Former Mastermind To Chaebol Son-in-Law

Chapter 73

Like Slicing a Frozen Fish

【Defense Contractor RSK Defaults? RSK, the sole player in the military uniform sector for five years, is under prosecution and Defense Acquisition Program Administration, as well as Board of Audit and Inspection investigations for President Lee Hyun-geon's breach of trust, embezzlement, and bribery...】

【RSK covers up a deficit of about 60 billion won! Amid investigations into various charges against President Lee Hyun-geon, the prosecution announced they had discovered a financial hole of at least 50 billion won. They stated this money was slush funds and that the relevant accounts had been found...】

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While the world was shaken for several days, In-hyuk was summoned to the chairman's office at Taeshin Trading.

Tae Gun-seung, reading something on his tablet, sighed and muttered.

"I saw the draft for the personnel overhaul. The company's going to be diced up like a frozen fish. Are you really planning to go through with it as is?"

That was because there were no less than 92 names listed in the proposal.

Their fates fell into three categories: executives would be dismissed, staff would either be fired as a disciplinary measure or transferred to provincial posts and have their pay cut.

The sheer number and the severity of penalties left Tae Gun-seung unable to hide his shock.

Yet In-hyuk kept a calm expression.

"If the company was going to be divided so easily, don't you think it would've happened already? Frankly, after conducting the TF audit, it's surprising it has stayed afloat until now."

Of course, he had actually known for some time. Both when he handed Taeshin over to Tae Seok-ho and when he took it back...

"Any kind of water that's left standing for too long is bound to rot."

In-hyuk let out a dry chuckle before he realized it.

"I'd prefer if you didn't dress up admitting you stood by and watched the problems as something dignified."

"Was I that obvious?"

"Very much so. And I've already thought of successors for those being dismissed or fired. Even if existing executives and staff are gone, there won't be any issues with the work itself. Here's the draft."

Tae Gun-seung's eyes widened as he checked the updated tablet screen.

"You've planned every replacement as well? Are you sure of their competence?"

"There was actually a lot of surplus personnel among the previous seniors. The fact that the work still got done means there were working-level staff handling things all along."

"And you figured all that out, one by one?"

Up to recently, both the TF division and the audit division had been analyzing personnel records and actual job duties.

Everyone assumed it was just part of a re-audit.

However, In-hyuk compared staff to be excluded with those who, according to his knowledge of the future, had succeeded on various projects, and slotted those individuals in.

"I can't be certain how it'll turn out down the line, but for now, they'll do at least as well as the previous people in charge. Of course, the audit division will need to conduct regular checks in the meantime."

Again, Tae Gun-seung couldn't help but exclaim in surprise.

"Is it really possible to pull all that off in the time you had?"

It had only been just under a month.

Yet, in that time, not just one company, but Taeshin Group's headquarters, all its subsidiaries, and affiliates had been checked.

Tae Gun-seung, unable to believe it, waited for In-hyuk's answer.

"That's why I've been rushing all over the place."

"That's not exactly a convincing explanation."

"Think what you want."

"Then what about Taeshin Spintech? Why did you start by suspending the president and executives there? What did they do?"

In-hyuk let out a slight sigh.

"It feels like I saved someone from drowning, only to have them ask for the bundle they were carrying."

"Well, I'm not the only one to hand you a bundle. So you shouldn't hold back either, Kang."

If he succeeded this time, he'd receive a share in Taeshin Asset Management.

Should that deal go through, Taeshin Asset Management's management rights could be separated entirely from its parent company Taeshin Life as well as Taeshin Trading.

"I'll hand over what you want to know after the investigation is finished. More importantly, Texcellence, which has been developing new materials, will be entering the military uniform procurement bid. Taeshin Spintech has decided to provide part of its production process for them."

"Texcellence is bidding? But I heard they had issues there."

As the chairman of Taeshin Group, he was familiar with the companies in the same field, especially after his directives for Taeshin Spintech.

