The Return of the Ruined Chaebol's Third-Generation Heir - Chapter 38

—————
This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
—————

The Fall of a Chaebol Dynasty – Regression 038
May 2004, Seonjin Aluminum Chairman’s Office.
The management rights dispute that had unfolded so urgently over the past few months was now hurtling toward its conclusion.
“Chairman, it’s done.”
The Secretary General entered the office, his voice flushed with excitement. Kang Byeong-chul set down the document he’d been reading and removed his glasses.
“Has the court ruled?”
“Yes, sir. The court has ruled in our favor. The Seonjin Trading Company Board of Directors must convene an extraordinary shareholder meeting within one month as we’ve demanded. Any violation will result in penalties and forced enforcement.”
“Ha, ha, ha!”
Kang Byeong-chul leaned back in his chair and burst into loud laughter.
It felt like a weight had lifted from his chest. Though he’d begun this fight confident of victory, the past month had been nothing short of hell.
The Seonjin Trading Company Board had cunningly delayed convening the meeting, dragging things out, and the Jeonju investor holding the 4.5% stake that Park Nam-gyu had arranged had taken ages just to stamp the contract, citing document review as an excuse.
“Good. Very good.”
Kang Byeong-chul’s laughter faded, his eyes sharpening.
“We need to move fast now. You understand? We’re paying 3% interest monthly.”
The aftermath of borrowing money from Bokchon was slowly tightening around his throat.
He’d secured 7 billion won in cash to solidify his advantage, but the price was steep.
Each month, merely breathing cost him 2.1 billion won in pure interest payments. During the past month while his opponent stalled, Kang Byeong-chul had felt his lifeblood draining away.
“We’ll proceed as quickly as possible. Once the shareholder meeting date is confirmed, we’ll begin the voting rights acquisition campaign.”
“Good. There shouldn’t be any problems now, should there?”
“There remain the provisional attachment ruling and the Financial Supervisory Service’s decision, but…….”
The Secretary General paused briefly.
“Both appear to favor us.”
Currently, one provisional attachment lawsuit was pending in court, and the Financial Supervisory Service was examining one complaint.
The court was hearing the provisional attachment motion filed by Seonjin Aluminum to block Seonjin Trading Company’s new share issuance.
The Financial Supervisory Service was examining a complaint from SJ Holdings regarding voting rights suspension for violating the 5% Rule disclosure requirement.
“We’ll obviously win the new share issuance case. Allocating stock to third parties for the purpose of defending management rights is illegal.”
Kang Byeong-chul was certain. Precedent was overwhelming on this side.
The problem was the latter.
Though he was confident of victory here too, a special provision attached when borrowing Bokchon’s money left him with nagging doubts about worst-case scenarios.
“How is the SJ Holdings complaint progressing? That bastard Kim Seok-jun has been relentless.”
“We’re blocking it by mobilizing retired government official attorneys and every Financial Supervisory Service network we can access. Legally, the consensus is that stripping voting rights entirely based on mere disclosure delays is excessive. You needn’t worry too much.”
“Right, it should be fine. The Financial Supervisory Service would have to be out of its mind.”
Kang Byeong-chul nodded at the Secretary General’s words.
In South Korea, nothing is impossible with money and connections.
It made no sense to lose voting rights worth hundreds of billions of won over a single mistake.
“We can’t have any slip-ups from here on. Calculate shares precisely, and get proxy statements from small shareholders. Use money if necessary.”
“Yes, understood.”
Now only the shareholder meeting remained. Once they outvoted the Mother of Kang Seon-woo there, everything would be over.
As the Secretary General bowed and left, Kang Byeong-chul approached the window and took a long, deep breath.
Seoul’s skyline stretched out before him.
‘Soon,’ he thought. ‘Very soon.’
He gazed at his own face reflected in the glass.
‘I’ll shed the title of the younger brother who lived off my older brother’s scraps and become the true owner of Seonjin. This business is the beginning of that.’
An ambitious smile played across Kang Byeong-chul’s lips.

