The executive board’s monthly meeting proceeded just as it had last time.
Each affiliate president came forward, summarized the issues, and reported on the achievements of the past month. Occasionally, Park Junman would interject with questions, continuing the flow of the meeting.
“There’s next, DS Construction’s turn.”
When Secretary Hwang introduced him, Park Jin-hyuk stood up and went to the front.
Park Jin-hyuk talked about wrapping up projects that were clearly going to hinder the construction division and reported on the outstanding payments for the Basmaya Project.
After his brief report ended, Park Junman was the first to direct a question at Park Jin-hyuk.
“So, has the construction division’s cash flow issue been resolved?”
“I believe we’ve put out the most pressing fire.”
Park Junman nodded.
At that moment, Park Soo-man stepped forward and addressed Park Jin-hyuk.
“It’s not a situation where you can relax, is it? The outstanding payments may be handled, but the overall liquidity situation hasn’t opened up yet. Especially, what will you do about the bonds coming due? If the creditors don’t agree to extend the maturities, everything could unravel and put us in a tough spot.”
Park Jin-hyuk looked steadily at Park Soo-man.
He sensed from Park Soo-man’s words that he was scheming something.
But since he couldn’t read Park Soo-man’s true intentions just yet, he simply responded calmly.
“About 80 billion won in bonds mature next month, and about 100 billion the month after that. Negotiations for maturity extensions with the creditor group have been sluggish because of concerns about DS Construction’s liquidity, but with the overseas receivables now resolved, I think the extensions will go through smoothly as well.”
“No. The creditors aren’t that easy. DS Construction was facing a capital impairment crisis because of accumulated deficits. Just because the receivables came in, do you think the creditors will agree to roll over the debt? Without additional capital injection, they won’t consent so easily.”
Listening to Park Soo-man’s words, Park Jin-hyuk realized something.
‘He hasn’t given up.’
Park Soo-man had tried to pull DS Construction under DS Telecom via a third-party allotment of new shares.
Just because that had fallen through didn’t mean he’d given up on DS Construction.
He was clearly still maneuvering to get his hands on it somehow.
Park Jin-hyuk didn’t let his smile fade at Park Soo-man’s words.
“I’ll maintain close communication with the creditor group and work to change their stance.”
“That would be nice, if you can do it…”
Park Soo-man spoke as if talking to himself, turning his head, but a smile lingered on his face.
Seeing that smile, Park Jin-hyuk became certain the creditors would be moving soon.
And he grew more curious about what Park Junman was thinking.
When Park Jin-hyuk turned to look at Park Junman, he only saw Park Junman listening to the exchange between Park Soo-man and Park Jin-hyuk with an expressionless face.
‘He can’t not know, so why isn’t he intervening?’
Was it that, from Park Junman’s perspective, it didn’t matter if DS Construction came under DS Telecom? Or did he have some other plan, and that’s why he was just watching as Park Soo-man put pressure on DS Construction?
“Is that all? Then let’s move on to the next person.”
When Park Junman raised his hand to give the signal, Secretary Hwang came forward.
Park Jin-hyuk made way for Secretary Hwang and returned to his seat.
Even after sitting down, he didn’t take his eyes off Park Soo-man.
Park Soo-man glanced back at Park Jin-hyuk, and even grinned.
‘Fine. No matter what happens, I won’t let Construction fall under Telecom. Let’s see how long that smile lasts.’
Park Jin-hyuk met his smile with one of his own.
At that, the smile vanished from Park Soo-man’s face, and he even glared at him, his eyes wide.
But Park Jin-hyuk was not one to shrink back at such a display.
He kept his smile throughout, and eventually, Park Soo-man was the first to avert his gaze, avoiding Park Jin-hyuk’s eyes.
The silent contest of wills ended with Park Soo-man looking away.
Only then did Park Jin-hyuk turn his attention to the next presenter.
He was the president of DS Pharmaceuticals, the one with the highest figure among the executives displayed above his head.
‘But what’s with that lackluster attitude…?’
Even though the figure above his head, 55 billion, was not far behind Hyun Yi-soo’s, he kept glancing anxiously at Park Junman as he continued his report.
