After November passed, rumors about the New Year’s executive appointments began to spread within DS Group.
It was the usual personnel reshuffle, with the outlines drawn up in early November and formal announcements made in early December each year, but this year things looked a bit different.
That’s because the third generation of DS, who had only had their names on the roster until now, were making appearances on the front lines of management.
The first news was that Park Jin-hyuk, the eldest son, would be moving from DS Construction—where he’d succeeded in restructuring—to become Executive Director of DS Pharmaceuticals.
It was already quite a shock when a person who had spent years doing nothing in the headquarters’ Managing Director position took on the role of Head of Restructuring at DS Construction and established himself there, but now that he’d settled in at Construction, people found it strange that he was transferring to Pharmaceuticals.
Furthermore, although it seemed rumors that Park Jin-hyuk would split off DS Construction and move to Dongjeong Industries were dying down due to this personnel change, the unnatural transfer only deepened people’s suspicions.
However, even this reaction was quickly diverted by the news of Park Sang-hyuk’s transfer.
That’s because Park Sang-hyuk was going to DS Group’s joint venture, West Air, which he established together with Daegwang Group, as DS Group’s representative.
On top of that, news broke that he would be engaged to Jung Chae-yoon, Daegwang Group’s second daughter, in February of the following year, making even those who doubted DS Group’s succession structure start to voice their suspicions.
“Where should I line up?”
“Is there any need to line up already when the Chairman is still in good health?”
“President Kyung, you don’t get it. It’s about time the Chairman started thinking about succession.”
“Already? The Chairman isn’t even sixty yet.”
“DS’s owner family has a hereditary condition. The previous Chairman had it, and so did the one before him, from what I hear… The current Chairman seems concerned about his health, seeing as he’s said to be heading to Southeast Asia after the executive appointments.”
“Wasn’t the reason for his year-end trips to Southeast Asia to visit the factories and branches being built there?”
Kyung Dae-yong was a person headhunted from overseas to spearhead DS’s ambitious foray into the pharmaceutical industry.
He was a self-made executive at a globally renowned pharmaceutical firm and was considered a legendary figure domestically.
For someone like him, this sort of gathering was uncomfortable.
It was supposed to be a simple lunch with the heads of pharmaceutical affiliates to discuss next year’s plans, but all anyone wanted to talk about was the succession structure within the group.
“It’s about time for the Chairman to prepare… Doesn’t Park Jin-hyuk moving to Pharmaceuticals at a time like this mean they’re trying to strengthen our division?”
“I think it’s more of a discarded card, actually.”
“A discarded card? No way.”
“Think about it. DS Construction was likely to become a core of the next group leadership. There were ups and downs, but the capital increase succeeded and overseas orders were picking up—its future looked bright. So what does it mean for someone to leave that for our bio-industry? It may sound like a promotion, but doesn’t it seem more like being pushed out of the fight?”
“We’re not in such a bad spot, are we?”
Sajangman, President of DS Biologics—which specializes in contract manufacturing of biopharmaceuticals—couldn’t hide his discomfort.
DS Biologics was newly established to develop the overseas contract manufacturing business, not just develop and sell pharmaceuticals, but compared to other affiliates, its foundation was still shaky.
With no significant sales yet and uncertain prospects, even within the pharmaceutical division it was treated like an unwanted child.
Knowing this, Sajangman couldn’t help but feel that his own company was the reason for the division’s poor reputation, making the words of the other presidents irk him even more.
“If it was really a promotion, he would have gone to Heavy Industries, the group’s origin. Or, if they were considering succession, perhaps a stable position in Communications, thinking of Vice Chairman Park Soo-man stepping down. But moving to Pharma… I can’t see it as a good thing.”
“Then what about Executive Director Park Sang-hyuk? He’s going to a brand new company with no results yet—who knows what will happen.”
