It was only natural for Chairman Jung Yong-gil to explode. He already felt wronged after losing Hyunwoo Group, which he had always believed was rightfully his, to his younger brother. And now, the thought that someone might even snatch away the only thing he had left—Hyunwoo Motors—was enough to set him off.
"Please, calm down."
Seok-won raised both hands lightly as he spoke, but Chairman Jung's sharp gaze did not soften.
"If you held no shares at all, that would be one thing. But you already own ten percent. Buying an additional five point two nine percent means you're after Hyunwoo Motors!"
He slammed his palm against the table in front of him, his voice bursting out in anger. His face showed a deep sense of betrayal mixed with open hostility.
Even if Chairman Jung combined his personal stake of 4.01 percent with the 7.33 percent held by Hyunwoo Precision, plus all the employee shares and other friendly holdings, the total still fell short of twenty-four percent.
Meanwhile, Bluehole Ventures already held ten percent and was the largest shareholder of Hyunwoo Motors. If another 5.29 percent were added to that, Chairman Jung naturally felt the threat closing in.
But Seok-won remained relaxed, the small smile never leaving his lips.
"If you look at it another way, this block deal has significantly reduced the foreign stake, which used to exceed thirty percent. That lowers the risk of a hostile takeover."
"…"
"And if I become an ally to you, Chairman, then there's no reason for me to recklessly buy up shares to secure management control. Wouldn't that be better for stability?"
Chairman Jung narrowed his brow, suspicion still lining his eyes as he asked cautiously:
"You're saying you have no interest in the management rights of Hyunwoo Motors?"
"That's correct."
Seok-won nodded without even a moment of hesitation.
"…I can't believe that. Even with the stock's recent drop, you must have spent at least tens of billions of won to acquire that much. You expect me to believe you spent that kind of money just to help me?"
"Of course not."
His immediate reply only deepened Chairman Jung's suspicion.
"Then what's your real objective?"
When pressed, Seok-won answered calmly:
"It's simple. I believe you and Hyunwoo Motors have a promising future. So I'm investing."
"Hmph."
Chairman Jung Yong-gil let out a hollow laugh and stared at him with open disbelief.
He had barely begun to heal from the pain of being betrayed by his own brother, who had stolen the group's management rights from him. So it was only natural that he found it hard to believe that Seok-won—someone he wasn't even particularly close to—would invest hundreds of billions of won in him and Hyunwoo Motors simply because he believed in their future.
Sensing what he was thinking, Seok-won met his eyes directly and spoke in a serious tone.
"The domestic auto industry sells one million cars locally and exports one and a half million. Even by global standards, that's no small scale."
Chairman Jung watched him with an expression that said, Fine, let's hear where you're going with this. Receiving that gaze, Seok-won continued calmly.
"What matters most is that we're in a period where economies around the world are growing together through globalization. That means domestic demand and exports are both set to grow explosively."
Still wary, Chairman Jung countered:
"It's true that global auto production and sales are increasing. But haven't you heard predictions that, due to intensifying competition, mergers and alliances will leave fewer than ten major automakers worldwide?"
"With an annual domestic market well over a million units, are you saying you don't think Hyunwoo Motors can survive that competition?"
The question was framed sharply, and Chairman Jung flared up in response.
"It may be over a million units, but we're not the ones selling all of them!"
"You acquired Kichang Motors and now hold a seventy percent market share. Your only real competitor, Daegwang Motors, has an uncertain future because its parent group went bankrupt. You're sounding too timid."
"Well… hrm."
Chairman Jung cleared his throat awkwardly and backed off.
"Even Samsung Group withdrew completely from the auto business after the government-led big deal. That effectively made Hyunwoo Motors the dominant player. Anyone can see that your sales and profitability will jump considerably from here."
Hyunwoo Motors had been number one even before that, but the domestic market had been a fierce battleground among five makers: Hyunwoo, Kichang, Daegwang, Samsung, and Iseong.
Then the financial crisis hit, and the government's push for consolidation reshaped the entire auto industry overnight.
Call it luck if you want, but it's not an exaggeration to say the government practically turned Hyunwoo Motors into a monopoly.
Without a solid domestic market of more than a million units, even someone like Chairman Jung would have had a hard time turning Hyunwoo Motors into a global brand so quickly.
Seok-won let a hint of disappointment slip into his expression and lowered his voice.
"If you don't have that kind of ambition or determination, then I must have overestimated you, Chairman Jung."
As expected, Chairman Jung reacted exactly the way Seok-won thought he would.
"What are you talking about? Of course I have plans to turn Hyunwoo Motors into a top automaker recognized not only domestically but in the global market as well!"
"I knew you would say that."
Seok-won smiled gently.
Then he straightened his posture and spoke in a firm, serious tone as he made his proposal.
"At a critical time like this, pouring excessive money and energy into securing management control would be a waste. I'm suggesting that you work together with me instead."
The idea caught Chairman Jung completely off guard. He hesitated, unable to give an immediate answer.
He didn't know whether Seok-won's offer was a lifeline from an angel or a whisper from a devil hiding a darker agenda.
Seeing him waver, Seok-won spoke again to persuade him.
"To secure full control on your own, you'd need to hold at least thirty percent of Hyunwoo Motors. As I said earlier, even if you gather every friendly share—including Hyunwoo Precision and the employee stock—you barely reach twenty-four percent."
