Seong-ho finished a brief greeting to the newly seconded Restructuring Headquarters staff and gave out work at once. Following his instructions, the staff scattered to their assigned departments. Hearing from each department’s supervisor what they’d be doing going forward, they quickly began melding into the Restructuring Headquarters.
Gyeong-deuk pushed through the dispersing staff and came over to Seong-ho. “Head. This is Managing Director Yong-nam Mun, newly joined to the Restructuring Headquarters as Deputy Head.”
At Gyeong-deuk’s introduction, Managing Director Yong-nam Mun greeted Seong-ho. “Head. I’m Yong-nam Mun. I’ll count on you going forward.”
In his fifties and wearing horn-rimmed glasses, Yong-nam bowed to Seong-ho.
Seong-ho extended a hand warmly. “Welcome. With the Chief sending the secretariat’s ace, the Restructuring Headquarters’ future looks all the brighter.”
“The secretariat’s ace? Hardly. I was only someone who worked following Chief Hwang’s instructions. Here too I’ll run until my feet sweat following your instructions, Head, so don’t hesitate — just put me to it.”
At that, Seong-ho smiled lightly and took his hand.
Seong-ho knew that in that former life, when the secretariat took over the Restructuring Headquarters for integrated management, the actual person in charge — delegated full authority by Do-beom — had been Yong-nam Mun. And now that Yong-nam had come under Seong-ho by Do-beom’s instruction, Seong-ho welcomed his joining with the solid feeling of having gained a mighty army.
“All right, now that the Restructuring Headquarters’ staffing is settled, shall we discuss in earnest how to go about the restructuring?”
Seong-ho took Gyeong-deuk and Yong-nam into his office and discussed the manner in which the restructuring would proceed. “The very first goal is clearing debt.”
To Gyeong-deuk and Yong-nam, listening with bright eyes, Seong-ho explained the direction the restructuring should take, based on his experience of that former life. “We’ll bring every Ilhyeon Group affiliate’s debt level to under 200%.”
“200%?”
Gyeong-deuk looked at him, startled. “Head, do you know what our group’s average debt ratio is right now? It’s over 1,000%. And you’re saying you’ll lower that to 200%?”
“We’ll start by clearing out the useless among the assets on hand. And we halt every newly launched business.”
“All of them?”
“Yes. Halt them all, reassess their viability, and scrap everything except what’s clearly viable.”
Gyeong-deuk couldn’t hide his bewilderment. He’d expected the restructuring to proceed forcefully, but he hadn’t imagined it would be this much. But this was only the beginning. The speed of Seong-ho’s restructuring drive was on a level far beyond anyone’s imagining.
“The deadline for the goal of bringing the debt ratio under 200% is by the end of this year.”
“Sorry? Bring it to 200% within this year?”
Gyeong-deuk shook his head. “Head… that’s physically impossible.”
“Tell them any place that can’t meet it will go into liquidation. The choice is one of two: bring the debt ratio to 200% within this year, or wind up the company.”
“That…”
Gyeong-deuk’s mouth fell open in shock.
Unlike Gyeong-deuk, Yong-nam wrote Seong-ho’s instructions in the notebook he’d brought and asked, “In the case of an affiliate that meets the 200% ratio but whose growth has slowed, what should we do?”
“In that case, examine the sector. If the company’s growth has slowed but its sector is rising, we support it after the restructuring is done and help it grow. But if not… it’ll have to be sold off.”
“Understood.”
Yong-nam wrote Seong-ho’s intent in his notebook.
Gyeong-deuk looked between Seong-ho giving instructions and Yong-nam taking them in stride. Their manner was so natural that he felt strange for being the one, instead, to have doubts.
Unlike Yong-nam, Gyeong-deuk didn’t know what to do, and Seong-ho turned to him. “The pushback will be severe. I’ll step out and handle that, so Deputy Head, you look after the headquarters staff so they don’t waver. Doubts about a forceful restructuring can arise even within the headquarters.”
Gyeong-deuk figured that if he himself was this bewildered, the affiliates targeted for restructuring would race past bewilderment into chaos. And the Restructuring Headquarters staff who’d received the instructions would surely be just as bewildered.
