[Saseong Trading's Distribution Division Fully Sold to Daeheung Group]
[After Acquiring Korea Express, Daeheung Group Now Adds HomeMart, Continuing Its Unstoppable March Toward Becoming a Retail Giant]
[Daeheung Group Acquires HomeMart for $310 Million]
[Daeheung Group Beats a Major UK Retailer to Acquire HomeMart]
[Domestic Large-Scale Discount Store Market Faces Accelerated Upheaval]
Staring down the newspaper with the headline announcing Daeheung Group's acquisition of HomeMart, Seok-won sat at his desk in the chairman's office, speaking on the phone with his older brother, President Park Jinhyung.
"Congratulations on acquiring HomeMart just as you wanted,"
Jinhyung said in a bright tone, perhaps relieved after the fierce competition against Tesco.
[Thanks. Without your help, we wouldn't have beaten Tesco.]
"What did I even do?"
[Tesco kept raising their bid right to the end, giving us a real headache. If you hadn't backed us, we probably would have thrown in the towel when they hit $300 million.]
Indeed, when Tesco put up as much as $300 million, concerns arose within Daeheung Group that pushing the bid any higher might trigger the winner's curse.
'The acquisition amount is substantial, and we're paying in dollars rather than won—so that concern makes sense.'
But Park Jinhyung, seeing this as the perfect chance to reshape the group, boldly raised the bid by an additional $10 million above Tesco's offer.
It was a move that could only be made with Seok-won supporting him in the background, ready to provide nearly unlimited dollars to back the acquisition. Without that assurance, he would never have dared.
Of course, Chairman Park Taehong, who held the final decision-making authority, also played a key role by trusting his eldest son and granting him full control over the acquisition process.
The result: Daeheung Group successfully outbid Tesco and brought HomeMart under its control.
"It's not like I'm giving it away for free—it's a loan with interest, after all."
[Exactly. I'll make sure the interest is paid on time, so don't worry.]
Seok-won smiled lightly at the reply, amused by the hint of humor in it.
"Just because we acquired HomeMart doesn't mean it's over. You know that to survive in this fiercely competitive discount store market, the real challenge starts now."
President Park Jinhyung responded in a notably serious tone.
[Of course. Once the management acquisition is fully settled, we plan to push forward with the opening of the Bundang branch, which was already in the works.]
Following Daegu and Busan, Saseong Trading had planned a large-scale shopping complex in Seohyeon-dong, Bundang, Seongnam, tentatively named MegaPort, with a total floor area of 35,800 pyeong.
But just before construction could start, the IMF crisis erupted, forcing the project to be indefinitely postponed.
"The construction costs will be significant—won't there be issues with financing?"
[With the richest younger brother in the world, what's there to worry about?]
"What did you say?"
[Ha ha ha! Just kidding. The truth is, there's a Chinese company interested in acquiring Daeheung Textiles, which we've put up for sale. Once the sale goes through, we'll use the funds to cover the investment.]
Seok-won smiled at the ease and confidence in his brother's tone, even while joking.
"If the sale had dragged on, it would have been troublesome. It's good to hear a buyer has shown up."
[It might not cover everything, but once the proceeds come in, I'll pay back at least part of the loan I borrowed from you.]
"You can take your time with my money—handle the urgent matters first."
[Thanks, even if it's just words.]
"I mean it."
[Anyway, once things settle down a bit, let's have a meal together sometime.]
"Sure."
As Seok-won ended the call and set down the receiver, Na Seongmi knocked and entered the room, wearing a neatly tailored two-piece suit.
"Executive Director Yoon Kihoon is here."
"Tell him to come in."
"Yes."
Shortly after Na Seongmi gave a brief reply and left, Executive Director Yoon Kihoon entered, wearing gold-rimmed glasses and carrying an approval document in one hand.
As Yoon approached the desk and bowed slightly, Seok-won leaned back in his chair and asked,
"What's the matter?"
Yoon placed the approval document on the desk and replied,
"You're probably aware that Gold Bank's stock surpassed 103,000 won per share last week."
"And…?"
"They want to do a ten-to-one stock split and asked for our opinion."
"So they're splitting the stock?"
Sitting up straight, Seok-won fixed his gaze on Yoon, who nodded slightly.
"Yes. After the stock exceeded 100,000 won per share, the rate of increase noticeably slowed, and the price has been moving sideways."
Seok-won immediately recognized the intent of Gold Bank's management. He raised an eyebrow and adjusted his neatly shaved chin with one hand.
"The price has gotten too high, so trading isn't active. They want to split it ten-to-one, then."
Yoon nodded again under Seok-won's watchful gaze.
"When a stock goes from over 100,000 won to 10,000 won, the perception is completely different. The recent slowdown in gains is partly due to profit-taking from those who have already seen significant rises, but the fact that it's a difficult price for new buyers also had an impact."
