The Return of the Ruined Chaebol's Third-Generation Heir - Chapter 87

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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 Ruined Chaebol’s Third Generation — Episode 87
“We’ve completed the selection of assets for sale.”
The executive office at Seonjin Group Headquarters.
Two weeks had passed since the Board of Directors set the direction for Seonjin Trading Company. As Choi Dong-su made his report, Mother of Kang Seon-woo listened with a pleased expression.
“We’ve prioritized them in order of largest deficit. The first batch consists of seven vessels.”
Mother of Kang Seon-woo took the documents and flipped through them page by page.
“The due diligence materials seem to be missing?”
“The Trading Company is still preparing them. They say they need another two weeks to organize the vessel operating records, remaining contracts, and collateral status.”
Mother of Kang Seon-woo’s expression darkened.
“Two weeks?”
“The Maritime Operations Division has materials they need to submit, so it’s taking time.”
Two weeks had already passed since the board’s decision, and the due diligence materials still hadn’t arrived. Needing another two weeks meant the documents wouldn’t be ready for a full month after the decision. It was far too slow.
Mother of Kang Seon-woo set down the papers.
“What about potential buyers?”
Choi Dong-su fell silent for a moment before speaking slowly.
“There are none yet.”
“None yet?”
“Domestic shipping companies can’t even operate their own vessels, and while we’re searching overseas, no one’s showing interest in container vessels.”
“What about approaching this through brokers?”
“We’ve contacted two, but there’s been no response. The market itself appears to be frozen.”
Since the decision to sell, internal coordination had stalled, and there were no potential buyers in the market.
“As things stand, there’s no one willing to take our vessels.”
Choi Dong-su fell silent, as if he had nothing more to add.
“What about Director Park?”
“The Trading Company president is following the board’s decision. However……”
“However?”
“The atmosphere in the Maritime Operations Division is somewhat different from what it was at the board meeting.”
Mother of Kang Seon-woo narrowed her brow and asked.
“Different atmosphere?”
“The Freight Rate Index was 3,500 when we met with the board. Now it’s exceeded 3,800.”
He paused briefly.
“The division is saying that since bulk cargo is coming back, container vessels should follow, and that if we act now, we’ll be selling at the bottom of the market.”
“But that was the logic we settled on at the board meeting. We said bulk cargo and container vessels are separate markets.”
“It seems the field teams are interpreting things differently.”
After all, those working in the field felt it in their bones. Their reaction had to differ from headquarters.
“We asked them to narrow down the sale candidates, but opinions are coming up from the division asking us to exclude this vessel or wait a bit longer on that one.”
Mother of Kang Seon-woo’s expression was grim.
“Manager Choi.”
“Yes.”
“We’re losing 5 billion won per month on these vessels. And that’s a rough estimate.”
In reality, the losses would be even greater.
“A two-week delay costs us another 2.5 billion won. The due diligence materials aren’t late because of legitimate reasons — it’s because they don’t want to sell, isn’t it?”
Choi Dong-su didn’t answer.
“Do I need to speak directly with the Maritime Operations Division head? Tell them it’s a board decision?”
“I’ll push once more.”
“Not a push — set a deadline.”
Mother of Kang Seon-woo spoke with firm resolve.
“Tell them to submit the due diligence materials by this Friday. If they don’t, I’ll hold them personally accountable.”
“I’ll follow your instructions.”
Choi Dong-su gathered the documents, stood, bowed his head, and left.

* * *
“Man, Korean summers really are brutal. The moment I stepped out of the airport, the humidity just choked me.”
Meanwhile, at the Ribbon Capital Office. Danny entered through the door.
Han Jae-yi rose from her seat with a smile.
“Danny, you’re here.”
“Oh! Jae-yi, good to finally see you in person after hearing your voice on the phone.”
I stood up and offered my hand in greeting.
“You must have had a tiring journey.”
