Chapter 209: You Should Experience It Too (3)

The moment those words came out, the air in the chairman’s office changed unmistakably.

Daehan Finance was like the group’s blood vessels. It was the place that circulated money and bought them time. If that place began to shake, it meant every other affiliate would be choked at the same time.

Han Ji-beom spoke with a troubled expression.

“Daehan Finance is under pressure on its own right now.”

“What pressure?”

“Its credit rating.”

Han Ji-beom turned the tablet around and showed it to Chairman Nam. It was a summary of the internal credit assessment report.

“After the Woojin Bank situation, exposure to the entire group is being recalculated. Daehan Finance is no exception.”

He calmly added an explanation.

“For a financial company, trust is its asset. If outside parties judge that group risk has increased, they become reluctant to accept CP or short-term bonds issued by Daehan Finance.”

Nam Kun-ho asked,

“What happens then?”

“Then short-term funding gets blocked.”

A financial company was not a place that borrowed money long-term and operated it long-term. It borrowed short, turned it over quickly, and made profits. If that link was severed even once, even financial statements that looked perfectly healthy could become powerless overnight.

“Daehan Finance alone has approximately 1.2 trillion won in maturities due within the next month.”

Nam Kun-ho’s eyes shook greatly.

“That is the biggest problem.”

“Yes. It also makes support for other affiliates impossible in a chain reaction.”

Han Ji-beom lowered his head.

“Until now, Daehan Finance has served as the buffer. That was also why funds could be shifted around whenever things became urgent.”

He paused for a moment, then let out a short sigh and added carefully,

“But now, there is a high possibility that the buffer itself will break first.”

A quiet tension filled the chairman’s office. Nam Kun-ho stared into the air, both hands placed on his knees. His clenched fists trembled.

Construction. Oil. Telecom. Finance.

They each had different reasons, but the fact that they were collapsing was the same. To break through this, they needed cash, time, and trust. Since all three were draining away at once, it was difficult to set things right. Nam Kun-ho’s lips went dry.

“How much time is left?”

Han Ji-beom gave a short nod, then answered.

“As things stand, about a month and a half.”

“Forty-five days?”

“Yes. If cash flow is not normalized within that period, there is a high possibility that problems will erupt not in one place, but in several places at the same time.”

Those words were the decisive blow. Only then did Nam Kun-ho realize it. This was not a problem that could be solved by holding out. Time was not on his side either. He slowly lowered his head and rubbed his face dry several times. Then he thought of the root cause of all this.

Lim Hyunjun.

Nam Kun-ho placed his hands on his knees, clenched his fists tight, and shouted,

“Lim Hyunjun. If not for that bastard…. There would have been no problem at all.”

The rage contained in that low voice was beyond imagination. Now, something beyond fear was approaching him and choking him.

For a while, Nam Kun-ho said nothing. As time passed, the emotions swirling inside him gradually subsided. His clenched hands slowly loosened. Instead, his fingertips trembled faintly. He asked in a low voice,

“…Even if all the banks turn their backs on us, there must be another way, no?”

Han Ji-beom’s eyes wavered for a moment. It was not something he had failed to expect, but he had not thought Chairman Nam would actually ask because of his pride.

“It is not that there are no methods at all.”

Nam Kun-ho’s gaze dug into him.

“Then say them. Do not drag it out.”

Han Ji-beom briefly steadied his breath, then began explaining one by one, as if organizing them.

“First is overseas funding. Middle Eastern banks, Chinese policy finance, or bridge loans from global IBs are also options.”

Nam Kun-ho reacted immediately.

“I do not care if the interest rate is a little high.”

“The interest rate is not the only problem.”

Han Ji-beom shook his head and explained.

“Overseas lenders are currently classifying Daehan as a high-risk borrower. There is a high possibility that the conditions will not be simple loans, but will come with collateral demands and management interference clauses.”

“What? They would even interfere with management?”

“Things like dispatching a board observer or requiring prior approval for the disposal of major assets.”

When those words ended, the air in the chairman’s office grew heavy again.

Management interference as described by overseas financial institutions did not mean they intended to take the company away. But it was closer to binding the hands and feet of management.

A board observer, as the name implied, held the status of an observer, but the reality was different. Even without voting rights, they would receive all meeting materials and have to deliver their opinions before major agenda items were raised. Those opinions would remain in the official record and be directly linked to whether future funds would be disbursed.

Simply put, it was a structure where the party lending money could look into the company’s important decision-making process in real time.

The same was true of prior approval for the disposal of major assets. Whether it was the sale of real estate, the disposal of affiliate stakes, or a large-scale investment, they could no longer push it through as before based on the judgment of the chairman or the board of directors. They would first need the consent of external creditors.

Han Ji-beom added in a low voice,

“It takes the form of a loan, but in substance, it is like putting a leash around our neck. And as the funding situation worsens, that leash will become shorter.”

Only then did Nam Kun-ho understand that this was not simply a matter of using expensive money. In exchange for borrowing money, it was a deal where they exposed Daehan’s internal circumstances to the outside and handed over part of their decision-making authority.

Nam Kun-ho’s expression stiffened.

“That is not a loan. That is surveillance.”

Han Ji-beom did not deny it.