* * *
A few days later, Seonjin Trading Company Representative Director’s Office.
The Mother of Kang Seon-woo and Kim Seok-jun sat across from each other.
Today was the day the result of the provisional attachment motion filed by Seonjin Aluminum to block new share issuance would be announced. Director Choi Dong-su had gone to the court early this morning to wait.
“The shareholder meeting must be held. That’s how the court has ruled.”
At Kim Seok-jun’s words, the Mother of Kang Seon-woo nodded heavily.
“That’s why we held a board meeting this morning and added the agenda. An extraordinary shareholder meeting will be held in one month.”
“One month…… The final window of opportunity.”
Kim Seok-jun tapped the shareholder composition chart lying on the table.
“After analyzing our shareholding, new share issuance is our only answer.”
The Mother of Kang Seon-woo moistened her dry lips.
Over the past month, she hadn’t been entirely passive either. She’d liquidated her inherited cash assets and conducted aggressive in-market purchases, raising the family’s shareholding to 20%, while SJ Holdings had boosted its stake to 8.5% through aggressive accumulation.
Total: 28.5%.
But the opposition had moved faster.
“Seonjin Aluminum has absorbed 4.5% from a foreign investment firm on top of its existing 30.1%. Total: 34.6%.”
“A 6.1 percentage point gap.”
“Yes. Chairman Kang Byeong-chul holds the advantage.”
Kim Seok-jun analyzed the situation coldly.
“Factoring in friendly stakes, the National Pension Fund and institutional investors have already signaled abstention. They don’t want to get dragged into a family quarrel and be held accountable.”
“So we’re left with only foreign investors and retail investors.”
“They’ll remain in a wait-and-see position. They back the winning side. Unless the court blocks new share issuance, they’ll likely judge momentum has shifted to us and cast their votes with us.”
Everything came down to the court’s decision.
Kim Seok-jun looked directly at the Mother of Kang Seon-woo and spoke.
“If the provisional attachment is dismissed—if we’re allowed to issue new shares—victory is guaranteed. The moment we allocate the new shares to our allies, the shareholding ratio reverses instantly. But if, by some chance…….”
Kim Seok-jun’s voice dropped low.
“If the court rules in Kang Byeong-chul’s favor and blocks new share issuance, there’s only one plan left for us to win.”
“…….”
“The Financial Supervisory Service accepting the complaint we filed. And the Securities and Futures Commission sanctioning Seonjin Aluminum.”
The complaint filed with the Financial Supervisory Service was under investigation by its subsidiary, the Securities and Futures Commission.
The Mother of Kang Seon-woo’s face hardened.
With new share issuance blocked, that single lifeline was all that remained. But the opposition was mobilizing retired government official attorneys to defend. It was a gamble with no guarantee of victory.
‘Please…… the result today has to turn out right.’
Then it happened.
Buzz-buzz.
The Mother of Kang Seon-woo’s mobile phone on the table vibrated.
The name on the screen was Director Choi Dong-su.
The Mother of Kang Seon-woo picked up the phone with trembling hands. Kim Seok-jun paused mid-sip of his tea and watched her intently.
“Hello.”
Choi Dong-su’s voice came through the receiver. The Mother of Kang Seon-woo’s expression gradually twisted, then turned cold. She fell silent for a moment before giving a brief reply.
“……Yes, thank you for your trouble. I’ll see you at the office.”
The call ended.
Silence fell.
The Mother of Kang Seon-woo slowly raised her head and looked at Kim Seok-jun. Her eyes were wavering.
“The provisional attachment Seonjin Aluminum filed……has been accepted.”
“…….”
“The new share issuance has been blocked.”
The worst-case scenario had become reality.

