Chapter 41
Translator: Dreamscribe
“I expected it, but the backlash is fiercer than I thought.”
“To be honest, even if it were you, hyung, would you want to hand over a building that costs 5 trillion won to build, and will go up to 7 trillion won once the hotel opens, for just 2 trillion won?”
"Absolutely not. If I were Oh Jae-hyun, I would have grabbed a gas can and stormed the company."
This is why contracts are scary.
You’re not supposed to stamp them carelessly.
If you get trapped by the wrong person, this is what happens.
Of course, CEO-nim didn’t include those clauses with the real intent of taking LK Tower.
“This must be why political connections are important. They’re pulling all kinds of ridiculous moves.”
“Hyung, don’t you have any connections?”
“Hey. Even if I did, do you think it would matter? The gap in class between LK Group and our Kwangwoon is huge.”
LK is a group.
And we were just a securities company.
There was no avoiding the gap in class.
“What if LK tries to raise funds by selling its affiliates?”
“It’s not impossible. The problem is that selling affiliates isn’t as easy as it sounds. LK’s main business is hotels, and it’s not easy to peel that off and sell. As for other divisions, most companies right now can’t afford to spend money anywhere.”
“I heard that aside from the 900 billion won they owe us, their promissory notes are also bouncing.”
“They got the final blow from Brexit. Sure, the 900 billion they owe us is important, but their priority will be plugging the holes that burst elsewhere.”
From the China shock to European terrorism, and now Britain’s sudden announcement to leave the EU.
With the global market shaking so violently, companies struggling were not in the minority.
In this situation, taking over an affiliate of LK Group, whose public image was already bad?
And paying billions for it?
It was no easy matter.
“In the past, big deals and M&As were common. But that's only possible when there's momentum for growth.. Do you know why our growth rate is freezing up like other developed countries? It means we’ve already hit the growth limit.”
It was the typical path of developed countries.
Even the U.S. clung to zero interest rates because they couldn’t see any growth potential. They were trying to get people to spend money somehow, even if it meant keeping interest rates at 0%.
“And the biggest problem is the acquisition cost. If LK Group really can’t withstand our pressure and surrenders, we’ll have to pay 2 trillion won to buy that thing. Even if we subtract the 900 billion won they owe us, that’s still 1.1 trillion. And that’s not all. There’s also the 700 billion won in bank debt tied up in LK Tower.”
“The numbers just keep growing.”
“Yeah. Even if we say we’ll repay the bank debt slowly later, LK Tower was originally built with hotel operations in mind, so what are we supposed to do with it...”
Lately, he’s been grumbling to me about this nonstop, clearly distressed.
LK Group using political ties to pressure Kwangwoon Securities and all that.
But even if we took LK Tower, the real issue would come afterward.
“Hyung, I have an idea.”
“What is it?”
“It might not be a good one.”
“What are you talking about? Jin-ho, if it’s your idea, then it’s the best idea we’ve got. What is it? Tell me.”
I recommended the company I had thought of during the conversation with my younger sibling last time.
“What if you talked to the Baekje side?”
“Wait. Baekje? Baekje Hotel?”
“Yes. From what I’ve heard, Baekje Hotel and LK Hotel are competing neck-and-neck for the top spot. Wouldn’t they see this as a great opportunity?”
At those words, hyung’s expression changed.
It was as if he shouted ‘Eureka’ with his face.
***
“Everyone, stay sharp. If this actually goes through, it’s going to be a massive deal. So if they need anything, we have to be the first to coordinate with each department and provide them with any materials they need. And most importantly, everything discussed in today’s meeting needs to be forgotten the moment you step out. Keep that in mind.”
Today, a state of emergency had hit the Baekje Hotel headquarters.
Kwangwoon Securities and Baekje Hotel.
Two companies that didn’t seem to fit together had a meeting scheduled for today.
And it was regarding the LK Tower business rights.
“Yoon-ah ssi, your role is important. If they say they need anything in the meeting room, you need to relay it immediately to us outside. And you’ve prepared the presentation properly, right?”
“Yes, Department Head-nim. It’s all well prepared.”
“Good. I’m counting on you, Yoon-ah ssi.”
