The Return of the Ruined Chaebol's Third-Generation Heir - Chapter 94

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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 – Chapter 94
“A moratorium?”
As Danny and I approached Han Jae-yi’s desk, she turned her monitor toward us.
Bloomberg and Reuters were broadcasting breaking news simultaneously.
[Breaking News – Dubai World $590b Debt Moratorium]
“The European market is reacting immediately.”
At Han Jae-yi’s words, I looked at the European market situation. Dubai World had simply given up—declaring it couldn’t repay roughly 69 trillion won.
“As expected, the banks are the first to flee.”
A moratorium, in simple terms, is when a nation or a public institution operated by a nation unilaterally declares that when the date to repay debt arrives, it cannot pay this time and asks for a deferral.
It was different from a default—when a debtor admits it cannot pay at all—but the market had no choice but to treat it as essentially insolvent.
Eventually it would tip into default anyway.
“The largest lenders to Dubai World are British and French banks.”
Both of them nodded at my words.
Since they wouldn’t get their money back, it was natural that bank stocks would be crushed first. With the Greek crisis piling on top, no investor would put money into bank stocks.
“Raw material futures are collapsing too.”
“Dubai World is ultimately a massive civil engineering project. A moratorium declaration means all construction stops…….”
Dubai World was a civil engineering venture to build artificial islands in the sea and construct the world’s largest building.
Since the project that had been absorbing all raw materials might collapse, it was natural that raw materials would be dumped as well.
“Sigh…….”
Leaving the two of them behind, I took a seat and leaned back in my chair.
It’s come. In my previous life, this shock was only the beginning.
European banks that had tied up funds in Dubai real estate and ship financing began withdrawing money as those assets wavered, and with Greece’s fiscal deficit piling on top, all of Europe fell into a credit crisis.
The Baltic Dry Index fell again, and shipping entered its second winter.
“Seon-woo.”
Danny turned and spoke.
“Isn’t this going to completely flip Seonjin Trading on its head? Tomorrow when the market opens, all shipping stocks will tank, and freight rates will crash again.”
“That’s right. For a while, the container shipping rates that had briefly bottomed out and climbed will drop again.”
“Shouldn’t we reach out first? If we extend a hand now, we could seal the deal.”
At Danny’s words, I sank into thought. This was certainly a different kind of crisis for Seonjin Trading. Since I’d known this situation would come, I’d said there was no rush in proceeding slowly.
But that wasn’t about exploiting the situation.
“Let’s wait.”
“Wait? When will an opportunity like this come again? If we send an ultimatum, they’ll sign the contract right away.”
“They’ll contact us first. The group will be moving at the corporate level.”
Danny started to say something more, then closed his mouth.
“Greek bond yields have risen again since last night.”
Just then Han Jae-yi approached and spoke. With Dubai’s collapse, Europe’s weak links were becoming clearer.
“Once European banks start withdrawing their uncertain funds……like you said before, won’t Greece’s situation grow worse too?”
Han Jae-yi was looking beyond the immediate shock.
Recalling my previous life’s memory, Abu Dhabi—which is the same federal state as Dubai and the head of the UAE—makes a move in mid-December.
They provide emergency support worth ten billion dollars—roughly 11.7 trillion won—and as Dubai stabilizes, the market catches its breath for a moment.
The problem comes after. As Han Jae-yi said, Greece remains.
In my previous life, Seonjin Trading was handed over to my cousins because the group couldn’t weather this winter.
This time, I intended to finish it before that.
“Should we add to our CDS positions?”
“Not yet. Just maintain what we have.”
Once Abu Dhabi injects funds, the market will calm temporarily. But contrary to the market’s hopes, things will erupt once more. We’ll add to our position when that happens.
“Seon-woo, think about it. In this situation, we’re completely in the position of strength. Seonjin’s become weaker, so we could raise our revenue share ratio or cut the chartering rate even further…….”
Danny Kim spoke again.
“Isn’t this a good opportunity?”
“Danny, don’t change the terms.”
“Why? The terms favor us.”
It was a fair question. But there was a reason for telling Danny not to exploit this situation.
