The Return of the Ruined Chaebol's Third-Generation Heir - Chapter 37

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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 037
Bukchon, Kim Jong-su’s Traditional House Study Room.
Beneath the serene atmosphere, a palpable tension hung between the two men.
“I’ll lend you seven billion won. Interest at three percent per month, advance interest deducted. Three-month term.”
At Kim Jong-su’s clipped words, Kang Byeong-chul’s brow furrowed slightly before smoothing again.
For the private lending market, the rate wasn’t unfavorable. No—in all of South Korea, there was nowhere else that could arrange hundreds of billions in cash on the spot.
“Acceptable. We’ll use a 4.5% equity stake in Seonjin Trading Company—which I’ll secure with these funds—as collateral.”
“Collateral goes without saying.”
Kim Jong-su set down his teacup and adjusted his glasses.
“But I’ll need to add a special provision.”
“A special provision?”
“If I recall the news this morning, some outfit called SJ Holdings filed a petition with the Financial Services Commission.”
Kang Byeong-chul’s lips twisted.
Kim Seok-jun.
The man had finally begun making trouble.
This morning, SJ Holdings had filed a petition requesting that voting rights be restricted on a portion of the shares held by Seonjin Aluminum.
Raising suspicions of a 5% Disclosure Violation.
“Ah, that matter? You needn’t concern yourself with it.”
“Needn’t concern myself? It’s my money going in.”
“The current management of Seonjin Trading is merely thrashing about. Our legal team has already reviewed it. It’s nothing but a simple oversight—hardly a serious matter warranting voting restrictions. The Financial Services Commission will dismiss it.”
Kang Byeong-chul spoke with confidence.
Strip someone of voting rights over violating disclosure dates by a few days? With connections to the country’s top legal minds, the defense was perfectly plausible.
But Kim Jong-su shook his head.
“That’s your situation. From my position, if there’s any risk, I can’t extend the loan. If the money’s lost, only I suffer for it.”
“Surely you don’t doubt my creditworthiness?”
“I trust your credit. I don’t trust the circumstances.”
Kim Jong-su slid a pre-prepared document across the table.
“You sign this, and I’ll make the loan.”
Kang Byeong-chul picked up the document.
It was a special provision regarding an Acceleration Clause.
‘If the petition is granted and restrictions are placed on voting rights, immediate repayment is required…….’
The terms were straightforward. If the Financial Services Commission ruled in SJ Holdings’ favor, the borrowed funds were to be repaid at once.
Kang Byeong-chul let out a silent chuckle.
‘The petition will be dismissed anyway. Kim Seok-jun is just buying time.’
There was no reason to hesitate in a battle with a hundred-percent victory rate.
The immediate ammunition mattered.
With this money, he could secure more equity, crush Kim Seok-jun, crush everyone.
“It’s no hardship. Fine. I’ll add it.”
At Kang Byeong-chul’s ready consent, something flashed in Kim Jong-su’s eyes.
“Ho, you seem quite confident.”
“The law always favors the powerful, doesn’t it?”
Kang Byeong-chul picked up the pen and signed the contract without hesitation.
The scratching of the pen echoed through the quiet room. He had no idea it was the sound of a noose tightening around his own neck.
“The transfer will go through immediately.”
“Thank you. This will allow us to accomplish great things.”
Kang Byeong-chul rose and shook hands with Kim Jong-su. The older man’s grip was cold, yet something like a curious smile lingered at the corners of his mouth.

* * *
Inside the black sedan leaving Bukchon.
Slumped in the back seat, Kang Byeong-chul gazed out the window with a smile of satisfaction.
“Chairman, you seem pleased.”
The executive secretary sitting beside the driver spoke, eyes on the rearview mirror.
“I thought the old man would be difficult, but he was more reasonable than expected. The capital is secured.”
“How much……?”
“Seven hundred billion. Enough?”
“More than enough.”
Kang Byeong-chul clenched his fist. Cash in hand was power. Even if Kim Seok-jun used SJ Holdings to accumulate shares, there was no competition in a money fight.
“Jung.”
“Yes, Chairman.”
“Contact Park Nam-gyou. Tell him we’re acquiring the 4.5% Ribbon Capital stake he holds.”
Kang Byeong-chul’s eyes gleamed.
“With that added in, we’ll be approaching 35% now. Even if Kim Seok-jun and Kim Jong-su combine their holdings, they won’t reach 30%.”
“Understood. I’ll handle it at once.”
“And one more thing.”
Kang Byeong-chul’s eyes turned cold as he stared ahead.
“Send a notice to Seonjin Trading. Tell them to convene an Extraordinary Shareholders Meeting.”
“Right now, you mean?”
“Yes. Strike while the iron’s hot, as they say. Before the Provisional Disposition ruling comes down, we open the shareholder meeting, pass the director removal resolution, and seize control. That woman Kim Jong-su can cry and plead all she wants—I won’t listen.”
Kang Byeong-chul reclined arrogantly. The battle was already won.

