1953 Bare-handed Tycoon - Chapter 417



Only Krnovel

417 – Dongbang Life Insurance Takeover Battle (2)

The first thing Kijo decided to do was meet Lee Byung-chul.

Before acquiring Dongbang Life Insurance, he wanted to talk to him and get concessions, or avoid a fight with Samsung through a joint acquisition.

Keynote did not waver in its commitment to cooperating with Samsung either.

I visited his home in Jangchung-dong and started a conversation in his study, which had become a familiar space for me.

“Cheongsan is going to take over Dongbang Life Insurance?”

“Yes, I have already finished talking with President Kang.”

“Uh-huh… … .”

Lee Byung-chul was in trouble.

It also seemed clear that he was already preparing to take over Dongbang Life Insurance.

In order to strengthen Ankuk Fire & Marine Insurance’s sales capabilities, Samsung’s acquisition of Dongbang Life Insurance was also essential.

Ankuk Fire & Marine Insurance currently operates five branches in Busan, Daegu, Daejeon, Incheon, and Gwangju, three branch offices in Gunsan, Masan, and Cheongju, and 68 dealerships.

If we combined the national network of Dongbang Life Insurance’s four branches and seven chapters, we would be able to have an organization that would cover the entire country.

“Of course, this CEO also runs a company called Cheonghwa Insurance, so he probably knows this well, but isn’t insurance sales largely made up of interpersonal relationships between salespeople…?”

Lee Byung-chul did not hide the fact that he coveted Dongbang Life Insurance’s sales organization.

“And did you know that Jang Gi-yeong, who is close to this CEO, is a shareholder of Ankuk Fire & Marine Insurance?”

“I know.”

When the management of ‘Korea Life Insurance’, the predecessor of Ankuk Fire & Marine Insurance, became difficult, Jang Gi-yeong was brought in to help overcome the management crisis and served as president.

He was brought in in recognition of his ability to quickly raise the Chosun Ilbo to the ranks of the Big 3 in the newspaper industry.

The reason Lee Byung-chul brought that up was because Jang Ki-young, who was close to you, was a shareholder of Ankuk Fire & Marine Insurance. It seemed like he was asking you, “Would you interfere with Ankuk Fire & Marine Insurance’s acquisition of Dongbang Life Insurance?”

The keynote speech also provided a plan for coexistence.

“I hope that Ankuk Fire & Marine Insurance and Cheonghwa Fire & Marine Insurance will pursue the acquisition of Dongbang Life Insurance in a way that benefits both parties.”

“Well… that would be great. What is the plan that the CEO is thinking of?”

“How about Samsung taking over Dongbang Life Insurance’s sales organization and fire insurance organization, and Cheongsan taking over the life insurance management organization and assets?”

“ah…….”

Although Lee Byung-chul was attracted to the keynote speech, he also seemed to have an attachment to the trust assets that Dongbang Life Insurance had.

By using the trust assets stored in the insurance company, it was possible to operate them or use them as collateral to pursue larger businesses.

Lee Byung-chul, who lost Hanil Bank and Chohung Bank after May 16, must have been greedy for the cash held by Dongbang Life Insurance.

Although Kijo was aware of this, he could not yield as he wanted to use Dongbang Life Insurance’s assets for POSCO.

“Did President Kang Su-su agree?”

The keynote speaker nodded.

The day I met CEO Kang, I heard that Dongbang Life Insurance was not very strong and I readily agreed to take on assets that were at risk of default.

And it was also agreed to separate Dongbang Life Insurance’s organization and acquire it jointly with Samsung.

In a way, it was like Samsung taking the good assets and the liquidation of only the bad assets.

“Mr. Lee, can I tell you about the insurance industry that I am looking into?”

Lee Byung-chul also felt burdened by the idea of ​​confronting Kijo, so he began to beat around the bush.

“Please tell me.”

“If I were to use a running analogy, property insurance could be likened to a short-distance race, while life insurance could be likened to a marathon.”

I knew the keynote too.

The life insurance business, which deals with people’s lives, required stable operation for 20 to 30 years.

It was different from non-life insurance, which has a relatively short maturity.

The keynote speaker also knew that, so he thought he should take charge of it.

“It requires a lot of know-how over a long period of time, and if a life insurance company fails in management, the side effects and repercussions will spread throughout the country.”

It seemed like they were telling me not to jump into the life insurance business recklessly because if I fail, I will face a lot of difficult problems.

The keynote speaker nodded.

“In the beginning, Ankuk Fire & Marine Insurance barely managed to operate the company by relying on insurance premiums. However, now that things are getting better and the company is trying to expand, liquidation is blocking its path, which is both disconcerting and worrisome.”