"There was a technology leak issue, but it's since been resolved. Originally, RSK was supposed to handle the production line, but because of what happened there, Texcellence is stepping in directly."

"That's right, there's been a lot of talk about that lately. A place that was quiet for five years suddenly being rocked by corruption."

RSK's president Lee Hyun-geon, as well as several military officials involved, had been arrested.

The relationship had lasted for years, making it unlikely the matter would be settled quietly.

Then Tae Gun-seung voiced another question.

"So what's your plan for RSK? In its current state, the hole in their finances is so big I hear they might have to enter workout procedures."

Meaning, restructuring due to its financial problems.

"Texcellence plans to acquire them."

"Texcellence? No matter how close RSK is to default, the size of their plant and equipment means it won't be cheap... Wouldn't it be better for us to back Taeshin Spintech and buy them out? We could transfer them to an affiliate by changing the stake using the Taeshin Department Store bonds we held at Trading."

At this, In-hyuk shook his head.

"Texcellence's new material is essential for the tender. But if Taeshin Spintech were to nab most of the production line by acquiring RSK, they would push for a higher profit percentage."

"So we'd just get bigger with nothing to gain. But couldn't we force things in our favor by putting pressure on our side?"

It wasn't impossible. But that wasn't In-hyuk's plan.

"Behind Texcellence is AMK Partners, and I have transaction information about Lumen Holdings, which holds stakes and bonds in RSK."

"AMK? So that's why Texcellence is acquiring. Did they always predict Texcellence's rise?"

"That seems likely. Also, Taeshin Asset Management's M&A team is handling Texcellence's RSK acquisition."

Upon hearing this, Tae Gun-seung let out a short, hollow laugh.

"Some might think you're getting kickbacks from AMK."

"Since the deal is so big, Taeshin Asset Management will get plenty of M&A incentives."

Of course, it wasn't a kickback but actual profits they'd earn.

"So, as you see it, Texcellence's acquisition of RSK is inevitable."

"Lumen Holdings' stake and bonds in RSK have passed to AMK Partners. Plus, they've picked up the remaining stakes to such an extent that they can push ahead over the opposition of President Lee Hyun-geon and the board—they've effectively secured management rights."

Again, an exclamation slipped out from Tae Gun-seung.

"But if President Lee Hyun-geon tries to defend by using slush funds to buy more of the stake, then what?"

He was predicting a messy fight.

Moreover, since that was the only way to save RSK from bankruptcy, existing directors and shareholders would welcome it.

"That's probably going to be impossible."

"You're saying President Lee Hyun-geon will just swallow the slush funds and let RSK default?"

"I've heard the prosecution found and froze the slush fund accounts."

Tae Gun-seung's eyes grew wide.

"You have contacts in the prosecution too?"

"Just bits of news floating around. At any rate, all Taeshin Spintech needs to do is watch for Texcellence's successful acquisition of RSK and bid win. Once that's done and production runs under the prearranged contracts, they'll record at least triple previous revenue."

That summed up the revival plan for Taeshin Spintech that In-hyuk had prepared.

Still, as he listened, Tae Gun-seung wore a subtle expression.

"That's not bad. But I doubt things with Taeshin Spintech will end there."

"Is there something else?"

At In-hyuk's deliberately cheeky reply, Tae Gun-seung's brow furrowed.

"Are you doing this on purpose? Or do you want me to bring it up myself?"

In-hyuk relaxed deeply into the sofa and answered,

"Since you handed this off to me as if you didn't know, I can't just let it slide."

"Isn't it about my son?"

"He's my wife's uncle, after all—and the executive vice president of Taeshin Trading."

Tae Gun-seung seemed a bit embarrassed and cleared his throat.

"Hrm—! Anyway, what happened?"

"Material about Taeshin Spintech sending funds to an overseas shell company has been found. But I don't know if President Lee Chang-hwan will talk easily."

Currently, Lee Chang-hwan had been dismissed as president and was undergoing prosecution investigation for embezzlement and breach of trust.

