A Returner’s Successful Investment Method - Chapter 595



Only Krnovel

Episode 595 Hwaan Group (4)

I went to work around lunchtime.

Senior Dongho said after seeing that.

“Why are you coming to work so early? “I can go to work when I’m done.”

“I have an appointment.”

If I hadn’t had it, I would have stayed lying down at home.

“Did you drink a lot yesterday?”

“I drank in moderation.”

For reference, I calculated the cost of the drinks.

Heo Min-woong said he would pay for it himself, but I felt like he was ripping off the less fortunate, so I just bought it for him.

I secretly asked senior Dongho.

“Do you have any money in the company?”

“It’s not like it doesn’t exist.”

“Do you have about 2 trillion won?”

Senior Dongho nodded.

“That’s it. “Why do you need it?”

Seeing that people aren’t surprised when they hear the amount makes me realize that we are better than the conglomerates.

Now, when I meet a chaebol, should I encourage him to cheer up?

Ganbate Gudasai, a Korean conglomerate.

I slowly got to the point.

“Do you know that Korea Development Bank is currently selling Daeho Shipbuilding and Marine Engineering?”

“huh. The government has tried to sell it dozens of times, but has failed every time. “I think it will fail this time too.”

“Hwaan Energy will take over.”

“Hwaan Group?”

“no. Hwaan Energy alone.”

Senior Dongho was surprised by my words.

“what? really?”

“yes.”

“why?”

I said firmly.

“The Korean shipbuilding industry boom will definitely come.”

“When are you coming? “Isn’t it useless to come here after you’ve failed?”

“hmm.”

As expected from an analyst background, he accurately pointed out the key points.

What matters is timing.

Are there one or two companies that predicted the market prematurely and invested first, only to fail?

“It will come soon, so don’t worry too much.”

Senior Dongho nodded.

“Well, it’s not my business, so you don’t have to worry.”

I shook my head.

“no. “It will be my job from now on, so you can keep worrying.”

“huh?”

“Continu Capital’s Korean branch has decided to participate as an FI in the acquisition of Daeho Shipbuilding, so get ready.”

Senior Dongho was surprised by my words.

“what? really?”

“yes. “If we fail, we’ll be alone together.”

“Why are you saying that now?”

“Because it was decided at a drinking party yesterday.”

“… … .”

* * *

Senior Dongho hurriedly began preparations to participate in financial investment.

Fortunately, I have earned a lot so far, so I don’t have to worry about money.

Meanwhile, I met a man in his 50s who came to my office.

“how are you?”

“yes. “I’m doing very well.”

His name is Park Yong-jin.

He currently serves as Vice President of Byungjin Industrial.

Although he is small in stature, he still looks powerful.

He said while looking around the company.

“Honestly, even when I heard that he was the co-CEO of Continue Capital, I didn’t really feel it, but after meeting him here, I really feel it.”

“Did you have a good business trip?”

“yes.”

Unlike his father, who left school every day to travel and play golf, he devoted himself to work without any weekends or holidays.

I worked hard to secure business partners and went on business trips several times a month.

“How is the company’s situation these days?”

“very good. “As long as we have the technology, we will be able to grow even bigger in the future.”

There are two reasons why Byungjin Industrial grew so quickly.

Firstly, thanks to the support of Hwaan Energy, and secondly, thanks to Vice President Yongjin Park’s hard work.

No matter how much he has the backing of a large company, if it weren’t for him, Byungjin Industries wouldn’t have been able to grow as fast as it is now.

Instead, he received just as much compensation.

Vice President Park Yong-jin is the second largest shareholder with a 30 percent stake in Byungjin Industrial. If it goes public later, he will be sitting on a money cushion.

“Are you aware of the current situation of Hwaan Group?”

“I know at least that President Heo Min-hong is trying to take control of the group.”

“uh! “You know very well.”

“Well, because I worked for a long time.”

As he served as executive director, he must be familiar with the internal circumstances of Hwaan Group.

“Is it impossible for President Heo Min-woong to take over Hwaan Energy?”

He thought for a moment and then nodded.

“Hwaan Energy has become too big for President Heo Min-woong to take charge of. They will try to tie you to the group somehow. “Chairman Heo Seong-hoon is probably planning to hand over the core of the group to Heo Min-hong, and collect non-core affiliates to Heo Min-woong.”

No matter how recent the performance, there would be too much anxiety to entrust the group’s core business to Heo Min-woong.

His prediction is accurate.

In fact, he did so in the first round, and Heo Min-woong accepted it.

In the first round, Heo Min-woong would have been satisfied with receiving a moderate amount of wealth and playing around with it.

But this time is different.

I spoke to Vice President Park Yong-jin.

“Buy Daeho Shipbuilding stocks with Byungjin Industrial capital.”

He paused at my words.

“May I ask why?”

“Hwaan Energy will take over Daeho Shipbuilding.”

He looked surprised, perhaps because it was such a random thing.

“You mean Hwaan Energy, not Hwaan Group?”

“yes.”

Instead of asking about this and that, he immediately tapped on the calculator.

“Even if Hwaan Energy takes over, it won’t be such a big positive for the stock price.”

As he said, the acquisition itself is not good news.

Even if the acquisition is decided, there will probably be no significant impact on the stock price.

“So that’s a relief.”

Knowing in advance about good news and purchasing it is considered insider trading.

