“Think about it. This is a business with clearly good results. So why refuse it?”
“Isn’t that what makes it amazing? Tch.”
“No, no. I’m telling you to think carefully. Among the essential elements needed for the business, what is it we’re currently lacking?”
“What’s missing?”
The others, who had been growing frustrated, glanced at each other for a moment, then recalled something and spoke in unison.
“You mean Cheongwoo Energy?”
“That’s right. The business can proceed only if the acquisition of Cheongwoo Energy is a prerequisite, but as of now, we’ve only exchanged mutual promises regarding the acquisition—it hasn’t actually happened, has it?”
“What does that have to do with anything? Are you saying we might not be able to acquire it?”
Executive Director Kim looked at the people who couldn’t understand him at all and let out a frustrated sigh.
He even wondered if he had made a mistake by bringing this up.
But since he had already spoken, he decided to finish the matter and began explaining calmly.
“Do you think Representative stepping back is because of the Brazil business? I don’t think so. Right now, we’re discussing the Brazil power plant project, but ultimately, the prerequisite for starting this business has to be Cheongwoo Energy. If Representative keeps stepping back, who will become the lead for the acquisition?”
“Are you trying to say that Representative is taking a negative stance on the acquisition?”
“It seems we’re finally on the same page. That’s right. I think Representative is currently taking a negative stance not on the Brazil business, but on the acquisition of Cheongwoo Energy itself, which is the prerequisite.”
“If that’s the case, then is Chairman putting Representative at the forefront because he wants Representative to step forward as the lead for the Cheongwoo Energy acquisition?”
Executive Director Kim, finally feeling that the conversation was going somewhere, wore a relieved expression and spoke in a loud voice.
“That’s right. Right now, Chairman and Representative are in a tug-of-war over the acquisition of Cheongwoo Energy.”
“But… still, isn’t it strange? Isn’t this the first time we’ve seen a situation where someone is forced to take on a task rather than volunteering for it, and someone backs away instead of refusing? It’s not a case of volunteering or refusing. Could there be something about Cheongwoo Energy that we don’t know?”
“We’ll have to wait and see.”
Executive Director Kim felt there was no need to keep discussing uncertain facts. He saw no reason to alert other affiliates about the rumors gradually spreading from the oil handling sector.
These rumors were circulating only among a very limited few.
Gathering them, Junwoo Kim was reporting to Jinhyuk Park.
“There aren’t many reasons for Cheongwoo Energy to collapse suddenly. Their debt ratio is extremely low compared to other industries, and they have abundant liquidity. Their technology is world-class, and their refining margins are excellent—they seem immune to most shocks.”
“That good?”
“It’s a gem. Plus, beyond oil refining, they possess various technologies. Their drilling technology is also world-class. Additionally, they have the capability to run subsidiary businesses like power plant projects.”
“So you’re saying it’s too much to trade for DS Technology?”
“Yes. Under the current situation, that’s the case.”
“Alright. Then how can such a good Cheongwoo Energy collapse?”
“The only way that seems possible is a sharp drop in oil prices.”
Jinhyuk Park sat in his office, listening to Junwoo Kim’s report.
It was a scenario Junwoo Kim had drafted based on the instructions Jinhyuk Park had given over the past few days.
“A sharp drop in oil prices? Would a drop in oil prices really put Cheongwoo Energy in danger?”
“To put it simply, if the price of imported crude oil drops below the purchase price after refining, they incur losses.”
“Isn’t that obvious?”
At Jinhyuk Park’s words, Junwoo Kim, as if expecting this reaction, calmly provided a more detailed explanation.
“We estimate that if the import price drops by about $10, they enter a loss zone. But if it exceeds that range and drops by $20 or $30, everything including refining margins enters a loss zone, and the losses increase exponentially.”
“Hmm… Has this ever happened before?”
“No. Oil prices are controlled by OPEC and a few other oil-producing countries, so large fluctuations rarely occur. If oil prices seem to drop, they defend against it by cutting production.”
“So a drop in oil prices is the only way Cheongwoo Energy suffers losses?”
“Yes. It’s considered the only way to incur the trillions of won in losses you instructed.”
Jinhyuk Park stroked his chin at Junwoo Kim’s words.
Junwoo Kim watched Jinhyuk Park accept a fact that even he, the speaker, found hard to believe, and clicked his tongue in disbelief.
‘Representative truly believes that will happen.’