Park Jin-hyuk glanced at Hyun Yi-soo sitting behind him and spoke.
“Who is that person?”
In response to Park Jin-hyuk’s question, Hyun Yi-soo replied in a low voice.
“That’s Kyung Dae-yong. The Chairman personally recruited him as president of DS Pharmaceuticals last year.”
“Personally? He must be quite capable.”
“Yes, he’s outstanding. He rose to the executive level at a world-class bio company, so there’s no doubt about his abilities.”
“Then why does he look so drained?”
“His current project isn’t going well. Overshadowed by DS Construction, but that side’s losses are also not insignificant.”
“Is that so?”
Park Jin-hyuk looked at Kyung Dae-yong again.
If Chairman Park Junman personally recruited him, his ability was guaranteed.
Moreover, the figure displayed above his head proved he was on par with Hyun Yi-soo.
But perhaps because his current project was underperforming, he seemed utterly dispirited.
‘Kyung Dae-yong, huh…’
Park Jin-hyuk committed the name Kyung Dae-yong to memory.
After all the scheduled reports concluded, Park Junman gave a few brief instructions and ended the monthly executive board meeting.
Park Jin-hyuk smiled as he declined other presidents’ suggestions to have a meal together afterward.
Then, he approached Kyung Dae-yong to leave an impression.
“President Kyung, it’s a pleasure. I hope we can sit down together sometime if the opportunity arises.”
“Yes, let’s do that.”
Unlike the other presidents who approached him to cultivate ties, Kyung Dae-yong responded simply, even to his invitation.
“I’ll hold you to that. I’ll reach out sometime.”
With a friendly smile, Park Jin-hyuk left.
To him, Kyung Dae-yong seemed as useful as Hyun Yi-soo—a man he absolutely had to recruit.
On the ride back to DS Construction’s headquarters, Park Jin-hyuk asked Hyun Yi-soo about what Park Soo-man had said earlier.
“What do you think about the creditor group issue?”
“Since Vice Chairman Park brought it up, I don’t think we can be complacent.”
“It seems, by bringing up the funding issue again, he wants DS Telecom to inject capital… But why is he so desperate to pull Construction under Telecom?”
Hyun Yi-soo let out a deep sigh and looked at Park Jin-hyuk.
Sensing that Park Jin-hyuk already knew, Hyun Yi-soo didn’t mince his words.
“I think he’s planning for a division of the affiliates.”
“As I thought, it’s about breaking up the affiliates. That won’t be easy, but he’s being greedy.”
“There’s never been an affiliate split in DS Group’s history. Not when Chairman Park Junman took over, and not under the former chairman. The previous chairman never tolerated splitting up the affiliates.”
“And yet, they’re aiming for it now…”
Park Jin-hyuk turned to look at Hyun Yi-soo as he spoke.
“Don’t you think my mother, Director Oh, already made a prior agreement with them?”
“It seems likely. Otherwise, he couldn’t be so blatant about it.”
“In the end, if Sang-hyuk inherits the chairman’s position, he plans to take the telecom division and go independent.”
“Yes. That’s why he’s fixated on DS Construction. If Construction comes under Telecom, then when the group is split, DS Construction will naturally go with them.”
“The Chairman can’t be unaware of this. I wonder why he’s just watching.”
Though Park Jin-hyuk voiced his doubts, even tilting his head, Hyun Yi-soo just listened quietly.
Park Jin-hyuk, noticing Hyun Yi-soo seemed deep in thought, asked,
“Is there something you know?”
Since Hyun Yi-soo had worked under Chairman Park Junman for a long time, Park Jin-hyuk thought he might know something.
But what came from Hyun Yi-soo was unexpected.
“I don’t know the reason either. But that’s not the only odd thing.”
“That’s not the only strange thing?”
“Yes. Actually, I was planning to bring this up once DS Construction was back on track…”
After pausing for a moment and confirming that only Kim Jun-woo, Park Jin-hyuk, and himself were in the car, Hyun Yi-soo continued in a low voice.
“It’s not just that the Chairman is staying quiet despite DS Telecom’s overt actions.”
“What else is odd?”
“Actually, under the current circumstances, not only you, Director, but your younger brother, Manager Park Sang-hyuk, can’t inherit DS Group.”
