Third-Generation Chaebol

I had never once raised my voice at my grandfather since the day I was born.

As a very young child, I had thrown tantrums while crying, but even then, I never shouted.

That was why, when I finally raised my voice, my grandfather was so taken aback that his hands trembled.

"What is it you want to say? Don't get worked up. Speak slowly."

"It's not just a wave—it's a tsunami coming our way. A wave can be avoided for a moment, but a tsunami will leave everything in ruins. That is the current state of the Korean economy."

"Are you saying Korea's economy will be devastated?"

"The 'too big to fail' principle that you always believed in no longer exists. If Korea collapses, how can large corporations expect to survive?"

"Do you think Korea is a country that will fall so easily? I don't know where you're hearing this nonsense from, but that's enough."

My grandfather looked at me as if I had been brainwashed by a cult.

Well, who would believe it if someone suddenly claimed that Korea was on the brink of bankruptcy?

But I had no choice—I had to convince him.

So, I pressed on.

"This is precisely why I was so confident about acquiring SS Oil. If Korea's economy plummets, SS Group will also go bankrupt."

"Are you saying SS Group is in danger too?"

"Not just SS Group—Kia Motors will also go bankrupt this year. I can say with certainty that half of the top 30 corporations will collapse. If we don't want Taewoo Group to be among them, we must endure and wait for now."

My grandfather stared at me intently.

His eyes, filled with wisdom and experience, made me want to turn away, but I couldn't back down now. Instead, I locked eyes with him, my resolve unwavering.

"You're serious about this."

"I'm not just saying this on a whim. In a matter of months, Thailand will experience a foreign exchange crisis. That crisis will spread across Southeast Asia, and by the latter half of this year, both Taiwan and Korea will face the same fate."

"Do you believe Taewoo Group will fall if a financial crisis occurs?"

"Hanbo Group collapsed due to excessive debt. Taewoo Group also carries a massive debt burden. Although we have reduced our debt ratio by selling off Taewoo Heavy Industries and our mobile phone division, we are still in a risky situation."

At last, my grandfather seemed to understand why I had been so intent on selling off the subsidiaries.

"…So, that's why you wanted to sell them."

"To survive this crisis, we must implement even stricter financial measures. Business expansion and investments should be minimized, and we need to dedicate all our efforts to securing foreign currency reserves."

"There's no way you came up with this idea on your own. Did you hear this from Wall Street?"

"In just a few months, Thailand will declare national bankruptcy. If that doesn't happen, I will step down as the Head of Planning."

"So now you're threatening me."

My grandfather's feelings were already deeply hurt.

A good grandson would have known to back down and soothe his wounded pride.

But what good was being a "good grandson" if Taewoo Group collapsed? If that happened, everything would be lost.

"Just hold on for a few months. If we can weather this financial crisis, there will come a time when you can acquire all the companies you desire. Not only SS Oil but also Kia Motors—both could become subsidiaries of Taewoo Group."

"I just don't understand why you're being so dramatic about this. Korea, going bankrupt? Tsk, tsk."

"If that doesn't happen, I will start over from scratch. Not as the Head of Planning, but as your personal secretary, learning everything anew."

My grandfather gazed out the window.

Without looking at me, he finally spoke again.

"Do you truly believe SS Group will collapse?"

"It's certain. I can stake everything on this."

"If SS Group collapses, then we'll be able to acquire SS Motors too."

"Wouldn't it be better to acquire Kia Motors instead? If everything goes according to my plan, Taewoo Group will rise to the top of the business world within one or two years."

"Alright, I'll wait for a few months as you suggest. But if nothing happens, I'll have a seat prepared for you in the secretary's office."

"Thank you. Truly, thank you for trusting me."

I bowed my head at a 90-degree angle, expressing my gratitude.

Honestly, I should have been angry.

After all, my grandfather had failed to recognize the person fighting desperately to save the group.

But rather than feeling upset, I was overwhelmed with gratitude—to the point that I felt like crying.

That was how crucial these next few months were for both me and Taewoo Group.

At least one per month.

The newspapers and news broadcasts were filled with reports of large corporations going bankrupt.

Starting with Hanbo Group, then Sammi Group, and now even Jinro Group—despite its strong cash cow in the soju business—was on the verge of collapse.

Economic growth had plummeted disastrously.

There were even reports stating that the South Korean government's foreign exchange reserves were running dry.

Only then did my grandfather finally set aside his doubts about me.

"Just as you said, Korea is faltering."

"This is only the beginning. More companies will fall."

My grandfather and I were having tea in the mansion's living room.

Perhaps because we were dressed comfortably and seated in a relaxed setting, our conversation flowed more smoothly than usual.

"There's something I want to ask. Since when did you predict this situation?"

"I knew about it back when I was in the U.S. The hedge funds on Wall Street even defeated the British in their financial battle. If even a developed country like the UK wavered, it was clear that Korea would collapse even more severely."

I couldn't exactly tell him that I was reliving my life.

So, I mixed a bit of truth with lies to make my story more convincing.

"Hmm, it seems your predictions are proving accurate. Does this also have anything to do with selling Taewoo Heavy Industries to Hyundai Group?"

