The Return of the Ruined Chaebol's Third-Generation Heir - Chapter 69

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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 Fall of a Chaebol Heir, Third Generation — Chapter 69
Sungsung Construction Headquarters, President’s Office.
As the door opened, the Vice President rose from his seat.
“How did it go?”
Jung Hyun-il loosened his necktie instead of answering, the motion sharp as he flung it onto the sofa.
“The old man still has his pride, anyway.”
The Vice President poured a glass of water. Jung Hyun-il didn’t touch it.
“He asked me what Project Financing is. Me.”
His fingers began drumming against the armrest.
“Not textbook answers, mind you. He acted like he was teaching me something.”
The Vice President held his silence. This was the moment to listen.
“Then he starts questioning me — what about the employees, aren’t you going to swing the restructuring axe — picking apart every word I said. A seventy-two-year-old fossil doing that.”
Jung Hyun-il clicked his tongue.
“And at the very end I told him: I’ll get a proper education on Project Financing. Know what? He didn’t even blink.”
“……I’ve heard he’s quite the prideful man.”
“Pride? This is obstinacy. His bank’s about to collapse and he won’t sell unless I come to him hat in hand. At his age, he still thinks he’s the one in control.”
Jung Hyun-il picked up the water glass, drank, and set it down, but the heat hadn’t drained from his face.
Silence settled, and as Jung Hyun-il’s anger began to subside, the Vice President, watching for an opening, spoke carefully.
“Director.”
“What.”
“Should we teach him a lesson?”
Jung Hyun-il’s eyes turned toward the Vice President.
“What are you talking about. Shinseong’s coming to us anyway — what’s the point of stirring the pot.”
The Vice President closed his mouth.
About three seconds passed. Jung Hyun-il spoke first.
“……But there is a way?”
The Vice President paused before answering.
“The reason Park Han-su is holding out comes down to one thing, doesn’t it. He still thinks he’s fine. Even after two recommendations to sell, the depositors haven’t withdrawn their money, so he believes he has time.”
“So?”
“We eliminate that time.”
Jung Hyun-il’s fingers, which had been drumming the armrest, stopped.
“We run a story in Goryeo Economic Daily. Something like: FSC Insolvency Designation Imminent, Shinseong Savings Bank in Crisis. That headline should be enough.”
Goryeo Economic Daily was a mid-sized business newspaper that Sungsung Construction had acquired not long ago.
“……You want to trigger a bank run.”
“Think about it. Lehman Brothers just collapsed in America, and our media’s been running photographs of Americans lining up at bank windows to withdraw their money. In this climate, if an insolvency story breaks, depositors will move. One day is all it takes for them to queue up.”
Jung Hyun-il looked at the Vice President. It wasn’t a look of refusal.
“This is the property we’re acquiring. If we damage it, the damage bounces back on us.”
The Vice President answered as if he’d been waiting for the objection.
“Don’t worry, sir.”
Strength entered his voice.
“We are Sungsung Construction. Sungsung Group, ranked twentieth in the business world, is acquiring it — one headline like that and it’s over. Who’s going to withdraw their money when a conglomerate stands behind it? Even if a run starts, one acquisition announcement stops it in a day.”
Jung Hyun-il leaned back in his chair, looking up at the ceiling, and opened his mouth.
“When can we run the story?”
“Since we control Goryeo Economic, I can move on it the moment you give the order.”
Jung Hyun-il deliberated, then looked at the Vice President and spoke.
“Stick to facts. Don’t fabricate anything.”
“Of course.”
After a brief silence, Jung Hyun-il said.
“I didn’t order you to do this.”
“Don’t worry about that.”
As the Vice President bowed his head, Jung Hyun-il watched him and smiled.

* * *
Sungmin University Economics Department Research Office.
Clippings of newspaper articles lay spread across the desk. All the same topic.
Subprime, Lehman Brothers, savings bank insolvency.
“I can’t concentrate.”
Yun In-chul removed his glasses and closed his eyes. He had to write broadcast copy for tomorrow, but his mind was muddled. It was because of the proposal from Sungsung Construction.
Buzz—
While he was lost in thought, his cell phone vibrated. Yun In-chul saw the name on the screen and pressed the call button.
“What’s going on?”
-Yun, I heard you met with Sungsung Construction?
The voice on the other end belonged to the Director of Financial Policy at the Financial Services Commission and Yun In-chul’s university classmate.
“……Has the rumor already spread?”
