[043]First, start with warm-up 2.
「Study on Hando Steel’s competitiveness and mid- to long-term management outlook」
1. Extremely weak financial structure.
2. Excessive financial costs due to excessive external borrowing.
3. A large deficit is certain.
4. Reckless investments that can have a significant impact on the national economy
5. Cooperation with Pohang Steel is inevitable for the survival and development of Handa Steel.
6. Conclusion.
With the weak financial structure of Handa Steel and the group as a whole, and the group’s overall sales of KRW 1.03 trillion (KRW 590 billion excluding internal transactions), it is difficult to handle the huge investment fund of KRW 4.3 trillion, and real estate Self-financing through sale is not considered realistic considering the size of the real estate and the current market situation, and borrowing from financial institutions is also expected to be difficult without policy consideration.
The contents of the thick report were as follows.
As of 1995, despite having 13 affiliates and ranking 18th in the corporate world, actual group sales were only KRW 400 billion.
Handa Group, especially Handa Steel, was literally a sand castle built with debt. There is only about a month left until this sand castle collapses.
The fact that Sunyang Group came out with such a report means that the business world has already predicted the bankruptcy of Handa Steel.
But no one knows that Handa Steel is only the beginning.
Why did Chairman Jin give me this report?
Are you thinking about the aftermath of Handa Steel’s bankruptcy? Or is he trying to take over the bankrupt Hando Steel?
It is clear that the latter is likely. If you think about Sunyang Heavy Industries, Sunyang Machinery, and Sunyang Automobiles, it is worth being greedy. However, if it is acquired at a cheap price.
Considering Sunyang Group’s internal reserves, it is not difficult to take over a bankrupt company.
Moreover, with Sunyang’s lobbying ability, it would not be a big deal to include trillions of won in debt forgiveness as part of the acquisition conditions. Ten key stakeholders, 1 billion each. Has it happened once or twice that trillions of won in losses have been made up of 10 billion won with taxpayers’ money?
What bothers me is the hot money from the US, which amounts to $1 billion of Hanhwa Steel’s external borrowings. Now that the exchange rate is 800 won, there is no problem in paying interest or repaying the principal, but after one year, payment will not be possible.
Handa Steel is a poisonous frog.
The moment you swallow it, the poison will gradually spread, and if you don’t find an antidote, it can lead to death. The antidote is dollars, big dollars.
The antidote is in my hands, so I can save whoever swallows it. All that remains to be decided is who will swallow it and how much to charge for treatment.
It’s an easy decision. I want to charge several affiliates of Sunyang Group for treatment expenses, so I have no intention of stopping my grandfather if he wants to swallow a poisonous frog.
* * *
“The annual production volume is 800,000 M/T, and the chairman and his family own 34.65% of the shares and control management rights. Due to losses in the construction sector since 1989, the debt ratio exceeded 300% and the dependence on borrowings exceeded 50%. “The creditors decided that rehabilitation was impossible.”
“You’ve started collecting debt, right?”
“yes. Actually, this should have started a year ago… “No matter how many bribes we had to pay, the creditors didn’t budge.”
The only topic of the meeting, which started at 7 a.m. on Friday, was Hando Steel.
“What is your total debt?”
“It is 3.687 trillion won. “Except for $1 billion on the American side.”
Chairman Jin said while looking at Hakjae Lee.
“Director Lee. No matter how much I think about it, this doesn’t make sense. “How can you spend that much money to build a steel mill?”
“If you look at the American New Core company as a standard, it would be 1.6 trillion won. Of course, even if the environment is different from ours due to cheap land, low facility introduction price taking advantage of the recession in the steel industry, and purchase of appropriate facilities at the lowest price through in-house engineering rather than a turnkey basis, it can be seen that at least KRW 1 trillion has leaked somewhere.”
Inflating costs and siphoning off the money through insider trading is a specialty of conglomerates, but Handa Group went too far.