"So it'll be hard to find evidence? Then you can't be sure if Executive Vice President Tae Seok-ho siphoned off the funds or not—how come you're so sure it was that guy?"

Tae Gun-seung had picked up on the nuance In-hyuk had deliberately dropped.

After a brief pause, In-hyuk brought out a bundle of photos from inside his jacket and handed them over.

Tae Gun-seung began leafing through them, his brow twitching again.

"That's Lee Jae-jun meeting President Lee Chang-hwan separately. Is it recent?"

"I discovered it while following up on President Lee Chang-hwan before going to the U. S. This was before my official activities with the TF division, so Deputy General Manager Lee Jae-jun must have met him for some undisclosed reason."

"Heuh..."

With a sigh, In-hyuk continued his explanation.

"Anyway, after that point, the shell companies through which Taeshin Spintech was moving funds began to be closed. To there, it would be faster if the chairman directly looks into it."

"... So you're saying I should tie up the loose ends myself."

"It's not good to always rely on others, sir."

"You make it sound as if I'm loafing around."

"Frankly, haven't you left a little too much to me this time?"

At that, Tae Gun-seung relaxed his brow and smiled faintly.

"Kang, you have a bit of cheek after all. They say you even went to see my son at the hospital. Were you trying to provoke him?"

"I just stopped by after hearing the news. He's family, after all."

"It doesn't sound like it's meant in a good way. Anyway, you've finished your work, so I should keep my promise and pay you."

With that, Tae Gun-seung looked over his shoulder.

Song Tae-ho, the chairman's secretary and security guard who had been standing by the desk, brought something over and handed it to him.

"Twenty-five percent of the shares in Taeshin Asset Management held by Taeshin Life. With that, you and Ju-ha can manage the company independently."

Currently, Tae Ju-ha held 5.34% of the shares, now with 25% added for a total of 31.34%. That would ensure complete management control, just as In-hyuk had requested.

"With that, the amount is just over the 200 billion won you first mentioned. No discount?"

"Kang, you know how to joke too?"

"I wasn't joking."

"... But do you have the operating funds at Taeshin Asset Management to buy them? If you overextend, it'll hurt company management."

Tae Gun-seung ignored In-hyuk's words. After all, he wasn't giving them away for free.

In-hyuk, of course, had been aware of that condition from the start.

"The MP division has built up some funds. Once the RSK acquisition is wrapped up, we'll be able to build a cushion of extra capital."

"You have that much? But is it okay to use that without the approval of CEO Ju-ha?"

"I control those funds. That was the condition when I took on the division director's role at MP Division."

"I see. A husband securing shares for his wife... quite considerate of each other."

"......"

This time, In-hyuk noisily drank his tea, as if ignoring the remark.

Tae Gun-seung, unfazed, spoke calmly.

"Don't tell me this is some kind of alimony or settlement?"

"Cough—!"

Startled, In-hyuk coughed and glanced at him.

"Why... would you think so?"

"It wasn't a good marriage for you from the beginning, was it? I always hoped you and Ju-ha would be happy together, though."

"Frankly, I can't say you're wrong."

"You can't rethink things?"

"I'll keep your words in mind, sir."

"Please do."

Their conversation ended there.

Getting up, In-hyuk turned to look at Baek Si-hwan, who had followed behind him.

He had been accompanying him ever since the recent hospital visit to Tae Seok-ho.

"Manager Baek."

"Yes, division director."

"I'm looking for a certain person. Can you find them?"

Baek Si-hwan tilted his head slightly.

"Background check, sir?"

"For now, yes."

"Tell me, and I'll look into it."

As he walked toward the elevator, In-hyuk paused.

"When we went to see Executive Vice President Tae Seok-ho, do you remember the woman who was with him?"

"I do."

"Find out her name, background, and why she was there."

Baek Si-hwan hesitated a moment, then replied promptly.

"I'll look into it."