicious.
“If this is about the debt, we’re currently looking for solutions. If you could just wait one day…….”
-No, that’s not it.
The man cut him off.
-We’re not calling about debt collection. I’m calling to make you a proposal.
“A proposal?”
-Yes. We’d like to acquire the Management Rights to Sinhwa Welltech.
Park Jin-hyuk doubted his own ears.
“……What?”
-I’m saying we want to purchase your equity stake in Sinhwa Welltech.
Suddenly, Park Jin-hyuk’s mind went blank.
Not to demand repayment of debt, but to buy the company?
This dying company?

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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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