Junwoo Kim had spent days with the secretariat staff drafting and verifying scenarios.
But no matter how they looked at it, a scenario where a business handling oil like Cheongwoo Energy collapsed didn’t appear.
Since they primarily focused on refining, they were stable, and even their subsidiary businesses would only suffer minor scratches at most.
So he returned to the basics and mentioned the only method he thought of: a drop in oil prices.
Although a drop in oil prices was the only way, a drop of $5 or $10 wouldn’t be enough.
To enter a meaningful loss zone, a drop of over $20—what could be called a level down—was needed, and a drop of over $30 would be worrisome.
Even then, it would only reach the trillions of won loss zone Jinhyuk Park mentioned if a shock-like situation occurred within two to three months—before the dilution effect of the oil price drop took effect over several months.
But such a thing had never happened.
Even when oil prices, once over $100, plummeted to the $30 range due to decreased demand, the drop occurred over several months, allowing oil companies to avoid major damage.
That’s why people who knew nothing about stocks would say to put money into oil companies and just collect dividends.
“A drop in oil prices…”
It was just a scenario, and the probability of it happening was slim, but Jinhyuk Park confirmed it would happen and began analyzing the surrounding circumstances.
“Alright. Then what scenarios could cause oil prices to drop?”
Hearing Jinhyuk Park’s words, Junwoo Kim hesitated for a moment, wondering whether to say it or not.
It was a story circulating in the market, but it was so absurd that even the market didn’t accept it as established fact.
Jinhyuk Park looked at Junwoo Kim and said.
“Spit out the story in your head. I’ll make the judgment.”
At Jinhyuk Park’s words, Junwoo Kim reluctantly brought up the rumor going around.
“There’s talk that a hegemony struggle might break out between the United States and OPEC.”
“A hegemony struggle?”
“Yes. The U.S. used to be an oil-producing country, but it only produced small amounts for internal consumption or storage, without exporting. Since 2008, they produced small amounts mainly along the U.S. coast, relying on imports for most of their crude oil. And the coastal drilling rigs were often destroyed by hurricanes that came every summer, shutting down valves for months. But now, the U.S. has become the world’s number one in both production and exports. The situation is that the hegemony of the oil industry has shifted to the U.S.”
“So OPEC is challenging the U.S.?”
“Yes. There’s a difference between the drilling methods of Middle Eastern countries like Saudi Arabia and those of the U.S. The production cost is much higher in the U.S. So there’s talk that OPEC might lower oil prices to drive U.S. oil companies into bankruptcy.”
“If they want to drive them bankrupt, it would have to be a sharp drop. A gradual drop wouldn’t lead to bankruptcy, right?”
“Yes, that’s right. That… is the only method, but this logic actually has a major flaw.”
“A flaw?”
Jinhyuk Park looked at Junwoo Kim with interested eyes.
His expression showed complete certainty that such an event would never happen.
Seeing that, Jinhyuk Park strongly felt that this was exactly what was about to happen.
“The leader of OPEC can be considered Saudi Arabia. But as you know, Saudi Arabia and the U.S. are each other’s closest allies. I don’t think those two would turn their backs on each other. The U.S. oil industry has now become a major part of the U.S. economy, and they would try to cripple it? I don’t think that will happen unless the Saudi royal family decides to transition to a republic.”
“Is that your opinion or the market’s opinion?”
“The market’s opinion.”
Junwoo Kim was confident it was a judgment free of any bias.
He thought it was a question where 99 out of 100 people would give the same answer.
But right now, the one person was in front of him.
“Is that so? Then based on that scenario, analyze the impact on other industries.”
“Excuse me?”
“Why are you like this today? Didn’t you hear me? I told you to create a scenario on how an oil price collapse would affect other industries.”
Junwoo Kim realized his ears weren’t playing tricks on him.
But while his ears were fine, his mind felt like it might explode.
He couldn’t decide whether to persuade Jinhyuk Park, follow orders, or if he was misunderstanding something.
Jinhyuk Park stood up.
“Manager Kim, you’re acting strange today. Get a grip. I have to go play a round soon, and my adjutant can’t be this out of it.”
“I’m sorry.”
“Don’t overthink it. I don’t like Cheongwoo Energy. And I’m certain that if we acquire it, we’ll take losses. So we just need to figure out under what circumstances we’d lose money if we acquire it, and prepare for that.”
Jinhyuk Park lightly patted Junwoo Kim on the shoulder and left the office.
