Hyunjin Shipping’s liquidation sale began.
When trading resumed, the stock price plummeted over 90% in just one day, hitting 75 won. The next day, it dropped again to 11 won. With a closing price of 6 won, the company was delisted from the stock exchange.
Once ranking up to 7th in the shipping industry, Hyunjin Shipping went bankrupt due to the economic downturn, mismanagement, and various corrupt practices by management.
Small shareholders who held onto their stocks until the end went down with the ship. However, the captain, who steered the ship, managed to escape alone safely by boarding a lifeboat with all his belongings.
The only hope for small shareholders to receive some compensation lies in Chairman Chaeyoung fulfilling the promise of providing funds.
Calls demanding immediate payment flooded in. Chairman Chaeyoung, unable to hold on any longer, sold the mansion in Samseong-dong where she resided.
Even with the charges revealed so far, there is a minimum sentence of 10 years. However, South Korea is lenient on financial crimes.
Especially for conglomerate leaders, they often escape with suspended sentences even after committing various wrongdoings. However, even with attempts to conceal embezzlement and malpractice, insider trading remains a problem.
No matter how skilled the attorneys like Jung and Kim are, it will be difficult to avoid a prison sentence. The small shareholders may never recover the money they lost, no matter how many years pass.
Although it’s unfortunate that Hyunjin Shipping went under, it allowed me to purchase a new house.
I paid the selling price, settled the property transfer tax. Despite the hefty tax on a high-valued property, thanks to receiving dividends in advance, I didn’t need a loan.
I went to view the house with Taek-gyu, Hyun-joo, and Ellie. It took only 5 minutes by car from the company.
The house located in a quiet residential area faced two roads. The high brick walls made it difficult to peek inside from outside.
The main gate facing the flat road led to a garden, while the gate on the sloped road side connected directly to the underground parking lot, allowing entry without getting out of the car.
As I pressed the remote, the gate opened, and I drove into the underground parking lot with space for up to 12 cars.
Taek-gyu was surprised as he stepped out of the car.
“Wow! There’s an elevator inside the house.”
He knew about it, but seeing it in person was fascinating. Well, with four floors, including the basement, it would be hard to walk up and down every time.
We took the elevator up to the first floor. When the door opened, the living room came into view.
Ellie exclaimed in awe.
“Wow! It’s so beautiful.”
The interior looked like something out of a movie, like a penthouse.
The high ceiling allowed for a spacious view, with white marble flooring. Sunlight streamed in through the glass doors, offering a view of the garden from the living room.
Taek-gyu pointed to the fireplace on one side of the living room, asking, “Is this real?”
Seeing the stacked firewood nearby, it seemed like it was real.
“The living room feels too vast and empty,” Ellie commented as she looked around.
“It’s probably because there’s no furniture. It would feel better with a well-placed sofa and table.”
We slowly toured the first floor.
The interior was extravagantly luxurious. There were a total of four bedrooms including the master bedroom, as well as a study, home office, reception room, meeting room, home theater, and a gym.
The main kitchen on the first floor, designed in an Irish style, had a wine bar attached, while there was a separate sub-kitchen.
“The kitchen is spacious. It must be great for cooking.”
“Anyway, we’ll end up just making instant noodles or ordering black bean noodles.”
“True.”
There were a total of six bathrooms, three on the first floor and three on the second floor.
All kitchen appliances such as the oven, induction cooktop, and sink were German-made, while the bathroom tiles and bathtub were top-of-the-line imports. The built-in furniture in the study and meeting room were of the same high quality.
How much money was spent on all this?
It seems like rich ladies in Gangnam must really pay tens of billions at the luxury furniture store every time they redecorate, not just a joke.
Although the building was five years old, it was maintained so well by the staff that it felt like a brand new house.
“What do you think, Jinhoo? Do you like the new house?” Ellie asked, and I nodded in approval.
“It’s pleasing to the eye.”
I bought it without even seeing it, but I didn’t realize it would be this nice.
The lighting, wallpaper, flooring, even the bathroom fixtures and doorknobs all blended well with the ambiance of the house.
Even I, who know little about interior design, can feel a sense of elegance.
“Although I may not have managed the business well, it seems I have a talent for decorating the house.”