* * *
Two weeks later, Seonjin Aluminum Chairman’s Office.
Kang Byeong-chul was leaning askew on the sofa, taking a call.
“Yeah, yeah. Once this all wraps up, let’s meet up. I’ll take you somewhere nice. Yeah, get back to work.”
After hanging up, Kang Byeong-chul set his phone down on the table with a satisfied smile.
“That was the Former Chairman of Shinwoo Group. He’s congratulating me and going crazy.”
Once the court accepted Seonjin Aluminum’s provisional attachment motion on new share issuance, the business community’s mood shifted dramatically.
Business leaders who judged that momentum had swung to Kang Byeong-chul’s side were calling one after another.
“Isn’t it amusing? Those people who treated me like I didn’t exist—now they’re calling first wanting to butter me up before I take control of Seonjin Trading Company.”
Kang Byeong-chul clicked his tongue.
Their true intentions were transparent, but Kang Byeong-chul was enjoying the situation nonetheless. Being on the receiving end of such calls was more satisfying than anything.
“You’ve now risen to someone the business world can’t ignore, Chairman.”
“Yes, I’m taking it that way too.”
Kang Byeong-chul checked his watch.
“Let’s see…… it should start soon. Turn it on for me.”
At Kang Byeong-chul’s command, the Secretary General picked up the remote and turned on the wall-mounted television.
An emergency news alert crawl ran across the news channel.
Today was when the Securities and Futures Commission would announce its final investigation results regarding the complaint SJ Holdings had filed with the Financial Supervisory Service.
“After today, it’s really over.”
Kang Byeong-chul was certain of victory.
The court had already blocked new share issuance.
A Financial Supervisory Service investigation? At worst, they’d impose some token fine and call it a day.
You couldn’t shake management rights over a little late disclosure.
Shortly after, the screen changed as a spokesperson for the Securities and Futures Commission took the podium. Camera flashes erupted.
[The Securities and Futures Commission received the complaint filed by SJ Holdings, a shareholder of Seonjin Trading Company, and has conducted an intensive investigation over the past two months at unprecedented speed and intensity. We are now announcing those results.]
Kang Byeong-chul hummed to himself and crossed his legs.
[The investigation revealed that Seonjin Aluminum and Chairman Kang Byeong-chul gravely violated the obligation to disclose the combined shareholding ratio of themselves and related parties exceeding 5% within five days under the Securities Exchange Act.]
The spokesperson’s voice continued dryly.
[The alleged violations are as follows: The respondent acquired shares through private equity funds and overseas mutual funds while delaying or deliberately omitting reports to make them appear as unrelated simple investors. This constitutes clear parking transactions that concealed critical information from management rights competitors and general investors alike.]
“Tch, all talk. So how much are they hitting me with?”
Kang Byeong-chul furrowed his brow and complained.
He’d expected a simple warning or minor penalty. But the spokesperson’s next words shattered his expectations into fragments.
[Therefore, the Securities and Futures Commission has decided as follows to enhance transparency in the capital market and strictly crack down on unfair trading:]
The spokesperson paused to collect himself.
[First, we order the disposition of 16.78% of Seonjin Trading Company shares illegally acquired by Seonjin Aluminum and Chairman Kang Byeong-chul through private equity funds.]
“……What?”
For a moment, Kang Byeong-chul thought he’d misheard.
[The shares must be sold on the market within a set deadline as the principle, and a sales plan must be submitted to minimize market impact.]
“What, what did he say……?”
But at the next words, Kang Byeong-chul jolted to his feet.
[Second, we are referring Chairman Kang Byeong-chul and Seonjin Aluminum to the prosecution for Securities Exchange Act violations.]
The announcement was over.
But Kang Byeong-chul neither collapsed into his seat nor cried out.
He simply stared blankly at the television screen.
“Ch-chairman…….”
The Secretary General’s face had gone pale as paper.
If 16% of shares vanished, he’d lose not only management rights but even major shareholder status.
And if the stock price crashed from in-market sales?
A single name surfaced in Kang Byeong-chul’s mind.
‘Bokchon…….’
The special provisions clause in the contract with Kim Jong-su flashed through his consciousness.
[Should the acquisition objective become impossible to achieve, the debtor shall immediately forfeit the benefit of time…….]
“Ah, ah, ah…….”
Kang Byeong-chul couldn’t finish. The stock price would plummet, the 7 billion won loan would be immediately callable, and even selling wouldn’t cover it. A mountain of debt. And a prosecution referral.
Everything was over.
“This…… doesn’t make sense.”
Kang Byeong-chul staggered and collapsed to the floor.

* * *
The chalk scraping across the blackboard felt unusually sharp against my eardrums. The teacher’s voice registered as mere noise, not a single word penetrating my consciousness.
‘Maybe I should just say I’m sick and leave early.’
My stomach churned.
The anxiety felt worse because I could do nothing but sit at my desk and wait for the result.
‘It’ll be fine. The calculations were perfect.’
I’d resolved not to worry about the future changing, but the human heart doesn’t obey reason.
Had I not intervened, fate would have unfolded as it had in my previous life.
But this time I’d shaken the board. I’d connected Bokchon’s funds to Kang Byeong-chul and planted the illusion of victory.
I couldn’t be certain what butterfly effect that variable might trigger or what unintended consequences it might produce.
Tick, tick.
The second hand of the classroom wall clock sounded unusually loud.
Then it happened.
Buzz-buzz.
A brief vibration came from my pants pocket.
Carefully, I lowered my hand under the desk and opened my phone folder. The message was from Director Jung Tae-sung.
[Representative, the Securities and Futures Commission has sided with us.]
A single, short sentence.
“Hah…….”
A sigh of relief escaped my lips unbidden.
It felt like a blockage had cleared, like I could finally breathe.
My hand clenched beneath the desk.
‘It’s done.’
Now all that remained was to crush Kang Byeong-chul so thoroughly he could never rise again.

—————
This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
—————