“Who’s going to be running things in Korea on your behalf going forward?”
“Me.”
“If rumors spread that in the first deal you changed the terms while the other side was weak, will anyone bring a deal to Danny next time?”
Danny’s expression changed.
“……You’d become a guy who breaks promises, not just adjusts terms.”
“Right. The value of a reputation for keeping promises is far greater than any profit we’d gain here today. That reputation will be Danny’s and DK’s weapon going forward.”
Danny nodded, showing he understood my meaning.
“Got it.”
“Prepare a list of cargo sources. Have it ready to present when they come.”
“Dongyang Trading, Shinhwa Welltech, Volta, and Ochang?”
“Yes. They’ll give us whatever we ask from Shinhwa Welltech and Ochang Construction’s sites, and Volta too. What about Dongyang Trading?”
“That guy seems to have taken a liking to me—he’d give us anything. We’ve arranged to get a certain portion of mid-sized cargo bundles.”
“Well done.”
“Then I’ll head out first. I need to prepare.”
Danny got up from his seat first.
“Jae-yi, maintain your Greece CDS position. There will definitely be another opportunity coming.”
“Understood.”
Han Jae-yi returned to her monitors, and I took a long breath before heading back to my desk.

* * *
“Let’s hear the report first.”
The morning after the shock. In the conference room at Seonjin Group Headquarters, representatives and executives from Seonjin Trading and Seonjin Logistics had gathered.
It was an emergency meeting convening the two companies that would face direct impact from shipping and logistics.
The Seonjin Logistics representative spoke first.
“For logistics, our focus is on domestic logistics and distribution, so it’s not a direct impact. However, if global economic uncertainty bleeds into domestic consumption, cargo volume could decrease. And if trading’s shipping division falters, it creates disruptions in logistics connections within the group.”
“So the problem is more of a medium-term outlook than an immediate one?”
“Yes, Chairman.”
Mother of Kang Seon-woo nodded and looked at Choi Dong-su.
“What about trading?”
Choi Dong-su unfolded the documents.
“The shipping market that we thought was barely recovering has frozen over again.”
Five hundred forty dollars per TEU.
It cost eight hundred dollars to ship a single container, yet the freight rate was barely exceeding half that.
It had been on an upward trend after hitting bottom, but overnight that trend reversed.
“Since last night, the shipping lines have been engaging in a rate-cutting war, and European banks have started tightening ship financing. If transactions shrink, no one will buy, so used ship prices could fall further…….”
A report came in that morning that empty containers were beginning to pile up again in the container yard at Busan Port.
Shipping requests that had been coming through yesterday turned into cancellation calls starting this morning.
Word was spreading that shipping lines would cut unprofitable routes first, and small-to-medium shippers were holding onto cargo and waiting to see what happened.
“Shippers are reducing volumes or postponing shipments. Losses could grow larger than they currently are.”
Even without operating a ship, there were costs just to keep it idle.
The board meeting from a few days ago came to mind. Why sell when rates are rising? That was the core logic of the opposition.
That logic had collapsed overnight. No director would raise the same argument at the next board meeting.
When the report ended, Mother of Kang Seon-woo spoke.
“Now is not the time for hasty moves. Holding our position is the baseline.”
All eyes in the conference room turned to Mother of Kang Seon-woo.
“However, where problems emerge, don’t wait. Handle it immediately, and you can report afterward. If you see signs of contract suspensions or client defections, bring it to me right away.”
It was an instruction not to waver.
“Understood.”
“Then let’s end the meeting here and move directly into crisis response mode.”
Mother of Kang Seon-woo ended the meeting, and the representatives and executives rose to leave. Choi Dong-su had just gotten up and was heading toward the door when—
“Representative Choi.”
Mother of Kang Seon-woo’s voice stopped him.
“Yes, Chairman.”
“Can we talk for a moment?”
When Choi Dong-su sat back down, Mother of Kang Seon-woo spoke.
“About the DK Capital matter.”
“Should we halt the process?”
“No. I think we need to move faster. If this deal falls through, it doesn’t just end with trading. Trading is the linchpin of the group’s circular investment structure—you’d know that better than anyone, Representative Choi.”
