Episode 119: Territorial Dispute
Mt. Bukak, Seoul.
The place where Lee Chang-jin was invited was a Japanese-style restaurant.
In the corner of a tatami room reminiscent of the ryotei from the Taisho era, light and shadow blended exquisitely. In the middle of the room, an elderly man, who seemed to have been quite the tough guy in his prime, was sitting and waiting.
“Hello, I’m Lee Chang-jin.”
“I’m Park Il-san. We’ve already introduced ourselves over the phone, so have a seat. We might have to wait a bit for the tuna sashimi, so I ordered it in advance.”
His face was slightly red, indicating he had already had a drink.
As Lee Chang-jin entered, a woman who was pouring drinks on the side carefully laid out a cushion for him.
“You can leave now.”
“Yes, Chairman.”
The woman quickly left the room, sliding the door shut behind her.
As Lee Chang-jin took his seat, Park Il-san offered him a drink first.
“Here, take it. Alcohol goes well with sashimi. Don’t you think a drinking buddy is a true friend?”
When Lee Chang-jin accepted the half-tilted beer glass, foam overflowed from the golden liquid as bubbles rose. Watching the carbonation burst, Lee Chang-jin only pretended to take a sip, barely touching the glass with his lips before setting it down.
“I came because you suddenly called, but I’m not sure why I’m here. If you have something to discuss, please get to the point.”
Feeling uncomfortable in such a setting, Lee Chang-jin wasn’t one for unnecessary delays.
Park Il-san frowned slightly at Lee Chang-jin’s straightforward remark but soon laughed it off.
“You’re in quite a hurry. Aren’t you supposed to be a gentleman? I didn’t expect you to be so blunt.”
“I doubt you called me just to have a drink. I’d like to hear why you called.”
“Alright, I’ll be honest. Our IB wants to acquire Hanse Beer. We’ll pay you handsomely.”
“That’s difficult. The government has ordered us to revive the company. Isn’t it a bit unreasonable to hand it over to you?”
“I’ll persuade the government officials. After all, the government is only interested in recovering the loans, not who the owner is. The employment succession shouldn’t be a difficult issue. What’s important is the intentions of the management, right?”
“If the acquisition conditions are good, we have no reason to refuse. So, what are the conditions?”
At Lee Chang-jin’s question, Park Il-san handed over a prepared document as if he had been waiting for it.
“We’ve set the beer division at 2 billion won. The factory site will be priced at market value. Isn’t this a pretty good deal?”
Though he sounded quite generous, Lee Chang-jin was taken aback after reviewing the document. The total amount was 3 billion won, which was close to the minimum price. For Lee Chang-jin, who had agreed to repay the principal and interest over ten years, it was an absurdly low amount.
Especially considering the rise in stock prices after the acquisition, it was hard to accept such conditions.
“This is a bit disappointing. Even if Hanse Beer maintains its current market share, we could recoup the investment in 2-3 years.”
“Haha, that’s because you don’t know the liquor market well. That’s only possible if the market share is maintained. Do you think the current boom will continue?”
“The basis for assessing a company’s value is the present, not the future. This is too low.”
“Then how much do you want? If it’s reasonable, we can negotiate.”
“Hmm… Including the reinvestment and restoration costs, it should be over 4.5 billion won, and it could be done for 300 million won per 1% market share. Ah, and if you include the business rights of the Hanse Beer distributors we acquired, it should be over 10 billion won.”
That essentially meant he was refusing the acquisition.
Park Il-san’s expression hardened, having grasped the underlying message.
“Are you joking? 10 billion won for a company that barely avoided bankruptcy. Do you think that’s reasonable?”
“That depends on your perspective, doesn’t it? Chairman Park, if you want to continue the deal, you should make a proposal that the other party can accept. This is unacceptable. We don’t have anything to lose. Isn’t it IB Beer that’s in a tight spot?”
Having fought several battles with the mighty Taeyang Group, Lee Chang-jin didn’t want to show any leniency to Park Il-san, who was nothing more than a small fry in comparison. Park Il-san’s voice became sharper than before.
“Hey, kid. The liquor business isn’t easy. You should take the fair price while you can.”
“Ha, thanks for the concern. But our main business is machinery, and liquor is just a side business. IB should be more concerned. Isn’t liquor your main business?”
Park Il-san, feeling displeased, growled.
“Are you trying to pick a fight with me?”
“If that’s how you take it, then there’s nothing I can do. I’m not one to avoid a fight that’s been brought to me.”
“You’ll regret it. Are you confident you can compete with us?”
“If we weren’t confident, would we have acquired a failing company? I thought we could have a constructive conversation, but I’m disappointed. If there’s nothing more to say, I’ll be leaving. Chairman Park, you can finish your drink.”
Leaving Chairman Park Il-san behind, Lee Chang-jin stood up, not having touched a single piece of sashimi. As Lee Chang-jin opened the door, Park Il-san warned him.
“Mr. Lee! If you leave now, there won’t be another offer. Keep that in mind.”
Lee Chang-jin slightly bowed his head and responded.
“Negotiations are supposed to be between equals. If you’re going to call someone, I advise you to fix your attitude before the negotiation. I’m not your subordinate, am I? Well then, I have work to attend to, so I must go first.”
After Lee Chang-jin left, Park Il-san trembled with rage.
The veins on his forehead bulged as he struggled to cool down.
Unable to contain his anger, he gulped down the drink in front of him.
Unable to hold back his fury, he slammed the table, gritting his teeth.