Jung Yoon-ah was flustered by the sudden commotion, but she tried not to let her focus slip.
‘But Kwangwoon Securities is where oppa works.’
She had talked with her oppa about the LK Tower matter before.
But to think negotiations between the two companies would suddenly take shape like this.
Was it a coincidence?
There was something too perfectly timed for that...
“Alright, everyone, stay alert. The people from Kwangwoon Securities are about to enter.”
Soon, the people from Kwangwoon Securities entered the headquarters.
At that moment, Jung Yoon-ah unknowingly opened her mouth in surprise at the familiar silhouette she saw in the distance.
“Huh?”
Perhaps sensing her gaze, that person made eye contact and gave her a smirk.
‘W-why is oppa here!!’
***
Baekje Hotel.
A subsidiary of Kangseong Group, the number one conglomerate in South Korea, and currently headed by the granddaughter of the founding Chairman Kang Tae-san as the CEO.
Leading both the hotel and department store businesses, she was closely watching every move LK Group made with hawk-like eyes. They were Baekje Hotel’s greatest rival.
So when a management battle broke out within LK Group and they lost the duty-free business, she must’ve clapped her hands in delight.
However, LK Hotel’s dominance remained intact.
Because of LK Tower.
If that opened as planned, LK would continue to hold the number one position forever.
“.......”
I entered the extravagant Baekje Hotel headquarters today for the negotiation.
But my eyes kept drifting toward my younger sister standing near the wall.
She seemed just as surprised to see me here, her face showing clear confusion as if she hadn’t expected this.
“It must have been a sudden request, thank you for accepting it, CEO-nim.”
“The pleasure is ours. We’re grateful Baekje has been given this opportunity.”
We exchanged greetings while handing out business cards one by one.
I shook hands with CEO Kang Mi-ra.
“I’m Department Head Jung Jin-ho.”
Seeing someone I had only ever seen on TV this close gave me a strange sense of familiarity.
“ Department Head…?”
But she looked at me as if wondering why someone who wasn’t even an executive was here.
“Well, anyway, nice to meet you.”
After a quick round of greetings, as soon as we sat down, CEO Kang Mi-ra got straight to the point.
“You’ve reached out to Baekje Hotel, so I assume it’s because of the hotel business?”
“Yes. Even if we take over LK Tower, we have no experience in hotel operations. And tearing everything down and rebuilding would cost too much time and money. So we concluded that outsourcing it to a different company would be the smart move.”
One side needed a company to run the hotel.
The other side needed the number one hotel spot in South Korea.
This deal was a win-win for both.
“Then let me get straight to the point. How much is Kwangwoon Securities thinking in terms of price?”
That was the key issue.
Just how much would we sell the hotel management rights for?
That was the exact reason I was participating in today’s meeting.
Because I didn’t have an exact intuition for how much it should be sold for.
But there was no need to worry too much.
The amount had already been internally discussed and decided on by hyung and the other executives.
“What is Baekje Hotel’s position? We’d like to hear your side first.”
“Very well. Let me present Baekje Hotel’s view first.”
When CEO Kang Mi-ra gestured, one of the staff members came forward and began projecting data on a screen. The problem was, that staff member was my younger sister.
“Due to the current slump in the tourism industry, the hotel business is expected to face difficulties going forward. Additionally, Korea lacks appeal in many aspects when it comes to tourism...”
My younger sister.
I heard she was receiving quite a bit of recognition at the company.
She was delivering the presentation calmly and professionally, without a trace of nervousness.
I couldn’t help but feel proud.
But judging from the content of the presentation, it seemed they were saying that the hotel industry is currently in a tough spot, and therefore they couldn’t offer a high price.
After the presentation ended, CEO Kang Mi-ra spoke.
“Based on this data, the maximum amount we are considering is 900 billion won. We will be taking charge of hotel operations, and we also plan to provide Baekje Hotel’s top-tier services to those entering through the LK Tower’s allotment. Additionally, we will share a certain portion of the profits with Kwangwoon Securities in the form of rental income. How does that sound?”
Nine hundred billion won.
Seeing that hyung didn’t react much, it must’ve been the expected amount.
Especially the part about sharing hotel profits from LK Tower, that was a significant offer.
