Chae-young’s house, put up for sale by the chairman for a celebrity appearance, is priced at 20 billion won. Given that it is a high-end residential complex, even just estimating at 60 million won per pyeong, the land value alone exceeds 15 billion won. Considering construction costs on top of this, it is deemed a reasonable price.
However, the issue lies in this so-called reasonable price. Large houses are as rare to find buyers as they are to find people willing to live in them. Additionally, the wealthy are sensitive to feng shui, causing them to be wary of houses put up for sale due to failing businesses. Real estate experts believed that unless the price was significantly lowered, it would not sell. And Chae-young, the chairman, also hoped for this outcome.
Unlike apartments where prices are determined to some extent based on the complex and size, houses vary significantly in price based on location and structure. Furthermore, there’s a substantial difference between the publicly assessed land value and the actual transaction value. While this house was priced at 20 billion for sale, the publicly assessed value was around 10 billion won.
Initially planning to delay and assess the situation or using a front to purchase at the assessed value, Chae-young suddenly faced Kang Jin-hoo expressing a clear intention to buy, publicly.
Once this fact became known, articles flooded in:
“[OTK Company CEO Kang Jin-hoo Shows Interest in Purchasing the Chairman Chae-young’s 20 Billion Won Samseong-dong House!]”
“[Into the Arms of Kang Jin-hoo for the 20 billion won home]”
“[Revealed to have lived in a hotel all this time]”
“[Full proceeds from the sale will be used to compensate minor Hyunjin shareholders]”
Chae-young, the chairman, was flustered. Never intending to sell, she never expected someone to want to buy!
After dodging responses for several days, she made a statement through her lawyer. Considering the emotions of real estate experts and surrounding property prices, she announced that she would sell for not 20 billion but 22 billion won. She added that this decision was solely for the benefit of the minor shareholders.
The forum where minor shareholders gathered erupted:
– “What nonsense is this about benefiting the minor shareholders?”
– “If you help us a couple more times, we’ll all die.”
– Who is buying at that price?
– Just because they’re not selling, right?
– I knew it from the moment you started rambling in front of the camera.
– I’m the fool who bought 32,000 shares a few days before trading was suspended. What is the prosecution doing?
– Chaeyoung is going to jail, yay!
– Despite the criticism, Chairman Chaeyoung didn’t care.
– She thought once this situation passes, it will be over. She never had any intention of selling her house.
– ‘Maybe Kang Jin-hoo will back off by now?’
– However, that was her misconception.
– At OTK Company, in support of Chairman Chaeyoung’s decision to participate in a personal investment for small shareholders, she willingly announced that she would buy it for 22 billion.
– There is no longer any reason to refuse.
– If she changes her mind again this time, it will be revealed that the promise of personal investment was a lie.
The acquisition of X-Cop has been successfully completed.
Both representatives signed the documents, and OTK Company and Golden Gate transferred $293.1 million. We acquired 70% of the shares as initially discussed.
The CEO and management team remain the same, but three new outside directors have been appointed. Hyunjoo had already found suitable candidates.
The management advisory that Typo Group was receiving will be maintained for the next five years. (This was part of the acquisition conditions)
While the ownership of X-Cop has changed, not much else has changed significantly.
Some collaborative companies supplying to Eunsung Vehicles have notified us of terminating security contracts. Although our revenue may decrease immediately, we can manage the business without them.
Hyunjoo was still busy, but Ellie had some free time and occasionally visited our building.
Ellie raised both hands in triumph.
“We won!”
After that, he joyfully said to me, “Did you see that, Jinhoo? I won.”
Taekgyu seemed so shocked that his hands trembled.
“I-I can’t believe this. I lost at Tekken.”
Both of us were in the sacred CEO’s office. What were we even doing there?
The wall-mounted TV in the reception room was almost exclusively for gaming now. We could even hold a Tekken tournament here.
Well, I was just as idle as ever.
Today, the reports weren’t coming up as easily. Looks like the chairmen aren’t just swinging golf clubs in the office for no reason.
Ellie asked me, “Christmas is coming soon, what are you going to do?”
Originally, Christmas is a Christian holiday to celebrate the birth of Jesus, but regardless of religion, it’s celebrated as a festival in most countries.
I don’t have a religion (even though I achieved a “Grand Slam” of Buddhism, Protestantism, and Catholicism in the military), and Taekgyu and Hyunjoo noona are the same.
“By the way, Ellie, what’s your religion?”
“I’m Anglican.”
“Oh! Because your mother is British?”
“That’s right. And Hong Kong has a lot of Anglicans.”
During the religious reformation, England separated from Catholicism to form the Anglican Church. Since then, Anglicanism has spread not only throughout the UK but also in places under British colonial rule.
“I was baptized as a child, but I don’t really go to church often. I’m just too busy with work.”
“Still, you celebrate Christmas?”
Ellie squinted at my question.
“Of course. If you’re a working adult, you must make time for holidays.”
It’s very true. While it feels natural for our country to have holidays, surprisingly there are many countries that don’t take the day off on those days.
‘Is Christmas a holiday in Hong Kong?’ ‘Yes, Hong Kong has the day off until the next day.’
‘Do you have plans, Ellie?’
‘Well, I…’
At that moment, the intercom rang. Taekgyu quickly turned his head.
‘It hasn’t even been 10 minutes since I ordered jjajangmyeon, and it’s already here?’
‘No way.’
I pressed the call button. [Chaeyoung, the chairman’s lawyer is here. What should we do?]
Suddenly, a lawyer? I can vaguely guess the reason for the visit. Since I don’t have anything else to do, it’s probably best to make things clear this time, right?
‘I’ll meet him briefly and come back. I’m in the middle of playing another round of games.’
