Episode 103: Big Deal
At Daewoong Chemicals’ lobby, Manager Gu Chang-dong, who had come along, spoke with concern.
“President, I don’t think this is right. We came without any prior appointment. Do you think the chairman of Daewoong Group will actually meet us?”
“If the owners are aware of the public opinion regarding the explosion recovery, there’s no reason they wouldn’t accept our request for a meeting. It all depends on how seriously they take the matter.”
Lee Chang-jin had come to the headquarters without an appointment to gauge the urgency of the situation. To deal with a big company like Daewoong, there must be something they want for the deal to proceed.
With a seemingly relaxed expression, Lee Chang-jin admired the view from the windows across the lobby.
Within less than 10 minutes of waiting, a staff member from the secretary’s office came down.
“The executive director will see you now.”
Lee Chang-jin was guided to the office of Seong Jin-woo, who worked in the planning office of Daewoong.
“Nice to meet you for the first time. I’m Executive Director Seong Jin-woo. Is this Mr. Lee Chang-jin?”
“Yes, I’m Lee Chang-jin from Daese Industries. This is Manager Gu Chang-dong.”
“I’m quite familiar with you from the recent TV documentary special. To be honest, you look much better in person than on the black-and-white TV screen.”
“Thank you. I’ve also heard many good things about your capabilities as a businessman at Daewoong, especially as an expert in overseas projects. Your construction project contracts are quite impressive.”
“Haha, I’m still learning.”
A secretary, who had just come back from the pantry, brought out mixed coffee in a fancy cup.
Executive Director Seong kindly offered the luxurious bone china coffee cup.
“I heard you enjoy quite high-end coffee, but I apologize. This is the best we have in our office.”
“No worries. I’m not picky about coffee.”
Lee Chang-jin actually felt pleased with the sweet creamer-mixed coffee. It wouldn’t be an exaggeration to say that coffee mix flows through the veins of office workers.
Invented in late 1976, coffee mix quickly became an essential item for office workers due to its convenience of being easily drinkable with just hot water, creating a huge sensation.
Taking a sip of the coffee, Lee Chang-jin began the conversation.
“First of all, thank you for taking the time to see us without any prior appointment.”
“Not at all. But what brings a busy person like you here? If you’re here to claim the costs for disaster recovery related to the explosion, please wait a little longer. We’re about to announce a donation fund in agreement with the government.”
“That’s part of the reason, but frankly, that’s just an excuse. I’m here to make a more constructive proposal.”
“A constructive proposal? What do you mean?”
“Let’s not beat around the bush and waste time. I want to make a deal with your company regarding the acquisition of the Middle East project rights. I want to acquire the housing construction project rights in Al Khobar, Dammam, Saudi Arabia, which you secured after final competition with the Dutch company OGEM.”
Seong Jin-woo’s expression suddenly hardened.
“I don’t understand what you’re saying. You suddenly come without notice and ask us to sell the project rights. This is absurd.”
With a relaxed expression, Lee Chang-jin responded to Seong Jin-woo’s answer.
“Why should I explain? I understand your company is having difficulty securing funds for the explosion disaster compensation. To urgently raise funds for disaster recovery, selling real estate and project rights seems to be the only solution, doesn’t it?”
“Ha, you talk as if you know our internal affairs thoroughly. But our financial status is stronger than you think. We don’t need your help.”
“Really? Then I wonder why you’re putting properties on the market urgently. 4 billion won in collateral loans from commercial banks, 2 billion won in land and buildings in Eunpyeong-gu, Seoul, and 3 billion won in personal assets urgently on the market. Isn’t this to cover the promised donation funds? As I see it, you’re short of about 1 billion won in additional funds. Is there another reason for urgently raising money?”
Seong Jin-woo was at a loss for words. He had no way to refute.
After a moment, Seong Jin-woo, with a changed expression, nodded reluctantly.
“Your information is impressive. Now I realize that you didn’t grow your business just by luck.”
“You flatter me.”
“Alright, I admit it. It’s true we’re scrambling to secure funds for disaster compensation. But why are you so sure we’ll sell the project rights to you? There are many other companies interested in the project rights besides Daese. Why should we negotiate with you?”
“That’s true. However, wouldn’t selling the project rights to us be the most rational choice?”
With his arms crossed, Seong Jin-woo asked skeptically.
“Then let’s hear the reason.”
“First, the least desirable scenario for you would be a competitor expanding its share in the Middle East construction market. Rather than selling the project rights to an existing competitor, wouldn’t it be more rational to collaborate with a mid-sized company like us? Moreover, partnering with us would improve Daewoong’s corporate image. As you know, it’s well-known that we’re leading the Iri Station recovery project. If you transfer the project rights to us, we can also handle the PR for Daewoong’s disaster recovery efforts.”
At that, Seong Jin-woo muttered incredulously.
“Ha, you’ve got the wrong address. Who do you think is to blame for our tarnished corporate image? If you hadn’t interfered, the situation wouldn’t have worsened like this. And now you’re asking us to hand over the project rights? Do you think we’re saints? Get lost. We have no intention of selling the project rights to Daese.”
