The Magician’s Memorial - Chapter 129



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Episode 129 The disappointing side (3)

Chairman Jang Young-joo gave up his pride.

He thought that the person who could save Hyunjae Group was Chairman Kim Tae-joong, so he took a completely low-key stance.

“Without Taewoo Group’s help, Hyunjae Group cannot survive. “Please take over the current semiconductor business.”

“Of course I would like to do so, but the moment Taewoo Group takes over Hyunjae Semiconductor, the Taewo Group may collapse. You can’t ruin Taewoo Group just to save Hyunjae Group, right? “Currently, semiconductor debt amounts to a whopping 16 trillion won, so how can they take over?”

Currently, semiconductor debt is at its worst.

Thanks to the government and banks providing emergency blood transfusions, he was barely able to breathe.

Chairman Jang Young-joo only recently became aware of this situation.

“If you decide, I will personally come forward and persuade the creditors and the government. “If we cancel debt as much as possible, wouldn’t the Taewo Group be able to manage sufficiently?”

“I will try to acquire Hyunjae Semiconductor under the condition of repaying 25% of the bonds. “But it will be a difficult condition for creditors to accept.”

25% of bonds.

This was not a decision made by Chairman Kim Tae-joong alone.

These were the conditions for the acquisition of Hyunjae Semiconductor, which were set after a long meeting with the vice president, Taewoo Securities, and the planning office.

“These are difficult conditions to accept. “This is a condition that no bank can accept.”

Korea Exchange Bank President Lee Soo-hyeon opposed the move.

Currently, Korea Exchange Bank is the largest semiconductor shareholder and the bank that holds the largest number of bonds.

Therefore, he attended the Federation of Korean Industries meeting as a representative of the creditors and represented the wishes of the rest of the banks.

“I will directly ask for help from the government. “Let’s find a way to buy the current group and the bank.”

“Even with government help, it is nearly impossible to achieve 75% debt relief.”

“But that can’t kill current semiconductors, right? “If the current semiconductor industry goes bankrupt, it will be difficult for banks as well.”

A chance to receive at least 25%.

With help from the government and support from the current group, it was possible to recover roughly half of the amount.

Conversely, what if the current semiconductor industry really fails?

As a semiconductor company with a loss of more than 2 trillion won every year, even foreign companies were reluctant to sell it.

However, if the creditors were to manage the current semiconductor company, they would have to bear a deficit of 2 trillion won.

“It’s not something I can decide alone. “We will convene a meeting of creditors and discuss it.”

“I will take action to ensure that you receive as much help as possible from the government. And we will try to raise funds as much as possible at the current group level.”

“If a decision is made in a good direction, I will positively review the current semiconductor acquisition.”

Chairman Jang Young-joo held the hand of Chairman Kim Tae-joong, going through difficult times.

A thin, lifeless hand. Chairman Kim Tae-joong reassured Chairman Jang Young-joo by stroking his hand several times.

***

It wasn’t until after 10 p.m. that my grandfather returned home.

The Federation of Korean Industries meeting must have been difficult, so his gait seemed weak.

“The meeting has gone on for a long time. How did the meeting go in the direction you wanted?”

“I don’t know. “Chairman Jang personally came to the meeting room and persuaded the creditors, but I don’t know if he will be able to receive 75% debt forgiveness.”

The basis of negotiations was to hit the price.

That way, you can push and pull from an advantageous position and purchase goods at a reasonable price.

“If the creditors say they will forgive up to 70% of the debt, you can take over at that time.”

“Would the bank be able to cancel that much debt?”

“It’s bound to happen that way. Creditors will try to sell off the current semiconductors by any means possible, but who will take over a company that is fraught with losses? So, we have no choice but to choose a method to recover at least 30%.”

Banks were never easy opponents.

We will look for all kinds of ways to minimize damage.

However, there would be no solution, and the creditors had to reach out to us first.

“Hmm, it will take quite some time for that to happen.”

“If we take our time, it will be a fight in our favor. “The deficit will continue to pile up.”

“But would it be okay for us to acquire the current semiconductor? “There is a deficit of 2 trillion won every year.”

“We can easily handle that level of deficit. And it doesn’t mean there will be a deficit forever; you just have to endure it for a few years. “We have already studied all the ways to save the current semiconductor industry.”

“It’s reassuring to hear what you say.”

The semiconductor industry fell into ruin due to the IT bubble.

In the end, you would make a profit as long as you held on, and I even had a plan to shorten the holding period.

“What did you decide to do with current construction?”

“I think it will probably be handed over to current car chairman Jang Kyung-jun. “CL Chairman Ko was opposed to it at first, but Chairman Jang Young-joo came forward and asked for understanding, so the acquisition process will proceed without any major problems.”

The appearance of Chairman Jang Young-joo was unexpected.

The appearance of variables is not welcome, but it was a great help this time.

“Chairman Jang personally unraveled the messy knot.”

“What kind of trouble is that in your later years? Tsk tsk tsk. This is why you need to save money in the group. “We never know when something like that will happen to us.”

My grandfather had changed a lot over the years.

