I Became Park Jeong-ui’s Nephew - Chapter 252



Only Krnovel

He became Park Jeong-ui’s nephew. – (252)

“Recently, the UK has achieved a PEF long-term investment return rate of 16%. Also, corporate mergers have reached a record high of 703 cases. And it is expected that the growth of PEF will create employment for about 2 million people.”

This is the headquarters of Daehan Transportation.

I attended the shareholders’ meeting and discussed the future of the company.

PEF is an investment strategy that attracts investors and invests in companies or real estate to make profits. The recent major accident that occurred in the United States is also a type of PEF.

A businessman created a housing cooperative and issued bonds to inflate the company’s value to $5.5 billion, and investors (ordinary citizens + government) saw this and invested $132 billion.

And the housing association has bought out the bank to make the company bigger, and if that works out, all that’s left for investors to do is rake in their money.

The problem is that this is a castle built on sand.

Can the value of a company be increased by rolling in money?

It is said that the UK attracted PEF and increased the corporate value by 16%, but this is the result of splitting up and merging the company.

For example, let’s say there are companies A and B in the market.

Company A’s value is 100, Company B’s value is 50, so if the two companies are combined, does that mean the company will be worth 150?

That can’t be true.

If it were a simple addition, all companies would be combined to generate profits, but since that is not possible, PEFs must go through a process called restructuring.

“There is a high possibility that even mid-sized conglomerates with significant asset size will enter the restructuring market. In particular, the construction and petrochemical industries have a high ratio of labor costs to performance, so restructuring is inevitable.”

What should a company do first when it is in financial trouble?

The answer is restructuring, cutting jobs because it’s hard to pay salaries.

And this leads to an improvement in the company’s financial indicators, and an increase in the company’s profits means that investors have more to eat, so investors also welcome the restructuring of PEFs.

Is it job creation and social development that investors want?

Just let me make money and that’s it. In this way, PEFs cut out the hard-to-eat parts of a company and suck out only the core and throw it away.

Then, what if we apply this logic to Korean Transport?

Daehan Transportation is the largest employer in the world, and if a company like this restructures, it will definitely make a profit.

All you have to do is cut out all the people who just eat rice and inflate the value of the company by attracting investment funds.

However, I am not the kind of person who would sell out a company because I think of the company as a tool for running the country.

Above all, PEF is a very strange investment method.

Instead of receiving a 2% annual management fee from investors, PEF takes 20% of the profits as a performance bonus if the fund generates returns of 8% or more.

Doesn’t something seem strange?

I made an investment, but I have to pay a management fee in return for entrusting my money. On top of that, I can only receive a performance bonus if the fund produces an 8% return?

So what happens if it doesn’t work out? Like the housing cooperative scandal in the US, $138 billion could go up in smoke.

Recently, a similar incident occurred in Korea.

An investor established a PEF and raised about 20 billion won in investment capital, but lost all of the principal as it failed to generate profits.

Of course, the victims are also penniless, this is the fear of PEF.

Typically, investors diversify their investments, but PEFs do not do that.

If he decides to take over that company, he’ll concentrate all his resources in one place, and he’ll swing a knife at other people’s money while owning less than 1% of the shares.

This is why the PEF market has become an arena, there is no middle ground in PEF.

In gladiator games where you have to kill your defeated opponent without fail, the winning percentage of gladiators who make it to the finals is 100%.

So, is the PEF that survived the competition a gladiator who can beat up any company? This time, he may die in the gladiator arena.

Yet the gladiators portrayed themselves as warriors who had won every battle.

Just as public opinion acclaims a gladiator who is undefeated, investors also stake their lives on a human being who may die at any moment.

Is this a normal investment structure?

Recently, Hyundai Group, led by Chairman Chung Ju-young, has been embroiled in a lawsuit, shaking its corporate value, and there are more than a few predators targeting this.

There are about 100 affiliates under the Hyundai Group.

What if some gladiator takes over one of those failing companies and uses his money to inflate its value?

Investors will be tempted and give the gladiator more money, and the gladiator will start another fight where he may die at any moment.

Britain has grown its economy in this way, so what are the results?

The number of unemployed has increased by 2 million due to indiscriminate restructuring, but Britain is responding that it doesn’t matter.

If external investment is coming in and the company’s value is increasing, that’s enough, so what more can I say?

And yet, the Korean Transport officials tried to put me in the arena.

“Your Majesty, Hyundai Group affiliates are currently in crisis due to debt issues. If we mobilize funds to restructure and increase corporate value….”

“Where will the investment money come from?”

“That would be… all we have to do is set up a union and issue bonds.”

“What are we going to do about the management fee?”

“Like other PEFs, you should be able to get about 2%.”

I was in trouble.

If you just push it forward, success is certain, but is it right for a person in power to divide up a company and increase his wealth by exaggerating?

Above all, Hyundai Group is a tool that leads national development, so it makes no sense to split it up to fill my own stomach.

However, it is true that leaving Hyundai Group as it is will cause problems, and I have concluded that it is better for me to take over the company rather than let it be taken over by foreign capital.

“If we establish a union, raise investment funds, and restructure immediately, we can issue more bonds and swallow up the remaining affiliates.”

“Understood, Your Majesty.”

This is how I jumped into the arena.

