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CH490 | GSI
🕑 Added 2025-08-30 14:18:22 +0000 UTCSeok-won sat at the spacious desk, watching as a female secretary cleared away the teacups from the sofa table and left the room. He finally spoke.
“Are you certain about this?”
Since the story came out of the Blue House, the chances are high that it’s true.
The government, believing that the reckless, overlapping investments of large conglomerates were the main cause of the nightmarish foreign exchange crisis, had from the very beginning of its administration set the “Big Deal” — a large-scale business swap among conglomerates — as a top national priority.
“To suddenly order conglomerates to exchange affiliates and divide businesses—there couldn’t have been a bigger bolt from the blue.”
Naturally, the business world fiercely resisted, and no matter how much the Blue House and government pushed, almost no progress had been made.
Finally, the president, his patience at an end, drew his sword in public. At a press conference, he put immense pressure on the five major conglomerates to carry out the Big Deal.
[When the Blue House cut off financial lifelines through the banks, it seems even the chairmen of the conglomerates couldn’t hold out any longer and were forced to surrender.]
[Even though the situation had improved somewhat, liquidity was still tight. If banks began to recall loans, companies would collapse that very day. They had no choice but to accept the Big Deal, bitter as it was.]
“True enough.”
In the life before his return, it would have been unthinkable. But back then, the Blue House still had the power to move banks and force specific companies into submission.
In fact, when a foreign consulting firm released an analysis stating that Hyunwoo Electronics was the most suitable party to lead the semiconductor integration, TG Group—which had been grooming semiconductors as its future core industry—fiercely protested.
In response, the Financial Supervisory Commission sent out a public fax to commercial banks stating: Suspend all new credit to TG Semiconductors, and when existing loans mature, recall them without extensions.
“That was essentially a threat: hand over the company, or we’ll destroy you.”
Although the fax specifically named TG Semiconductors, banks mindful of the Blue House might hesitate to extend or grant new loans to TG’s other affiliates as well, potentially endangering the entire group.
[This morning, Chairman Woo Yeong-rok of TG Group personally visited the Blue House and told the president he would give up the semiconductor business.]
“If that’s true, then TG Group has completely surrendered and raised the white flag.”
[That would be a fair assumption.]
With a deep, weighty voice, Lee Cheol-gyun continued.
[By this afternoon or, at the latest, tomorrow, there will be an official announcement through the media.]
Seok-won's eyes lit up with interest. He adjusted his grip on the phone in his hand and asked,
"If TG Group hands over the semiconductor company in its entirety, the sale price will amount to several trillion won at the very least. How does Hyunwoo Group plan to raise that much money?"
[They intend to secure acquisition funds through bank loans and cover the shortfall by selling off Hyunwoo Electronics' non-semiconductor divisions. In addition, there is talk that Hyunwoo Group might transfer its 6.21% stake in Linecom to TG as part of the deal.]
"A Linecom stake, huh... Yes, that makes sense."
Linecom, the nation's second international and long-distance telephone carrier, was jointly held by several conglomerates -- TG, Hyunwoo Group, Saseong, Daegwang, and others -- each owning more than 5% of its shares.
But that's only on the surface. Once you add up all the friendly stakes, TG Group already controls more than 30% of the total. In reality, they already hold the reins of management.
With the dot-com boom sweeping in, Linecom was attracting attention as a future growth industry, having been one of the first companies, alongside Korea Telecom, to launch commercial internet services in the country. It was only natural that TG would covet Hyunwoo Group's Linecom stake.
Yet, while that stake was certainly valuable, Seok-won's attention was fixed on something else.
"If Hyunwoo Electronics is planning to sell off its non-semiconductor divisions to raise funds, then the automotive electronics division would also be on the chopping block, wouldn't it?"
[We will have to wait and see for the exact details, but chances are high that it will be.]
"I see. So that's how it is."
Catching on quickly to Seok-won's interest in Hyunwoo's automotive electronics division, Lee Cheol-gyun offered,
[Shall I look into whether the division is really up for sale?]