The terms looked good, but then it happened.
“......!”
As soon as CEO Kang Mi-ra mentioned the price, the hand holding my pen started trembling.
I wrote the amount on a piece of paper, wondering if it was just a coincidence.
The trembling wouldn’t stop.
I kept increasing the amount.
1 trillion.
1.2 trillion.
1.3 trillion.
1.5 trillion.
And still, the trembling did not stop.
Finally, I decided to bump it up all at once.
2 trillion.
“.......”
The trembling stopped like magic at that number.
‘This is the right price?’
I took a short deep breath.
2 trillion won.
It was more than double the price they offered.
Even hyung seemed to be planning to ask for just over 1 trillion won.
But 2 trillion won?
I lightly tapped hyung’s hand with the back of mine.
Then I showed him the amount I had written on the paper.
“......?!”
Hyung looked back and forth between the number and me.
His eyes, clearly asking if I was serious, wavered.
I nodded.
“Ahem. M-May I share the figure that Kwangwoon Securities has in mind?”
“Of course.”
Hyung hesitated for a moment, then soon spoke the number.
“2 trillion won.”
“......What?”
The room stirred.
Not only the executives from the other side, but even our own executives looked completely baffled.
“W-Wait a minute. 2 trillion won? I’ve heard you’re acquiring LK Tower for 2 trillion. But you want us to pay that amount?”
“Yes. However, Kwangwoon Securities will take care of the 700 billion won in bank debt tied to LK Tower.”
“But you’re still covering that using the 2 trillion won we’re paying.”
CEO Kang Mi-ra raised her voice, saying the price was absurd.
The executives on Baekje Hotel’s side also voiced their opposition.
“.......”
Hyung glanced at me again.
I stayed still, not reacting.
As if understanding my message perfectly, hyung nodded.
“Kwangwoon’s set amount is 2 trillion won. That will not change.”
“Excuse me, CEO-nim. No matter how you look at it, asking us to pay 2 trillion won right now is...”
“Once I make up my mind, I don’t change it even if the sky falls.”
Perhaps at a loss for words, CEO Kang Mi-ra stood up.
“Let’s take a short break. We’ll need to discuss among our executives.”
“Yes, understood.”
Following CEO Kang Mi-ra, the Baekje Hotel executives filed out of the meeting room.
Immediately after, our own executives stood up and gathered around hyung.
“CEO-nim, what do you mean 2 trillion won all of a sudden?”
“Didn’t we initially decide on just over 1 trillion? And now you suddenly double it…”
“I know exactly what you’re saying. But this decision was made by Department Head Jung Jin-ho.”
“Huh? Department Head Jung?”
All eyes now turned to me.
“Jin-ho.”
“Yes, CEO-nim.”
“You think this amount is appropriate?”
Just like the presentation my younger sister had given, this decision wasn’t based on any exceptional data, but purely on my intuition.
But I know better than anyone else.
That my intuition is more accurate than anything.
“I believe 2 trillion won is the fair price.”
I could hear short gasps from various executives.
“Department Head Jung, even so, suddenly jumping from 1 trillion to 2 trillion is just...”
“Exactly. The reason we want Baekje Hotel’s help is because of the Kangseong Group backing them. If Kangseong Group acts as a shield, we can avoid the political pressure we’re facing right now and take LK Tower more smoothly.”
“But if the negotiation falls apart here...”
“Everyone, stop.”
Hyung silenced the executives.
“Have you all forgotten? Department Head Jung Jin-ho was the one who took that 300 billion won and brought us this far. If it weren’t for him, would we even dare to set our sights on LK Tower?”
“Well... that’s true.”
I understood the executives’ reaction.
They simply believed the other side would never accept.
Even I had some doubts, so how could they not?
“That’s why we’re going with Department Head Jung Jin-ho’s decision this time too.”
But hyung had incredible trust in me.
“Go all in and double it.”
***
“How the hell did they come up with 2 trillion won?”
She almost exploded holding back her anger, her face turning red in front of everyone.
She was prepared to deal with bastards trying to shake LK Group with just 300 billion won and swallow the tower in the end, but she didn’t expect them to be this shameless!
