Episode 98: Chosun Hotel
Jin Tae-chun, the Cash King.
When people think of a loan shark, they often imagine someone who accumulates wealth through usurious interest rates, evoking a negative image. Consequently, many people disdain private loans, equating them with “deadly debt.” However, during times when the financial system was underdeveloped, the private loan market played a role similar to that of banks.
Among those, Chairman Jin Tae-chun was famous from the late 1960s for his ability to mobilize over 6 billion won in cash daily. Considering that the annual net profit for Taeyang Textiles, one of the leading domestic conglomerates of the time, was less than 20 billion won, one can imagine his influence.
There are legendary anecdotes in the business world that illustrate Jin Tae-chun’s stature. One such story is that even Joo Il-hwan, the founder of Mirae Group and a business legend, would wake up in the middle of the night to take a call from Chairman Jin.
Several other business moguls, including Chairman Nam Tae-gon of Taeyang Group, would often rely on Chairman Jin’s help to overcome financial difficulties. Consequently, in the business world and the Myeongdong private loan market, rumors circulated that a few conglomerates could easily be wiped out at his whim.
In fact, this was the first time Lee Chang-jin met Jin Tae-chun in person, although he had only heard rumors about him. In a past life, when he was ensnared by Taeyang’s schemes, he had frantically arranged a meeting to save his company, but the opportunity vanished when Jin Tae-chun was suddenly arrested.
Jin Tae-chun’s silver hair and the deep three lines of wrinkles on his forehead only enhanced his dignified charm. Despite his gray hair, Jin Tae-chun looked no older than his forties, possessing an appearance that could be mistaken for a movie star.
“Seon-ah must be a beauty because she takes after her father.”
As the saying goes, daughters resemble their fathers, and their noses and eyes were identical.
With that thought, Lee Chang-jin bowed politely.
“Sir, I apologize for the late greeting. My name is Lee Chang-jin.”
“Alright, have a seat. I’m Jin Tae-chun, Seon-ah’s father. It’s nice to finally meet you.”
“The honor is mine. You look much younger than I expected, Father.”
“Thank you for saying so. Seon-ah has told me a lot about how smart and successful you are in business.”
“I’m still a novice and have much to learn.”
“First, let’s continue our conversation over a meal. You must be hungry after work; let’s eat first. Would you prefer Japanese, Korean, or Chinese cuisine?”
“Japanese sounds good. I had jjajangmyeon for lunch…”
“Alright, Japanese it is.”
Clap clap Jin Tae-chun clapped his hands twice, and the door slid open, revealing a chef in a service uniform.
“Did you call for me?”
“Tell the head chef to prepare an omakase and show his best skills. Our future son-in-law is here, so make sure he puts in extra effort.”
“Yes, Chairman. I will inform him immediately.”
Omakase is a Japanese term for a set meal. The meal began with abalone liver porridge to whet the appetite, followed by dishes like sea cucumber intestines and madai (red snapper), all presented in a complete set.
Next came scallops flavored with the refreshing taste of umeboshi, torched fatty tuna base with a smoky flavor, clear and clean-tasting blowfish soup, eggplant tempura, and marbled raw beef slices.
Then came tender octopus sashimi, aged flounder with sea cucumber intestines, high-quality otoro, and eel dishes glazed with teriyaki sauce, followed by an array of sashimi and sushi.
“How is it, does it suit your taste?”
“Yes. The shari is light, and the combination with the neta is excellent. It’s been a while since I’ve enjoyed such a delicacy.”
Lee Chang-jin was known to appreciate fine cuisine, but the food here was on a different level. The texture of the tataki melted in his mouth like ice cream, spreading effortlessly.
The monkfish liver sushi was as smooth as a spread.
Accompanied by a glass of sake, the sophisticated flavor of the sashimi created a heavenly experience.
Jin Tae-chun, smiling softly at Lee Chang-jin’s admiration, spoke.
“Haha! I’m glad you like it. I often come here when I don’t have an appetite. Actually, I’ve known the chef here since my days at the embassy. The executive chef here used to be the head chef at the U.S. Embassy. It’s been about 20 years, and I’ve been a regular ever since.”