“That is why we classify overseas funding as the last card.”

“What else?”

Han Ji-beom raised a second finger.

“Second is the non-bank sector. Private equity funds or hedge funds.”

Nam Kun-ho’s eyes narrowed.

“Aren’t those bastards even more vicious?”

“That is correct.”

Han Ji-beom spoke honestly.

“Still, they do have advantages. Short-term funds can be procured quickly. But the terms are also clear. They may demand convertible bonds, bonds with warrants, or stakes in specific affiliates.”

The words sounded light, but the meaning contained within them was heavy.

Convertible bonds and bonds with warrants were not simple debt. Right now, they might look like interest-bearing instruments, but if the situation worsened, they were closer to bombs that could turn into shares at any time.

A convertible bond was, as the name said, a right to convert debt into shares. Regardless of whether the stock price fell or not, once the agreed conditions were met, the creditor could take shares. From that moment on, the party that had lent money was no longer a creditor, but a shareholder.

Bonds with warrants were no different. The bond came with the right to buy new shares cheaply. The more desperate the company’s situation became, the more cheaply that right would be exercised, and into a larger stake.

Simply put, it was a structure where they borrowed money in exchange for carving off pieces of the company’s flesh. Even that could be endured to some extent, but demands for equity stakes were even more blatant. They might demand that stakes in specific affiliates be pledged as collateral, or that a certain percentage or more be directly handed over.

The more core that affiliate was, the less that company would be entirely theirs from that moment onward.

Han Ji-beom nodded, let out a deep sigh, then added,

“Even if it appears to be a minority stake now, it will directly affect management control later. In particular, private equity does not decide exit timing for our sake.”

Private equity funds and hedge funds were bastards with no interest in growing a company. Their purpose was only one thing.

To leave at the highest possible price when it became profitable.

In that process, whether the company shook or the organization broke apart was not something they considered.

Nam Kun-ho silently looked at Han Ji-beom. Even if short-term funds could be quickly arranged, what they would have to give up in return was Daehan’s future itself. He rubbed his face dry several times, then asked,

“What else?”

This time, Han Ji-beom hesitated a little. Perhaps Chairman Nam would lose his temper immediately, he thought.

“Third is asset sales.”

In truth, Nam Kun-ho had also been wondering why those words had not come out yet. But contrary to Han Ji-beom’s expectations, he asked calmly,

“Where are you talking about? Is there anything worth doing?”

“Usually, non-core real estate, stakes in overseas subsidiaries, or stakes in some affiliates are suitable.”

Han Ji-beom added carefully,

“However, if we proceed with a sale in this situation, we will not receive a normal price.”

There was no way Nam Kun-ho did not know that. The market, knowing they were desperate, would absolutely cut the price. If he were the one buying, he would certainly do the same.

As if he no longer had the strength to speak, Nam Kun-ho waved his hand several times. Han Ji-beom continued.

“The last method is to squeeze from within.”

“Mm.”

“Stopping dividends, placing all investments on hold, personnel restructuring….”

Before he could finish, Nam Kun-ho raised his hand and stopped him.

“That is not possible.”

His voice was firm.

“That could send a signal outside. It could also make things start shaking from within.”

Han Ji-beom nodded. He, too, knew how dangerous this method was. Silence passed for a moment.

There were options. But not one of them was a good option. Nam Kun-ho sank deep into the sofa. Looking up at the ceiling, he muttered in a low voice,

“Why does every single one of them feel like drinking poison?”

Han Ji-beom added one last thing.

“Chairman.”

Nam Kun-ho turned his head.

“Whichever one of these we choose, it will not buy us as much time as before.”

His voice sank heavily.

“Now, unless we give up something, we will not be able to survive either.”

Those words struck Nam Kun-ho square in the chest. From the moment the banks turned their backs, Daehan Group was no longer the side that chose. It had now become the side being forced to choose.

***

HJ Partners conference room.

While Nam Kun-ho was agonizing over his choices, Hyunjun had just finished a meeting and was organizing his documents. He looked at the watch on his wrist. More time had passed than he expected. He gathered his documents and tablet, then rose from his seat. Choi Seo-jun followed behind him.

The two took the elevator up to the top floor. Hyunjun’s private office was there. By now, it was a space Choi Seo-jun was extremely familiar with as well.

He was one of the people who freely came and went here, so there was no reason to be conscious of anyone’s gaze.

When the door opened, Choi Seo-jun walked inside as naturally as if it were his own office. Hyunjun closed the door and asked,

“Would you like coffee?”

“No. I have already had quite a lot today.”

As if used to the place, Choi Seo-jun went to the refrigerator and took out a bottle of water. He opened the cap and gulped down the cold water in one go. The sound of him wetting his throat filled the room.

With a naturally familiar hand, Hyunjun tore open a packet of coffee mix, poured it into a mug, and added hot water. He slowly stirred it with a spoon and looked at the steaming mug. His appearance was nothing if not relaxed.

Hyunjun picked up the cup and sat comfortably on the sofa. Choi Seo-jun also took a seat across from him. After placing the water bottle on the table, Choi Seo-jun revealed the purpose of coming here. Looking at Hyunjun, he asked,

“In your view, Representative, what choice do you think Chairman Nam Kun-ho will make?”