-Not a rumor, it’s just talk on our end, so don’t worry. That’s not what’s important. So what did you think?
“About what?”
-The proposal. What are you thinking about it?
Yun In-chul put his glasses back on and answered.
“I’m still considering it.”
-Your appetite’s gotten big, hasn’t it? Shinseong Savings Bank — it operates in Seoul, has solid assets, a good position.
“The thing is, a construction company — no, more than that, a major chaebol holding a savings bank… I’m not sure that’s right.”
-What do you mean? Legally, there’s no problem whether the parent company is a construction firm or a construction company’s grandfather.
Yun In-chul sighed and opened his mouth.
“I’m not talking about legality. Why would a construction company want to buy a savings bank in the first place?”
-…….
“Aren’t they planning to use it like a wallet?”
-Even if that were true, what’s the problem? You’re the one going in.”
The Director’s voice rose slightly.
-Goodness, Yun. You overthink everything. Why worry about something that hasn’t happened yet?
“…….”
-You’re the one holding the keys anyway. You’re the one doing the controlling. Once you’re in, they can’t do whatever they please. The FSC approves based on you.”
He had a point. If Yun In-chul took the lead in composing the Board of Directors, it would be difficult for Sungsung Construction to act freely.
And he had confidence that he could properly normalize Shinseong Savings Bank.
-And to be honest with you.
The Director spoke cautiously.
-We’re also struggling with the Shinseong situation on our end. There are more than a few problem savings banks, and if you handle it, we’ll have one less headache.
The government needed one clean name. That would give them grounds to stamp the approval.
“……Let me think about it.”
-Think about what. It’s a good opportunity. Just grab it. We’ll catch up later.
The call ended.
Yun In-chul set down the receiver and looked at the clippings on his desk.
The proportion of Project Financing needs to be reduced. That was his argument, his conviction.
Was it right to put his name on a savings bank that would become a construction company’s source of funds? But the Director’s words made sense too.
If he held the keys, things could be different.
Buzz—
Then the phone vibrated again.
“Who is it?”
An unfamiliar number. Yun In-chul stared at the screen for a moment, then answered.
“Hello?”
-Professor Yun In-chul?
“Yes, that’s me.”
-Hello. This is Jung Tae-sung from Bukchon Investment Group.
A name he’d never heard before.
-Someone I represent would like to meet with you, if possible. Do you have time this week?
Yun In-chul’s eyes narrowed.
“Who is this person you represent?”
-If I may, you’ll find out once you meet. They’d like to discuss the savings bank insolvency problem with you.
“You want me to meet someone I don’t even know…….”
-It seems like most domestic savings banks will soon be entering large-scale structural adjustment due to Project Financing insolvency issues, and they want to think through this problem with you. I’ll send the location and time by message. Well then……
The other party said that and hung up.
But Yun In-chul’s expression had changed.
“Large-scale structural adjustment……”
It matched what he’d been thinking all along.
Even if he’d never dared to say it out loud.
No matter how carefully he’d packaged his argument that Project Financing needed to be managed, the financial and business worlds had called his position radical and pessimistic. And now someone thought the same way……
Buzz—
Shortly after, a message arrived with the time and location of the appointment.
“Maybe meeting them wouldn’t be so bad……”

* * *
Saturday afternoon.
The tea house in Seongbuk-dong, where the meeting was arranged, was quiet to the point of desolation.
The place, run by Jung Tae-sung’s sister, remained unchanged from before.
Yun In-chul sat in a corner where only the subtle fragrance of tea lingered.
I took a deep breath and approached him.
“Hello. I’m Kang Seon-woo.”
Yun In-chul rose from his seat. His extended hand faltered.
It was the reaction I’d expected. Based on Jung Tae-sung’s tone and manner, he would have anticipated someone middle-aged or older.
“……Kang Seon-woo?”
“Yes.”
“If I may ask, how old are you?”
“Twenty-three.”
Yun In-chul’s eyes narrowed. But he didn’t leave.
“Shall we sit?”
At my suggestion, Yun In-chul sat down, and I took the seat across from him.
“What kind of organization is Bukchon Investment Group?”
I couldn’t reveal my information freely, so with Kim Jong-su’s approval, I borrowed the name of his investment company.
“Have you heard of the Bukchon Ant King? You’d probably know, having worked at a bank.”
“……Ah, so you deal in private lending.”
“That’s right. I’ve come representing the chairman.”
“To be honest, I was about to leave.”