A thought of is this right? crossed Gyeong-deuk’s mind a moment, but at Seong-ho’s forceful will to take responsibility and drive it through, he folded up his doubt. “Understood. Leave internal control to me.”
“Good. You handle internal control, Deputy Head, and Deputy Head Mun directs. I’ll take responsibility for the external pushback.”
And so the restructuring of the whole of Ilhyeon Group began in earnest.
Receiving the report, Tak-hyeon let out a dry laugh. “Heh. 200%?”
“Yes. This…”
Chief Do-beom stopped a moment and steadied himself. Because no matter how he looked at it, he couldn’t erase the thought that Seong-ho was overreaching. But since it proceeded with full authority under Tak-hyeon’s instruction, Do-beom erased his own thinking and left the judgment to Tak-hyeon. “They say he’s notified each affiliate to reduce it to 200% within this year.”
“200% within this year? Ha.”
Tak-hyeon didn’t hold back the laughter that came. Examining the restructuring direction written on the paper Do-beom had handed him, he curled the corner of his mouth up. “Isn’t this fellow mad? How is he telling them to cut the debt ratio to 200% within this year? To do that is as good as telling them to liquidate every business now underway, isn’t it?”
“Yes. So each affiliate is pushing back hard, they say.”
Do-beom briefly related the affiliates’ reactions and studied Tak-hyeon’s expression. Then, in a careful voice, he asked, “Chairman. What shall we do?”
“What do you mean, what?” Tak-hyeon set the paper on the desk. “Throw the weight behind the Restructuring Headquarters.”
“Then…”
“Tell them to follow the Restructuring Headquarters’ instructions. If they don’t want to, hand in a resignation and leave the company.”
Tak-hyeon looked down at the paper and curled the corner of his mouth up further. “In any case, Seong-ho and the Restructuring Headquarters staff are working with their resignations submitted. It means they’ve shown the responsibility of quitting the company if things go wrong. So that much weight ought to be thrown behind them.”
“Still, I wonder whether pushing this hard is right.”
“Let’s judge after the result comes out.”
Tak-hyeon rebuked Do-beom for trying to judge before it had even begun, and looked down at the paper. “Judging after the result comes out won’t be too late.”
At that, Do-beom held back what he’d meant to say. To an outsider, Do-beom’s manner — seeming short on faith — could look like he didn’t support Seong-ho. But it was precisely because he thought of Seong-ho that Do-beom had tried to stop it. Because before it began, the direction could still be turned or the speed slowed. Once it began, that speed couldn’t be controlled. Knowing there was a concrete wall at the end, one could only hurl one’s body toward it.
With a heart full of regret, Do-beom looked at the paper Tak-hyeon was studying. Unlike Do-beom, Tak-hyeon looked at it with an amused gaze.
And just as Tak-hyeon expected, reactions burst out of each affiliate.
The affiliate presidents talked over the restructuring with serious faces.
“How are we supposed to meet this? Has the Restructuring Headquarters lost its mind?”
The president of Ilhyeon Machinery spoke first, and the presidents of Ilhyeon Shipbuilding and Ilhyeon Housing chimed in.
“Meeting it is a problem too. Don’t they say they’ll sell off an affiliate if the industry it operates in has no future?”
“And who decides the future?”
“Who else? Don’t they say the Restructuring Headquarters decides?”
Bang!
Unable to hold his anger, the president of Ilhyeon Foods struck the table with his fist and shot to his feet.
“President Jeong. What is it?”
Rising, the Ilhyeon Foods president looked around at the seated presidents. “What’s the use sitting here arguing over what’s right? We should at least go to the chairman and convey our will.”
“To the chairman?”
The presidents who’d been voicing complaints wore troubled looks at the Ilhyeon Foods president’s suggestion to go to Chairman Tak-hyeon. Seeing the very presidents who’d been complaining a moment ago look troubled at the idea, the Ilhyeon Foods president snorted and turned. “If you don’t want to go, fine. I’ll go alone, so all of you sit here and voice complaints.”
