The Return of the Ruined Chaebol's Third-Generation Heir - Chapter 32

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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 32
“To what extent are we estimating the foreign capital’s accumulated stake?”
Seonjin Group Headquarters, main conference room.
A heavy silence hung in the air when the voice of Kim Ja-young, the Seonjin Group CEO seated at the head of the table, cut through the stillness.
The eyes of the hastily convened directors and subsidiary presidents turned in unison toward the finance director.
The finance director swallowed hard and opened his mouth with care.
“Based on our estimates, they appear to have accumulated approximately 14 to 15 percent.”
Kim Ja-young’s brow furrowed. The figure was higher than expected.
“Have they made any contact with us?”
“None whatsoever. That’s why we still can’t determine precisely who this force is or what their intentions are. However…….”
The finance director paused, then pointed to the stock price chart displayed on the screen.
“The media has been reporting daily on the possibility of a Hostile M&A, so the market has already accepted a Management Rights Dispute as fait accompli. As a result, the stock price is rising abnormally.”
“By how much?”
“At the time we believe the accumulation began through BNP’s channel, the stock price was in the 24,000-won range. But as of this morning, it’s currently trading at 55,500 won.”
A low sigh escaped from among the directors.
An increase of over 130 percent in just over a month.
It was not a normal rise. It meant someone was deliberately pouring massive amounts of money into it.
……
Everyone’s expression grew grave.
Then Choi Dong-su, the director of strategic planning who had maintained his silence, spoke.
“What’s certain is that the current atmosphere is too overheated, and they’re accumulating their stake very methodically.”
“Methodically?”
“Yes. They’ve accumulated over 14 percent in stake, yet a Major Shareholder Disclosure hasn’t been filed yet. It means they’re splitting the shares into smaller portions using Nominee Accounts and Paper Companies to avoid the 5% Rule.”
Kim Ja-young nodded gravely.
The weakest link in Seonjin Group’s control structure was Seonjin Trading Company. The enemy seemed to have identified that Achilles’ heel precisely.
‘Just who are they?’
The most frustrating thing was the powerlessness of not even knowing the enemy’s identity.
‘If my husband were still alive…….’
Kim Ja-young forced away the thought that had suddenly surfaced. Now was not the time for sentiment.
But she couldn’t simply sit back and take it. She had to protect the company.
“If we assume this is an attack targeting Management Rights, we must also prepare countermeasures. Please share your wisdom with us.”
At Kim Ja-young’s appeal, the conference room stirred.
Moments later, a mid-level director raised his hand to speak.
“CEO, we must utilize the Treasury Stock that Seonjin Trading Company holds. We need to revive the dormant Voting Rights.”
Under corporate law, shares held by a company in its own name — Treasury Stock — cannot exercise Voting Rights at the shareholder meeting.
But what if those Treasury Shares were sold or exchanged to a third party?
From that moment on, the Voting Rights come back to life. This is called Treasury Stock Magic.
“But to whom would we transfer them? If we’re careless, it could backfire on us instead.”
Another director applied the brakes.
“The shipping alliance partners can be trusted. I believe we should pursue a Comprehensive Stock Exchange with them.”
The Shipping Alliance.
Just as airlines form alliances like Star Alliance, shipping companies form global alliances sharing vessels, routes, and terminals.
These partners were bound by tight trust relationships essential for each other’s survival.
“A stock exchange…….”
“Yes. The current CEO and family members hold 18.75 percent of the Trading Company’s stake. If we exchange even 10 percent of the 30 percent Treasury Stock held by the company with our alliance partners to create Friendly Shares, that comes to a total of 28.75 percent.”
One could almost hear the sound of calculators clicking in the conference room.
“28.75 percent. That’s certainly not a bad number for defense.”
When Management Rights Disputes typically occur, the National Pension Service and institutional investors often side with the incumbent management.
Considering their stake as well, Friendly Shares approaching 30 percent could make a fairly solid shield.
“Does anyone have objections to this opinion?”
Kim Ja-young looked around the room and asked.
No one objected. It was the most realistic and powerful card they could play in their current situation.
Kim Ja-young’s gaze hardened with resolve.
“Director Choi.”
“Yes, CEO.”
