Chairwoman Chu Young-hee of Hyunjin Shipping.
She was in an extremely precarious situation.
After Chairman Jo's death, various parties were maneuvering to seize control, and Hyunjin Shipping's financial difficulties were growing more severe by the day.
As a result, the meeting with Chairwoman Chu was arranged quite quickly.
"Pleased to meet you. I'm Kim Min-jae from Taewoo Group."
"I never expected Chairman Kim to request a meeting with me. It felt as if a lifeline had fallen from the sky."
If her grandmother were still alive, would she have looked like this?
Chairwoman Chu carried the appearance of a typical matriarch from a chaebol family.
But a lifeline? I had no intention of becoming Hyunjin Shipping's lifeline.
"I've heard that the Hyunjin Group has been very turbulent lately. But I have no intention of intervening in any management disputes."
"I'm not so unscrupulous as to ask Chairman Kim to defend my management rights either. The reason you requested this meeting is because you want to acquire Hyunjin Shipping's assets, isn't it?"
Chairwoman Chu hadn't maintained her position as Hyunjin Shipping's leader all this time without reason.
Though her management skills were lacking, in all other respects, she was quite capable.
"It seems better for the national interest for Hyunjin Shipping's assets to be sold to a domestic company rather than to foreign buyers. That's why I requested this meeting."
"It's embarrassing for me to say this myself, but Hyunjin Shipping is in serious trouble. My brother-in-law is blatantly targeting the company, and I need funds that I can use immediately."
The family tree of the Hyunjin Group looked like this.
Chairman Jo Young-ho, the eldest son of the founder and the head of the Hyunjin Group.
Then there was the third son, who controlled Hyunjin Shipping, and his wife, Chairwoman Chu Young-hee.
Chairman Jo also had sufficient justification.
As the head of the Hyunjin Group, what could be a more legitimate reason than acquiring a struggling Hyunjin Shipping?
But from Chairwoman Chu's perspective, it would mean her husband's assets being taken by her brother-in-law, so she had no choice but to block it.
"Is it true that you plan to raise funds by selling large ships, real estate, and other assets?"
"To protect Hyunjin Shipping, that's the only way. I can't just let my brother-in-law take over the company."
"Then may I make you a proposal?"
"By all means! I've been waiting for this."
At the mention of a proposal, Chairwoman Chu's expression changed dramatically.
Until now, she had looked like a tragic heroine, but now she resembled a hyena ready to snatch even rotting flesh.
"I can provide funds equivalent to 10% of the value of your large ships, real estate, and other assets."
"Only 10%?"
"That should be sufficient to maintain control of the company."
"And in exchange for these funds, what would Hyunjin Shipping need to give up?"
"If Hyunjin Shipping fails to overcome its financial difficulties and goes bankrupt, all large ships and assets will be handed over to Taewoo Group."
It was an unscrupulous condition.
Even a pawnshop outside a gambling hall would lend 30% of an item's value.
To offer only 10% was nothing short of robbery.
"That's an excessive condition."
"Do you think Hyunjin Shipping will fail? The contract term is 20 years, and I won't charge a single cent of interest. As long as the money is repaid within 20 years, this is an exceptional opportunity to secure a massive loan interest-free."
Which pawnshop would lend billions without interest?
Nowadays, even banks refused to provide loans to shipping companies.
This was because shipping companies had repeatedly acted foolishly for decades.
They bought ships when prices were high and sold them when prices were low—how could anyone trust them with money?
"Still… could you possibly be a bit more flexible?"
"Then, regarding real estate assets—excluding the large ships—I'll provide 100% of the funds. That amount alone should be more than enough to secure Hyunjin Shipping's control."
"Really… we just need to repay it within 20 years?"
"I give you my word under the name of Taewoo Group. And we'll draft the contract under the supervision of a major law firm. If you wish, you can even make it public to the media."
"Hmm… I'll accept those terms. Hyunjin Shipping is a company that will never fail anyway."
Chairwoman Chu spoke with overflowing confidence.
Her confidence stemmed, ultimately, from the belief in invincibility.
She trusted that no government would ever let the world's seventh-largest shipping company collapse.
Still believing in this kind of invincibility…
During the IMF era, countless major corporations failed without rescue.
In the U.S., even a massive financial firm like Lehman Brothers disappeared into history without support.
Why would Hyunjin Shipping be any different?
South Korea had over 150 shipping companies, and as long as the current group's shipping company was holding strong, Hyunjin Shipping could not rely on invincibility as a safety net.
After finishing the meeting with Chairwoman Chu of Hyunjin Shipping, I, as usual, went not to the company but to Captain Kang's office.
As expected, President Han was already there, seated and waiting.
"Chairman, how did things go with Hyunjin Shipping?"
"You must have heard from the Planning Director. We agreed to provide funds using Hyunjin Shipping's assets as collateral."
I continued with the full explanation, including all the detailed terms and the fact that if Hyunjin Shipping didn't go bankrupt, we wouldn't gain a single penny.
"Isn't that extremely favorable to Hyunjin Shipping? Even now, with high oil prices and a poor economy, the shipping company's losses are piling up, but if the market improves slightly, they could recover quickly."
"Do you really think the effects of the Lehman crisis will recover that fast?"