* * *
The office of the Chief Executive Officer of Seonjin Group.
Kim Jong-su, the head of Seonjin Group, bore the marks of exhaustion, and Choi Dong-su across from her had grown visibly gaunt in recent days.
“What’s the market reaction since the New Share Issuance announcement?”
“Favorable. We’ve clearly demonstrated our will to defend management rights. Stock price is holding firm.”
“That’s reassuring.”
“However…….”
Choi Dong-su paused, choosing his words carefully.
“As expected, Seonjin Aluminum is pushing back immediately. We received a notice this morning—they’re threatening to file for a Provisional Disposition to block the New Share Issuance.”
“That’s anticipated. They won’t sit idle.”
Kim Jong-su accepted it calmly. Court battles were inevitable.
“We’re consulting with legal on response strategies. But based on precedent…… this will be a difficult fight.”
“Still, we have to try. We have to exhaust every option…….”
Knock-knock.
Just then, an urgent knock, and a staff member from the Planning & Strategy division entered, holding a fax.
His expression was tense.
“CEO, emergency report.”
“What is it?”
“Just now, another notice came in from Seonjin Aluminum.”
The employee swallowed hard before continuing.
“A request to convene an Extraordinary Shareholders Meeting.”
“A shareholders meeting?”
“Yes. The agenda is…… the removal of all current directors including the Chief Executive Officer, and the appointment of a new Chief Executive Officer.”
Kim Jong-su’s eyes widened. Choi Dong-su bit his lip. It had finally come. Kang Byeong-chul was drawing his blade in earnest.
“Removal…… so he really means to see this through to the end.”
Kim Jong-su’s voice trembled. Her uncle-in-law had made an official declaration of war—to drive out his niece-in-law.
“What do we do?”
……
“Must we open the meeting if they request it?”
Choi Dong-su analyzed the situation coldly.
“Legally, the current major shareholders are Seonjin Aluminum and its allies. Under the Commercial Act, if a shareholder holding 3% or more of issued shares proposes it, the company has weak grounds to refuse. In principle, we must open it.”
It was the logic of power. Whoever held the most shares was the owner, such was the nature of a joint-stock company.
“So the shareholders meeting will happen before we complete the New Share Issuance.”
“No. There is a way.”
“A way?”
“Buy time.”
Choi Dong-su’s eyes sharpened.
“How much time can we buy?”
“They’ve requested convening, but the authority to convene a shareholders meeting rests with the Board. We can delay by stalling at the Board convening stage.”
“If we keep stalling?”
“Typically, if the company shows no response or refuses for one to two weeks, the other side will petition the court for authorization to convene the Extraordinary Shareholders Meeting.”
Once the ball goes to the courts, more time opens up.
“There will be a court hearing date, and time for the decision to be rendered. And accounting for the two-week notice period before convening the meeting…….”
Choi Dong-su calculated mentally.
“We can stretch it four to five weeks at most.”
One month.
Long by some measures, short by others. But in this wartime crisis where every day was precious, it was invaluable time.
“We have to overturn the board in that window.”
Kim Jong-su bit her lip and nodded.
“Fine. Let’s buy as much time as we can. Instruct legal to delay by any procedural defect pretext necessary.”
“Understood.”
“And accelerate the New Share Issuance. Before they open the shareholders meeting and oust us, we need to dilute our ownership first.”
A dangerous glint appeared in Kim Jong-su’s eyes.
She had no intention of backing down quietly.