More than half of the group’s total sales are internal transactions!
This is not an expedient method; it is no different from ignorant robbery.
Chairman Jin, who automatically frowned, continued to ask questions.
“To what extent is debt forgiveness possible?”
“First, we can make the Asset Management Corporation purchase the debt of financial institutions, and write off about 2 trillion won at this time. We purchase Korea Asset Management Corporation’s bonds at half the price. 800 billion would be enough.”
“Dollars won’t work?”
“yes. Instead, repayment extension is possible. “The government will guarantee payment.”
“YS… “I’m being picky, but will it work?”
“Hando Steel is the flagship company of Hando Group. The Han Group will be disintegrated anyway, and the impact should be minimized. “I will approve it.”
Chairman Jin’s head started calculating.
1 billion dollars is 800 billion, and the total amount is 1.6 trillion. There was no intention of paying a bloody 1.6 trillion won to acquire it.
When taking over, Sunyang’s funds can be used temporarily, but must be recovered immediately.
“What do we need to take care of when the Hando Group is torn apart? “Something worth money.”
“Out of the 100,000 pyeong site of Hando Steel’s Busan rebar factory, 80,000 pyeong is excluded, excluding the logistics base. “If we prevent the creditors from doing anything and put up apartments on the site and sell them, we can secure a certain amount.”
“also?”
“There is 40,000 pyeong of land in Jangji-dong and 10,000 pyeong of land in Gaepo-dong. However, this land is not owned by Handa Steel, but by Handa Construction.”
The heads of key group figures attending the study meeting were spinning diligently.
This is because he fully read the chairman’s intention to take away Handa Steel.
“President.”
Jo Dae-ho of Cruiser Motors, who had never said a word, spoke for the first time.
“The information is that Daehyun Group is also targeting them.”
The study room was so quiet that you could even hear Chairman Jin’s breathing.
Chairman Jin, whose complexion suddenly turned red, gritted his teeth.
“When did you find out?”
“I received a call in the morning. Daehyun Motors’ supplier gave us a sneak peek. “I was serving people at a salon and they were talking gibberish.”
“Oh my, it’s crazy… … .”
Daehyun Group is no longer a competitor. To Chairman Jin, who thinks Handa Steel already belongs to him, they are just a group of bandits trying to rob his company.
“Start by knowing what Daehyun guys are doing. “The acquisition strategy will be reworked later.”
The meeting is over. I had to do my best to stop the bandits. As everyone stood up and gathered their documents, Vice Chairman Jinyoung-gi smiled and opened his mouth.
“Have you seen Dojun’s interview article?”
In response to the vice president’s words, the presidents of affiliates did not leave out the greetings they had forgotten.
“Congratulations. President. “It was really amazing.”
“I didn’t know that Dojun was a member of the entire country. congratulations.”
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Chairman Jin’s stiff expression softened and he nodded.
“I know. I didn’t know he could achieve that level either. “Isn’t it amazing?”
“But father. “Dojun really apply to Seoul National University’s law school?”
“why? “Are you afraid of falling?”
“With those grades, is that possible? “I thought I would major in business administration or economics because my father loved me.”
“He is the one who inherited Yoongi’s blood. “How can you stop me from doing whatever I want?”
“Shall I meet Yoongi and try to persuade him?”
“Leave it alone. “It’s not bad to have a prosecutor general in the family.”
Chairman Jin gently waved his hand at Jinyoung-gi, who continued to look at him as if it was no big deal.
With this, Lee Bang-won’s vigilance will become even lighter.
“By the way, where is Youngjun now?”
“I have been working in London since last year. “You will learn practical finance skills.”
“Ask them to come in.”
“You mean sorting out London?”
Vice Chairman Jin Young-ki’s heart pounded as he wondered if his son’s exile was coming to an end.
“okay. Let us participate in this acquisition of Handa Steel. And I have to get married too. “Let’s hold the ceremony next spring.”