"…No. I predict it will last at least five years, possibly up to ten."
"Then it's settled, isn't it? Sooner or later, within ten years, Hyunjin Shipping will inevitably go bankrupt."
Hyunjin Shipping's bankruptcy was all but certain. No matter how well they managed from now on, there was no way to resolve the existing debt. The government couldn't provide support, so Hyunjin Shipping was destined to disappear within five years at most.
"If Hyunjin Shipping collapses, the Korean shipping industry will take quite a hit. There are over 150 shipping companies, but at least half will likely go under alongside Hyunjin."
"Exactly. That's why Taewoo Group must absorb their ships and assets. If the Korean shipping industry fails, the ones who benefit will be the shipping companies in China and Japan."
"Is Taewoo Group planning to operate a shipping company?"
"Nothing stops us. Some shipping companies operate with just a few large vessels. If we acquire all of Hyunjin Shipping's large ships, we could quickly become one of the top five shipping companies in Korea."
For a company like Taewoo, export-focused, shipping was critical. That was also why the Hyundai Group had its own shipping operations.
"I'm still not sure if this is truly beneficial from Taewoo Group's perspective. In good times, a shipping company earns over a trillion won in operating profit, but during a downturn, the losses are enormous."
"Exactly why we must buy ships now, at rock-bottom prices. That way, when the next boom comes, the profits will be enormous. Taewoo Sangsa will soon start producing massive amounts of underground resources. Having our own shipping company will be essential for that."
Even after this explanation, President Han still didn't look pleased. Being someone who understood everything in numbers, he must have been fixated on the looming losses of Hyunjin Shipping.
"It's not like we're starting a shipping company immediately. If Hyunjin Shipping goes bankrupt five years from now, that's when we'll begin. For the next five years, Hyunjin will bear the brunt of the downturn, and we'll enter the boom cycle."
"I suppose it's not such a bad deal when you put it that way. Taewoo Group is growing tremendously every year, and five years from now, we'll be exporting far more products than today. That guarantees the baseline revenue for a shipping company. We won't be saddled with massive losses like Hyunjin Shipping."
President Han finally relaxed his expression. Considering Taewoo Group's growth, he could see that we could operate Hyunjin Shipping's large vessels profitably.
But I wasn't done.
"Soon, there will be large ships coming up for auction because shipyards won't receive payments on time."
"It's already tough to operate the vessels we have efficiently, so taking on new ships would be a burden."
"No one will want to acquire those large ships, so we could pick them up at half price once they're auctioned."
"Are you suggesting that Taewoo Group would acquire those auctioned ships?"
"Not immediately. But in two or three years, when prices drop significantly, it might be worthwhile."
President Han fell silent, lost in thought. He even pulled out his phone calculator and played with the numbers for a long while before replying.
"If the price of a large ship drops below 45%, I don't think we'd be at a loss."
"The shipping operations will be entirely handled by Taewoo Trading. Taewoo Securities will only need to focus on the auction side."
"That's doable. But even if the shipping industry enters another boom cycle, it's uncertain whether we could generate the same trillion-won-scale profits as before."
"The next boom will be even bigger than before."
Who could have imagined such a golden future in the current situation?
But I had witnessed firsthand how lacking large vessels hindered exports. I knew the day would come when we'd have to pay two or three times the premium to secure a large vessel to meet delivery deadlines.
And even if that day never came, it didn't matter. As long as Taewoo Group continued to grow as it was now, we could at least break even.
***
The year 2008, full of incidents and upheavals, finally came to an end.
Even more welcome than the New Year of 2009 was the return of my grandfather from Vietnam to Korea.
"Finally, you're back? We've waited so long!"
"Don't get too excited. I plan to spend only the New Year here, then return to Vietnam," he replied in his usual curt tone.
Yet, despite the blunt words, a smile couldn't hide on his face—after all, it had been a long time since he'd seen his grandson.
"Couldn't you stay in Korea a little longer?"
"Do you really want to stay with your grandfather that much?"
"…."
"Why aren't you answering? Are you planning to leave me in Korea and go overseas?"
"I think I'll have to go on another long-term assignment to the United States."
"That little rascal! You're leaving Taewoo Group in my hands while going to enjoy yourself in America, aren't you?"
Though his tone seemed scolding, the smile on his face made it clear he wasn't truly angry.
"I received an invitation to the presidential inauguration from the White House. Also, I might be offered to acquire an American car company."
"You really intend to acquire an American car company?"
"If my conditions are met, I will. But my conditions are very strict—I'm not sure the U.S. government can satisfy them. So the negotiations will probably take quite a long time."
Grandfather chuckled dryly.
It wasn't every day that one's grandson talked about acquiring one of the U.S. Big Three automakers—not even a Korean company could compare.
"You've already acquired AIG; missing out on a U.S. car company won't stop you. Fine, do as you wish."
"So, you'll be taking care of Taewoo Group while I'm gone?"
"You've already built the system. I just need to sit quietly in the chairman's office, don't worry. Go ahead and handle it."
Grandfather remained a steadfast presence—Taesan, the immovable mountain.
The only person who could truly grant me freedom.
I opened my arms wide and hugged him tightly, while my mind began planning the long-term assignment in the United States.