If the stock price soars immediately after the acquisition, it will be difficult for companies that made large purchases just before that to avoid an investigation by the Financial Supervisory Service.

Moreover, Byungjin Industries is closely related to Hwaan Energy.

“It would be better to take over immediately after the announcement to avoid being criticized. “Everyone will realize that this is good news after a while, so buy before then.”

Because I’m going to make it happen.

“There are not that many cash assets.”

“If you issue as many corporate bonds as necessary, we will buy them.”

Vice President Park Yong-jin nodded.

“All right. “We will secure as much equity as possible.”

“I also recommend purchasing it privately.”

If I say this, you’ll understand what I’m talking about.

He laughed at my words.

“I don’t know if I can get help like this.”

“What.”

I help my father with his work, and I can do this much.

We drank coffee and talked.

“By the way, the sole acquisition of Hwaan Energy, not Hwaan Group. That seems like quite an unreasonable task. “Is your goal to maintain President Heo Min-woong’s management rights and control?”

“you’re right.”

“Going forward and carrying out an acquisition that the group has abandoned is tantamount to rebelling against the group’s decision. Chairman Heo Seong-hoon must also be in trouble. “We need to sort things out before a fight breaks out between brothers over management rights.”

Blood is thicker than water, and brothers and sisters are generally close.

However, if you are a conglomerate, it is a different story.

When you look at what happened in the Korean business world, you didn’t just see blood, there was no real conflict.

In Yuseongga, a son reported his father to the prosecution, in Daeyonga, a prince’s rebellion broke out and the group was split into several, in Rite Group, brothers fought over the management rights of Korea Rite and Japan Rite, and in SL Group, there was a dispute over distribution of inheritance. A mother filed a lawsuit against her child.

The most recent thing that happened was that Hanjeong Group, one of the top 10 groups, disbanded due to a fight between brothers and disappeared into history.

Just because it’s a foreign country doesn’t mean there aren’t similar things happening.

There was even an actual murder in the Gucci family.

Still, perhaps they have learned a lesson from what happened so far, and recently, in order to avoid disputes, many conglomerates have split their affiliates in advance and taken steps to regulate traffic.

Nevertheless, it is not uncommon for disputes to arise.

That’s true, you can tolerate it for tens of millions or hundreds of millions of won, but it’s a different story when it amounts to tens of billions or hundreds of billions.

Moreover, if management is involved, it is not just a matter of one person receiving more or less; it becomes a battle between factions and factions, and between forces.

Even if you want to step down, you will be unable to do so.

“The fight can start either way. “For a fight to not break out, both sides need to be convinced.”

“So, did President Heo Min-woong throw a bet?”

I nodded.

“That’s right.”

Vice President Park Yong-jin smiled.

“At one time, I thought everyone was crazy. As expected, the blood doesn’t seem to be going anywhere.”

Talking about management rights reminded me of a conversation I had with my father a few days ago.

Aside from other people’s household chores, it would be necessary to use this opportunity to resolve the issue of management succession(?) of Byungjin Industrial in advance.

I asked him.

“You said you had a son, right?”

“yes. I am currently pursuing an MBA at the University of Melbourne.”

“It looks like you’re good at studying.”

“That’s right.”

A sense of pride was visible on his face.

A child’s grades are a parent’s pride.

For your information, when I was accepted to Korea University, my parents were very proud of it. The same thing happened when I joined DA Securities.

“What do you plan to do after graduation?”

“I will return to Korea and get a job.”

I told him.

“If you are interested in Byungjin Industry, teach it well. “I might be able to take over and manage it later.”

Perhaps it was something completely unexpected, but Vice President Park Yong-jin looked perplexed.

“Are you sincere?”

I told him.

“As you know, I will never inherit Byungjin Industries.”

I feel sorry for my father, but to me, Byungjin Industrial is not a very important company.

No matter how much it grows, it is not comparable to other companies it has invested in, and it is not related to the core businesses of Continue Capital.

However, the company is like a child to my father.

And the same goes for Vice President Park Yong-jin.

He rose to the position of managing director of Hwaan Solutions at a relatively young age, and took charge of the management of Byungjin Industrial, which was little more than a hole-in-the-wall store, and grew it to this point.

He will have a desire to grow the company further than it is now and to rise to a higher level.

“When my father retires, the vice president will have to take charge of the company from then on.”

Even now, he is practically running the business, but it still makes a big difference whether there is someone at the top or not.

“And by the time the Vice President retires, we will need another successor.”

It would be perfect if it were a child.

“So think of it as your own company and continue to grow it well.”

The reason he works so hard for Byungjin Industries is because he owns a 30% stake.

What if you could pass on the business you have grown this way to your children?

It will be an incentive for him to work harder and train a successor until he retires.

“Is there a reason you are doing this?”

“What I want is for Byungjin Industrial to continue to do well in the future. A company that could go public and stand shoulder to shoulder with large corporations before my father retired. “After I retire, it would be nice to take on an advisory position and occasionally attend meetings and events and nag people.”

You will be happy to see the company that bears your name continue to grow, even in your later years.

Is this not filial piety?

Vice President Park Yong-jin said with an expression of emotion.

“thank you. “Receiving that offer that day was the luckiest thing in my life.”

“What.”

In fact, there is one more pressing reason why I cannot tell him.

It’s Han Sena.

We must do whatever it takes to prevent the transfer of management rights to Byungjin Industries to Sena Han!