Hyunjoo laughed lightly.
“You didn’t know? Chaeyoung originally majored in modern art. She has experience organizing art exhibitions. She must have excellent aesthetic sense.”
“….”
So, instead of entrusting Hyunjin to professional managers, she’s going to continue with art-related work. Why did she ruin a perfectly fine company by managing it herself?
We walked out into the garden through the front door.
Separate from the main building, there was a two-story small building on the right. It was a space where security and domestic helpers could stay.
After carefully surveying the garden, Ellie sparkled her eyes and asked, “When are we going to move?”
“Well, I’m not sure. After a few touch-ups, installing appliances and furniture, it might not be until after the New Year. The house is so different in size that almost all the furniture and appliances will need to be bought new.”
Taekgyu marveled, “Looks like she really made a lot of money. Buying a house like this.”
“Yeah, that’s right.”
This is the first house I bought under my name. The previous one was bought by Taekgyu.
Although I bought a building worth 50 billion won as a company property, buying a house gives a different feeling. What was once unimaginable has now become a reality.
Hyunjoo took a drag of her cigarette and said, “Just a few years ago, no one expected Hyunjin to fail. You never know what will happen to a company, so we need to be cautious even in good times.”
Kodak and even global companies like Nokia failed in an instant because they couldn’t read the trends. There’s no guarantee that the same won’t happen to us.
I nodded.
“I’ll keep that in mind.”
Hyunjoo noona smiled.
“Still, you both have worked hard all this time. Congratulations on buying a new house.”
***
During that time, a few pieces of news came through.
The first was that Eunsung Group acquired JD Caps, the 6th in the security industry, for 3 trillion won.
“Better than nothing?”
“At this rate, it’s neither chicken nor quail.”
The top 3 companies occupy over 80% of the security industry. JD Caps couldn’t compete with X-Cop in terms of scale, revenue, or operating profit.
Since the X-Cop acquisition failed, they seemed to have decided to acquire and grow a small to medium-sized company.
The second news was that Eunsung Group’s Strategy Office Monitoring Team had started an audit.
Sangyeop senior said, “If we were just falling behind in competition, it would be unavoidable, but this situation clearly raises suspicions of leaked information.”
“If an audit is conducted, it won’t just quietly end,” I said.
The senior nodded at my words. “Someone has to take responsibility. Team Leader Seo Sangwon will likely have a hard time holding onto his position. Technically, Han Chanyeong led this acquisition, but as he’s the next chairman, you can’t hold him accountable.”
“In the end, it’ll be Seo Sangwon who bears the brunt.”
“Not just Seo Sangwon, but the entire M&A team is under scrutiny.”
Records of calls, transactions, cell phone locations, etc., can only be accessed with a warrant (excluding illegal surveillance by the National Intelligence Service). Hence, the audit team instructed them to submit the relevant data themselves.
They will thoroughly check for any contacts with other companies, received payments, recent whereabouts, etc.
When a company comes under such scrutiny, it’s not easy for employees to refuse. If they are innocent, they have no reason not to submit the data, and not doing so implies guilt.
Their pride will be completely crushed.
Taekgyu looked at me and said, “Because of your mistake, an innocent person’s reputation has been tarnished.”
“…How is that my fault?”
“Taking things the wrong way, it’s not Eunsung’s fault.
Just a few days after the audit began, all members of the M&A negotiation team, including Team Leader Seo Sang-won, submitted their resignations.
The decision on repairs will likely be made after the audit is completed, but it will be difficult to stay in the company amidst an atmosphere where one is being seen as a traitor.
There is no shortage of job seekers looking to enter the financial sector. However, top talents capable of handling large sums of money at the team level are limited.
Seo Sang-won is such a remarkable talent that he served as the head of Redstone Group Korea. He made a name for himself by successfully completing several M&A deals in the Korean market, including Dongin Life. Han Chan-young went to great lengths to recruit him into the Eunsung Group.
However, now he finds himself being treated as a traitor and audited.
Naturally, he has done nothing wrong.
I recalled a man in his mid-40s whom I had exchanged greetings with at a bidding event.
“I should meet him at least once.”
***
I contacted him but didn’t have high expectations. However, the response came back immediately that we would meet.