“Contact the Shipping Alliance partners right now and propose a Comprehensive Stock Exchange. Time is critical — we need to dispatch our working-level teams and tie this up as quickly as possible.”
“Understood. I’ll proceed immediately.”
“And mobilize our entire intelligence network. By any means necessary, find out who’s behind the foreign capital——”
Bang—
Just then, the firmly closed conference room door flew open and Kim Ja-young’s secretary burst in urgently.
Unlike her usual composure, her face was ashen.
“CEO! An urgent report!”
The secretary rushed to the head of the table and whispered to Kim Ja-young.
As Kim Ja-young listened to the report, her pupils trembled, and her expression suddenly turned cold.
……
Every eye in the conference room fixed on Kim Ja-young.
An ominous premonition hung in the air.
Kim Ja-young steadied her trembling lips and opened her mouth slowly.
“It appears Seonjin Aluminum just issued a press release.”
“Seonjin Aluminum? You mean Chairman Kang Byeong-chul?”
“Yes.”
Kim Ja-young continued with difficulty.
“Seonjin Aluminum has apparently secured a 13.1 percent stake in our Seonjin Trading Company. And they’ve declared that, as the family elder, they will step forward as a White Knight to help us against this foreign hostile attack.”
“Ah!”
Exclamations burst out from various corners.
Several directors’ expressions brightened instantly.
“Thank goodness! If Chairman Kang Byeong-chul helps us, it’s like having an army of angels, isn’t it?”
“Of course the family elder steps up in a crisis like this.”
While the other directors breathed sighs of relief, Kim Ja-young’s and Choi Dong-su’s complexions turned ashen.
‘A White Knight……?’
It couldn’t be.
There was no way the Seonjin family, who had been eyeing Management Rights all along, would purchase such a massive 13 percent stake out of pure goodwill with no strings attached.
It felt like a noose slowly tightening around her neck.

* * *
“Seonjin Aluminum has revealed itself and is making its move.”
The moment I got into the car after school, Jung Tae-sung, who had been waiting, reported immediately.
“They’ve declared themselves a White Knight with a 13.1 percent stake.”
“A White Knight? That can’t be right.”
I let out a scoff.
The difference from my previous life was nonexistent. The name was White Knight, but in reality, it was a Trojan Horse.
Soon they would absorb the dummy foreign stake they’d planted for attack under the guise of being a White Knight.
Then they’d drop the mask and reveal their true colors.
“They disclosed their stake as 13.1 percent?”
“Yes, that’s correct.”
“Then the foreign stake they’re hiding is around 14 percent, so combined that’s 27 percent.”
“That’s right. And if we include the 4.5 percent stake we’ll transfer through Park Nam-gyu, they’ll believe they’ve secured around 31 to 32 percent.”
It didn’t reach a majority, but it was enough to shake Management Rights.
At this point, they would think they had the upper hand.
“Let’s organize our side’s stake. The other side will be mistaken into thinking they have 32 percent, but in reality they only have 27 percent.”
“The CEO and your mother, along with Seon-ah’s stake, come to 18.75 percent. SJ Holdings holds 4.95 percent, and Ribbon Capital holds 4.5 percent.”
I did the math in my head.
“28.2 percent.”
Our stake slightly edged out their actual 27 percent.
But there was no room for complacency yet. I knew they wouldn’t stop here.
‘Once Seonjin Aluminum steps up as a White Knight and absorbs the foreign stake, what comes next is obvious. They’ll strip the company of all its funds and aggressively buy up more shares.’
Their final goal was 40 percent or more in stake to secure stable Management Rights.
At current stock prices, that would cost hundreds of billions of won, but they were the type who would embezzle company funds to pour into it if they could just seize the company.
“What’s Seonjin Group’s response?”
“No official statement yet.”
Despite Seonjin Aluminum’s surprise announcement that morning, the parent company Seonjin Group had maintained silence for over half a day.
The reason was obvious.
“100 percent they’re divided internally. Either they’re panicked or they’ve been deceived.”
……
“I’m guessing Seonjin Group will aim for a Comprehensive Stock Exchange with the Shipping Alliance partners of the Trading Company.”
At my words, Jung Tae-sung’s eyes widened in surprise as he looked at me via the rearview mirror.