“Tiring? If you ask, I come.”
Since the Lehman collapse, Danny had been shuttling constantly between New York and San Francisco.
He managed Volta on the West Coast and handled Ribbon’s investments in New York.
“I should’ve come earlier, sorry for being late. Had to wrap up things on the US side.”
“You’ve arrived at just the right moment. Shall we sit?”
The four of us sat around the table. I handed Danny a document.
“Is this the material? Seonjin Trading Company?”
I nodded. Before Danny landed, I’d sent him a summary document to review on the plane.
“As you’ll see, they’re drowning in losses right now, and the book value of their ships has fallen sixty to seventy percent. The decision to sell was made, but there are no buyers.”
Danny kept his eyes on the report as he asked.
“While I was coming in, I skimmed it on the plane — you mentioned government funds?”
“They focus on the big shipping companies, so companies like Seonjin that own fewer vessels get sidelined.”
“Yeah, I did some digging too, and this market’s completely frozen. Nobody seems to want to buy ships.”
Everyone nodded at Danny’s words. Their faces showed they saw no way forward.
“Do we really need to think of it as difficult? If no one wants to buy, we just create a buyer.”
Han Jae-yi and Danny looked at me in surprise. Jung Tae-sung showed no reaction, as if he already knew.
“Are you asking me to broker this deal right now? Seon-woo, even with my network in the US, I don’t have the ability to sell ships in a frozen market.”
“No, I’m not asking you to broker. I’m saying we should buy them.”
They looked at me again in shock, unable to speak.
“I thought you’d have a lot to do here in Korea, but the timing to accelerate that has come. This is the first deal.”
“What would I have to do here in Korea? You’re already here.”
“I need you to become a face that can stand in for me.”
I looked at everyone and continued.
“As you know, only the three people here and Kim Seok-jun know my true identity.”
……
“You wouldn’t believe it, would you? If I just came out and said I’m the owner of Ribbon Capital and SJ Holdings, and I’m only twenty-four?”
Of course, with the title of a chaebol’s third generation, convincing them wouldn’t be that difficult if I put my mind to it. But it was already too late to explain it to them and then justify it to my family — and I’d never had any intention of doing so. To move freely, I needed to stay hidden, and Danny needed to be the face in front.
“Danny will be my proxy in Korea from now on. Of course, this is just between us, and Danny will need a proper title.”
Danny and Han Jae-yi exchanged glances. Their faces asked what they’d just heard.
“Okay. Yes. Wait……”
Danny started to say something, then pressed his forehead and began again.
“Let me get this straight. You’re saying I’ll be your proxy in Korea and operate on your behalf, right?”
“Yes.”
“Then what about the US?”
“We’re looking for personnel on the US side. We could also consider entering into agreements with major investment banks like GS or JPM to execute trades we order on our behalf.”
Jung Tae-sung answered instead.
“It seems like Jae-yi and I didn’t know about this big decision. Only you knew, Director Jung.”
“It was decided urgently. I apologize for not explaining to you both.”
At my apology, Danny let out a small sigh and nodded.
“Well, the boss apologizes, so I have to accept. Okay. This is a picture of creating a new investment firm, then?”
“Yes, we’ll set it up as a separate subsidiary under Ribbon. The investment targets will span all asset classes. If we say we only invest in shipping, it’ll look suspicious.”
“Right, you have to cast a wider net to look natural. My main background isn’t in that direction anyway.”
“There’s one more reason why it has to be Danny. It creates an image of a Salomon alumnus entering the Asian market.”
That was why I’d brought Danny to Korea.
“Western shipping finance is shrinking right now, and domestically the money itself has dried up. Danny enters that gap as alternative capital.”
“If I’m filling a gap, there’s definitely some money smell to it. It fits market logic.”
“Then what about the company name?”
Han Jae-yi, who had been listening quietly, asked. I looked at Danny.
“Danny decides.”