I met Seo Sang-won at a Japanese restaurant near the company with Taek-gyu. He looked much more relaxed than when I saw him at the bidding event, probably because of the recent ordeal.
After exchanging greetings, we sat down.
“What would you like to eat? I heard the tuna here is delicious.”
Team Leader Seo Sang-won shook his head.
“I’m fine with not eating. I came here because I have one thing I want to ask.”
“What is it?”
He looked straight at me and asked.
“Is it true that someone from our side leaked information?”
Did he dash here out of curiosity?
“What do you think, Team Leader?”
“Besides Vice Chairman Han Chan-young and myself, only three others knew the bidding price.”
“One of them could have taken a bribe and sold the bidding price, right?”
Team Leader Seo Sang-won shook his head firmly.
“That is absolutely not possible.”
Despite all of us being under suspicion, does he really trust his team members till the end?
I admire that.
Closing the menu, I asked.
“Then how do you think that money was spent?”
“I’m curious about that. I kept observing from the sidelines near the Executives that day. When the bidding price for Eunsung was announced, Director Oh Hyun-ju’s expression was clearly surprised. But the Chairman didn’t seem surprised at all. It was as if he had expected that amount to come out.”
I casually lied.
“It just didn’t show on his face, but he was definitely surprised inside.”
Sitting next to me, Taek-gyu nodded.
“We are a bit poker-faced.”
“To be honest, our initial upper limit on the price was $2.92 billion. However…”
I explained how we arrived at the amount with some embellishment, and Team Leader Seo Sang-won looked disappointed.
“Was it just a coincidence?”
Taek-gyu chuckled and said, “Unexpected things happen all the time in the world.”
I casually brought up the topic.
“I heard you submitted your resignation. What are your plans for the future?”
“I haven’t made any plans yet.”
“What about coming to our side?”
It seemed like he somewhat expected this conversation.
Team Leader Seo Sang-won shook his head as if there was nothing to consider.
“If I join OTK Company, what would others think?”
“Well, would they think you secured a position by betraying us?”
“Although I haven’t lived honorably all my life, I don’t think I’ve lived shamefully. I appreciate the offer, but I will decline.”
It wasn’t going to be easy.
I started persuading in earnest.
“Think about it. The bidding results are already known. Not just Eunsung, but other companies will also have similar suspicions. Even if not expressed outright, they will feel uneasy internally. Wherever you go, you’ll face the same scrutiny. Can you endure that gaze? Or are you planning to retire and live in obscurity?”
Regardless of the outcome, he had already been branded as a traitor. As a financial or a regular employee, it was akin to receiving a kind of death sentence.
“I’m the only one who knows that Team Leader Seo Sang-won is innocent in this industry. Because I personally wrote that bidding price.”
“….”
For quite some time, he maintained silence and then finally mustered the strength to speak.
“If I go to OTK Company, even the CEO won’t be able to avoid criticism.”
Acquiring a competitor’s employee to manipulate bid prices is an illegal act.
While punishment requires clear evidence, criticism can be based solely on suspicion.
I chuckled softly.
“It doesn’t matter. Facing backlash is nothing new to me.”
During Brexit, I was criticized by the British for profiting in the foreign exchange market, and during Ronald’s election, I faced criticism from American voters who supported Diane. Since returning to Korea, I have been receiving criticism from supporters of the ruling party due to my clashes with the government.
“As long as you stand tall, that’s all that matters. Why bother about what others think?”
B2C (Business to Consumer) companies are sensitive to public opinion. Therefore, they work hard on advertising to create a positive image.
However, OTK Company is a financial investment firm. As they do not directly engage with consumers, they can easily disregard public opinion or societal views (not that it allows for unethical behavior).
I spoke to Team Leader Seo Sang-won, who had his head bowed.
“I understand your feelings, but I won’t offer an apology. Neither of us has done anything to be ashamed of, so we stand tall. However, I can promise one thing for sure. If you work with me, I will definitely restore your honor.”
My words sparked a glint in his eyes.
“What do you mean?”
I confidently replied, “When people see what I’ll be doing next, everyone will realize that snatching a 3 trillion deal with a 100 million difference was nothing at all.”