“yes. “I will prepare thoroughly.”
Lee Bang-won will now let down his guard.
***
“Was your homework too difficult?”
“… … yes.”
As I answered in a downcast tone, my grandfather became even more curious.
“Do you know what your homework is?”
“If Hando Steel fails, Sunyang Group will take over, right?”
Grandfather’s smile covered his curiosity.
“Why did you think that company was going out of business?”
“The contents of the report were very negative about Handa Steel.”
“Why did you think Sunyang would take over?”
“If you were not interested in the acquisition, we would have covered in more detail the impact of changes in the steel industry after bankruptcy on Sunyang Group. “When a fire breaks out next door, the important thing is whether or not it spreads to our house. It doesn’t matter why the fire started or whether there are expensive items in the house that burned down.”
“That’s right. That’s right.”
Chairman Jin slapped his knee.
“But I can’t find the answer.”
“What were you trying to find an answer to?”
“A way to bring Daehyun Group to its knees. “If only I had found that, I would have received the keys to the sports car today.”
I scratched my head with regret and glanced at my grandfather. But, why is your expression like that? Have we gone too far? The surprised grandfather’s true feelings were completely revealed.
“Dae, why did you think Daehyun was jumping into the takeover battle?”
“For companies that touch iron, there are Pohang Steel, Sunyang, Daehyun, Ajin, Sammi, and Dongkuk. Among them, there are three that are large enough to take over Handa Steel, but Pohang Steel has no reason to be interested in Handa, and the only ones left are us and Daehyun.”
“Just because you’re big doesn’t mean you’ll attack someone blindly. There is a clear reason… .”
“Hey, my grandfather was interested, but I wonder if Chairman Daehyun will keep quiet…” … .”
The answer would be to provide specific data and say that Daehyun also wants to build a steel mill, but a sensible answer is appropriate for now.
“I don’t think I will let this opportunity go by as we have lost the top spot in the heavy industry sector, which was way ahead of Sunyang.”
“No manager spends an astronomical amount of money to acquire a company out of pride.”
“Wouldn’t you at least knock on it out of pride?”
Grandpa finally burst out laughing.
“Uh-huh. yes. “He is a person who will take risks even if it is because of his pride.”
I waited until the happy laughter stopped and then quietly asked.
“But doesn’t it cost a lot of money to acquire this company? The debt alone is several trillion won… ?”
The grandfather came to my side as if he had been waiting for my question.
“Dojun. Try saying ‘someone else’s money’ in English.”
“Other people’s money? “Other People’s Money?”
“Yes. That is business. Running with other people’s money, not your own. But our country’s chaebols are a little different.”
“how?”
“As the English word means, People, it means using the people’s money.”
Are you talking about the people’s money and taxes?
“When taking over an insolvent company, debt relief is requested from creditors, and the resulting money is made up with taxes. This is the surest way to increase the size of the group. And it always works.”
They think of trillions of won in public funds as if they were just cheap money. There is no remorse at all. I don’t think it’s an unfair method to begin with.
I knew the true nature of conglomerates, but hearing it directly from my grandfather’s mouth gave me goosebumps.
The grandfather who patted my frozen shoulder had the expression of a winner.
“By the way, Dojun. For the time being, let’s assume that what you said in the interview was sincere. Understand?”
* * *
96, the last day of the year.
The entire family, including my grandfather, gathered at the Sunyang Hotel.
It was a place to congratulate myself on ending the year with a good result, and a place to welcome Jin Young-jun, who returned to Korea after a long stay abroad.
“Hey, our youngest. The accident hit hard. I saw the interview. Congratulations.”
“Ah, Youngjun hyung. thank you. And I congratulate you too. “You returned home.”
My hand trembled slightly as I held the hand he held out.
“Future Prosecutor General, later I will leave my inheritance of expediency to you. Please take care of it. “Hehe.”
When he whispered in my ear, my whole body trembled slightly.
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fantasy, modern,