He knew. Seonjin Trading was the backbone of the group’s circular investment structure. Though they’d dissolved some of it through restructuring, if trading’s finances collapsed, the entire group would shake in a chain reaction.
“Advance the board meeting. Request a meeting with DK.”
“……Chairman, there’s one concern I have.”
Choi Dong-su lowered his voice.
“Our position has become weaker now. DK will know that too, and they could change the terms. They could cut the chartering rate further or raise their share ratio.”
As a buyer, they would naturally do exactly that. Using the other party’s weakness—that was negotiation.
“Even if the terms change, make it happen. We cannot lose this deal.”
Mother of Kang Seon-woo’s voice was firm.
In this market right now, there was no one but DK Capital to acquire seven container ships. Choi Dong-su knew that fact.
“Understood…….”
Just as he was about to answer, Mother of Kang Seon-woo raised her hand.
“I think I should handle this matter myself. I’ll meet with them directly. Set up the meeting.”
Choi Dong-su looked at Mother of Kang Seon-woo. It was the gaze of an owner who had reached her decision facing the life-and-death moment of her company.
“Understood.”
Choi Dong-su rose from his seat and bowed respectfully.

* * *
“KOSPI is falling as soon as the market opens.”
The morning after the shock. Jung Tae-sung began his report first.
Europe had collapsed last night.
The UK stock index had fallen over three percent; European bank stocks had plummeted across the board; and this morning, Japan’s Nikkei Index was down 3.2% and Hong Kong’s Hang Seng was down five percent, with Asia following suit.
“KOSPI is currently down 4.7%. The won-to-dollar rate has risen seventeen won to 1,170 won.”
Brokerage reports were uniformly calling for caution or risk aversion. Retail was selling, institutions were sitting on the fence, and foreigners were withdrawing. The entire market had frozen on a single word: Dubai.
“Shinhwa Welltech operates in manufacturing for domestic companies, so there’s no direct impact. Synapse is still in the research and development stage, so that’s fine too. At most, if global uncertainty extends long-term, it could affect new orders, but not immediately. Ochang faces possible material cost increases due to ongoing construction.”
Jung Tae-sung passed along the documents.
“SJ Holdings’ investment position is falling as soon as the market opens, but since we established the position previously, we’re not in a loss range.”
“Respond normally. Keep the investment position on hold.”
“Understood.”
Han Jae-yi continued.
“Ribbon’s position is primarily cash, so there’s no direct loss. With a high dollar weighting, it’s actually advantageous in a weak won environment.”
European bank CDSs were rising in tandem. The market was consumed by the question of how much exposure each bank had to Dubai, and disclosure pressure was pouring in.
As the bond market wavered, Greek bond yields rose again.
With Dubai’s collapse, Europe’s weak links were becoming increasingly clear.
“Greece CDS has risen again since last night. As you said yesterday, we’re just maintaining the position.”
“Good.”
When both of their briefings ended, I turned my head to look at Danny.
“I thought they’d call as soon as the sun came up, but still nothing. Seonjin Trading, I mean.”
Danny, as if he’d been expecting this, waved his phone as he spoke.
“Aren’t they being too relaxed?”
Danny was voicing his frustration. From his perspective, waiting around without acting in a situation like this was out of character.
“Let’s wait a bit longer. They’re not a small operation like us, so internal meetings are probably still ongoing.”
“Yeah, we should wait. It’s frustrating though…….”
Buzz—
Just as Danny spoke, his phone vibrated, and after checking the screen, he answered.
“This is Danny Kim. Yes, yes. Understood. Then I’ll see you in a moment.”
After ending the call, Danny’s expression changed.
“They’re here. Seonjin Trading just made a formal meeting request. But…….”
Danny paused for a moment, then looked at me.
“Chairman Mother of Kang Seon-woo wants to meet personally.”
Mother is coming directly herself?
The group chairman moving in person means she’s taking the situation seriously from within.
“Good. What Danny needs to do is…….”
“Don’t worry. Now I definitely understand what you’re thinking.”
At Danny’s words, I smiled and nodded.

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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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