The news of Kang Do-hyun and Park Seo-eun’s engagement began to spread through the political section of the news rather than the social or economic sections.
Although the engagement had not even taken place yet, evaluations were already surfacing that Kang Man-sik’s political career had reached a major turning point now that DS Group’s only daughter was marrying his son.
Unlike in the past, marriages between the children of conglomerate families and politicians were not particularly welcomed these days. However, DS Group’s corporate image was currently excellent due to the recent Paris Flu crisis, and Kang Man-sik was a man who had maintained his political career without any particular scandals. Thus, the public’s reaction was not as negative as one might expect. If anything, there was an atmosphere of celebration for the engagement of the well-matched couple.
“What is the group’s gain from joining hands with Kang Man-sik?”
“Kang Man-sik served as the Minister of Land, Infrastructure, and Transport, so he is judged to have significant influence in that area. Furthermore, as a four-term lawmaker, he is evaluated to be close to competing for the party leadership and authority.”
“Party authority? In my view, he hasn’t achieved any major feats. He seems lacking if he’s aiming for a position higher than his current one.”
“Your assessment is accurate. He lacks a strong faction. While he possesses the public recognition gained from serving four consecutive terms in Busan and the potential to encompass both the Gyeongnam and Gyeongbuk regions, his past as a young reformist who spoke harsh truths during his first term is now holding him back. That reputation was a great help during his first and second terms, but as he became a senior politician, it turned into a disadvantage that left him without a clear direction. If he joins hands with the existing powers, he becomes a traitor; if he continues to speak out, he is criticized for still acting immaturely.”
Jinhyuk Park nodded as he conversed with Hisoo Hyun.
In his eyes, Kang Man-sik was someone who could not rise higher than his current position. It would be more appropriate to say he was lucky to have even reached his current spot.
“But is such a person suitable as Seo-eun’s father-in-law? No matter how I look at it, it’s strange. That son of his doesn’t seem particularly noteworthy, either.”
“Actually, after hearing what you said, Director, I used my sources to look into Kang Man-sik. What I found wasn’t much different from his public image or his reputation within the party.”
Immediately after hearing the information from Han Ji-yeon, Jinhyuk Park had asked Hisoo Hyun to look into Kang Man-sik. He needed to know what kind of person Kang Man-sik was to gauge Seyoung Oh’s intentions. The information gathered suggested that Kang Man-sik was not a fitting match for DS.
“The engagement ceremony is said to be in three months. Judging by the timing, it seems they scheduled it for the day the Chairman returns to Korea. And the fact that they made such an announcement in front of so many people suggests they received the Chairman’s permission. That means the Chairman chose to join hands with Kang Man-sik… but based on what we can see now, it doesn’t make sense. Could there be another reason?”
“There is one other possibility. But it’s just a hypothesis.”
“I don’t mind if it’s a hypothesis, so tell me.”
Hisoo Hyun hesitated for a moment before speaking.
“You are aware that West Air was shut down for two months due to the Paris Flu. There was also a restructuring of 300 personnel. Because they suspended all domestic flights for two months, their performance has been poor. Consequently, their deficit has snowballed. Director Oh tried to raise funds by working her connections everywhere, but it wasn’t enough. Even Han Sung Group, her parents’ company, is in a difficult situation.”
As he listened to Hisoo Hyun, Jinhyuk Park became certain that Seyoung Oh had diverted artwork from DS Telecom to funnel funds into West Air. He had expected as much, but given the circumstances, there seemed to be no other reason to spend money there.
“But no matter what she did, there was no clear answer. That’s why Daekwang Group stepped back as well. Of course, our DS was the same. However, the situation has changed slightly recently. As the aviation industry fell into a severe recession, it seems the government is considering purchasing Asset-Backed Securities, or ABS.”
“Are you saying the government might provide financial support?”
“Yes. West Air’s fixed costs are estimated to be between 100 to 200 billion won per month. On top of that, there are about 100 billion won in corporate bonds reaching maturity. In this situation, the shutdown has depleted their cash reserves. Since they aren’t a listed company, it’s difficult to secure cash through stock sales or paid-in capital increases. There were rumors in the industry that they might collapse, but because DS and Daekwang are involved, people were only discussing it as a possibility.”
Hisoo Hyun picked up his teacup, moistened his dry throat, and continued.