Despite Seong Jin-woo’s dismissive attitude, Lee Chang-jin didn’t show any displeasure.
Instead, he chuckled.
“Are you laughing? Are you mocking me?”
“Executive Director Seong, I expected more from a promising second-generation businessman like you. I didn’t realize you handled matters so emotionally.”
Seong Jin-woo’s voice grew louder in anger.
“What did you say?”
“I’m sorry you don’t like my proposal. But seeing you so high-handed, it seems you haven’t grasped the situation yet. You’re a bit short of the 9 billion won needed for the donation funds. If you continue to act so leisurely, won’t the entire Daewoong Group be in danger?”
Seong Jin-woo stood up abruptly, feeling uncomfortable.
“Are you threatening me?”
“Of course not. How could a small SME owner like me make such a threat? I’m just asking you to think again about how I got this information.”
As Lee Chang-jin leisurely brought the coffee to his lips, Seong Jin-woo flinched.
His face was a mix of anger, frustration, and incredulity.
In truth, Seong Jin-woo’s mind was a tangled mess.
‘Why is this guy so confident? Could it be that he has already talked to the government?’
Realizing this possibility, Seong Jin-woo felt a chill run down his spine.
If his guess was correct, the fate of Daewoong might hinge on his decision.
As he realized he might be digging his own grave, he began to sweat.
“So, what do you propose?”
Seong Jin-woo tried to remain calm, but his trembling eyes betrayed him. The momentum had already shifted.
Noticing the change, Lee Chang-jin gently motioned for him to sit.
“Please, have a seat. This discussion might take some time. We should at least come to a preliminary agreement here, shouldn’t we?”
Though his pride was hurt, Seong Jin-woo, being a businessman, managed to regain his composure.
Back in his seat, he asked calmly.
“Fine. How much do you propose for the project rights?”
“How about 1 billion won, no haggling? That’s the maximum amount we can offer.”
“1 billion won? Do you even know how much the Dammam project is worth? The construction cost alone is 31.28 million dollars, and it would yield at least 3 million dollars in profit. Considering the exclusive rights, it should be worth 1.5 times that. And you want to take it for 1 billion won?”
“Haha, you exaggerate. If it had such high profits, why would OGEM give up the bid? They would have taken it even with some losses.”
After some back-and-forth negotiation, they agreed to transfer the project rights for a total of 1.2 billion won.
The agreement specified that Seong Jin-woo would ensure approval for the transfer from the Middle Eastern client.
After concluding the negotiations and exchanging memorandums of understanding, Lee Chang-jin extended his hand for a handshake.
“We’ll finalize the signing after document review. Thank you for a good deal.”
“This time, we’ll yield. But don’t expect such luck in the future.”
“Well, we’ll see about that. You never know what the future holds.”
With that, Seong Jin-woo firmly shook his hand.
As Lee Chang-jin exited the building, Manager Gu was waiting by the car.
On their way back to Seodaemun-gu, Manager Gu cautiously asked.
“President, do you really manage political slush funds?”
“What are you talking about?”
Gu Chang-dong hesitated at Lee Chang-jin’s question.
“There are rumors that you manage slush funds for higher-ups. I don’t believe them, but it’s been bothering me.”
“Haha, no way. If I managed such funds, why would I start in a small warehouse? I’d be sipping mojitos in the Maldives.”
“Is it also false that you’re in Chief Secretary Oh’s line?”
“Chief Secretary Oh isn’t someone who builds a faction. It’s just people’s idle talk.”
Lee Chang-jin had never claimed that the government had promised anything.
But since misunderstandings are free, there was no need to correct them.
Given the media reports and government announcements, it was easy to infer that Daewoong had committed nearly 9 billion won in personal assets for disaster recovery, which is why this bluff worked.
Gu Chang-dong, having grasped the situation, was in awe.
“To think you played Daewoong Chemicals like that, you’re amazing, President.”
“It’s just mutual interests aligning. We were lucky. It’s fortunate Chairman Seong didn’t come out personally.”
Indeed, it was lucky that Seong Wan-seung didn’t appear. If the chairman, known as the “Raccoon of the Business World,” had led the negotiations, the deal wouldn’t have been so easily sealed.
A few days later, major broadcasts, starting with KBN, reported extensively on the support fund.
“Breaking news. Chairman Seong of Daewoong Chemicals has personally donated 9 billion won to support the victims of the explosion in Jeonbuk Province. The entire 9 billion won will be used for disaster recovery and resident support. Additionally, this morning, a dramatic agreement was reached in the National Assembly to pass the supplementary budget for disaster recovery. The government welcomed the Assembly’s decision and announced that an initial 2 billion won would be provided to Iri City by the end of this month.”
With the support from nearby military units and police, restoration efforts at the station accelerated, prompting waves of support from various sectors of society.
- To be continued in Episode 104 -