He left as if to go by himself. The other presidents exchanged glances where they sat. Then, as if resolved, they rose one by one and followed him.
But the affiliate presidents, gathered around the Ilhyeon Foods president, were blocked by the secretariat and couldn’t enter the chairman’s office.
“Chief Hwang. We absolutely must see the chairman.”
President Jeong of Ilhyeon Foods conveyed his wish to meet Tak-hyeon, but Chief Do-beom raised a hand to block them and shook his head. “I’m sorry, but you cannot meet the chairman.”
“We can’t meet the chairman? Why not?”
“You’ve come with complaints about the restructuring, haven’t you?”
At the question, the presidents couldn’t answer at once. But that alone was enough for Do-beom to wear a knowing look. “That’s exactly why I say you can’t.”
“That’s why we can’t?”
“Yes. The chairman said he doesn’t wish to meet people who come with complaints about the restructuring. So please, return now.”
The presidents wore troubled looks. At Tak-hyeon refusing even to meet them, a sense of hollow defeat came over them. Still, they conveyed their wish to meet Tak-hyeon several times over. But Do-beom didn’t yield a step. He blocked their entry with orders to return, and in the end the disgruntled presidents could only turn around.
“What now? Do we have to do exactly as the Restructuring Headquarters says?”
At the Ilhyeon Machinery president’s words, the Ilhyeon Foods president — pressing the down button at the elevator — stopped his hand before the button. He turned. And looking around at the other presidents, he said, “Having come this far, we can’t just retreat.”
“Then what are you suggesting?”
“Let’s go see the vice-chairman.”
“The vice-chairman?”
The presidents looked at him, startled.
He looked around at them. “The chairman may not listen to us, but wouldn’t the vice-chairman?”
“That could work.”
At his words, everyone chimed in that it was right. With all the presidents agreeing, the Ilhyeon Foods president moved off. “Let’s go. Let’s go tell the vice-chairman.”
“Good. Let’s go.”
As he led, the other presidents followed toward the vice-chairman’s office where Mun-jong sat. But in the vice-chairman’s office too, they couldn’t hear the answer they wanted.
“There’s nothing I can do about the restructuring.”
“Vice-Chairman.”
“There’s no use calling on me. Since the chairman handed Head Kim full authority, there’s nothing I can do.”
The presidents took turns trying to persuade Mun-jong. But Mun-jong was firm. “The Restructuring Headquarters is managed by the chairman’s direct secretariat. It’s not something I can do anything about.”
“Vice-Chairman.”
“Please leave now.”
Mun-jong issued the order to go and called in the secretary waiting outside. “They’re all leaving, so see them out all the way to the lobby.”
That was Mun-jong’s roundabout way of instructing that the presidents be escorted out and confirmed gone, so they couldn’t come back. At his words, the Ilhyeon Foods president and the other affiliate presidents couldn’t remain seated and had to rise. They greeted Vice-Chairman Mun-jong and had no choice but to leave headquarters.
Out past the lobby, the presidents looked at one another. “So in the end we’ve no choice but to follow the Restructuring Headquarters’ will…”
At the Ilhyeon Housing president’s words, the Ilhyeon Foods president clenched his fist. “We can’t give up to the very end.”
“What more is there to do here?”
“No. There’s a last move left.”
“A last move?”
At his words that there was a last move, everyone’s eyes gathered on the Ilhyeon Foods president. He looked around at them. “We can’t retreat like this. Let’s go use the last move.”
“Where are you suggesting we go?”
“Let’s go to Ilhyeon Fashion.”
At the words Ilhyeon Fashion, the presidents realized what the last move he spoke of was. Their steps were not as light as when they’d gone to meet Chairman Tak-hyeon or Vice-Chairman Mun-jong. Because a thought bloomed in their minds that the last move might be one that worsened the situation rather than resolving it. But they couldn’t stop their steps for that. Having come this far, they had nowhere to turn back to.
The Ilhyeon Foods president and the other Ilhyeon Group presidents headed for Ilhyeon Fashion, where the last move lay.
(End of Chapter 77)