"Find out how much they are asking for it, and whether they are already negotiating with someone else."
[Understood.]
Ending the call, Seok-won set his phone down. With his fingertip, he lightly tapped the desk a few times, murmuring in a low voice.
"If my memory serves me right, Hyunwoo Electronics' automotive electronics division mainly produces car navigation systems and car audio units."
The car navigation system was, simply put, a GPS navigation device.
In his previous life, it had been something used in everyday life without a second thought, but at this point in time it was a cutting-edge technology that had only been introduced domestically less than two years earlier.
"The only companies in Korea that have completed detailed electronic maps, developed the systems, and are actually offering the service are Hyunwoo Electronics and Iseong Information & Communications."
Car audio, while not an especially advanced technology, was being supplied exclusively to Hyunwoo Motors, another affiliate of the group, ensuring stable revenue.
"Considering that Hyunwoo Group also acquired Gichang Motors after its bankruptcy, sales will only grow further."
Of course, the exact outcome would depend on the terms of the acquisition, but since supply chains for parts could not easily be replaced, it was bound to remain a steady cash cow.
"On top of that, if they combine it with Manyoung Machinery, the auto parts company they recently acquired, the synergy could be tremendous."
That merger could create the largest auto parts company in Korea, strong enough to become a "super supplier" that even major automakers would have to treat with caution.
"Even if acquiring Hyunwoo Electronics' automotive electronics division alone won't immediately get us there, with aggressive investment to build up its technology and scale, the potential is definitely there."
Because it was a division that generated steady, reliable cash through internal group transactions, Hyunwoo Group would never have considered selling it under normal circumstances. Only the semiconductor Big Deal, and the urgent need for massive acquisition funds, made it possible.
"In other words, it won't come cheap, but this is the perfect opportunity to acquire a prime company."
Finishing his calculations in his head, Seok-won resolved to pursue the acquisition of Hyunwoo Electronics' automotive electronics division.
"But before that, since I've gotten my hands on some useful information, I should put it to use."
He reached out, picked up the keyphone receiver, and called Choi Ho-geun.
"This is Choi Ho-geun from the Funds Management Department."
"It's me. Soon, TG Group will announce that it's transferring its semiconductor business to Hyunwoo Group."
Upon hearing this, Choi let out a low hum, showing the reaction of someone who had long expected the inevitable.
"The Blue House kept pressuring them hard, and in the end, it turned out this way."
"Once the Big Deal announcement comes out, shares of both Hyunwoo and TG Group will surge sharply. Make sure we establish our position in advance."
Upon hearing this, Choi Ho-geun let out a low hum, showing the reaction of someone who had long expected the inevitable.
"The Blue House kept pressuring them hard, and in the end, it turned out this way."
"Once the Big Deal announcement comes out, shares of both Hyunwoo and TG Group will surge sharply. Make sure we establish our position in advance."
"Understood."
"But remember, this won’t be a long-lasting windfall. Once we’ve made a decent profit, pull out."
"Yes, sir."
That much was enough. Seok-won trusted that Choi would handle it well.
If he hadn’t been capable of that, he would never have been appointed head of the Funds Management Department, responsible for managing a pool that had now grown to over one trillion won in investment capital.
Setting down the receiver, Seok-won stroked his smoothly shaven chin with one hand, calmly gathering his thoughts on how best to acquire Hyunwoo Electronics’ automotive electronics division.
Wearing a crisp white dress shirt, Choi Ho-geun sprang to his feet at Seok-won’s instructions and clapped his hands together loudly.
"Alright! Everyone, stop what you’re doing for a moment and listen up!"
The team members, each sitting at their desks engaged in stock trading, turned their heads toward Manager Choi.
Stepping a few paces forward with his hands on his hips, Choi asked,
"What are the current stock prices of Hyunwoo Electronics and TG Semiconductors?"
Deputy Manager Yoo Seok-hyun checked his monitor and answered immediately.