Watching Chairman Jung quietly absorb the explanation, Seok-won continued.
"To secure the remaining six percent, you'd need about seventy-eight billion won based on the current stock price. I'm not sure whether you have the means to raise that amount."
Chairman Jung frowned and replied, almost defensively:
"I'll use my shares and real estate as collateral and borrow the necessary funds from the banks."
"That might get you part of the way, but you'd also need to secure the stake held by Hyunwoo Precision, the second-largest shareholder. How do you plan to manage that?"
When Seok-won shrugged lightly as he posed the question, Chairman Jung fell silent.
Hyunwoo Precision held 7.33 percent of the automaker's shares and was the second-largest shareholder. It was also a crucial company in establishing the governance structure of the automotive subgroup Chairman Jung hoped to take with him if he separated from the main group.
He did own shares in Hyunwoo Precision, but only about 6.3 percent. To exercise actual control, he would need to increase that stake to at least ten percent.
"Hyunwoo Precision may be undervalued compared to its intrinsic worth, but the moment word gets out that you're trying to increase your stake, its stock price will jump."
That was exactly why the stock had risen when rumors spread that Chairman Jung would leave with the automotive subgroup after losing the group's management battle.
"And once that happens, the funds you need to purchase additional shares will only increase. The same goes for Hyunwoo Motors."
It was true, and Chairman Jung couldn't deny it.
As his expression darkened, Seok-won struck at another painful point.
"On top of that, under the current Fair Trade Act, you can only proceed with a spin-off if the controlling shareholder and affiliated companies reduce their combined stake to below three percent. In other words, you must deal with the more than 7.5 percent of Hyunwoo Motors currently held by Honorary Chairman Jung, Heavy Industries, and Construction. How do you plan to handle that?"
If Chairman Jung acquired that entire stake himself, everything could be resolved cleanly.
But the problem was obvious: he didn't have enough capital to buy those shares and the additional stake required to secure control of Hyunwoo Precision.
And now that Seok-won had directly pointed out the exact issue that had been troubling him the most during the spin-off preparations, Chairman Jung let out a low, frustrated sound.
"If I purchase a significant amount of shares in both Hyunwoo Motors and Hyunwoo Precision and become your ally, you won't need to desperately rush for funds or force a stock buyout to secure independent control."
At that subtle suggestion, Chairman Jung narrowed his eyes.
"And if I do that, doesn't that mean Chairman Park ends up holding my leash?"
His sharp tone didn't seem to bother Seok-won at all. He responded calmly.
"It's natural to be wary. But if our interests align, it could turn into a cooperative relationship beneficial to both sides."
Chairman Jung watched him with lingering doubt and asked:
"And what does Chairman Park gain from all this?"
Seok-won answered as if he'd been waiting for the question.
"If Hyunwoo Motors dominates the domestic market and grows into a global manufacturer, the value of the stake I bought will naturally rise. That benefits me as well."
Chairman Jung still looked unconvinced, so Seok-won continued.
"And beyond that, if we follow the proposal you mentioned earlier—granting Manyoung Machinery exclusive supply rights to Hyunwoo Motors and Gichang Motors at a fair price—then it secures a stable buyer. That would make restoring the company much easier, wouldn't it?"
At the emphasis on fair price, something flickered in Chairman Jung's eyes.
"You're asking me to raise the supply price so you can guarantee your margins, is that it?"
Seok-won curved one corner of his mouth into a sly grin.
"Good quality comes at a fair cost."
He wasn't even trying to hide his intentions—to earn profits through capital gains, dividends, and higher margins from exclusive component supply. Oddly enough, instead of feeling displeased, Chairman Jung looked relieved.
For now, at least, it was clear that Seok-won didn't intend to take his management rights.
Seeing the suspicion in Jung's eyes finally soften, Seok-won played his last card.
"If you accept my proposal and decide to work with me, I'll delegate all authority over the Hyunwoo Precision and Hyunwoo Motors shares I acquire to you. I have no intention of involving myself in management."
Chairman Jung Yong-gil leaned forward with a startled look.
"You're saying you won't even ask for a single seat on the board?"
"That's right."
Seok-won nodded as he spoke.
"If we can trust each other, there's no need for me to hold a board seat, is there?"
Even if he delegated the rights tied to his stake, Seok-won could reclaim his voting power and demand a board position anytime he chose. Chairman Jung knew this. But even so, the offer didn't sound bad at all.
To be more precise, Chairman Jung didn't really have any other options. He was already struggling to secure the funds needed to gain independent control.
Even so, he scrutinized the proposal carefully, wondering if there might be a hidden trap somewhere.
During that time, Seok-won simply sipped the green tea in front of him, waiting calmly for his decision.
After a while, Chairman Jung finally looked up at him, having reached a conclusion.
"All right. I'll accept your proposal."
"You've made the right decision."
Seok-won broke into a bright smile.
With this, he had secured a stake in Hyunwoo Motors, a company that would soon dominate the domestic market and grow into a global automaker, while also establishing a cooperative relationship with its leader.
At the same time, he would be able to greatly increase the sales and profitability of Manyoung Machinery, the auto parts company he owned.
While Chairman Jung works himself to the bone to grow the company, all I need to do is sit back and enjoy the returns. There's no better investment than that.
Looking at Chairman Jung—who would work tirelessly on his behalf like an ox—Seok-won smiled more brightly than anyone else.