How could investors not gather when this is a project being promoted by the head of state of Korea?

I secured 185 billion won in investment funds in just one month, so I only spent about 1 billion won of my own money and swept up Hyundai Group affiliates.

A game that is no match from the start,

Even if foreign PEFs run wild, they can’t stop me when I have personal assets worth 34 billion dollars.

I just went through the order in which I entered the arena, and in this way, I ended up holding the Hyundai Group, the second largest group in Korea.

Of course, it is a bit unfortunate for Chairman Chung Ju-young. He must be very upset that the company he spent his entire life building has fallen into someone else’s hands.

I called him aside and comforted him.

“I’m sorry, Mr. Chairman. I didn’t want to do this. But foreign capital is trying to swallow up Hyundai Group, so I had no choice.”

“No, Marshal, I understand. I can’t hand over the business I’ve built over my life to those guys. It’s better for you to take it.”

Chairman Chung Ju-young accepted reality.

The sons thought of running a business only as making money, and they even tried to split the group up and divide it among themselves.

Should we hand over the throne to these guys? Since the kingdom is going to be ruined anyway, it would be better to hand it over to someone qualified.

Chung Ju-young’s makeup acknowledged that I would succeed to the position.

“If you think about it, Hyundai Group is a group that was raised by the state. How much support has your Majesty given to the company’s development so far? Now it is time for me to hand over ownership.”

“I feel a little less guilty now that you say it.”

I offered Chairman Chung Ju-young the position of director of Daehan Transportation.

He has abdicated the throne, but he still has a lot to do for the country. They even acknowledged his purchase of shares in Daehan Transportation to give him more power.

And, in order to ensure that Hyundai Group affiliates remain as close to their original form as possible, the number of mergers and acquisitions was limited to about 20 out of the 100 affiliates.

In the process, the profit earned by Daehan Transportation was 344 billion won, nearly double the investment amount.

Of that, the amount returned to investors was 185 billion won in principal and 32 billion won in profits, and the remaining 127 billion won went entirely to Daehan Transportation as profit.

That’s why businessmen come to the arena with investment money on their backs.

And I am in a position to run a country, so I absolutely cannot lose that fight.

If I am destined to become a gladiator, I will become a warrior who wins 100 out of 100 battles. I have designated 27 domestic companies as PEF strategic investment targets.

“From now on, Korea’s PEFs will be managed by the state. If a fund company issues bonds without permission and causes damage to investors, the state can stop redemption and recover the investment.”

This incident also had repercussions in the United States.

In the United States, the debate over how to provide relief to those who suffered damages from the housing cooperative incident has also arisen, and public opinion in the United States is split evenly.

“If I make money, it’s because I’m competent? If I lose money, is it the country’s fault?!!”

“Aren’t they all guys who failed while trying to make a killing? How can we save them?!!”

“That’s an extreme claim. If investors had known that the housing association had issued $5 billion in bonds, would they have invested? The government was blind enough to invest $30 billion in housing associations.”

If I win money, it’s because I’m good, but if I lose, is it someone else’s fault?

There are also strong arguments that say that since everyone who invested money in housing cooperatives went bankrupt because of greed, there is no reason for the government to protect them.

But if even the government was fooled, it would be a different story. Senators including John McCain accepted bribes and turned a blind eye to the fund’s irregularities.

Should we simply blame this incident on the foolishness of the victims when politicians who should be working for the country and the people took bribes?

Since even members of the National Assembly were involved, everyone had no choice but to let it slide. In the end, this was a crime that the state turned a blind eye to.

This is why Korea is stepping forward to monitor PEF.

Investors are fighting back, saying the government is encroaching on the free market economy, but that’s because they haven’t been scammed before.

Could you say that if $132 billion had gone up like in the US?

Even in the United States, which has experienced the bitter taste, there is now talk that the government should regulate PEF, and with Korea taking the lead, public opinion in the United States has also been shaken.

“Korea says the government protects investors, but the US is just watching?!!”

“If we leave this alone, the government will be considered as one with the scammers!!”

The U.S. government was unable to do anything.

If we regulate PEFs, foreign capital will likely flow out of the country, and if we do not regulate them, investors will not be able to entrust their money to any fund.

How can you have confidence in entrusting your money to a fund when the government won’t protect it?

That’s an unintelligent thing to do,

After much deliberation, the U.S. government decided to regulate PEFs.

How many investors have lost money and how many people have become unemployed because of scammers who split companies and eat the meat?

The U.S. government’s position is that it can no longer sit idly by.

The days of scammers like this are over.

And the aftermath of this was so great that it shook the UK, with protests by investors and workers who had been victims of the UK’s reckless PEF policy.

“Give me my money!!”

“Do you think we don’t know?!! You stopped the redemption and only returned the investment money to the congressmen?!! You are all scammers!!”

“Overthrow this government!!”

A scandal that could literally overthrow the nation,

A British PEF company that declared a halt to redemptions when it was in financial trouble has been confirmed to have returned some of the investment funds to members of parliament.

If the members of the National Assembly suffer losses, they will be judged by the law, so they kill the investors and only preserve the principal of the members of the National Assembly.

It was revealed that Congress and the fund were on the same side.

Protests and riots are taking place everywhere,

The British government declared martial law, but the situation did not calm down.