The Return of the Ruined Chaebol's Third-Generation Heir - Chapter 35

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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 Return of the Fallen Chaebol’s Third Generation – Episode 35
A few days later, at a Korean traditional restaurant near Gwanghwamun.
The air in the innermost private room, completely sealed off from the outside, hung heavy.
Five elderly men occupied their seats.
They had been the architects of South Korea’s rapid economic growth, standing beside Kang Man-ho, the founder of Seonjin Group, and serving as his trusted aides. In short, they were Kang Man-ho’s retainers.
A former cabinet minister, a former chief economic secretary, and the former vice chairman of Seonjin Group.
Though they’d stepped back from active service and were dismissed as retired has-beens, the weight of their contact lists could still shake the nation.
“Kim, no need to beat around the bush. Just tell us straight.”
Kim Seok-jun bowed respectfully, then looked each of them in the face one by one.
“Please help us.”
At Kim Seok-jun’s direct words, the old men’s brows knitted.
That morning, Kang Byeong-chul of Seonjin Aluminum had announced the problematic acquisition of foreign equity stakes and simultaneously declared his intention to seize control of Seonjin Trading Company.
At last, the family management rights dispute that had been brewing beneath the surface had surfaced.
“Help you with what, exactly? The dispute between Seonjin Aluminum and Trading Company?”
“Yes.”
“Hmm, Kim. That’s not like you. This is clearly a family squabble. Both Chairman Kang Byeong-chul and the current head of Trading, Kim Ja-young, are like family to us. We have no standing to meddle.”
The man across from him clicked his tongue in agreement.
“Right. And frankly, what could we possibly do? As you know, we don’t hold a single share anymore. What are we supposed to accomplish at a shareholder meeting with our hands tied? Calling on us old relics?”
It was the reaction he’d anticipated.
They were protecting themselves. Especially when it came to a bloody family dispute over management rights, they’d want to distance themselves even more.
But Kim Seok-jun didn’t back down.
“I’m not asking for shares. I’m asking to borrow your voices.”
“Our voices?”
“Yes. What Chairman Kang Byeong-chul is doing now isn’t a simple Merger & Acquisition. It’s a violation of family ethics, denying the late chairman’s wishes.”
Kim Seok-jun’s voice carried weight.
When the words “late chairman” were uttered, everyone’s expression flickered.
“What did Chairman Kang Man-ho say during his lifetime? That family shouldn’t fight. That’s why the chairman divided the companies among his heirs. Even though Kim Ja-young currently manages Seonjin Group and Trading, beneath her stands Seon-woo, the chairman’s grandson. Yet Chairman Kang Byeong-chul covets what belongs to his young nephew and has picked a groundless fight.”
“That’s… from a business logic perspective, isn’t it just survival of the fittest? Trading is weak, so it gets consumed.”
One man answered coolly, but Kim Seok-jun seized the opening.
“Survival of the fittest, you say? No. It’s greed. He devours Trading with Aluminum’s capital. Then what’s next? Automobiles? Construction? In the end, his scheme is to make all of Seonjin Group his personal possession. Are you going to stand by and watch the Seonjin Group you’ve all spent your lives building get torn to shreds by Chairman Kang Byeong-chul’s avarice?”
Silence fell in the private room.
They all read each other’s eyes. Kim Seok-jun’s words had truth in them.
The chairman they’d served their whole lives was Kang Man-ho, and his most cherished successor was Kang Tae-jin, Seon-woo’s father.
Then the former vice chairman, sitting in the corner, opened his mouth.
“But Kim. The opponent is Kang Byeong-chul. Even if we step forward, will that arrogant fellow bat an eye? We’ll just be written off as senile old men.”
“No.”
Kim Seok-jun shook his head firmly.
“What Chairman Kang Byeong-chul fears most isn’t money. It’s legitimacy. He hates the stigma of being labeled a man who seized his brother’s company. But if the elders who built the group alongside the late chairman step forward to rebuke him? The ripple effect dwarfs a few percentage points of stock.”
Kim Seok-jun withdrew a document envelope from his pocket and placed it on the table.
“This is the draft of a statement to be released tomorrow morning. The content is simple: The elders of Seonjin Group express concern about the current situation and urge Chairman Kang Byeong-chul to halt his hostile M&A. That’s all we need.”
The former vice chairman picked up the envelope. His eyes narrowed as he skimmed the contents.
“If this matter ends well, you gentlemen won’t be treated as mere old relics anymore. Won’t CEO Kim Ja-young seek you out whenever she needs and ask for your counsel on management?”
Everyone’s eyes wavered.
Honor.
What retired power brokers crave most.
Kim Seok-jun had touched exactly upon their hunger.
“Byeong-chul was always greedy from childhood. He got his calves beaten plenty for touching his older brother’s things.”
The atmosphere shifted. Another man chimed in quietly.
“Honestly, it doesn’t look good. An uncle stealing his nephew’s rice bowl—that’s not something that sits right with our sensibilities, is it?”
“Right. If we just sit here, we’ll have no face to show the chairman in the afterlife.”
Voices of agreement erupted from all sides. It was a success.