Once seated, Yun In-chul spoke.
“But the person who called used the term ‘large-scale structural adjustment.’ That caught my attention, and I wanted to hear what this was about.”
“Thank you for coming. That alone is enough.”
“I don’t have much time, so let me hear the main point.”
I nodded and opened my mouth.
“I understand you’ve received a proposal from Sungsung Construction.”
Yun In-chul’s expression hardened. It was difficult to tell whether he was shocked or displeased.
“Where did you hear that?”
“The source doesn’t matter. I didn’t come here to talk about that today.”
I paused briefly.
“I came to tell you about Sungsung Construction.”
“……You called me here just to talk about that? I said I came to hear about the savings bank insolvency problem.”
“They’re connected.”
I spoke while looking at him.
“Sungsung Construction’s current debt-to-equity ratio is nearly double the industry average. The construction market is starting to cool, and pre-sale rates are declining.”
“That’s public information. I already know that.”
“Then let me ask you one thing.”
I looked at him and asked slowly.
“What does a construction company need to do to survive?”
Yun In-chul didn’t answer. There was no need to.
A construction company has to build to survive. Whether the apartments sell or not, money flows through erecting buildings and constructing structures. That was the nature of the construction business.
“They have to build. Stop, and they die.”
I answered for him.
“But building requires money. With Sungsung Construction’s resources, self-funding is impossible.”
Every source of capital — banks, securities firms, savings banks — had closed their wallets.
“But there’s one solution. They buy a savings bank.”
Silence fell.
“They raise Project Financing funds through the savings bank. They operate their business with depositors’ money, not their own. It becomes exactly the structure you usually worry about.”
“Then……”
“They want to use it as a wallet. You already have the answer, don’t you?”
“……I can control it through the Board of Directors.”
Here was another man who believed he could control everything.
“Let me ask you this. When Sungsung Construction fails to sell pre-sales, faces a liquidity crisis, and can’t pay interest this quarter. If you object in the Board, will it stop?”
Yun In-chul didn’t answer.
“When someone’s fighting for survival, principles are meaningless. Control only works in peacetime.”
“Then the reason you sought me out today isn’t to tear down Sungsung Construction, is it?”
“Of course not.”
I nodded.
“We’re also preparing to acquire Shinseong Savings Bank.”
Yun In-chul’s eyes widened for the first time.
“After acquisition, we plan to cap the proportion of Project Financing loans at 30 percent. The rest we want to reorganize around consumer finance.”
“Consumer finance has lower profitability.”
“That’s true. But that’s what savings banks were originally meant to be.”
I continued, watching him quietly.
“There was a time when all they did was lend to neighborhood merchants and reinvest the interest. The returns were low, but it was stable, and they didn’t fail. The problems we see now started the moment savings banks forgot their purpose.”
Yun In-chul listened quietly. There was no rebuttal.
“You’ve been saying on your broadcasts that Project Financing proportions need to be reduced.”
Yun In-chul nodded. An unconscious gesture.
“When that becomes reality, which savings banks will survive?”
At that question, Yun In-chul looked at me directly.
The eyes of someone who already knows the answer.
“Is Bukchon different? In the end, isn’t this just trying to bring illegal lending money into the light?”
“Even if Kim Jong-su gets criticized for running an underground money business, without his capital, ordinary people with low credit would have nowhere to turn.”
The light in Yun In-chul’s eyes that couldn’t deny it. The private lending market was a necessary evil for those rejected by the primary and secondary financial sectors due to poor credit.
“Until now, you’ve said savings banks need to reduce Project Financing. Have you changed your position?”
“…….”
“Will things be different if you partner with Sungsung and directly lead Shinseong Savings Bank?”
Yun In-chul gave no answer.
“Then you’ll need to prove it. That when the insolvent savings banks collapse in sequence, what happened to those who didn’t listen to you, and that the savings bank you ran by your convictions survived.”
“……You speak as if a chain collapse will really happen.”
“You know it will. Everyone won’t change.”
I rose from my seat as I said this.
“Bukchon promises that if we acquire Shinseong, we’ll follow Yun In-chul’s convictions. We can document it, whatever you need.”
“…….”
“That’s all I have to say today. You’re welcome to compare us with Sungsung, to verify everything. I want you to decide for yourself.”
I set a business card on the table.
“The choice is yours. I’ll wait.”
“If we should meet again, would it be possible to meet with Chairman Kim Jong-su directly?”
“Of course.”
I bowed and turned to leave.

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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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