“The little brat dares to mock me?”
The more he thought about it, the more infuriated he became. His face reddened as he shouted.
“Secretary Lee! Are you there?”
“Yes, did you call?”
A burly man in a black suit entered.
“Get the car ready. I need to meet Baek Chang-seo right away.”
Late in the evening, a meeting between two heavyweights took place in Myeongdong.
Baek Chang-seo, who was suddenly called to a drinking session, asked.
“What’s going on? Chairman Park calls me out at this hour.”
“Do we need a reason between us? Just sit down and stop talking.”
Baek Chang-seo, the founder of Goryeo Beer, was known as Park Il-san’s rival in the liquor industry, and it was famous that they didn’t get along. However, contrary to popular belief, they were quite close.
In fact, both had been appointed as managers of Showa Kirin Beer during the Japanese occupation and had worked together in the brewery.
After liberation, they each officially took over a beer company released as vested property, dominating and leading the beer market together.
Park Il-san kept drinking without saying a word for a while.
Unable to watch any longer, Baek Chang-seo snatched the glass from him.
“Hey, take it easy. What are you doing calling someone and not saying anything? If you called, you should speak.”
With a flushed face, Park Il-san spoke.
“Hey, a small fry is causing a ruckus in the neighborhood. Are we just going to watch?”
Only then did Baek Chang-seo guess why Park Il-san was upset.
It was obvious what could make him angry.
But Baek Chang-seo had no intention of playing along with his drunkenness.
“Ah, you mean Daese Beer? Just from the taste, it’s a lot better than your company’s product.”
Though Park Il-san was upset by Baek Chang-seo’s provoking remark, he held back his anger.
After all, it was Park Il-san who had called to make a plea.
Even though he was drunk, Park Il-san wasn’t so out of it that he couldn’t make such a judgment.
After taking a deep breath, Park Il-san spoke to him.
“Let’s be honest. Let’s join forces.”
“Ha, what are you saying? Are you scared of that kid, Lee Chang-jin? That’s not like you.”
“Be cautious. That guy messed with the Taeyang Group. He’s not an easy opponent.”
Baek Chang-seo, showing little interest, picked up a piece of sashimi and ate it.
“I’m not very keen on it. I’m worried you’ll stab me in the back. Did we ever trust each other?”
“Think it over. Shouldn’t we compete among ourselves? Let’s call a truce for now. Doesn’t it bother you that Daese is rising?”
“Hmm… I’ll think about it.”
Frustrated by Baek Chang-seo’s reluctance, Park Il-san spoke again.
“Let’s set aside our grudges and think realistically. If we don’t put a stop to their momentum, they might grow into a significant threat. Allowing them to grow is like cutting our own flesh. We either work together to bring them down or wait for them to rise. The choice is yours.”
“Hmm…”
Baek Chang-seo was slightly swayed. Though he acted indifferent, he was also secretly concerned about Lee Chang-jin. He looked at Park Il-san and pretended to be deep in thought.
“This old man is no match for me, but that guy is entirely different.”
His principle was to crush promising sprouts before they grew too big.
Having made up his mind, he extended his wrinkled hand.
“Alright. I’ll accept your proposal. But it’s a temporary alliance. After that, you know we have to settle our grudges.”
“I agree.”
Thus, the two old foxes united to face a common enemy.
They joined forces with the intention of bankrupting Daese Beer. As the two companies that dominated the beer market joined hands, Daese Beer, which had been steadily recovering its market share, took a direct hit.
“Controversy over Daese Beer smelling like disinfectant, what’s the conclusion?”
“Daese Beer is chemical liquor, not distilled.”
Park Il-san’s side launched a massive offensive, using baseless fake news and media play. Upon checking the newspapers, Manager Lee Chang-sik’s face twisted in anger.
“Damn it, these guys are really despicable.”
“This is completely nonsensical. What liquor in the world isn’t chemical?”
Vice President Hwang Cheol-kwan and other executives also looked furious.
What the opponents were doing was no different from thuggery. Lee Chang-jin asked Manager Lee Chang-sik.
“How much influence do the media have on our market share?”
“The upward trend has definitely stalled over the past few days. We’re stagnant in the high teens.”
The low-price offensive from the two major companies and the lack of a sales network were also problems. The sales network was densely woven around entertainment establishments nationwide, creating a difficult barrier for newcomers to penetrate. Prices were also 20-50 won higher than the industry standard, and with the low-price offensive from the two companies dominating the beer market, they had no choice but to lose market share.
Anticipating such a situation from the start, Lee Chang-jin tried to remain calm.
“We expected this from the beginning, didn’t we? They wouldn’t sit still while losing market share. First, call reporter Joo to circulate rebuttal materials and contact the magazine publishers. Get in touch with Lawyer Seo Tae-soo to proceed with legal action. The law is the answer to these fake news spreaders.”
“Will that really be okay? Reporters might swarm even more if we do that.”
“Don’t worry. We have a solution for that…”
After a meeting that continued nonstop until lunchtime, it was finally time to eat.
Leaving the office, Lee Chang-jin headed towards a building near Yeongcheon Market.
The kitchen, converted from an entire floor of the building, was filled with the smell of oil from the entrance.
Entering the kitchen, Lee Chang-jin first saw about ten chefs busily preparing something. The garlic scent from the pressure fryer stimulated his appetite, and on the opposite side, well-prepared chickens were piled high in a basket.
- To be continued in Episode 120 -