“Oh, were you a diplomat before?”
“Hmm, didn’t Seon-ah tell you? I once worked as a counselor at the Ministry of Foreign Affairs under Ambassador Yoo Chan-young at the Korean Embassy in the U.S. I had to retire due to a lobbying scandal, though.”
“You were quite unlucky.”
“Well, that’s life. But I wasn’t entirely unfortunate. Since I retired under unjust circumstances, they gave me a generous severance package. I used that money to start a wig factory, which initially did very well, thanks to strong support from the government. But just as I was about to expand, there was a fire. One of the employees, working late, started a fire to keep warm, which unfortunately met with gas and caused an explosion. The fire was so intense that it burned down the warehouse. I was left speechless by the absurdity of it all.”
“Oh dear. That must have been devastating.”
“Loan sharks and gangsters came to my place when I couldn’t pay the overdue bills. I had no choice but to run and hide in a shabby fishing village inn, where the woman who hid me eventually became my wife. We lived there in hiding for about three months. At that time, I realized that if I didn’t repay the money, I might have to remain in hiding for the rest of my life. So, I decided to confront the loan shark and offered to work off my debt, doing anything he needed. That’s when I started learning how money is made in the process of buying and selling bonds.”
Jin Tae-chun reminisced with a distant look, while Lee Chang-jin interjected.
“You must have gone through a lot. Especially since you were a diplomat, dealing with debtors must have been tough.”
Jin Tae-chun laughed heartily.
“Why talk about it? I was often turned away at the door, doused with dirty water, and even threatened with knives. Once, I was stabbed while walking down the street. The knife stopped just 2cm before my heart, passing between my organs. I underwent major surgery and miraculously survived, but three days had already passed. Despite the surgery, I went out to collect money the very next day. Rolling around in a wheelchair to collect debts, I ended up intimidating the debtors instead. Ah, this scar on my forehead is also from being stabbed with a broken bottle. I had seven surgeries to fix it.”
Now that he looked closely, what he initially thought were wrinkles were actually large scars. Lee Chang-jin was taken aback by Jin Tae-chun’s tenacity.
“You have an extraordinary will. I couldn’t even imagine doing such things.”
“Haha, when push comes to shove, people can do anything. After working like a dog for two years, the boss called me and told me I no longer had to repay the debt. He then offered me a head position and suggested we become business partners. Once I knew how the market worked, I saw that there were many bad debts. In return for converting hidden money into cash, I received a commission. Since it was money that was hard to collect, they were quite happy when I brought authorization letters.”
Through banks and securities firms, he reclaimed 20 billion won for the owners. The commission was 5% per case, meaning he earned 1 billion won himself. This was the moment when he, who had lost everything in business, found a foothold for a comeback.
“Despite doing the legwork yourself, earning 1 billion won is quite generous. Your partner must have been very kind.”
“Ah, that. It turns out the person who taught me the skills was already in stage 3 cancer when we first met. My wife took care of him during his last days, and perhaps because of that, he transferred a bank account to me before he died. I used that money as capital to enter the private loan market.”
“With that money, you could have lived comfortably without doing such tough work. Any regrets?”
“Not at all. I consider myself lucky. Even if I had continued as a diplomat, how far could I have risen? The best I could have hoped for was to become the Korean Ambassador to the U.S., which would have been the pinnacle. But with changes in administration, I would have been barred from political activities and probably unemployed by now. Or worse, accused of accumulating wealth illegally and having my assets confiscated. But by changing direction back then, I was able to make money and gain a precious daughter. I consider it a successful life. Don’t you agree, Seon-ah? If anyone has a prettier daughter than mine, let them come forward.”
“Dad, please stop. You’re embarrassing me…”
Jin Seon-ah lowered her head in embarrassment. Under the lighting, her face was flushed, though it was unclear if it was due to alcohol or her father’s embarrassing words.
“Haha, look at her. She’s usually not embarrassed by such things, but she’s acting shy because you’re here. Do you like him that much? You used to say you’d marry me when you grew up. Dad feels a bit hurt.”