“In this situation, they have to reduce their routes, but doing so decreases revenue and only leads to further losses. If routes are reduced, they also trigger the early repayment conditions for their bonds.”
“It’s one obstacle after another.”
“Yes. In fact, the only reason the company is still standing is because they have DS as a backer. It wouldn’t have been strange if they had closed down long ago. However, this situation isn’t limited to West Air. Other airlines are in the same boat. That’s why there’s talk that the government will buy the maturing ABS to prevent a default situation.”
“I understand the government helping. But what does that have to do with Kang Man-sik?”
“There are rumors that the government will prioritize national carriers. For low-cost carriers, they say they will be selective in their purchases.”
“So, are you saying she arranged her daughter’s marriage to Kang Man-sik’s son just to receive government funding? Just how much did she sell her daughter for?”
“The ABS maturing by early next year is estimated to be around 500 billion won.”
“For a mere 500 billion? She sold her daughter for 500 billion won?”
Jinhyuk Park was left speechless by the absurdity of it.
Five hundred billion won was a lot of money. However, it wasn’t an amount that DS couldn’t afford. If the group’s affiliates pooled their resources, it was a sum that could be handled without much burden. Even the assets Jinhyuk managed were in the trillions.
It made no sense to marry off her daughter to Kang Man-sik’s son just to get support, rather than receiving the 500 billion outright. It would have been more convincing to say the two were actually in love.
“Does Kang Man-sik have the authority to make that decision? Even though he stepped down as the Minister of Land, Infrastructure, and Transport?”
“He can’t make the direct decision, but he seems to have influence. After all, he has two years of experience in that ministry.”
Jinhyuk Park nodded and gripped a cigarette. Now he knew what Seyoung Oh wanted. He also confirmed the reason Park Junman had allowed it. Of course, that didn’t mean he understood their choice.
He didn’t know how much Junman Park cherished Park Seo-eun, but he didn’t think the man would hate his only daughter. Furthermore, Seyoung Oh was a woman who was fiercely protective of her own children. While he tilted his head at the decision they made, he tried to understand it.
“Director, what will you do?”
“About what?”
“Do you intend to just watch Park Seo-eun’s engagement happen?”
“If I don’t just watch, what are you suggesting I do?”
“I’m just saying that no matter how bad the relationship is, the marriage seems too lopsided. Someone like Miss Seo-eun could aim for a much better match.”
Jinhyuk Park tapped his cigarette against the table, packing the tobacco.
“What happens if I cut off the government support?”
“Pardon?”
Hisoo Hyun had suggested opposing the marriage. However, Jinhyuk Park was talking about blocking the support for West Air, not the marriage itself. Though the result might be the same, it was a roundabout way of saying that Park Seo-eun meant nothing to him.
“If the government doesn’t provide support and DS and Daekwang both step back, there is no way for West Air to survive.”
“Good. Then what happens if West Air collapses?”
Hisoo Hyun stared at Jinhyuk Park. His expression showed he wanted to know what Jinhyuk truly wanted. Jinhyuk Park brought the cigarette to his lips and spoke.
“I’m someone who wants Director Oh to be in a very difficult position. I feel bad for Sanghyuk, but what can I do? My dislike for Director Oh is greater than my sympathy for him being caught in the middle.”
“Can you really block the support?”
“Isn’t it something the government is doing? This government owes me a debt.”
At Jinhyuk Park’s firm words, Hisoo Hyun realized that if Jinhyuk wanted to do it, he could. He also realized Jinhyuk was willing to do anything to make things difficult for Seyoung Oh.
“If West Air collapses, Executive Director Sanghyuk Park will likely take a serious hit. He’ll drift further away from the position of the next leader.”
“That doesn’t matter. I’ve never felt that my position was threatened because of Sanghyuk.”
“Well, there is a large gap between you and him, so I suppose you can put that thought aside. Then there’s Director Oh… she likely has a considerable amount of personal funds tied up in this. She just won’t be able to recover them? Other than that, there aren’t many specific hits she’ll take.”
Jinhyuk Park lit his cigarette and fell into thought.
He briefly regretted that putting the DS Telecom artwork up for a charity auction to see Director Oh’s next move might have been a mistake. However, that regret didn’t last long. While exposing it would have brought Director Oh down, the blow to himself and the DS Group would have been substantial. The drop in public trust was too high a price to pay for getting rid of Director Oh.