Junwoo Kim snapped out of it at Jinhyuk Park’s touch and followed him out.
A few days earlier, Jinhyuk Park had met with Secretary Hwang, who had hastily flown in from Vietnam.
Secretary Hwang, claiming it was Junman Park’s order, asked Jinhyuk Park to step forward for the Cheongwoo Energy acquisition.
But Jinhyuk Park flatly refused the proposal.
Instead, he said something to Secretary Hwang that would shock Junman Park.
“I’m having a serious relationship with Han Ji-yeon with marriage in mind.”
Secretary Hwang sincerely congratulated Jinhyuk Park.
He was one of those who hoped that Jinhyuk Park, who had wandered astray for a long time in his youth, would settle down quickly.
But unlike Secretary Hwang, Jinhyuk Park was certain that the person behind Secretary Hwang was thinking differently.
He imagined the movement that would occur when those words reached his ears, and was now heading to Cheongwoo to confirm the result.
“Representative, welcome.”
Unlike last time, this time a crowd of people—secretaries from the Cheongwoo chairman’s office, assistants, and security personnel—swarmed out to greet Jinhyuk Park.
Cheongwoo headquarters employees looked curiously at the suddenly arriving young man and his party.
And as if announcing something, the Chief of Secretariat for Chairman Han spoke loudly.
“The Chairman is waiting for Representative Park Jinhyuk, the representative of DS Telecom.”
Jinhyuk Park smiled as he looked at the Chief of Secretariat, who spoke so loudly it nearly deafened him.
“Honestly, if you were going to speak that loudly in the company lobby, you might as well have sent a company-wide email. My face is burning from embarrassment.”
As Jinhyuk Park said, the Cheongwoo employees were all staring at him.
It wasn’t a common sight to see the Chairman’s Chief of Secretariat bowing respectfully in the middle of the lobby, and people were intrigued that the guest was the representative of DS Telecom.
They seemed curious why the representative of DS Telecom had come to Cheongwoo headquarters.
Then, the Chief of Secretariat once again revealed the reason to the people.
“The young lady will arrive shortly. The Chairman said, ‘A son-in-law should not keep his father-in-law waiting,’ and asked you to come up quickly.”
At the Chief of Secretariat’s words, a stir ran through the Cheongwoo employees.
Mentions of ‘son-in-law,’ ‘father-in-law,’ and ‘young lady’—the Chairman’s daughter—changed the way they looked at Jinhyuk Park.
“At this rate, if I’d come yesterday, they would have hung a banner.”
“How could they not? I apologize. Please understand that I was ordered to do this; it wasn’t my intention.”
Embarrassed himself by what he had just done, the Chief of Secretariat turned around and guided Jinhyuk Park to the Chairman’s office.
Once in the elevator, he apologized to Jinhyuk Park again.
“The Chairman seems overjoyed. He said the discussion with the DS Chairman went well. He was delighted, saying he’d like to have the wedding held right away. Please understand with a generous heart.”
“What else can I do? If the Cheongwoo Chairman does that in Cheongwoo, who am I to complain? Just make sure he doesn’t try to do that at our company.”
“I’m sorry.”
At Jinhyuk Park’s words, the Chief of Secretariat’s face turned red.
Jinhyuk Park glanced at him, chuckled, and got off the elevator, heading toward the Cheongwoo Chairman’s office.
As he entered, Junhwan Han rose from his seat and greeted him.
“Oh my. Has the hundred-year guest arrived?”
“Chairman, what if Ji-yeon and I break up because of this?”
“Then there’s no helping it. I’ll quickly make another daughter, so you’ll just have to wait. How about that?”
This was their third meeting.
And the first time they had a proper conversation was last time.
Yet Junhwan Han was joking with Jinhyuk Park and speaking with familiarity.
His approach was so penetrating that even Jinhyuk Park, hardened by sales, was taken aback.
“Representative, let’s sit down and talk first.”
The guest was urging the host to sit.
Still, Junhwan Han couldn’t hide his joy.
Even while seated, he continued his jokes toward Jinhyuk Park.
“You seem to have a knack for that, just like me. But you shouldn’t keep that up after marriage. I know that might sound funny coming from me. Hahaha.”
Junhwan Han laughed heartily, tilting his head back.
Jinhyuk Park watched him with a smile.
It seemed he wanted to capture in his eyes how this cheerful person would change.