Kijo also agreed with Lee Byung-chul’s honest words.

“I also have to do steel business in the future, so I don’t want to fight over Samsung and Dongbang Life Insurance. If the two companies fight over the acquisition, won’t the price just go up? Then, I think the company that succeeds in acquiring it will also have a hard time.”

“Ma… … , that’s true. Isn’t that why I’m being so cautious with my words?”

Lee Byung-chul smiled weakly. Kijo also smiled vaguely, feeling awkward about being in conflict with Lee Byung-chul over vested interests.

The keynote speech offered an alternative for Lee Byung-chul.

“How about you take over Dongbang Life Insurance and Samsung takes over Haedong Fire & Marine Insurance?”

“Is it a fire in the East Sea?”

The keynote speech was about the Haedong Fire.

Although Haedong Fire & Marine Insurance had a capital of only 100 million won, its total assets amounted to 540 million won, more than five times that amount.

Looking at the assets, there were 280 million won in cash and bank deposits, 60 million won in stock investments, and 80 million won in real estate.

The only drawback was that the loan amount was over 200 million won, but since the loan was being lent as revolving funds by a securities company, there was no major problem.

Above all, the advantage of Haedong Fire Insurance was that it had high profits.

The previous year’s profit was 32 million won, which is 32% of the capital of 100 million won, showing a high return on equity (ROE).

If we take over such a valuable company, we will be able to generate higher profits by combining it with Dongbang Life Insurance’s sales network.

However, Lee Byung-chul did not seem to like Kijo’s proposal very much.

“Well… … Would you like to talk to President Son Young-gi, who is in charge of Ankuk Fire & Marine Insurance?”

Lee Byung-chul chose to confront the enemy through a proxy rather than directly.

Son Young-gi, who would become Lee Byung-chul’s agent, was the father-in-law of Lee Byung-chul’s eldest son, Lee Maeng-hee, and was helping Lee Byung-chul by running Ankuk Fire & Marine Insurance.

He had been close with Lee Byung-chul for a long time, and their relationship was so close that they proposed to marry each other when their children grew up.

“Yes, I will meet you. However, it seems like this is something that requires more decision from President Lee Byung-chul than from President Son Young-ki.”

“I will also think about it slowly.”

The keynote speech had a premonition that negotiations with Samsung would not go well.

A few days after meeting President Lee Byung-chul.

Lee Maeng-hee came to the Cheongsan headquarters.

The keynote speech did not take Lee Maeng-hee’s visit as a good sign.

I thought it was out of the order to meet him before meeting Son Young-gi, the president of Ankuk Fire & Marine Insurance.

But the keynote speech warmly welcomed Lee Maeng-hee.

“welcome.”

Kijo sat Lee Maeng-hee down on the sofa and gave him a ride in the car himself.

Lee Maeng-hee wanted coffee, and Ki-jo made some himself and handed it to him.

“Thank you, Mr. Lee.”

Lee Maeng-hee, who drank the coffee that Kijo had prepared, smiled with a slight frown.

Unlike the coffee beans he drank in the US, he didn’t seem to like the ground coffee that came from the US military base.

“Sorry, that’s all we have for coffee.”

Lee Maeng-hee and Ki-jo are one year apart.

Although Lee Maeng-hee was a year younger, they were friends in terms of age.

“It’s okay. It’s harder to find good coffee in Korea.”

Lee Maeng-hee was confident.

He joined Hanil Bank in 1960, but had conflicts with its employees. After the bank was taken over by the government after May 16, he moved to Ankuk Fire & Marine Insurance.

While working there, assisting the craftsman, Lee Maeng-hee was expected to receive training as a successor while holding key positions in the Samsung Group, including Mipoong Industries, Samsung C&T, JoongAng Ilbo, Samsung Cultural Foundation, and Samsung Electronics.

The straightforward Lee Maeng-hee put down his coffee and asked.

“You met my father?”

“Yes, we had a chat.”

“Did you ask me to share the Eastern Life?”

“Yes.”

“hmm…….”

Lee Maeng-hee lightly tapped the armrest of the sofa as if he was displeased, then said.

“Isn’t it a bit difficult for Cheongsan to cooperate with Samsung? Recently, you stopped buying flour from CheilJedang and started buying flour from Jo Hong-je?”

This was what was said about CEO Lim Dae-hong of Cheongsan Food accepting Jo Hong-je’s suggestion and changing the flour supplier.

“That and this are separate things. Isn’t it Samsung’s job to cooperate with business partners who offer better conditions?”