The people were the consumers, and the consumers were the absolute rulers of the market. He judged that taking a risk that would alienate consumers would have been the wrong choice.
“West Air. West Air. It doesn’t mean much even if it collapses.”
“Yes. From your perspective, West Air is meaningless.”
“Then it might be even more meaningless to the Chairman.”
Hisoo Hyun blinked, not understanding the weight of Jinhyuk’s words. He didn’t seem to grasp why the Chairman was being mentioned now.
“The Chairman has acted and spoken to me in a certain way. He is someone who remains a bystander if something has no meaning to him. But if he has reached out regarding Seo-eun’s matter, it means this might not be a meaningless affair.”
“Are you saying the Chairman is involved in Miss Seo-eun’s marriage? Couldn’t it be that Director Oh asked for the favor?”
“The woman I know as my stepmother is not someone who looks at the grand scheme of things that broadly. She would have simply asked for financial support instead.”
In fact, that was exactly what Seyoung Oh had wanted at the dinner table. It didn’t seem like this plan could have come from her head.
“The Chairman is likely handing Seo-eun over to that side because he wants something.”
“Kang Man-sik… he didn’t seem like the kind of person who would catch the Chairman’s interest.”
“Since we’ve come this far, let’s wait and see what he wants.”
Jinhyuk Park thought that having stepped back once, stepping back a second time wouldn’t be a problem.
***
Unexpectedly, the first move came from Daekwang Group.
Daekwang Group, which had acted as if it were going to pull out of West Air, signaled that it would help the recovery by injecting 200 billion won into the company. Subsequently, despite a rating downgrade from the credit agencies, the newly issued ABS sold like wildfire in the market, making West Air’s recovery seem like a foregone conclusion. Rumors began to circulate that the price of West Air’s unlisted, over-the-counter stocks had surged by tens of percentage points in just a few days.
Jinhyuk Park watched this spectacle from a distance, checking where the flow was heading. He had decided to observe, and intervening midway would be a poor choice. The end of this flow began to reveal itself before long.
The beginning was the government’s purchase of the ABS. Just as Hisoo Hyun had predicted, the government promoted market stabilization by stating its concern over the collapse of the aviation industry. They began providing opportunities to the industry by purchasing the maturing ABS first and extending their deadlines.
National carriers were at the top of the priority list for ABS purchases, followed by West Air, which was named first among the LCCs.
Furthermore, the government mediated between the creditors and West Air, securing an extension on the maturity of bonds that had a condition stating, ‘Creditors may demand early repayment if management deteriorates for three consecutive months.’ Additionally, the government announced an expansion of unsecured, low-interest loans and government guarantees for the bonds.
“…The government’s continued efforts to save the aviation industry are ongoing, including the expansion of large-scale policy funding, various tax exemptions including aircraft property taxes, and support for purchasing corporate bonds in the aviation sector.”
Jinhyuk Park quietly listened to Junwoo Kim’s report.
“It seems certain that West Air will survive. Is this what Director Oh wanted?”
“Saving West Air was indeed what she wanted. But for some reason, I don’t think this is the end of it.”
“Pardon? What do you mean by that?”
“This level of support is something that could have been done without the government. A payment guarantee? The group could have provided that. A maturity extension? The Chairman could have just called the creditors and said a word. Policy funds could have been handled by the group pushing for them as well… Is there no reaction from Hannam-dong?”
“There is no particular movement. Director Oh, who was running around to save West Air, is now spending her time preparing for Miss Seo-eun’s engagement and Executive Director Sanghyuk Park’s wedding.”
“Really? So she’s saying she’s done her part? What about at headquarters?”
“There’s no special movement at headquarters, either. Since the Chairman is away, they are only checking on planned projects and the status of affiliates, seemingly trying to pass the end of the year in a quiet atmosphere.”
“Where is it? Where will the movement start?”
Jinhyuk Park set up his antennas to check for movement, but nothing was happening within DS. Based on his experience, he didn’t think the alliance with Kang Man-sik ended here. However, the lack of visible movement only puzzled him further.
“Director, it’s time for the meeting.”
“Right. Let’s go. Since today is the last day, we shouldn’t be late. Today will be the last day I have to look at these nonsensical business plans.”
Jinhyuk Park stood up from his chair to attend the final meeting aimed at reforming the executives’ mindsets and inspiring the rank-and-file employees.
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