“A Comprehensive Stock Exchange…… You’re right, if they leverage Treasury Stock, it’s definitely a way to quickly build up Friendly Shares in the short term. It sounds like a solid strategy.”
“On the surface, yes.”
I responded coldly.
“But even with such a Comprehensive Stock Exchange, the inherent instability of Trading Company control doesn’t change. In fact, it’s like opening our front door to foreign shipping companies.”
“Opening the front door?”
“If I were the head of a shipping company receiving exchanged stock, would I just sit back and watch? Once you gain Voting Rights, the instinct of capital is to interfere in management.”
It was like running straight into a tiger’s den to escape a fox.
In my previous life, Mother had executed the stock exchange to extinguish the immediate fire, but those foreign shipping companies had backstabbed her later.
I couldn’t let the same mistake happen again.
“We have to stop this.”
“Then…….”
“We need to publicly reveal SJ Holdings. If we show that we’ve secured over 5 percent in Friendly Shares, Mother won’t feel the need to reach out to foreign shipping companies.”
I made the decision.
Sooner or later this name would come to light anyway. If so, it was right to make the appearance at the most dramatic moment, the most necessary moment.
“Please take me to Kim Seok-jun’s house right now.”
“Understood.”
“We need to become the true White Knight.”

* * *
Seongbuk-dong, Kim Seok-jun’s private study.
“So I heard — Kang Byeong-chul made his move?”
“Yes. As I mentioned before, there’s a high possibility this is bluffing.”
Kim Seok-jun nodded heavily.
My predictions had never been wrong so far, and above all, he was the man who knew the greed of Kang Byeong-chul and his relatives better than anyone.
He knew better than anyone that they weren’t the type to help out of goodwill.
“So, what do you need me to do now?”
“I’ve instructed Director Jung to adjust SJ Holdings’ stake to 5 percent or higher. You should meet with my mother tomorrow.”
“Meet with her?”
“Tell her you’ll become a White Knight.”
At my proposal, Kim Seok-jun’s brow furrowed and his expression grew worried.
“Will CEO Kim Ja-young trust me? This is exactly the moment when she can’t tell who’s the enemy and who’s the ally. I could be suspected as well.”
“That’s why I’m asking you to meet before the disclosure.”
I spoke firmly.
“Meeting after the stake has been announced and reported in the media, versus visiting first to exchange opinions before the disclosure — these are worlds apart. The former is a notification, the latter is a proposal.”
“Hmm…….”
“If you extend your hand first, at the very least Mother won’t think of you as an enemy.”
Kim Seok-jun fell silent for a moment, then lifted his head as if he’d made up his mind.
“Fine. I’ll do that. I’ll contact CEO Kim early tomorrow morning.”
“And from now on, you can think of the media strategy as being in your hands.”
“Me?”
“Yes. You’ll need to face the media after all this time. Is that alright?”
At my question, Kim Seok-jun burst out laughing.
“Ha ha ha! That was my specialty. I stood at the prosecutor’s photo line a few times in your grandfather’s place. Dealing with reporters is like eating soft rice for me.”
I let out a small laugh at Kim Seok-jun’s joke.
I could feel it was a deliberate quip to lighten the mood — a seasoned consideration to keep me from getting too worked up or tense.
“Good. Let’s start meeting with the elders.”
As we’d discussed before, gathering opinion among the veteran executives who had served my grandfather was also an important task.
If they rallied around Kim Seok-jun, Kang Byeong-chul’s justification would be greatly weakened.
“There are also a few legal measures we can take. I’ll handle those through Director Jung and report back to you.”
“Sure, take care of that yourself.”
“Thank you. Then I’ll trust you and move forward.”
I stood up from my seat. There was a mountain of work to do.
Just as I was about to turn around.
“Are you alright?”
Kim Seok-jun asked quietly.
It was a short phrase, but the weight contained in it was far from light.
Concern and sympathy for me, facing all this in the body of a high school student.
I turned around to look at him.
And I answered with a grin.
“I’m fine. I’ve been preparing for this all along.”
I nodded, and Kim Seok-jun also nodded back to me with quiet weight.
A trust that didn’t need words.
That was enough.

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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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