"True, the current price is definitely a barrier."
If they carried out the split, the stock that had been over 100,000 won would drop to 10,000 won, giving the impression that it had become extremely cheap.
But that was just a visual illusion.
The number of shares in circulation would increase proportionally to the price drop.
'Most ordinary investors don't think about that—they only see the lower price.'
Seok-won opened the approval document and slowly skimmed through Gold Bank's stock split proposal.
After a moment, he leaned back in his chair and said,
"They're smart—using a stock split instead of a potentially controversial rights issue to gain support from core shareholders, while simultaneously reducing the perceived price and increasing circulating shares to encourage individual investors to buy more. They're keeping the upward momentum going."
"By splitting the stock, the number of shares we hold increases without causing any real loss, and the price could rise further. I don't think it's a bad move."
Seok-won crossed his arms and, after a brief pause, showed a positive attitude toward Yoon's assessment.
"It's just that the price is too high for easy buying. The buying demand is still stronger than the selling pressure, though. A stock split could definitely act as a catalyst to push the stagnant price upward again."
Gold Bank, founded with the catchphrase, "Click on the ads on our website and earn money," quickly gained popularity among internet users. Within just two years, it attracted over 390,000 subscribers, rising to prominence as a so-called star venture company.
At the same time, benefiting from government policies supporting venture businesses, Gold Bank expanded aggressively, branching into cyber PCS agencies, travel services, and online shopping—demonstrating a rapid, almost sprawling growth strategy.
'But beneath that flashy exterior, if you open the books and take a closer look, it's obvious the current stock price is completely inflated.'
Last year, the company posted sales of 1.246 billion won, yet instead of profit, it suffered a loss of 586 million won.
This year showed similar results. First-quarter sales amounted to only about 360 million won, reflecting little growth compared to the previous year.
'Compared to other internet companies like Daum Communications or Interplaza, their growth rate is embarrassingly low.'
Yet the stock price had skyrocketed absurdly. Investors, blinded by greed, kept pouring money in, chasing the upward curve without questioning what the company actually did or whether it was profitable.
'But a foundation built on sand, no matter how glamorous it looks, is bound to collapse eventually.'
Once the price surge halts and no investors remain willing to buy, the sandcastle called Gold Bank will crumble.
'It's like Icarus, intoxicated by ambition, flying toward the sun with waxed wings—once the heat melts the wax, he falls helplessly to the ground.'
The executives of Gold Bank knew better than anyone that the current stock price was unsustainable.
So they tried everything to prevent the bubble from bursting—expanding aggressively and executing a stock split to maintain investor attention.
But all of that was merely delaying the inevitable; the bubble was destined to pop eventually, like passing a ticking bomb around.
'Looking at it this way, the stock market is basically a game of timing—prices rise as long as someone is willing to pay more, and in the end, whoever buys at the peak ends up bearing the full loss.'
Seok-won grimaced at the bitter reality of the stock market, where investors, aware of the risk but chasing quick gains, treat the bubble like a dangerous game of squid, holding bombs in their hands.
Shaking off these thoughts, he closed the approval document and returned it to Executive Director Yoon Kihoon, who was standing in front of the desk.
"Since we're not opposing it, just tell them to proceed as they see fit."
"Yes. I'll convey that."
After bowing slightly, Executive Director Yoon Kihoon turned and left the room.
Once the door closed, Seok-won sat back in his chair, lightly tapping the desk with his fingertips, muttering to himself.
"The stock price has reached shoulder height. It's about time to step back before the water rises over my face and I get drowned."
Daeheung Venture Capital held a full 55% stake in Gold Bank. If he pushed too greedily to hold onto everything, he risked getting trapped and unable to exit in time.
If rumors spread that a major shareholder was selling at the peak, it could spark panic among investors and potentially trigger a sharp crash.
That was why gradually reducing his holdings now was the smartest approach.
Moreover, when Gold Bank's true financials eventually came to light and the bubble burst, selling early would help avoid unnecessary suspicion or accusations of price manipulation.
"Excessive greed always brings trouble."
Of course, even taking this precaution, he couldn't completely escape scrutiny. After all, the Gold Bank investment had already generated massive profits.
"But you can't just stand by and watch when a golden opportunity is right in front of you."
Even if he hadn't touched it, Gold Bank was a stock poised to ignite the KOSDAQ frenzy. It was far wiser to step in and secure some profit than to sit idle.
Even if Gold Bank collapsed later, the KOSDAQ boom, once started, would not die out and would likely rage even more fiercely.
"Tasting success with Gold Bank makes greed take over reason, thinking other stocks could perform the same way."
At that moment, the KOSDAQ market effectively became a massive gambling arena.