"Hyunwoo Electronics is at 25,700 won, and TG Semiconductors is at 13,300 won."
"Good. From now on, start buying up Hyunwoo Electronics and TG Semiconductors with everything we’ve got. Also sweep up as many TG Group affiliate shares as possible!"
The sudden order left everyone looking bewildered. At that moment, Section Chief Jung Hwan-yeop, his tie knot loosened, leaned forward from his chair with a knowing expression.
"Did the semiconductor Big Deal just go through?"
The other team members all gasped in surprise.
Choi glanced at Jung—the sharpest one of the lot, even if he was still just a section chief—and gave him a small nod.
"That’s right. TG has decided to hand over its semiconductor business to Hyunwoo. We need to secure our position before the news spreads."
"Wow. Once the announcement comes out, the stock market is going to go wild."
Jung let out a low whistle and raised his index finger, pointing upward.
"There’s no way you dug up this kind of insider info yourself, sir. The chairman tipped you off, didn’t he?"
"Of course."
Choi shot Jung an annoyed glare for always adding unnecessary comments.
"All the more reason to move before others snatch up the shares!"
"Yes, sir!"
As the team members’ hands began moving faster across their keyboards, Section Chief Jung Hwan-yeop rotated his shoulders, loosening up.
“Heh, heh, heh. Finally, an easy chance to pocket a nice performance bonus.”
“Look at you, already blinded by money.”
“Well, I am a groom-to-be. Got to save up while I can.”
Though his motives were questionable, at least he was motivated to work hard. Manager Choi Ho-geun could only grimace with a reluctant expression.
At that moment, Noh Hee-won cautiously spoke up, looking puzzled.
“Um, Manager. Since this is a Big Deal between both sides, why are we buying up all of TG Group’s stocks but only Hyunwoo Electronics from the Hyunwoo Group?”
Choi casually shifted his gaze aside and replied in a nonchalant tone.
“Sure, giving up semiconductors—the future growth industry—hurts, but in return, TG is bringing in several trillion won in cash from the sale.”
“That makes sense.”
“When that kind of massive capital flows in all at once, TG’s overall financial structure will improve. Naturally, their stock prices will rise. As for Hyunwoo Electronics, investors will expect synergy from the semiconductor integration, so buying pressure will push the stock up as well. Got it so far?”
“Yes.”
Noh Hee-won nodded firmly.
“But unlike TG affiliates, which will benefit from the influx of trillions in acquisition funds, Hyunwoo Group will have to come up with the money to purchase TG Semiconductors.”
“Ah!”
Only then did Noh realize the situation, letting out a small exclamation.
“So instead of rising, Hyunwoo’s affiliates will be under downward pressure, since they’ll have to drain funds to cover the acquisition.”
“Exactly.”
Unlike some others, Noh Hee-won’s diligent, model-student attitude made Manager Choi Ho-geun smile.
“For the same event, you can immediately analyze how the stock will react depending on the position each company is in… I’m honestly impressed.”
“Ahem. Well, this is just basic stuff.”
Receiving praise from the youngest, who felt like a belated little brother, Choi raised his shoulders with a proud expression.
When Section Chief Jung Hwan-yeop chuckled to himself at the sight, Choi quickly wiped the smug look off his face and clicked his tongue.
“What are you doing, not buying up shares already? Slacking off?”
“I’m on it right now. Don’t worry, sir!”
Jung replied slyly as his fingers clattered across the keyboard.
As Choi’s fund management team began aggressively scooping up shares, the previously stagnant stock prices of TG Group affiliates—including semiconductors—and Hyunwoo Electronics started to surge sharply.
Sensing that something was afoot, other investors gradually joined the buying spree. By late afternoon, when word of a semiconductor “Big Deal” spread around Yeouido through market rumors, the stocks immediately skyrocketed to their daily upper limits.
And once the market closed, the Big Deal between Hyunwoo Electronics and TG Semiconductors was officially announced through the press.
