The Magician’s Memorial - Chapter 84



Only Krnovel

Episode 84 National Bankruptcy Day (2)

In December, the exchange rate soared once again.

As I was waiting for the right time, I urgently called the planning director.

“Today we will move $10 billion tied up in the Aramco joint venture.”

“Have you decided that the exchange rate has risen to its maximum?”

“It won’t go up any more. All debts of Taewoo Group must be paid off today. “We have contacted Wall Street in advance, so the funds from the joint venture will go through Wall Street and the amount minus the debt will come to Korea.”

The exchange rate was a race against time.

Since it was a fight where whoever moved first had the advantage, we moved quickly.

Just 1 hour.

In the meantime, SAVE Investment Company’s total debt of 14 trillion won was paid off, and more than 5 trillion won was transferred to the Taewo Group account.

“All work has been completed. “$10 billion in funds were moved, but the exchange rate fluctuated less than expected.”

“The amount of dollars actually coming into Korea is small.”

Not all of the $10 billion came to Korea.

Dollars worth 14 trillion won were transferred to SAVE Investment Company to repay debt.

Since only 5 trillion won worth of dollars came into Korea, the exchange rate change was not significant.

“The Chairman is waiting. “He asked me to come to the president’s office when the work was completed.”

“It’s good news, so you’ll be waiting with joy.”

Until now, whenever I went up to the president’s office, I had to run up the stairs, taking 2 or 3 at a time.

But now, I leisurely walked up the stairs to the president’s office, taking one stair at a time.

“What happened? “I guess the work was completed well, right?”

“From now on, Taewoo Group’s debt is 0 won. “My debt, which was at 400%, has gone down to 0%!”

“Hehehe, it’s refreshing to see so much debt disappear at once. How much money do you have left over after paying off your debt?”

“It’s a little over 5 trillion won. “This is more than enough money to acquire a decent company.”

“The amount came in as you expected. It’s really great. “There is no day I am more proud of you than today.”

My grandfather opened his arms and hugged me tightly.

It was the warm embrace of my grandfather that I had felt for the first time in a long time.

After spending some happy time, I brought up a new topic.

“The first company to be acquired must be SS Oil.”

“Isn’t the oil company in urgent need right now? Wouldn’t it be better to acquire Kai Motors or a construction company?”

“Only by acquiring SS Oil can we form a joint venture with Aramco and create a proper oil refining company. If that happens, we can receive huge amounts of dollars from Aramco.”

Grandpa took a step back.

We moved to the sofa and continued talking.

“Keep talking. “What did you mean by saying that if you create an oil company, you can receive dollars from Aramco?”

“We signed a contract to establish a large-scale oil refining company by adding Taewoo Chemical and Taewoo Heavy Industries. Of course, we must purchase the shares we own in Taewo Chemical and Taewo Heavy Industries from Aramco. And once the establishment of the oil refining company was completed, Aramco promised to provide a large amount of investment.”

“You can sell your shares for dollars and receive investment money on top of that.”

“We can secure at least 3 trillion won or more. So, if we can only acquire SS Oil, we will have the funds to acquire many other companies, including Kai Motors.”

Of course, the size of the investment could vary.

The size of the investment varies depending on how friendly the Saudi royal family is to us.

“I definitely need to take over SS Oil quickly.”

“But if we reach out first, we can’t beat the price.”

“Yekki! You beat the price! It should be said that it will be acquired at a reasonable price. And don’t worry about that, SS Group Chairman Park Won-seok is contacting me several times a day asking to meet.”

“Then can I meet you too?”

“Of course not. “I told you to remove the ox horn as soon as possible, so let’s have dinner together tonight.”

“I will be ready.”

SS Group ranks 7th in the business world.

It was certainly a great group, but the current chairman was a second-generation chaebol.

The group was managed in a very different way from the founder, and was suffering from enormous debt.

* * *

That evening.

My grandfather and I went together to a Korean restaurant located in Cheongdam-dong.

We were guided by the manager to the most remote building from the restaurant, and SS Group Chairman Park Won-seok had already arrived and was waiting for us.

“Chairman Kim, are you here! “Thank you so much for meeting me like this.”

“You put too much gold on my face. “I’m embarrassed in front of my grandson.”

“Your grandson also came with you. I had already heard the rumor that Inophone was made. “It’s really nice to meet you.”

Even to me, who was about the age of his son, Chairman Park appeared in a low-key manner.

This also proved that the group’s situation was urgent.

“It is an honor to meet Chairman Park Won-seok. “I heard a lot of good stories from his grandfather.”

“What good story can there be from me? “He is just a second-generation chaebol who tarnishes his father’s name.”

“How long are you going to say hello? “Let’s continue our conversation while eating.”

“Would it be possible? “I will tell you to prepare a meal right away.”

Chairman Park personally went outside and called the manager.

Soon, delicacies from the mountains and the sea filled the table.

Naturally, the grandfather took the spoon first before Chairman Park and I started eating.

“But are you going to completely quit being a member of the National Assembly now? “He won the election with great difficulty, so isn’t it a waste to quit?”

“The group appears to be collapsing, so will it be able to carry out legislative activities properly? “I am resigning from my position as a member of the National Assembly.”

