The Magician’s Memorial - Chapter 161



Only Krnovel

Episode 161 Madness. (5)

There are only a few days left in 2001.

Before the regression, the credit card crisis occurred between 2002 and 2004.

However, in this life, the time was brought forward because the Taewoo card was transferred to the CL card, and it was further brought forward because the works of Dimon and Myeongdong were done at the same time.

“Vice Chairman! CL Card’s cash services have been completely discontinued!”

“It looks like a fund liquidity problem has arisen.”

“CL Card issued a statement saying that cash services were suspended due to a computer failure, but we found out that cash services were suspended due to insufficient account balance for CL cards opened at each bank.”

CL Card, the number one card company in the credit card industry, discontinues cash services.

The signal that started the card crisis was finally fired.

“What is the situation of other credit card companies?”

“It’s not causing much of a stir yet, but it is expected that problems with other credit card companies will also surface due to the CL card problem.”

“There will be another uproar. “It may not be as bad as during the foreign exchange crisis, but the stock market will fall quite a lot.”

“Taewoo Group does not own a credit card company, so it will not be a big problem, but we will be fully prepared.”

When I was talking with the planning director.

The secretary’s office hurriedly entered the vice president’s office to report important news.

“CL Group Chairman Koh Seung-taek has requested a meeting.”

“It looks like your feet are on fire. Please tell me to see you tonight. Please also make reservations at good restaurants.”

“I’ll get ready right now!”

When the secretarial staff left, the head of the planning office looked at me with a face full of concern.

The head of the planning department was worried that I might take over CL Card unreasonably.

“Are you worried that Taewo Group will stumble if you take over CL Card?”

“When I think about when I first acquired Hyunjae Semiconductor, I feel dizzy. “The aftermath of the current semiconductor industry has finally passed, but I am a little worried that another storm will strike.”

“The director thinks so too. Then CL Group probably thinks so too.”

The planning director’s reaction was a kind of barometer.

Seeing that the head of the planning department was so sensitive, I thought that the CL Card takeover battle might end more smoothly than expected.

***

That evening.

I had a meeting with CL Group Chairman Koh Seung-taek at a quiet Korean restaurant.

This is my second time meeting him. I met her when Taewoo Card was sold to CL Group.

In this meeting, it was Taewoo Group’s turn to take over CL Card.

“Hehe, how are you? “I don’t know if Chairman Kim is dead or alive, but not even his nose is visible.”

“My grandfather is having a leisurely time in Vietnam. “You’ve been working hard so far, so wouldn’t you need a long vacation?”

“I envy you. I’m so jealous. “Some people are suffering as they grow older, but Chairman Kim lived a prosperous later life thanks to the good care of his grandchildren.”

It was the CL group, known for being from a noble family.

In normal times, Chairman Ko Seung-taek maintained the appearance of an upright gentleman, but perhaps because of the card crisis, he was using harsh words.

“I guess you are very worried about your CL card.”

“I got greedy and ended up getting seriously hurt. “It wasn’t about taking over Taewo Card, but it happened thanks to your encouragement.”

“Didn’t you make a big profit by taking over Taewoo Card? “If we had kept those profits, we would have been able to prevent this incident.”

It was Chairman Koh Seung-taek who was trying to blame me.

I accepted it in a slightly rude tone.

“Hehehe, yes, it was my fault for poor management. “How could you be responsible?”

“I think I spoke too much. “I apologize.”

“The apology has been made, let’s move on to work. “Do you have any intention of taking your Tae Card back?”

Are you going to come out like this?

Chairman Koh Seung-taek was trying to solve the fund liquidity problem by detaching Taewo Card from CL Card and selling it.

“The Taew Card and the CL Card have already become one, so how can I bring back just the Taew Card?”

“Then do you have any intention of taking over the entire CL Card? The sale will proceed on very good terms. “Wouldn’t it be more beneficial to both sides than handing it over to creditors?”

It would be a good picture only at the CL Group level.

However, if they handed it over to creditors, they could receive a certain amount of debt relief and even receive government support.

“I am willing to take over CL Card if CL Group takes responsibility for a certain portion of the debt. However, if it is acquired as is, it will be difficult for Taewo Group to handle it.”

“I know that I can acquire CL Card at a cheaper price if I hand it over to the creditors. However, the moment it is handed over to creditors, there will be more than one competitor rushing to take over CL Card.”

CL Card was number one in the industry.

It was very good prey for financial companies.

In particular, it was the best prey for financial companies that wanted to grow into large financial companies.

By acquiring CL Card, it was an opportunity to not only narrow the gap with the leader but also compete on the same level.

“Shouldn’t we first listen to the conditions and then make a decision? “Please tell me the conditions for acquiring the CL card.”

“We will take responsibility for 30% of the debt. Instead, please acquire 90% of CL Card’s shares for 70,000 won.”

“It amounts to 7.5 trillion won.”

I had already anticipated CL Group’s conditions.

Even before the return, CL Card was sold for over 7 trillion won, which was the highest price in domestic merger and acquisition history.

“I know it’s an excessive amount. However, from CL Group’s perspective, we have no choice but to make this suggestion.”

“Even so, 70,000 won is too much. “Wouldn’t CL Card’s stock price continue to fall due to the credit card crisis?”