“What do you mean? Neither of us can inherit?”
“Yes. Even if the Chairman nominates you as his successor, you wouldn’t be able to take over the group in its entirety.”
At Hyun Yi-soo’s unexpected words, even Kim Jun-woo, who was driving, looked at the back seat through the rearview mirror.
Park Jin-hyuk was just as shocked.
Hearing that he couldn’t receive the group even if it was given to him, Park Jin-hyuk instructed Kim Jun-woo.
“Pull over if you find a place where we can talk for a bit.”
Now that the topic had come up, he felt it should be settled before returning.
At headquarters, there were too many eyes and ears.
He thought it would be better to talk with just the trusted few in the car.
The car glided along and turned toward a riverside park by the Han River.
Once the car stopped at the Han River riverside parking lot, Hyun Yi-soo began the main explanation.
“DS Group currently consists of seven major pillars. The entity controlling those pillars is the holding company, DS Inc.”
“I know that much. But what does that have to do with inheritance?”
“Whoever owns the largest share in the holding company becomes the group head. Suppose the Chairman wants to pass the group and his shares to you… About 25% of his shares would need to be transferred for you to gain uncontested control over DS Group.”
“Twenty-five percent. I currently have 5%, so I’d need around 30% in total to truly control the group… Please go on.”
“In that case, the gift tax alone on the transferred shares would be about 1 trillion to 1.5 trillion won.”
“How much? 1.5 trillion?”
“That’s an estimate. The exact amount would depend on the calculation, but regardless, you’d need over 1 trillion won in cash to pay the tax and take over DS Group through inheritance or gifting.”
“One trillion…”
Park Jin-hyuk closed his eyes for a moment.
He finally understood why Hyun Yi-soo said it was something you can’t eat even if it’s given to you.
Most of Park Jin-hyuk’s wealth was tied up in stocks.
And those shares were meant to secure control over DS Group, so they were untouchable.
No matter how large his liquid assets looked to outsiders, compared to 1 trillion won, it was just a drop in the bucket.
At this point, even coming up with 100 billion was difficult, let alone 1 trillion.
Hyun Yi-soo continued, addressing the silent, eyes-closed Park Jin-hyuk.
“That’s why, for major corporations, succession takes decades. If you use the inherited shares to pay the tax, your ownership will be cut in half or worse, leading to the risk of disputes. In the past, with circular shareholding structures, there were ways around it, but in the current vertical holding company system, you have no choice but to pay the inheritance or gift tax.”
“There’s no way around it?”
“There used to be, about ten years ago. You could buy unlisted company CBs or BWs, exercise call options, build up the company’s value through internal transactions, then list it and raise funds for succession. Most companies did it this way. But now, even that method is blocked.”
“Hm…”
Park Jin-hyuk nodded.
He had heard about such methods, and remembered the controversy they once stirred.
“But the Chairman hasn’t prepared anything for either you or Manager Park Sang-hyuk. It’s not too late to start now, but compared to other groups that start preparing for succession before their children reach adulthood and work at it for decades, it’s practically doing nothing.”
“Mother’s side must be aware of this too, right?”
“Yes. I’m sure they know. This is an unusually peculiar situation.”
“Then, I guess we’ll see some movement on that front soon.”
“Movement…?”
“They won’t just sit still. Anyone can see that Sang-hyuk is behind me, but they won’t just sit on their hands. They’ll start making moves, and we’ll have to respond as we watch. Of course, we can’t just do nothing either, so let’s start preparing now.”
At Park Jin-hyuk’s words, Hyun Yi-soo nodded in understanding.
“Don’t worry. I’ll be prepared.”
“I feel secure knowing you’re here, Deputy Manager Hyun. For now, don’t forget the creditor group issue is our top priority. Let’s solve these problems one by one. If we keep moving forward, the chairman’s seat will eventually be mine.”
At Park Jin-hyuk’s words, Kim Jun-woo and Hyun Yi-soo kept their mouths shut, their resolve evident on their faces.
For a while, the three discussed the creditor group situation in the car, and before long, the car left the Han River riverside parking lot and headed back toward DS Construction headquarters.