Until the foreign exchange crisis, he focused only on business expansion, saying that debt was also ability.

But now, he has moved more passively than me.

“Stocking up too much money can also be a problem. So, we plan to proceed with share repurchase and cancellation.”

“The president of Taewoo Securities said that. “He said he had to protect the stock price, but he also asked us to keep a certain level of reserves in the company.”

“I want to use this opportunity to secure as much equity as possible. “Wouldn’t that prevent the Taewoo Group from being shaken from the outside?”

“Wouldn’t it be better to use this opportunity to complete the inheritance process? “I have to hand over the shares to you when the stock price falls so I can reduce the inheritance tax.”

I was worried about inheritance tax.

Since 50% had to be paid in taxes, at least trillions of won had to be paid in inheritance tax.

“If it becomes known that Taewoo Group is currently acquiring semiconductors, wouldn’t the stock prices of all affiliates fall? “I think it would be a good idea to proceed then.”

“Hehe, you bastard! Anyway, that’s true. “Even if it’s an empty word, shouldn’t ‘thank you’ come first?”

“I am always grateful to have been born as my grandfather’s grandson.”

“Yes, it should come out like that. Then, after going through all the inheritance tax procedures, I guess I should start buying back shares.”

I answered with laughter.

No matter what I say now, I will become a bad grandson who wants to take my grandfather’s property.

As the warm atmosphere continued, the grandfather cleared his throat and spoke quietly.

“Hmm, there is a way to dramatically reduce inheritance tax. “If you inherit your property by establishing a public foundation or purchasing art, you can reduce your inheritance tax by more than half. What do you think?”

“I don’t want to join hands with my grandfather and go to jail. It is much better to just pay trillions in inheritance tax than to be locked up in prison for a year or two. “It’s okay to make money, but you can’t turn back time.”

“Hehe, did you say trillions?”

“Shouldn’t a grandfather’s grandson be that kind of vessel?”

I have seen corporate heads sent to prison several times over inheritance tax issues.

It may not be a big problem now, but it was bound to become a problem at some point.

“Yeah, I can’t go to jail at this age either. Still, try to find ways to save money as much as possible. There is nothing I can do about equity, but I will hand over cash assets by purchasing real estate. “Now that real estate prices have fallen a lot, we may be able to reduce inheritance tax a little.”

“thank you.”

To be honest, I wanted to tell you not to try too hard.

Because I had more wealth than my grandfather had.

Compared to the funds in the SAVE investment company, my grandfather’s wealth was not that much.

But how could that be?

For the sake of my grandfather’s self-esteem, I had to be polite.

***

The first day of November.

All the important people gathered together in Captain Kang’s office for the first time in a long time.

Not only Dimon, but also team leader Han and David, who are in charge of the SAVE investment company, came to Korea.

“The current semiconductor situation is getting worse. Creditors are currently trying to sell semiconductors not only to the United States, but also to Japan and China, but they say they are not very interested. “We are trying to take it to places that show interest at a completely cheap price.”

“It’s a natural result. “Who would want to take over a company that is losing 2 trillion won every year?”

“SAVE Investment Company is also working hard. “A rumor spread on Wall Street that if Hyunjae Semiconductor was acquired, it would go bankrupt.”

We were the source of the rumor.

A team leader spread the word through SAVE investment company.

David, who had tremendous connections, spread the rumor quickly.

“I’m doing well. ah! And I need to drop the stocks of all Taewoo Group affiliates.”

“If SAVE Investment Company sells Taewo Group’s stocks all at once, the stock price may fall, but is there a reason for that?”

“It’s because of inheritance tax.”

“… … All right. “Give me the signal and I will lower the stock price.”

A team leader narrowed his eyes.

His eyes seemed to be saying, ‘People who have it do more.’

I turned my head and made eye contact with David.

“boss! “I think you should come to America sometime.”

“Is it because of the presidential election?”

The US presidential election took place this week.

Because the gap between the Democratic and Republican candidates was only a single digit, it was unknown who would become president.

“If Bush is elected president, shouldn’t the boss personally congratulate him?”

“Of course you should. Please schedule an appointment.”

“But what if Bush doesn’t become president? Every polling agency has some polls that show the Democratic Party in an advantage, while others show that the Republican Party has an advantage. “If Bush loses, won’t SAVE Investment Company and its boss suffer?”

“We’ll have to think about it then.”

I wasn’t worried at all.

Because we already knew who would be president.

Moreover, since I provided a large amount of funds, the chances of Bush becoming president were higher than before the return.

“I’ll make a schedule for now.”

“And now that I’m in the U.S., I have to take care of other things. “I am thinking about acquiring Qualcomm’s shares.”

“By Qualcomm, do you mean a company that manufactures semiconductors used in mobile phones? This is a place where stocks were cut in half due to the IT bubble. Even now, stock prices are falling in real time.”

Due to the IT bubble, Qualcomm’s stock price falls by nearly 80%.

Considering before the regression, stock prices will fall further over the next two years.

It was clear that the stock price would skyrocket the moment the iPhone was introduced, so it was necessary to secure shares now.

And Qualcomm’s technology was needed to normalize the current semiconductor industry.