“We’ll do as you say. And tomorrow at lunch, I should invite some bureau chiefs from the economic press. My word still moves quite a few pen-pushers.”
“Thank you so much. I’m truly grateful.”
“But.”
The former vice chairman added with a meaningful expression.
“Make sure you win. We don’t stand with losers.”
“I’ll protect it with my life.”
Kim Seok-jun bowed deeply.

* * *
Seonjin Group CEO Office.
“They really signed, didn’t they?”
“Yes. Tomorrow morning it will run as an advertisement on the front page of the morning papers. And lunch has been scheduled with bureau chiefs from major economic outlets.”
Kim Ja-young exhaled deeply. It felt as though a blockage in her chest was finally clearing. What Kim Seok-jun had brought was a declaration of support from the group’s elders, who had once served her father-in-law.
“Thank you so much, Director. This will be such tremendous support.”
Sincerity colored Kim Ja-young’s voice.
A management rights dispute is never merely a fight over shares—it’s a battle over legitimacy.
Who is more morally justified? Who carries on the founder’s will?
Lose this invisible battle, and no matter how much money you have, the stigma of being a violator of family ethics or a usurper will narrow your room to maneuver.
“The public opinion campaign can ignite with this. Chairman Kang Byeong-chul can’t openly disregard the elders’ rebuke either. But…”
Kim Seok-jun’s eyes narrowed.
“In the end, it’s numbers that decide the outcome. It’s real bullets. Looking at how desperately Chairman Kang Byeong-chul is pressing, it’s not just intimidation. He’s determined to finish this.”
Kim Seok-jun’s gaze turned to Kim Ja-young.
“Would I be able to hear about your plans ahead? Your defensive strategy, I mean.”
Kim Ja-young nodded and looked toward Choi Dong-su, seated beside her. Choi Dong-su straightened as if he’d been waiting and opened his mouth.
“The cards we’ve prepared are essentially two.”
Choi Dong-su unfolded pre-prepared materials before Kim Seok-jun.
“First is paid-in capital increase through third-party allocation. We plan to issue new shares to friendly forces to dilute Chairman Kang Byeong-chul’s shareholding ratio. And second…”
Choi Dong-su’s voice grew firm.
“Comprehensive share exchange. We’re currently in contact with two entities: a global logistics company based in Singapore and an American shipping company. We transfer the treasury stock we hold to them and receive their shares in return. That way, we can secure over 10% in friendly shares immediately.”
It was a textbook and surest defensive strategy.
But Kim Seok-jun nodded quietly for a moment, then frowned and opened his mouth.
“I agree with the new share issuance. But… the comprehensive share exchange with foreign entities should be stopped.”
“Pardon?”
Choi Dong-su’s eyes widened. Kim Ja-young also looked at Kim Seok-jun with a puzzled expression.
“Could you explain why, Director? Treasury stock utilization is the most efficient way to put out the immediate fire. They have abundant capital as well.”
“That’s true. It’s efficient. But…”
Kim Seok-jun paused for a moment.
A conversation from a few days ago flickered through his mind—when Seon-woo had come to see him.
-Director, my mother and Chief Choi will definitely try to attract overseas capital for share exchange. Please stop them.
-Stop them? That’s the fastest route though?
-It’s fast but dangerous. You could end up fleeing a fox only to run into a tiger’s den.
Seon-woo’s eyes had been certain.
Once again, Seon-woo was reading several moves ahead and telling him. Kim Seok-jun had no choice but to accept it.
Kim Seok-jun continued in a measured voice.
“It’s because a situation like this could happen again in the not-too-distant future, CEO.”
“…”
“Treasury stock exchange would be good for immediate defense. But don’t forget: there are no permanent allies in this world. Foreign capital especially is mere mercenary, moving only for profit.”
Kim Seok-jun’s finger tapped on the desk.
“What happens if Chairman Kang Byeong-chul approaches them and offers to buy their shares at a price far higher than current market value? Or if later they demand management participation and turn their blades toward us?”
“Surely if we put safeguards in the contract…”
“A contract? They’re masters at slipping through legal loopholes. Especially for a place like Seonjin Trading with a fragile governance structure—it’s perfect prey. You think you’ve let in a white knight, but you’ve actually opened the gates to a black one.”
Choi Dong-su fell silent. He couldn’t refute it. It was a risk he’d overlooked in his haste. Kim Ja-young’s face paled.
“Then how should we use the treasury stock? Looking domestically…”
“I think it’s best to leave the treasury stock as is.”
Kim Seok-jun made his point firmly.
The atmosphere grew heavy. If they had to abandon the easy card of foreign capital, the upcoming share battle would become far more grueling.
That’s when Kim Seok-jun withdrew a thick document envelope from his pocket and placed it on the table.
“Don’t worry. I wouldn’t suggest without an alternative.”
“What is this…”
“Take a look.”
Kim Ja-young carefully opened the envelope. Inside were a corporate seal certificate and a proxy form. When she confirmed the contents, her eyes widened.
“This is a voting rights proxy regarding my family company’s shareholding in Seonjin Trading Company.”
