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CH436 | heir
🕑 Added 2025-09-19 13:13:48 +0000 UTCJerry Wang, the CEO of Seaspan.
He had come to Korea.
We were already prepared to win him over.
But Jerry Wang wasn’t sitting in the CEO’s chair of Seaspan for nothing.
He intended to steer the negotiations in a direction we hadn’t anticipated at all.
“It seems CEO Jerry Wang has arrived with twenty shipowners.”
“Twenty shipowners? Are they the ones who leased vessels to Hyunjin Shipping and Hyundai Shipping?”
“We haven’t identified all twenty yet, but of the eight we have confirmed, every one of them is connected to those two shipping companies.”
Why had Jerry Wang brought shipowners with him to Korea?
The reason was obvious. This was a show—a move to seize the upper hand in the renegotiations.
“So, his plan is to use the renegotiations to raise the charter fees instead?”
“The planning office believes that, instead of convincing the twenty shipowners himself, he intends to push for a change in the discount rate—from fifty percent down to thirty.”
Seaspan had already agreed with me on a fifty percent charter fee reduction.
But the other shipowners had not. By bringing them all together, Jerry Wang was flexing his influence, aiming to push through a uniform thirty percent reduction instead.
“He’s certainly an impressive man.”
“Should we postpone the negotiations? If we walk into the room like this, CEO Jerry Wang will have the upper hand.”
“He came all the way to Korea. We can’t keep him waiting. Is the meeting still set for this evening?”
“Yes, negotiations are scheduled at headquarters at 7 p.m.”
“Then proceed as planned.”
I thought I understood Jerry Wang’s strategy.
He had marched in with a crowd of shipowners, giving no time to think before forcing renegotiations to the table.
Not a bad tactic. But one I had no reason to resist either. After all, this spared me the trouble of meeting twenty shipowners one by one.
“Chairman, CEO Jerry Wang and the shipowners have arrived.”
Jerry Wang entered Taewoo Group headquarters with an air of authority.
Behind him, twenty shipowners filed in, clearly meant as a display of strength.
“Welcome to Taewoo Group. Your visit was sudden, so our preparations may be lacking. I ask for your generous understanding.”
“We’ll be fine with just a glass of water. What more do we need at the negotiating table, other than charter fees? Hahaha!”
He was a completely different man from the one I’d met in China.
Back then, he’d been worn down by the pressure of short-selling attacks. But now, with that threat behind him, his chest was broad, his presence commanding.
“Please, this way.”
I guided them into the conference room with a smile.
The ease with which I handled the situation seemed to unsettle Jerry Wang for a moment.
Did he really think I’d be intimidated just because he showed up with twenty shipowners in tow?
Far from intimidated, I almost wanted to thank him—hug him, even—for saving me so much work.
“Since everyone here is busy, let’s move straight into the charter fee negotiations. First, I should note that Seaspan has already gone through renegotiation with us. When Taewoo Group acquired the shipping companies, we agreed to a fifty-percent reduction in charter fees.”
“Ahem. That may be true for Hyunjin Shipping, but Hyundai Shipping still requires a fresh round of talks, don’t you think? And as for Hyunjin and Hyundai—yes, they sought discounts before due to financial troubles. But now that a financially strong company like Taewoo Group stands behind them, is there really any need for reduced charter fees?”
So that’s how he wanted to play it?
Jerry Wang had thrown down a bold opening statement, hinting at rolling back the discount altogether.
He didn’t truly intend to erase the reduction—but he was pushing hard, staking a claim to the negotiating high ground.
“Chairman Jerry Wang is right. A contract already signed should never be reopened for renegotiation.”
“But given how difficult the shipping industry is these days, shouldn’t we show a little support? Surely you don’t expect us to slash rates by fifty percent without any conscience?”
“Let’s at least hear everything Chairman Kim has to say before making a decision. That would be proper, wouldn’t it?”
The shipowners jumped in as well.
Whether rehearsed in advance or not, they spoke in unison, painting me as someone shameless enough to demand an unfair discount.
But if they thought that would make me back down, they were sorely mistaken.
In fact, when the atmosphere turned hostile like this, I became even more forceful.
“At the time the contracts were signed, charter rates have since collapsed to nearly one-tenth. It was the shipowners who imposed the unfair clause of a ten-year long-term contract.”
“Unfair contracts? Are you accusing us now? Did we threaten you into signing?”
“You were the ones who first asked for a ten-year deal, and now you’re crying foul?”
“If that’s your attitude, we’ll simply repossess our ships!”
My hardline stance had stirred the shipowners, one even threatening to withdraw vessels outright.
“I haven’t presented any conditions yet. No matter how excessive the charter rates may be, I’m not so rude as to demand renegotiation without offering terms.”
“Ahem. Let’s hear Chairman Kim’s proposal in full before we pass judgment,” Jerry Wang cut in, calming the shipowners.
A sly smile spread across his face, as though convinced he already held the upper hand.
“I have three conditions I can offer. I know the shipping downturn has left many of you under financial strain. So, if there are shipowners among you who wish to dispose of their vessels, Taewoo Group is prepared to buy them.”
Just owning a vessel was a losing proposition these days.