Taekgyu waved his hand.
‘Hurry back before the jjajangmyeon arrives.’
***
In the meeting room, a man in his late 40s with glasses was waiting.
As I entered, he stood up, greeted me, and handed me his business card.
‘Hello. I’m Park Dong-soo, a lawyer from the law firm Jung & Kim. Nice to meet you. I’m Kang Jin-hoo.’
Jung & Kim is known for taking on lucrative cases. They represented Ronstar in the Ronstar Foreign Bank Embezzlement case, Mitsubishi in the forced labor victims’
lawsuit, and the offending company in the humidifier disinfectant case.
No matter how much of a garbage act a criminal commits, if they just pay, a lawyer will take on their defense.
Currently under investigation for embezzlement, breach of trust, and insider trading, Chaeyoung, the chairman, paid a hefty fee and enlisted the services of Jung & Kim as her legal representation.
“I am honored to meet the CEO of OTK Company in person. I came without an appointment, and to have you accommodate me like this…”
I cut her off.
“I’m short on time, so let’s get straight to the point.”
Attorney Park Dong-soo nodded.
“Year-end must be a busy time for you.”
“No, it’s just that I’ve ordered black bean noodles. They lose their taste when they get cold, you know.”
“…”
He seemed unsure if it was a joke.
Either way, he continued.
“Let me be straightforward. Chaeyoung hopes that you, as the chairman, will reconsider your intention to purchase the house in Samseong-dong.”
“I don’t understand. You wanted to buy the house I put up for sale, what’s the issue? I agreed to the price you mentioned.”
“You are aware that your intended purpose for the purchase is not for investment or leasing, but for personal residence.”
“But why?”
“You and your children do not wish to leave the current house you live in. It holds many memories for you. I heard that you even bought the house you lived in as a child.”
I was baffled and asked, “But that house isn’t even five years old, right?”
“That’s how much it means to them.”
“Then why even offer to buy and resell it? What’s the point of putting it up for sale if you don’t plan to move?”
Attorney Park Dong-soo calmly replied, “From the beginning, the intention was to sell it under the condition of leasing. When you heard about the plan to purchase for residential purposes, you were surprised.”
As a lawyer, he is speaking diligently, but speaking nonsense is still nonsense.
“Are you hoping to purchase after I acquire it and then lease it?”
“I am reluctant to make such a request, so I am considering another proposal.”
He pulled out a document from his bag and handed it to me.
“What is this?”
“This is a house owned by an acquaintance of the chairman in Hannam-dong. If you buy this house instead of the one in Samseong-dong, I will offer it at a price 20% lower than the market price. It’s not a bad offer for the CEO as well.”
Is it owned under a different name?
He talks about not selling the expensive house in Samseong-dong and selling another house cheaply.
Even if the house in Samseong-dong is sold at a high price, that money will eventually go back to small shareholders. Therefore, from a financial perspective, not selling it is the best option.
In short, it’s an offer to pay a price in return for withdrawing the purchase.
Without even looking at the documents, I said, “I don’t like it.”
“I will try to match the conditions as much as possible. Just take a look first…”
I cut in abruptly, “It’s too much trouble to go over the river.”
This is sincere.
220 billion won is enough to buy land and build a new house. However, it’s not easy to find a plot of land over 250 pyeong in Gangnam. It would take a long time to build a new house as well.
It’s hard to find a property like this no matter how much I look. Even if I pay a little more, since the money will eventually go to the small shareholders, I can consider it a good deed.
Leaning back in my chair, I asked, “You must have a lot of money, so why go this far?”
If you include deposits and hidden slush funds, excluding this house, the total assets would exceed 50 billion.
Hyunjin Shipping’s stock price had already plummeted, with the equity value only at 2 billion. Yet, they used insider information before the trading halt to sell off everything.
Despite having assets exceeding 50 billion, they resorted to illegal actions to avoid a mere 2 billion loss.
I took out my phone and looked up Hyunjin Shipping’s stock price.
Just a few years ago, Hyunjin Shipping stock was worth 40,000 won, but due to management failures, it now trades at a mere fraction of that.
“It dropped to 980 won at the trading halt. It hit the lower limit for two consecutive days before that. Chairman Chae had sold everything using insider information beforehand, probably saving himself at 2,000 won per share. If we get into liquidation sales, how low do you think it will fall?”
“Well…”
Listed stocks get a period for liquidation trading a few days before delisting without the upper and lower limits.
“When a company is liquidated, the remaining assets are cashed out and distributed among shareholders. But Hyunjin Shipping has more debt than assets. Even after liquidation, only debts would remain. I think once liquidation sales start, it will drop below 10 won.”
Small shareholders now watch as their penny stock plummets further.
“Do you know who the small shareholders are? Students, housewives, office workers, self-employed people, etc. They invest in stocks, trying to make the most of their saved money, skipping meals and saving every penny.”
Despite lacking financial and informational resources compared to foreigners and institutions, individuals invest in stocks believing it will benefit the country and economy. They may incur losses in the process, but they are willing to accept them if it’s their own fault.
However…
“Frankly speaking, the delisting of a stock is because the management is run by idiots, not the fault of small shareholders.”
While managers don’t have to sink with the ship, they shouldn’t be the first to abandon it either.
However, Chae Young chose to shift the blame for their losses onto others and escape alone.
With such a rotten mindset in leadership, can the company really turn things around?
Park Dong-soo’s lawyer’s expression hardened.
“Don’t do that, think again… ”
I stood up from my seat, not wanting to hear any more.
“From what I can see, it seems difficult to avoid a prison sentence. What do you need at home while you are living in prison? Go back and tell Chaeyoung the chairman. Stop this nonsense and pack your things quickly.”