"Once the foreign exchange crisis hits, great companies will become available on the market. The biggest rival, Hyundai Group, will find itself in no position to spend money."

"So, you're saying selling Taewoo Heavy Industries to Hyundai was a strategic move to secure better acquisitions later?"

"It was also a step toward transforming Taewoo Group beyond just a manufacturing company. To secure high-profit industries in advance, we need capital."

When labor costs rise, manufacturing profits inevitably decline.

Most major South Korean corporations had an extremely high dependence on manufacturing.

Labor costs weren't too high yet, but in just a few years, they would rise sharply, significantly reducing manufacturing profitability.

"It seems everything you're saying makes sense. But there's still something I can't agree with—I just can't believe that Korea will go bankrupt."

"The current administration has been in a lame-duck period since last year. They don't have the power to prevent this crisis."

"Even so, I can't shake the feeling that we're missing out on opportunities to acquire good companies."

My grandfather's ambition remained unchanged.

In the past, I would have clenched my teeth in frustration whenever he spoke like that.

But now, I could take it in stride.

The dice had already been cast.

And once the dice had been rolled, the player could do nothing but wait.

I knew my grandfather would talk about acquisitions, but he wouldn't actually take action—not yet.

"A golden opportunity to acquire strong companies at bargain prices will come soon."

"Even if the country does go bankrupt as you say, we won't be able to make major acquisitions until power is transferred to the next administration."

"That's exactly what I wanted to discuss. How do you plan to position yourself in relation to the next administration?"

"That depends on who becomes president. But in South Korean history, the candidate running under the No. 2 ticket has never won. So, wouldn't the ruling party's candidate be the next president?"

Everyone was optimistic about Candidate No. 1's victory.

However, during the ruling party's presidential primary, a candidate refused to accept defeat and instead ran as Candidate No. 3.

As a result, Candidate No. 3 siphoned votes away from Candidate No. 1.

On top of that, suspicions surrounding Candidate No. 1's child's military service further weakened his standing—allowing Candidate No. 2, DJ, to win the presidency.

"I believe the opposition party's candidate will win the election."

"Do you simply like rooting for the underdog? Or have you analyzed the situation and concluded that the opposition has the upper hand?"

"There's an old saying that the presidency is decided by the heavens. No matter how much scientific analysis we do, predicting the outcome is difficult. However, given that the ruling party failed to prevent the financial crisis, I don't believe they'll be able to produce the next president."

"So you're saying the financial crisis will determine the election?"

The current president had accomplished much.

But with the financial crisis, all his achievements were overshadowed, leaving only a negative reputation behind.

As companies collapsed daily and unemployment surged, public support for the opposition grew stronger.

Of course, such analysis was meaningless to me.

Because I already knew who would become the next president.

"I understand that you have a close relationship with the opposition candidate."

"We often discuss economic matters. Even though this election favors the ruling party, you should know that my ties to the opposition are special."

My grandfather and the next president had been very close.

But for reasons I wasn't entirely sure of, they eventually had a falling-out after the financial crisis.

"Since you're going to help anyway, you might as well go all in. That way, it'll be easier for you to acquire the companies you want."

"I'd like to, but there are too many eyes watching these days. Supporting an election campaign financially isn't as easy as it used to be."

I wanted to ask him—if he knew that, then why did he still get himself into trouble over election funds?

My grandfather eventually got caught funding the opposition candidate's campaign, creating a major scandal.

To prevent history from repeating itself, I had to step in.

I couldn't let my grandfather end up in prison again.

"May I handle the campaign funds instead?"

"The chief secretary is an expert in that field. You don't need to get involved."

"I learned a lot from Wall Street. I'd like to work with the chief secretary to manage the campaign funds."

"Hmm… I suppose you're at that stage now. If anything goes wrong during delivery, it'll be a disaster, so proceed with caution."

With my grandfather's approval, I set out to devise a method to discreetly transfer the campaign funds—one that no one would ever discover.

***

A Few Days Later

A secret meeting was held in my office.

The only attendees were the Chief Secretary and the Head of Planning. The topic of discussion: campaign fund support.

"Grandfather has decided to support the opposition candidate."

"So, in the end, he's going through with it. The ruling party candidate has the upper hand, so the risk is significant."

"There's always a risk, no matter which candidate we support. That's why we need to focus solely on ensuring the funds are delivered without any mishaps."

The Chief Secretary suddenly cleared his throat.

Perhaps he felt awkward about revealing such sensitive matters to someone like me, whom he saw as a grandson.

"Political donations can be delivered through various channels. The most critical factor is ensuring that the funds are completely untraceable—otherwise, there will be repercussions."

"Do we have such untraceable funds set aside?"

"Every year, we launder a certain amount in preparation for the presidential election."

In other words, it was slush money.

In South Korea, running a major corporation practically required maintaining a slush fund.

If a company were to openly use official funds for political donations, it was almost guaranteed that someone would end up in prison.

"Even if the group's slush fund was set up at the corporate level, I doubt all traces of it have been erased. That's why I plan to use an entirely new method to deliver the campaign funds."

If anything went wrong with this, I would be the one taking my grandfather's place in prison.

That meant I needed a flawless method—one that ensured the campaign funds reached their destination without leaving a single trace.