“Exactly. That’s why it’s even stranger that Executive Director Park Jin-hyuk came to Pharma. Think about it. The aviation industry is a new business that DS has long desired. Appointing Executive Director Park Sang-hyuk as the first to step foot there might hold a special meaning.”
“Is that so?”
All the presidents nodded at the plausible logic.
His repeated claim that Park Jin-hyuk came to the pharma division because he was pushed out sounded almost factual.
He glanced around, then lowered his voice even though it was just them in the room.
“Let’s just back Executive Director Park Sang-hyuk this time.”
“How are we supposed to support him? We’re not even working in the same division.”
“Why can’t we? All we have to do is throw a wrench in the business that Executive Director Park Jin-hyuk is trying to pursue.”
“Come on, would he really start something so soon after joining the company? It’s a field he doesn’t know at all.”
“Sigh. President Sajangman, you’re being naive. Don’t you remember how Executive Director Park Jin-hyuk acted when he first came to DS Construction? On his first day, he cut off the heads of the president and executives. Having done it once, it might be even easier the second time.”
“No way. He’s not even taking office as president.”
Sajangman looked suspiciously at the speaker, then turned his gaze to Kyung Dae-yong.
After all, Kyung Dae-yong was the head of DS Pharma, so as long as he was in place, he figured Park Jin-hyuk couldn’t pull anything underhanded.
But the man in question, Kyung Dae-yong, said nothing.
He simply sat in silence, listening to the others.
“President Kyung. You need to step up. You’re the only one who can stop Executive Director Park from doing what he wants. Since we’re a subsidiary of DS Pharma, we can’t outright go against him. So please, stop him at your level. That’s the only way for all of us.”
“Let’s end the discussion here. We just need to focus on our own work. Our positions aren’t easy enough that we can afford to worry about the group’s internal power dynamics.”
As Kyung Dae-yong cut the conversation short, some couldn’t hide their discomfort, while others started thinking hard about whose side to take.
Only Sajangman sighed, caught between both sides and unable to do anything.
*****
Park Jin-hyuk sat on the living room sofa, watching Hyun I-soo enthusiastically explain something.
Beside him, Hong Myung-jin, Kwak Seok-gi, and Kim Jin handed out materials and provided supplementary explanations, looking up at Park Jin-hyuk’s exasperated expression.
“President Hyun, when did you prepare all these documents?”
“Executive Director, you call me president already? That’s embarrassing.”
“You call me Executive Director, so it’s only right I call you president.”
“Thank you.”
Although the official announcement of Hyun I-soo’s appointment as DS Construction president had not been made, internally the decision was already final.
With the announcement pending, Park Jin-hyuk was already using the new title, and Hyun I-soo seemed quite pleased by it.
Park Jin-hyuk flipped through the documents before him.
“When did you start preparing all this? If someone else saw this, they’d think you did nothing but work on these.”
Hyun I-soo answered sheepishly.
“I started as soon as you decided to transfer to Pharma, Executive Director. I wanted to help, even if just a little, since you were going alone.”
As Park Jin-hyuk listened, he kept sifting through the paperwork.
“If President Hyun had come with me, I wouldn’t have needed these.”
“That’s right. If we went together, you wouldn’t have to know all these details. But the situation’s changed, so I’m explaining everything now. You just need to have a general idea… Secretary Kim, you need to memorize all of it. Be ready to answer whenever the Executive Director asks.”
Hyun I-soo looked at Kim Jun-woo, Park Jin-hyuk’s secretary.
Kim Jun-woo, listening beside Park Jin-hyuk, was busily taking notes.
He worked harder than anyone to make sure he could answer smoothly whenever Park Jin-hyuk asked.
Watching this, Hyun I-soo smiled in satisfaction.
“I’ll support you as much as possible. Still, seeing how sharp Secretary Kim is makes me feel relieved.”
“I feel relieved seeing you all, too. This is no joke.”
It was reminiscent of the time before going to DS Construction, when Secretary Hwang had handed him a mountain of documents.