Kim Seok-jun spoke matter-of-factly.
“As I said, I came here to help. I wanted to be more than just words—to be real support.”
“My goodness…”
Kim Ja-young was at a loss for words.
The number written on the proxy was no small amount.
“4.95%.”
A figure maxed out to avoid the 5% disclosure obligation. Combined with Kim Ja-young’s shareholding as a major shareholder, it was decisive leverage that could shift the balance.
“Director, to help us so much…”
Kim Ja-young’s eyes grew wet. It was almost unimaginable to transfer voting rights on equity worth hundreds of billions of won without expecting any return.
Kim Seok-jun smiled faintly and shook his head.
“It’s nothing compared to the debt I owe the late chairman. And… isn’t it about protecting the company that Seon-woo will lead?”
Kim Seok-jun rose from his seat.
“Use this shareholding meaningfully. It will be the blade that cuts deepest where Chairman Kang Byeong-chul will hurt most.”
Kim Ja-young and Choi Dong-su hastily stood and bowed.
“Thank you so much, Director. I will never forget this kindness.”
Kim Seok-jun nodded silently and left the office.

* * *
Kim Seok-jun’s Study.
I’d finished school and come here, in conversation with Kim Seok-jun.
“As you said, I told them to proceed with paid-in capital increase, and I stopped them from the comprehensive share exchange.”
Kim Seok-jun looked straight at me.
“Did they accept it?”
“They did.”
“That’s good.”
I let out a short breath of relief.
Reviving treasury stock without voting rights through exchange seems like the most efficient defense measure at first glance.
But that’s only true when your counterpart is a trustworthy partner.
Particularly for a place like Seonjin Trading with a fragile governance structure and weak owner control, that didn’t apply.
“So once the paid-in capital increase happens, we can breathe easy?”
Director Kim’s expression seemed more at ease.
He’d concluded that increasing friendly shares through third-party allocation could block Kang Byeong-chul’s attack to a certain degree.
But I shook my head.
“No. The new share issuance will likely fail too.”
“What?”
Director Kim’s eyebrows twitched.
“My guess is that my mother and Chief Choi will modify the articles of incorporation or pass a board resolution during the capital increase to set a per-shareholder allocation limit. That way, Chairman Kang Byeong-chul can’t participate in the increase and expand his shareholding.”
“That’s only natural. It’s a defensive measure.”
“But that could become the bigger problem.”
I explained calmly.
Share issuance is almost a formula for M&A defense. It can forcibly dilute the attacker’s shareholding ratio.
But South Korean courts aren’t that lenient.
“Chairman Kang Byeong-chul will definitely apply for a preliminary injunction against share issuance in court. He’ll argue that a new share issuance designed not for business necessity but solely to protect current management’s rights by excluding a specific major shareholder—like Seonjin Aluminum—is unlawful.”
“…!”
“The courts view it strictly when, in a management rights dispute, current shareholders’ new share subscription rights are excluded and shares are allocated to third parties. It’s nominally for business purposes, but the intent to protect control is manifest.”
Director Kim Seok-jun, who’d been listening quietly, slowly nodded.
On his face appeared both understanding and a trace of helplessness.
“Looking at precedents… yes, that would be the case.”
In my previous life, this was what the courts had ruled. Seonjin Trading desperately attempted the capital increase, but the court granted Kang Byeong-chul’s injunction.
“But you told her to go ahead anyway?”
“Yes. Because they need to do something.”
“…”
“Seonjin Trading really can’t do much in the current situation. Now let them exhaust themselves with such efforts while we do what we need to. Think of it as a smoke screen operation to confuse the enemy.”
Director Kim Seok-jun stared at me, rendered speechless.
The suspicious glint in his eyes from when he first sought me out was gone.
“You really…”
He let out a hollow laugh.
“If I told people that a high school student is orchestrating the entire flow of this game, no one would believe it. They’d call me mad.”
I bowed slightly instead of answering. There was no need to qualify praise.
“Still, when the new share issuance fails, there will be some public opinion impact.”
“There won’t be. It won’t even make the news. As you know…”
Not long ago, an unprecedented presidential impeachment motion had passed the National Assembly.
The market was in shock, stock prices plummeted. But even that hadn’t made the news. Political coverage dominated everything.
“The news is dominated by the impeachment issue. Plus there’s a general election coming soon. It’ll be buried in the media.”
That was another reason to let it be.
“So now we can make our legal move?”
Director Kim straightened and asked.
“Yes. SJ Holdings is also a shareholder of Seonjin Trading, so we have standing to file a complaint with the FSC.”
I gestured with my eyes toward a bag containing pre-prepared documents.
“You mean to file for a petition for voting rights cancellation regarding the shares held by Seonjin Aluminum, as you’ve had Director Jung Tae-sung convey?”
“Precisely. More accurately, it’s a complaint to prohibit voting rights. Please do it.”
“What are the odds?”
I answered without hesitation.
“99%.”
“99%… you’re quite certain.”
“Chairman Kang Byeong-chul will learn through this matter just how deeply his own incompetence has rooted itself in the entire Seonjin Aluminum workforce.”

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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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