Shipping companies locked into long-term contracts were defaulting on charter fees, and any new contracts signed would bring in barely ten percent of past rates—losses on every side.
For those owners, I had just opened an escape hatch.
A chance to unload loss-making vessels onto Taewoo Group and walk away from the shipping industry altogether.
Several shipowners perked up immediately, some even asking what purchase price I was offering.
“We’ll purchase the vessels at current market value.”
“And what other conditions do you have?”
“As I understand it, most of the charter contracts expire within the next three years. I’d like to renegotiate the rates under the condition that we extend those contracts by an additional five years.”
Shipping, after all, was still a market governed by supply and demand.
With new vessels constantly being built, charter rates had been on a steady decline.
No shipowner expected rates to rise anytime soon, so the proposal of an additional five-year contract was an enticing offer.
“So, because Taewoo Group owns financial firms, you’re trying to average down charter rates the way one does with stocks.”
“Exactly. By combining the old contracts with new ones, we can arrive at a fair, reasonable charter rate.”
In stock trading, this strategy was known as averaging down—buying more shares at a lower price to reduce the overall average cost.
There was no rule that said the same principle couldn’t apply to charter rates.
And if a five-year extension was added as a condition, it was hardly a bad deal for shipowners.
“It’s not a poor proposal, but shouldn’t the overdue charter fees be settled first?”
“Of course. Once renegotiations are concluded, we can deposit the overdue charter fees today itself.”
“Do you even realize how much the overdue amount is?”
“I understand it totals around four trillion won.”
For shipowners suffering under financial strain, that overdue four trillion was like rain in a drought.
But without signing the renegotiated agreement, that rain would never fall.
“So what you’re saying is, unless we renegotiate, you won’t release the overdue charter fees?”
“Regrettably, yes, that’s the only way.”
“That sounds almost like a threat.”
“It isn’t a threat, but if it came across that way, I apologize. Let me restate the offer clearly: first, vessel acquisitions. Second, an additional five-year charter extension. Third, full payment of overdue charter fees in a lump sum.”
“And in return, just how much of a discount are you asking for?”
“I want the existing charter rates reduced by seventy percent. In exchange, the new five-year contracts will be given the highest consideration—and I’ll pay those new five-year charter fees in full, upfront.”
I had played my last card.
An upfront payment covering both the overdue charter fees and the next five years’ worth in one lump sum.
It was the kind of money that could break through the company’s blocked cash flow in an instant.
No shipping company ever paid five years of charter fees at once—this was a deal overwhelmingly favorable to the shipowners.
“To be frank, it is indeed a very good offer—better than anything we’ve seen from any other shipping line. But a 70% discount? That’s excessive, don’t you think?”
[Yes, it is excessive. A lump sum payout is attractive, but given the losses we’ve already suffered, this is money we are entitled to anyway.]
[Hmm. If it were a 50% discount, I might consider it, but at 70%, it would be better just to reclaim the ship.]
[I don’t understand why a conglomerate as large as Taewoo Group is being so stingy. Let’s settle on a generous 50% discount.]
Sailors were said to be rough around the edges, weren’t they?
It wasn’t just sailors—the shipowners had fiery tempers as well.
Even after I had made a bold offer, they remained dissatisfied, showing their true colors.
If I gave in here, they would only push further without end. So once again, I pressed back firmly.
“If the terms are truly unacceptable, you are free to reclaim your ships. But let me be clear: overdue charter fees will be pursued through international litigation.”
“Chairman Kim! Are you openly threatening us? If we were all to reclaim our ships at once, do you think you could keep your shipping line running?”
[What kind of negotiation is this, with someone who doesn’t even understand the value of a vessel?]
[To come all the way to Korea only to be treated like this—unbelievable.]
[What are you all doing? Get up from your seats.]
Some of the shipowners pretended to rise from their seats.
But in truth, none of them left the room.
They only raised their voices, grumbling and demanding better terms.
“Director, play the materials we prepared.”
“Yes, I’ll project them on the big screen.”
At the front of the conference room was a massive screen.
The planning director projected the prepared data onto it.
“These are the ships currently owned by Taewoo Group, as well as the list of shipping companies in which we hold majority shares.”
The sheer number of ships Taewoo Group owned was beyond imagination.
During multiple economic crises, they had acquired vessels from Japan, China, Greece, and across Europe.
Strictly speaking, it was less a purchase and more like receiving ships in lieu of cash.
And the number of vessels now in their possession was more than enough to astonish the shipowners.
[Didn’t they say this was Taewoo Group’s first time entering the shipping business?]
[I’d heard that ships changed hands during the financial crises, but I had no idea they ended up with Taewoo Group.]
“Ahem, everyone, calm down and let’s hear Chairman Kim out.”
The shipowners’ voices suddenly died down.
This was exactly why I had been grateful when Chairman Jerry Wang brought more than twenty shipowners with him.
Taewoo Group had no reason to be dragged around by them.
“Taewoo Group’s total vessel capacity exceeds 600,000 TEU. Compared to the capacity of the ships you’ve chartered out to Hyunjin Shipping and Hyundai Lines, it is by no means small.”
“So even if we pull out our ships, you’re saying you can still run a shipping line without issue.”
At last, Representative Jerry Wang understood.
The initiative in the negotiations shifted instantly from him to me.