In this era, politics and corporate management were often combined.

In my grandfather’s case, he almost ran as a presidential candidate, and the chairman of the current group also ran for president.

SS Group Chairman Park Won-seok was also proudly elected to the National Assembly with a dream of politics.

However, when the group was reeling from the foreign exchange crisis, he resigned from his position as a member of the National Assembly and focused only on management.

“If he even resigns from his position as a member of the National Assembly, the group’s situation must be so bad.”

“I’m really close to collapsing. We are trying to survive by disposing of affiliates as much as possible, but it is not easy. “Chairman Kim’s help is desperately needed.”

It was Chairman Park who put down his spoon and bowed his head.

The grandfather clicked his tongue, as if he felt sorry for that sight.

“Tsk tsk, shouldn’t you have managed your debt better?”

“Who knew things would turn out like this? Excluding Taewo Group, is there any conglomerate in the top 20 in the business world whose debt ratio does not exceed 400%?”

My back has been hurting for no reason.

If it weren’t for me, Taewoo Group’s debt ratio would have exceeded 400%.

“That’s it again. “I am not a stranger to your father, and I have had a long relationship with you, but my desire to help is like a chimney.”

“I will sell my SS car. Please take over.”

“I have no intention of acquiring a car company. “We have now created a joint venture with Ford, but if we acquire more car companies, management will become difficult.”

“Then, please let me know which affiliate you are interested in. “We will sell it at the best possible price.”

My grandfather acted troubled for a moment.

I joined the conversation quite naturally.

“How about taking over SS Oil? Shouldn’t car companies have oil companies?”

“SS Oil would be fine. What is it like? Do you have any plans to sell SS Oil?”

“We are not in a position to distinguish between hot and cold water. “If you just take over, I won’t be able to sell any of my affiliates.”

SS Oil was a truly profitable company.

Because it was a joint venture with Aramco, SS Group could not raise debt at will, so the debt ratio was quite low.

“But they say they can’t pay that much. I will buy shares of SS Oil at the current stock price. Of course, I will give you a small premium for management rights.”

“At the current stock price, it is only 1 trillion won. Please consider the value of SS Oil. “This is a company that earns over 200 billion won in net profit every year.”

Oil companies were cash cows.

Although sales vary depending on oil prices, it was still a stock that rarely suffered losses.

However, SS Oil was now experiencing a loss.

It was not because of any other reason, but because of ‘exchange loss’.

It took two months to import crude oil from abroad and go through the refining process.

To prevent cash being tied up during this period, oil companies issued bonds.

However, as the exchange rate soared, the interest burden grew like a snowball due to the exchange rate difference.

“I heard that this year’s net profit is in deficit. “It’s a long time ago that we earned more than 200 billion won in net profit.”

“This is a company that can turn into a profit at any time as long as we get over the foreign exchange crisis safely. “You can never pass up SS Oil for 1 trillion won.”

“Hmm, good. Then, we will buy bonds along with 1 trillion won. “I understand that the oilfield bonds issued by SS Group are roughly 300 billion won.”

Usance bonds.

Bonds issued by oil companies were called this.

Since it was a debt held by SS Oil, not SS Group, it was decided to pay it off instead.

“Are you sure you can’t handle it anymore? “We cannot normalize the group with just 1 trillion won.”

“Don’t you know very well that taking over SS Oil is not an easy task? This is a company that will have to suffer losses for at least several months, and at most several years. “I think it’s enough for us to shoulder that burden.”

“Then can you give me 1 trillion won in dollars?”

“I can give you dollars if you want.”

The country was now short of dollars.

Most of the company’s debt was dollar debt, and dollars were also needed to purchase raw materials.

“Then, I will transfer my shares in SS Oil on the condition that Taewoo Group pays 1 trillion won and oilfield bonds. Write it!”

“Uh huh, a grown man is writing this because he’s crying! “If we put out urgent complaints well, SS Group can come back to life!”

It was Chairman Park who was holding back tears.

The grandfather poured alcohol into a glass and comforted Chairman Park.

“thank you. “The chairman is the only person who helps me even in this way.”

“I would like to help more, but it is difficult to do so anymore when Korea is bankrupt. “I’m sorry.”

“no. Just purchasing SS Oil will be of great help. But what do you plan on doing with your relationship with Aramco? “It is a very strict company, so even if you acquire a stake, it will not be easy to manage it.”

Chairman Park was actually worried about us.

It seems like you went through a lot of hardships while running the joint venture with Aramco.

“The issue with Saudi Arabia must be resolved gradually. “Shouldn’t we first take over SS Oil and then talk about it?”

“In fact, we can sell our shares in SS Oil only after consultation with Aramco.”

“All you have to do is stamp the contract. “I will fly to Saudi Arabia myself and solve all your problems.”

“I’m really sorry that I keep getting help. “I will definitely repay this favor someday.”

What is grace?

It’s a good thing if he doesn’t come out to take revenge.

All talks with the Saudi royal family had already ended.

My grandfather is going to Saudi Arabia next week, but it was to discuss specific matters for establishing a new joint venture.

Today’s meal is like a play.

It was a play in which people moved according to the script and spoke their lines in order to steal shares in SS Oil from SS Group Chairman Park.