“That’s a number that’s completely unreasonable. It means they have no intention of negotiating.”
“That’s right. 2 trillion won? And it’s not like we even own LK Tower. And yet they want 2 trillion from us?”
Even the executives were up in arms.
The amount they had initially expected was just a little over 1 trillion won.
That’s why they opened with 900 billion.
But now the other side called out more than twice that amount.
Crazy bastards.
If they were buying the whole LK Tower, it might make sense.
But that wasn’t the case.
They were being asked to pay 2 trillion won just for the hotel space inside LK Tower.
In other words, all they’d be doing is operating the hotel. The ownership of the tower still belongs to Kwangwoon Securities.
And all the allotment rights for the residential spaces would also go entirely to Kwangwoon Securities.
On top of that, they even agreed to share the hotel profits and provide services for the residents, and yet they threw out that kind of number?
There were no bigger robbers than these.
‘But when I said 900 billion, CEO Hwang Dae-woon didn’t react at all.’
It was only after that Department Head Jung Jin-ho guy showed him something that his attitude completely changed.
The fact that a department head was even attending the meeting was strange in itself.
Him sitting right next to the CEO was suspicious too.
Just what did that guy show him?
“Hm?”
At that moment, Kang Mi-ra blinked as a familiar name appeared on her phone screen.
“Everyone, please step outside for a moment. I need to take a call.”
“Ah, yes.”
After clearing her throat, Kang Mi-ra answered the phone.
“Oh my~. Chairman-nim, you’re calling me yourself. I’m sorry, I should’ve contacted you first after hearing you were appointed chairman.”
[CEO Kang. Are you with that bastard right now?]
“That bastard? Who do you mean?”
[Don’t play dumb. You think I don’t know that you’re teaming up with Kwangwoon Securities to gobble up our LK Tower?!]
Hearing Chairman Oh Jae-hyun's furious voice actually lifted her mood a little.
There’s nothing quite as exhilarating as watching a rival crumble.
“That’s why you should’ve kept peace with your family. Why stir up such a big family fight and let thugs like that get involved?”
[What?! I mean… sigh. CEO Kang, listen to me carefully. Those Kwangwoon Securities bastards, they’re real thugs. They’re trying to lowball everyone with ridiculous prices. I bet they’re doing the same to you too.]
That made her flinch a little.
[But that Kwangwoon Securities CEO, Hwang Dae-woon, he’s not the real one in charge. There’s someone else behind him. Someone who's been toying with our LK Group and is now playing with Baekje Hotel too!]
“So you’re telling us to just walk away quietly?”
[Yes. Don’t get greedy. Just give up on LK Tower. We’ll make it worth your while.]
“The best reward for me would be if LK Hotel got out of the way. If LK Tower opens as is, we’ll never be able to take the number one spot in the industry.”
[No, CEO Kang. Don’t you understand what I’m saying? We’re all dancing in the palm of someone’s hand right now. If we at least cooperate-!]
“I understand perfectly. But you should worry about getting your house in order. Don’t go poking your nose in other people’s business. I’ll hang up now.”
[CEO Kang, w-wait!]
Click-
Kang Mi-ra hung up.
Seeing Chairman Oh, who had always been a thorn in her side due to their competition in the hotel business, now scrambling in panic gave her a strange sense of satisfaction.
On top of that, Kang Mi-ra could feel it.
That Chairman Oh was truly afraid right now.
Why would Kwangwoon Securities want to join hands with Baekje Hotel?
Because LK Group, desperate to scrape together funds, is using their political ties to pressure Kwangwoon.
So Kwangwoon doesn’t want to drag this out. They want to get their hands on the tower quickly by relying on the Kangseong Group backing Baekje Hotel.
“And yet those bastards are asking for 2 trillion won?”
It was outrageous, but if Baekje were to back out of the negotiation now?
It would be no different than throwing away the chance to choke the life out of LK Hotel once and for all.
“No matter what, 2 trillion won crosses the line.”
She’d have to try to negotiate somehow.
With that thought, she stood up to return to the meeting room.
“But what did he mean earlier?”
Then, the words Chairman Oh had desperately shouted replayed in her mind.
“There’s someone controlling Hwang Dae-woon from behind?”