In the end, Kim Tae-hyun, who had glossed over the value of Jungle, gave instructions to his chief secretary right after meeting Lee Hyun-woo.
“Find out how much this place is worth.”
“What?”
The chief secretary widened his eyes at the sudden instruction.
Only then did Kim Tae-hyun explain in detail.
“This company, I mean Jungle’s value. How much it would be if it were listed, and how much it would cost if we bought it right now. Ah, they are looking for investments, but we need to know the value to proceed.”
“Ah, understood.”
“Please hurry up if possible.”
“There should be some valuation data available. Also, I heard Jungle is frequently evaluated due to its high volatility.”
In fact, the chief secretary inquired with Guseong Investment and Guseong Securities to get Jungle’s valuation.
The next day, he reported back to Kim Tae-hyun.
“They say the market capitalization exceeds 1 trillion won. Moreover, the growth potential is so high that even offering 10 trillion won might not be enough to acquire it.”
Kim Tae-hyun nodded.
It wasn’t far off from the amount he had in mind.
‘So, would 10 trillion won be the amount that guy would be satisfied with?’
To avoid any hard feelings, that amount would be just right, but investing that much would require significantly more money.
So, he decided to cut it by half and called Lee Hyun-woo again.
Thinking it would be better to discuss the amount in person, they decided to have lunch together, and during the meal, Kim Tae-hyun brought up the value of Jungle.
“Honestly, I was taken aback when you suddenly asked yesterday. But today, I found out the proper value of Jungle.”
“And how much is it?”
Seeing Kim Tae-hyun honestly sharing the information, Lee Hyun-woo asked in a pleasant tone.
“They estimate the market capitalization to be 1 trillion won, and the value to be around 10 trillion won. Probably based on Yaho.”
“Ah…”
“But unlike the U.S., we don’t have that much liquid capital here, do we? So, my valuation of Jungle would be around 5 trillion won.”
“I see.”
“Now, I need to hear your answer.”
“I’m planning to put 10% on the market for now.”
“10%? So, that would be about 500 billion won.”
“Yes, but I intend to proceed with it like an IPO.”
“Like an IPO? You mean a subscription?”
“Yes, that’s correct.”
Is this even possible?
Kim Tae-hyun asked with a puzzled expression.
“Investing before listing, is that possible?”
“It depends on how we do it. It’s somewhere between public and private, so we’ll create competition among the potential investors. That way, we can get the proper value recognized.”
“Hey, that’s different from what you said yesterday.”
“Excluding you, hyung.”
“Really? Hahaha, indeed, we are family.”
Despite feeling manipulated by Lee Hyun-woo the previous day, Kim Tae-hyun found himself being swayed by him again.
But that’s okay.
Although they weren’t officially using subscriptions, creating competition among those willing to invest in Jungle seemed like a good strategy.
“So, how much stake will you give me?”
“As I mentioned earlier, 10% is a significant share.”
“Right. So, when the company goes public, that 10% will be excluded.”
“No. The 10% being released now will be included.”
“What?”
“So, no matter how much stake you get now, you must liquidate it when the company goes public.”
In other words, the condition was that the stake had to be transferred to the subscription or the stock exchange upon listing.
Kim Tae-hyun showed reluctance, but this was essentially a common clause in Pre-IPO contracts.
“When our company goes public, its value will likely be much higher than you expect. I promise you won’t lose out.”
“Hmm…”
Kim Tae-hyun let out an unenthusiastic sigh.
However, seeing Lee Hyun-woo’s determined expression, he realized he was resolute.
“You’ll offer the same terms to other investors, right?”
“Of course.”
“Alright, fine. So, how much stake will you give me?”
“1%.”
“1%?”
“Don’t think it’s too little. This is one-tenth of what’s being released now. It’s a significant preferential treatment compared to other investors. I’m offering this because you gave me a 4 billion won discount yesterday.”
“Sigh, okay. That’s reasonable.”
10% equaled 500 billion won, so 1% was 50 billion won.
Even though Kim Tae-hyun was a chaebol heir, he couldn’t suddenly come up with that amount of money, so he would probably have to proceed with the investment at the group level.
50 billion won was a reasonable amount.
“Let’s proceed immediately.”
“Yes, I’ll notify the working team as well.”
After meeting with Kim Tae-hyun, Lee Hyun-woo returned to the company and called Shin Dong-woon again.
“I had investment discussions with Executive Director Kim Tae-hyun yesterday and today.”
“Already?”
Shin Dong-woon’s eyes widened.
He always felt that Lee Hyun-woo moved like someone who already knew the right answer, finding the fastest route to the conclusion.
This time was no different. He had mentioned pursuing a Pre-IPO yesterday and had already found one investor in no time.
Moreover, it was none other than Kim Tae-hyun, the heir of the Guseong Group.
“We decided to transfer a 1% stake for 50 billion won.”
“Wow, 50 billion? Then…”
Shin Dong-woon briefly calculated the group’s value in his head.
“So, they valued it at a minimum of 5 trillion won.”
“What about you, Team Leader Shin? How do you value it?”
“Out of loyalty, I believe it surpasses Yaho.”