But this time, his tutor wasn’t as lenient as Secretary Hwang.
Hyun I-soo spread out another document.
“DS Group’s pharmaceutical division may look impressive on the surface, but it’s hollow. Years of failed new drug development, and now President Kyung, the new appointee, is trying to shift focus to biosimilars and CMO, but… it’s not easy. Especially for CMO, which is capital-intensive, management has been lukewarm about investing more funds.”
“Why is that?”
“There are several reasons, but mainly the business potential isn’t proven. The results so far are so meager compared to the amount invested that everyone is reluctant to keep pouring in money.”
“In the end, they’re just not satisfied with the outcome.”
“Exactly. Since the success of a medical supplement in the 1980s, DS Pharma hasn’t produced a real hit. Every new drug development has failed at clinical trials, so outside of medical supplements, they have no results to show. As a result, they’re just serving as a middleman, importing and selling overseas pharmaceuticals.”
Looking at the financial statements showing continued deficits, Park Jin-hyuk clicked his tongue.
“Amazed they’ve held out this long. I’d heard they were in better shape than Construction, but this is worse than I thought. They might have even considered selling the company.”
Hyun I-soo nodded, smiling at Park Jin-hyuk’s keen insight.
“Right. They considered selling it several times. But DS Group remembers having to sell their automobile business under government-led restructuring in the past, so the sale always fell through at the last moment.”
Park Jin-hyuk nodded, understanding well.
The founding chairman, his grandfather, had always dreamed of expanding into the automobile business after establishing Heavy Industries.
When the company stabilized, he pursued the car business with great ambition, hiring top engineers and designers from Japan and Germany and launching a car at a disruptive price, aiming to become a global automaker.
But the sudden IMF crisis and his worsening illness caused the group’s head to collapse, and DS Group ended up painfully selling the automobile division to an overseas company.
There was even an anecdote about Park Jin-hyuk’s grandfather, who was chairman at the time, shedding tears on his hospital bed after the sale.
Afterward, the foreign firm that acquired DS Motors flourished, and the phrase “DS’s wrong choice” became a saying.
“Are they afraid DS Pharma might hit the jackpot if sold, too? Human greed is something else… With results like these, selling it would make more sense than keeping it.”
Although not in as dire a state as DS Construction had been, DS Pharma’s performance was still lacking for a supposed pillar of the group.
Considering how highly the stock market values bio companies, DS Pharma’s stock price was dreadful.
“That’s why this is an opportunity.”
“An opportunity?”
“Yes. It’s precisely because they’ve held on that you have this chance, Executive Director.”
Park Jin-hyuk, who hadn’t seen much of an opportunity even at DS Construction, looked puzzled at Hyun I-soo’s words.
Hyun I-soo looked up from the documents and met Park Jin-hyuk’s gaze.
“This is where you’ll secure the financial foundation to take over DS Group in the future.”
“A financial foundation?”
He’d already heard about the foundation before, but the mention of finances made Park Jin-hyuk curious.
“Is there really a way to make money here?”
“There is. And it’s a bigger opportunity than you think. To others, it may look like a pit to fall into, but to me, it’s a well filled with treasure.”
“Really? Is it that much?”
Watching Hyun I-soo speak with such confidence, Park Jin-hyuk looked around at the pharmaceutical affiliates again.
He still didn’t know what exactly gave Hyun I-soo such certainty.
But the fact remained—they needed money, and if there really was a goldmine here, it gave Park Jin-hyuk a new perspective on Pharma.
“The original reason I recommended Pharmaceuticals was simply to gain control of one pillar of DS Group. But the deeper I dig into this side, the more convinced I am that this is where we can get exactly what we need.”
“Is it really possible? We need over a trillion won, right?”
“Yes. And in Pharma, I think it’s more than possible. I think we can generate not just a trillion, but even more.”
At Hyun I-soo’s confident words and expression, Park Jin-hyuk couldn’t help but smile.