“Did Seon-ah really say that?”
“When she was little, she would cry if she didn’t see me for just a day. Did you know? Seon-ah wore diapers until she was six. She couldn’t sleep alone and would wet the bed whenever there was thunder and lightning. I had to try all sorts of things to break that habit.”
“Dad, stop teasing me! If you keep this up, I’ll get mad.”
Seeing Jin Seon-ah’s pouty eyes, Jin Tae-chun raised his hands in mock surrender.
“Haha, I understand. I should listen to the princess. By the way, I read about your chemical plant approval in the newspaper. It was truly refreshing. I was honestly surprised. Defeating Taeyang Group head-on is no small feat. Your business skills are exceptional.”
“No, it was just good luck.”
“No, even major companies find it hard to defeat Taeyang. And you’ve done it twice now. That’s already a testament to your skill.”
“Thank you for the compliment.”
“I heard you’ve recently entered the construction industry. Are you targeting the Middle East?”
“Yes. The growth potential of the overseas market seems greater than that of the domestic market. The scale is simply different. Moreover, there’s no industry like construction to make large sums of money.”
“Hm. I’ve heard that the construction sector has great growth potential. However, the existing cartel is strong, so entry won’t be easy. Do you have any specific plans?”
“For now, we’re considering forming a consortium with established firms or purchasing business rights. If that doesn’t work, we’re looking into subcontracting.”
Jin Tae-chun offered advice.
“I wouldn’t recommend participating as a subcontractor. Brokers will likely intervene, and if they take their cuts, you’ll end up in the red. Moreover, I’ve heard that the Middle Eastern clients can be very tricky. Failing to meet deadlines can be fatal. The late fees alone amount to 10% of the construction cost.”
Lee Chang-jin nodded in agreement with Jin Tae-chun’s advice.
“Can’t expect to be full from the first bite, right? Initially, we plan to focus on gaining local know-how. As long as we can secure 15 to 20% from general management fees, we won’t be at a loss. We’re starting with small projects under 10 million riyals.”
“That’s a good approach. Trying to run before you can walk will only lead to trouble. It’s important to understand the situation by going through some trial and error. Unexpected situations will arise, so it’s necessary to be prepared. How do you plan to gather local information?”
“I have some data from my time at Mannheim, so I have basic information on several Middle Eastern countries. Before bidding, we’ll need to find brokers or agents who know the local scene well. We’re collecting bidding information through our trading company, but we haven’t thought much beyond that.”
“Good, you’re well-prepared. I have some contacts from my time at the Ministry of Foreign Affairs. If needed, I can introduce you to reliable agents. I probably have a wider network than you.”
Lee Chang-jin nodded gratefully at Jin Tae-chun’s offer.
“I’d be honored. Thank you for your support.”
“There’s no such thing as a free lunch. Do you have any advice for me? Any good ideas?”
Lee Chang-jin smiled and responded to Jin Tae-chun’s sly suggestion.
“Well, that’s easy. Let’s see, I hear you have a separate line with Japan. How about stockpiling items that are under import restrictions? The restrictions will likely be lifted by the first half of next year.”
“Haha, that’s not a bad idea. Why don’t you invest in that yourself?”
“I don’t have the capital for such investments. I can only watch with envy, but you’re in a different position, aren’t you?”
“Haha, you think too highly of me.”
Jin Tae-chun and Lee Chang-jin continued discussing business. The conversation, which started with the construction industry, eventually covered future business opportunities and their prospects.
“Personally, I believe that in the near future, the government will implement policies to legalize the financial industry, similar to advanced countries. How about considering the establishment of a bank or a financial institution in advance?”
“Are you suggesting I establish a comprehensive financial company?”
“Yes, exactly. As more foreign currency flows in from the Middle East, the domestic financial market environment will change significantly. It’s only natural that it becomes harder to control large conglomerates as they grow.”
Jin Tae-chun’s eyes sparkled with interest, and Jin Seon-ah also paid attention.
- To be continued in Episode 99 -