“What’s Yaho’s current market capitalization?”
“It has exceeded 15 billion dollars.”
To be honest, it was a bubble. Lee Hyun-woo thought so but just nodded without saying it out loud.
“15 billion dollars means you see our company’s value above 16 trillion won.”
“Yes, but we have to consider the current situation in Korea. Many companies are collapsing, unemployment is soaring, the real economy is rapidly declining, and foreign exchange is unstable.”
That was true.
The won-dollar exchange rate had exceeded 1,100 won.
Foreign investors were sensitive to exchange rates.
What good was a 10% rise in stock prices if a 10% drop in exchange rates nullified the gain?
Thus, they had no choice but to withdraw from the stock market immediately.
‘At least it’s better than before.’
It was mid-November now.
In his past life, it was around November 1997 when the IMF crisis was being discussed.
Such talks hadn’t surfaced yet.
The aftermath of the foreign exchange crisis, which had hit several Southeast Asian countries, Hong Kong, and Taiwan, seemed to be about half of what it was in his previous life.
This meant various economic indicators could also be considered about half.
Though it was difficult to evaluate arithmetically, it seemed plausible to expect a comfortable halving of the won’s value.
‘1,200 won? 1,300 won? Could it go up that much?’
It had been in the mid-800 won range at the beginning of the year, so that would be a significant increase.
For those who hadn’t experienced his previous life, the prospect of such an investment was daunting.
Thus, securing 50 billion won for a 1% stake was not a loss at all.
“Now, Team Leader Shin, you need to coordinate with the secretariat to make this public.”
“Huh? Are you sure? Is it okay to disclose this?”
“Of course. Guseong Group didn’t ask us to keep it a secret, did they?”
Leaking information to the media would generate news, and if such reports spread about investing in Jungle, investors would start reaching out.
‘I need to gather them and create competition with my subscription rules.’
This wasn’t his plan from the start.
As always, Lee Hyun-woo found the best path by designing according to the flow.
Actually, after discussing with the two secretaries, Shin Dong-woon immediately leaked the information to the media.
Consequently, internet media was the first to publish related articles.
『Jungle, Finally Opening Investment Doors?』
『Guseong Group, 50 Billion Won Option Investment in Jungle!』
『Meeting Between Lee Hyun-woo and Kim Tae-hyun, 1% Stake Exchanged for 50 Billion Won!』
『Lee Hyun-woo to Release 10% Stake to Investors Before Listing.』
『10% of Lee Hyun-woo’s 90% Stake to Enter Investment Market!』
Meanwhile, as more internet media emerged, the information leaked to journalists spread rapidly online.
Naturally, the information and communication industry was abuzz.
And those who were close to Lee Hyun-woo began to approach him.
First up, Kim Yoon-soo.
“My father and brother want me to find out right away. Is 50 billion won for 1% something we can do?”
As always felt, Kim Yoon-soo’s family seemed to be cash-rich.
Talking about 50 billion won so nonchalantly.
“Hmm… I’ll do the same for hyung.”
“Just for me? What about the others?”
“Of course, I’ll create competition to give out the stakes. But when the company goes public, you must sell them.”
“Uh? That’s not up to me to decide.”
“Then please discuss it with your father and brother. You’ll need to hurry. Many are eyeing this both domestically and abroad.”
Though internet media was the fastest, the information had also been leaked to mainstream media and foreign news sources, so inquiries were bound to come soon.
Lee Hyun-woo was both rational and emotional.
If he lived his second life solely for money, he would have already restructured the company’s operations to focus on work-life balance rather than passion pay.
‘I owe this hyung a lot from the beginning.’
Remembering the times he owed favors, he decided to apply the same 1% stake for 50 billion won to Kim Yoon-soo, following Kim Tae-hyun.
Once the decision was made, Kim Yoon-soo immediately contacted his family.
“They want to proceed right away. But what’s a put option? My brother keeps asking if it’s that.”
“Ah, a put option refers to selling a financial product at a predetermined price within a set period. Practically, this 1% stake is similar to a put option. We can discuss it further with the working team.”
“I don’t understand even after hearing that. I’ll relay exactly what you said to my brother.”
“Yes, he’ll probably understand immediately.”
By the way, it seemed like Shin Dong-woon’s workload would increase.
As always, Lee Hyun-woo was quick to judge.
After sending Kim Yoon-soo off, he called Shin Dong-woon and delivered some pleasant news.
“Since the newly hired experienced and new employees will be added to your team, I think we should elevate it from a team to a part. We’ll name it the Financial Part.”
“What? Ah, yes…”
“Moreover, you’ll need a new contract. A part head is a position equivalent to an executive. We’ll provide stock options and increase the salary, so we’ll send you a new contract with the same conditions as the existing part heads. Please review it and let us know if you have any additional requirements.”
“Yes, I will.”
Promotion and compensation make employees dance with joy.
After the contract, Shin Dong-woon resolved to demonstrate even more capability and spread the news about Jungle’s Pre-IPO through his Wall Street contacts.
Consequently, the money withdrawn from various Southeast Asian countries and other nations began to knock on Jungle’s doors in search of a new home.