* * *
The moment I stepped out the School Main Gate, I settled into the familiar black sedan.
As the door closed and the car began moving, Jung Tae-sung from the passenger seat glanced in the rearview mirror and spoke.
“I have a report. Through Park Nam-gyou, Chairman Kang Byeong-chul’s side has signaled interest in acquiring shares.”
Exactly as expected. The moment he secured the capital in Bukchon, he moved.
“Of course. Money in hand, and he goes straight for equity.”
“Yes. He wants to buy all 4.5% of Ribbon Capital shares nominally held by Park Nam-gyou. He’s offering twenty percent above market rate.”
“Sell it to him.”
At my immediate response, Jung Tae-sung seemed startled, gripping the steering wheel tighter.
“Representative, but…… if we sell, we’re handing over our actual shares. 4.5% is hardly insignificant.”
“I know.”
“Then we’d be at a disadvantage in the equity battle. Wouldn’t it be better to drag things out and hold firm?”
I shook my head.
“Let’s wait for the petition ruling.”
“You mean the petition…… but there’s a chance, however small, it could fail. Nobody can guarantee the Financial Services Commission’s judgment.”
“That’s possible, true. But…….”
“The real issue is this: if we let him take that capital into the market and buy up available shares directly, we lose all leverage over Kang Byeong-chul. Better to hand over our shares and control his cash instead.”
If things proceed as in my previous life, the Financial Services Commission will rule as SJ Holdings wishes.
Even if Tae-sung’s worries prove warranted and it fails, I had alternatives.
I met his gaze in the mirror as I explained.
“Kang Byeong-chul will think he’s already won now that he has the Bukchon capital. Convinced he’s secured the shares, he’ll move to request the shareholders meeting shortly.”
Calculating the timeline, the petition result could come at any point, and their speed might outpace it.
“We say we’ll sell, then drag out the due diligence and paperwork as long as possible. Even a single week’s delay gives us time to prevent the loss of control before the Financial Services Commission rules.”
This was different from my previous life.
Because I’d intervened to connect the Bukchon capital, I had to personally control that changed variable.
“I understand. You mean to sell but delay as long as possible. Since we don’t know when the Financial Services Commission will rule.”
“Exactly. And we move based on the outcome using that capital.”
I took a moment to compose myself before laying out the core point.
“Regardless of the ruling, the stock price will fall.”
“Fall?”
“Yes. If the Financial Services Commission rules in our favor, Seonjin Aluminum’s massive holdings become forced liquidation and crash the market. Conversely, if they rule against us, the management dispute disappears and a crash is certain either way.”
Tae-sung finally seemed to grasp my intention fully.
A stock price elevated by management dispute holds only as long as the dispute persists. The moment one side gains the upper hand, it collapses first.
It falls at the same speed it rose.
“Kang Byeong-chul’s weakness is liquidity.”
I smiled coldly.
“Even if the Financial Services Commission rules in Aluminum’s favor, giving him the advantageous board, he still has to sell shares to repay the Bukchon debt. The term is short at three months, and Kim Jong-su won’t sit idle.”
……Ah.”
“With the stock price crashing, how does he repay the debt? He has to sell far more shares. Then control slips away naturally.”
Of course, he could borrow using the shares as collateral, but that would inevitably trigger the Winner’s Curse—the deadliest trap in a management dispute.
Tae-sung answered with something like awe in his voice.
“So no matter how the stock falls, it’s fatal for Kang Byeong-chul. By borrowing from Bukchon, he’s woven his own noose.”
“Precisely. We sell at the peak, pocket the cash, then buy back when it crashes.”
Then it happened.
Bzzzzzt.
Jung Tae-sung’s phone vibrated sharply in his jacket pocket.
Answering on speakerphone while driving, Tae-sung’s expression went rigid in an instant.
“Yes, understood. Keep monitoring.”
After hanging up, Tae-sung turned to me.
“Representative, it just came in. Seonjin Aluminum has officially requested Seonjin Trading convene an Extraordinary Shareholders Meeting.”
Kang Byeong-chul had finally drawn his blade.
With capital secured and shares in hand, he felt invincible.
“Faster than expected. He seems very confident.”
I smiled and replied to Tae-sung.
“Good. Make contact through Park Nam-gyou, and drag out the share sale contract as long as possible.”
“How long are we talking?”
“A week, or stretch it for as long as you can. And time the closing to occur when the stock reaches absolute peak.”
The higher you stand, the harder you fall.

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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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