“It is by no means a low amount. “If we just solve this problem of liquidity, we can increase sales by trillions.”

Honestly, it wasn’t wrong.

It was a CL card that could still serve as a cash cow once the liquidity issue was resolved.

Even so, it was impossible to buy it by spending more than 7 trillion won.

“Taewoo Group will assume all of the debt. Instead, what do you think about acquiring CL Card for 2 trillion won?”

“Are you planning on getting help from the government? “Even if the government persuades creditors to receive a certain amount of debt relief, the amount will not be very large.”

“But couldn’t the debt problem be reduced somehow? “We decided that it would be better to take on even the slightest possible debt rather than pay the 7 trillion won sale price.”

“I will accept your offer, but I think I made too risky a choice. “The amount that needs to be repaid at the maturity of this bond alone is over 700 billion won.”

“I am well aware that CL Card’s net loss for the period is over 3 trillion won. However, if we can get help from creditors and the government, Taewo Group can easily handle it.”

“I will help as much as I can. “Let’s persuade the government and creditors together.”

Rather, it was Chairman Ko Seung-taek who was worried about me.

Well, not only do we take on all of CL Card’s debt, but we can also receive a sale proceeds of 2 trillion won.

But even after a few years, your stomach will start to hurt.

CL Card will generate trillions in surplus every year for at least 15 years.

It was Chairman Koh Seung-taek who would later find out that he had sold a huge cash cow at a low price due to liquidity issues.

***

next day.

For the first time in a very long time, I was sitting on the sofa in the president’s office drinking coffee.

“Is the coffee going down your throat right now? You caused the accident, so why are you asking me to fix it? “You don’t want to see me resting in Vietnam that much!”

“How belittled would I be if I negotiated with the government? “Aren’t you going to get scolded for being such a young guy?”

“Tsk, tsk, okay, I’ll just help you with this matter. However, you should know that once the negotiations are over, you will return to Vietnam immediately.”

The grandfather was spouting unpleasant words with his mouth, but his face was smiling.

I guess it’s not bad to be back after such a long time.

Of course, I didn’t bring my grandfather from Vietnam because I wanted to see him happy.

My grandfather was the best at negotiating with the government.

He was a grandfather who was able to achieve good results because he had close relationships with the president and other politicians at the ministerial and vice-ministerial levels, and was also well acquainted with the representatives of banks, which were creditors.

“But are you confident? “If we take over CL Card, the Taewo Group could be caught in its tracks.”

“CL card will be the best cash cow if you solve the fund liquidity problem. “Didn’t your grandfather also want to get his Taewo Card back as soon as possible?”

“I was so sick to my stomach because I didn’t say anything when I handed over the Taewoo card to CL Group. Hmm, yes, since you say you are confident, I will take responsibility and bring the CL card.”

***

Negotiations continued for several days.

Government ministries, creditors, CL Group and even grandfather.

They fought fiercely for each other’s interests.

Creditors even said they would rather sell CL Card to a foreign company.

It seemed like the negotiations would end in catastrophe.

But today, a very big event occurred simultaneously.

“Vice Chairman, Korea Exchange Card has stopped providing cash services. “This is the first time that a credit card company with a bank as its parent company has experienced a fund liquidity problem.”

“I know that Korea Exchange Bank provided large-scale support, but it looks like it has already run out.”

“More than KRW 350 billion was provided by Korea Exchange Bank through the Korea Exchange Card, but the amount of bonds was so large that it quickly ran out. “Korea Exchange Bank has announced that it can no longer provide support with the Korea Exchange Card.”

A large-scale economic crisis began to occur.

The current administration was severely traumatized by the foreign exchange crisis.

But what if there is anxiety that an economic crisis may occur again?

Naturally, the cause of the economic crisis would be resolved as soon as possible, and the government would take a more proactive role in resolving the CL card negotiation issue.

“Now that there is a problem with the foreign-Korea card, negotiations will resume again.”

“Still, the chairman just left to attend a creditors’ meeting.”

“Good news will come sooner than you think.”

Grandpa wasn’t the only one who had to hustle.

The time has come for Dimon, who is aiming to acquire Korea Exchange Bank, to make his move in earnest.

***

A few days later.

My grandfather came to the vice president’s office with very confident steps.

“I’m going back to Vietnam now. “If possible, don’t contact me until I contact you first.”

“Are all CL card negotiations over?”

“Negotiations ended with better terms than what you said. The government and creditors said they would very actively cancel the debt. “You should have seen me begging for Taewoo Group to take over CL Card.”

It seems that the mood among the creditors has changed dramatically in the past few days.

Since even the Korea Exchange Card was destroyed, it seemed like a trend had been established that the CL Card had to be handed over to Taewoo Group as soon as possible, even if the debt was written off.

“Thank you for your hard work.”

“From now on, you will have to suffer. Even if debt relief is received, normalization will not be easy if the delinquency rate problem is not resolved.”

“I will think hard about it.”

“Okay, think hard. “I’m going to Vietnam.”

After finishing work, the grandfather packed his suitcase and headed out with a dignified look.

Since my grandfather prepared a beautifully prepared meal, I should enjoy it as a grandson.