When Kijo spoke calmly, Lee Maeng-hee readily accepted.

“Yes, let’s say that. That’s common in the US too. Isn’t that why businessmen in our country get married to each other? There’s a reason for that.”

It seemed like he was talking about his younger sister, Lee Sook-hee, marrying Koo Ja-hak, the third son of Koo In-hoe, the founder of the Rockhee Group.

“But what have Samsung and Cheongsan ever done together? Haven’t they clashed over every little thing? They clashed once over seasoning. In the future, Samsung and Cheongsan will clash over fertilizers as well. Samsung is also pushing forward with the construction of a fertilizer plant.”

Kijo gently refuted Lee Maeng-hee’s words.

“I don’t see it as a conflict, but as a competition. Companies grow by competing with each other, so there’s no need to see it as a bad thing.”

The keynote speech did not suit Lee Maeng-hee, who was choleric and straightforward.

But for now, he was Samsung’s heir and successor.

I wanted to avoid an emotional confrontation with him while leaving open the possibility that he could inherit Samsung.

“Look here, Mr. Lee Ki-jo. Don’t try to teach me. Although I don’t have a proper title yet, we are similar in age and strength. I want you to treat me as an equal.”

“I’m sorry. That wasn’t what I meant. I apologize if I offended you.”

When Kijo apologized, Lee Maeng-hee quickly calmed down.

Lee Maeng-hee’s mood heated up and cooled down too quickly.

He was not a good temperament for an entrepreneur, so Kijo was worried about him.

“If that’s not the case, then that’s fortunate, but you’ll be seeing me more often in the future. So let’s negotiate the acquisition of Dongbang Life Insurance with me. I’ll put in a good word for my father-in-law.”

It seemed like Lee Maeng-hee wanted to make his presence known.

He probably wanted to show off his abilities to Lee Byung-chul, who had made him start from the bottom and not given him a high position so that he could receive proper management training.

I understood his mind well.

“I believe that the best option is to take over Dongbang Life Insurance in a divided manner, as I told my husband.”

“Isn’t that just this CEO’s idea? Can you say let’s cooperate and then force your own opinion on us?”

The keynote speech was patient with him.

“I would like to hear the CEO’s opinion.”

When Kijo promoted Maeng-hee to president and asked for his opinion, he coughed in vain and said.

“This time, Cheongsan will make a big concession. Samsung will help you when there is another acquisition opportunity.”

Lee Maeng-hee was saying things that should not be said.

When two companies are competing to split a pie, you have to compromise and get your piece of the pie, but he wanted it all.

The keynote was slightly overturned using his logic.

“Then, this time Cheongsan will take the East, so how about Samsung yielding? Next time, Cheongsan will fully support Samsung.”

Lee Maeng-hee blushed at the keynote speech.

“It seems like you and I have a hard time communicating.”

The conclusion was also reached too quickly.

He was so different from his cautious father.

The keynote speech left a lot to be desired, but I wanted to talk to him more, so I suggested an alternative.

I felt that sending him away in this state would only deepen the emotional rift.

“Since no one wants to give in, how about we talk things out while giving each other what we have to give? I am from the Dongbang Life Insurance affiliate… … .”

“Ah, that’s it! Even though it’s a subsidiary of Dongbang Life Insurance, there’s nothing useful about it!”

“Then how about we look into other business areas together? I think advancing into Vietnam together would be a good idea.”

“Samsung does not enter the battlefield.”

Kijo nodded in agreement with Lee Maeng-hee’s declaration.

I didn’t think it could happen anymore.

“I can guarantee you that it will be nearly impossible for Cheongsan to take over Dongbang. Even if Kang-i-su is on Cheongsan’s side, he has six more partners. Let’s fight like gentlemen.”

At the suggestion of fighting, Kijo shook his head.

“Cheongsan will not fight with Samsung.”

Lee Maeng-hee stood up from his seat and laughed at Kijo’s sincere words.

And then he said, “I’ll go,” opened the door to the office, and went out.

The mood was uneasy, as if he had been hit by alternating hot and cold winds.

Lee Maeng-hee was so hot and cold at the same time.

If only he could control his mind, he could make good use of the passion inside him, but it was a shame that he couldn’t.

When I left Lee Byung-chul’s house in Jangchung-dong, the family photo hanging on the wall of that house came to mind.

It was a photo of Samsung’s youngest son, Lee Kun-hee, standing next to Lee Byung-chul.

“phew…….”

Kijo let out a sigh, then went to the sink and poured out the coffee cup that Lee Maeng-hee had been drinking from.