“I don’t have any ideas. But wait, there is one tradition among Salomon alumni.”
“What’s that?”
“When they go independent, they put their own name on it. But that’s only for the real heavyweights, and I’m not quite there.”
“Danny, you are. Starting now.”
I spoke while looking at Danny.
“You need to actively leverage your Salomon background. The Alumni Network works not just in the US, but in Korea too. A Salomon alumni investment firm representative — that’ll be a mark of trust.”
At my words, Han Jae-yi nodded in agreement and opened her mouth.
“What about DK Capital? Danny Kim, so DK. It rolls off the tongue.”
“D…… DK?”
Danny looked flustered, as if he’d never imagined such a thing.
“It sounds good. Shall we go with that?”
“……Yeah, it’s embarrassing, but hearing it like this, it sounds pretty good.”
The name was set. Now what remained was how to proceed. Danny, who’d been shy moments before, gathered himself and looked at me.
“So my first mission is to buy Seonjin Trading Company’s ships?”
“Yes, right now in this market, there’s no one willing to buy secondhand container vessels. We fill that gap.”
Danny leaned back in his chair. Arms crossed, thinking.
“But why now? If shipping’s at the bottom, we could wait longer.”
“I think there’ll be another shock in the second half of the year.”
“Another shock? In shipping? The economy?”
“The economy. Things are unstable in the Middle East.”
Danny’s crossed arms relaxed. His body leaned forward.
“The Middle East?”
“The Lehman shock hasn’t hit Middle Eastern real estate yet. The chain reaction that’ll pop that bubble there is inevitable.”
Danny looked at me quietly.
“……Again?”
“What?”
“When you make that face, you’re usually right.”
Danny thought for a moment, then nodded.
“Then it makes sense. If the Middle East goes, the world economy breaks again. Obviously shipping breaks again too, buyers bail, and sale conditions get worse.”
“Exactly.”
“Okay, the picture’s roughly clear, but how do we approach this? From what I can see, even if a new investment firm’s representative has a title, a major corporation like Seonjin won’t want to meet them. Especially not one that small.”
Danny’s doubt was valid.
“In recent years, Seonjin Trading Company conducted direct transactions with ship owners due to the logistics boom, but originally they were a company that dealt through Offer Traders.”
“A trading company would naturally work through brokers.”
“Yes, if we approach through them saying we’re interested, it’ll be smoother.”
Jung Tae-sung, who had been listening, opened his mouth.
“There are about five or six Offer Traders with shipping connections. I’ll narrow it down and provide the list.”
“Pick one from there and approach through them, Danny. Just as an investor interested in shipping assets. If you approach saying you want to buy from the start, they’ll be suspicious.”
“Got it.”
“One more thing when you approach: as an investor with global market intelligence, naturally drop hints about the significant real estate risks in the Middle East.”
“……They won’t believe it now.”
Danny trusted me enough to say he understood, but the others would clearly think it was baseless.
“Well, that’s fine. They don’t have to believe it. They’ll remember later. Oh, that DK Capital person warned us about this.”
The market will freeze again in November. By then, people will remember. The buyer who knew in advance, the capital that was the only one to survive the crisis. Danny’s credibility will transform from that point on.
“Alright. I understand the strategy. So we need to set up the company.”
At Danny’s words, I looked at Han Jae-yi.
“Jae-yi, register the corporation.”
“Yes, understood.”
“Director Jung, hire the staff to support Danny’s work.”
“Yes, I’ll provide that along with the Offer Trader list.”
At my instructions, Danny nodded and looked at me.
“The more people, the better, I think.”
“Yes, understood. By the way, let’s hire an intern too.”
“An intern?”
“Yes, actually a suitable person just came to mind. They’ll work diligently.”
“Well, if you say so, I have to trust you. Okay. Then I’ll trust the rest of you and move forward.”
The meeting ended there, and all that remained was to support Seonjin Trading Company from the outside.

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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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