Once news broke that Korea and Russia were pushing forward with the construction of oil and gas pipelines, the Korean stock market was thrown into turmoil.
Joongwoo Refining was not listed on the stock market.
However, two of Korea’s four major refiners were listed on the KOSPI.
After the joint statent between Korea and Russia was announced, all oil-related companies listed on the stock market hit the lower limit, plunging by minus fifteen percent.
As multiple stocks simultaneously hit their lower limits, both the KOSPI and KOSDAQ indices fell sharply.
The securities industry was thrown into shock by the news.
— The KOSPI index recorded an intraday drop of minus seven percent. Both the KOSPI and KOSDAQ have seen their steepest declines since the dot-com bubble. Next news......
Even after dvedev completed his schedule in Korea and returned ho, the stock prices of oil-related companies continued to fall.
“What the hell is going on?”
Korea’s four major refining companies had no choice but to hold an ergency eting.
Chairman Kim Byungwoo of the Joongwoo Group, Chairman Song Chanwoo of the Daehyeon Group, Chairman Choi Woosik of the KS Group, and Chairman Yeo Seungjin of the Geumseong Group.
All the key figures of the business world had gathered to begin discussions.
No—rather than a discussion, it would be more accurate to say it was a hearing convened to interrogate Chairman Kim Byungwoo.
“Chairman Kim Byungwoo. Speak up. Since when? Since when did you start talking with Russia?”
“I only found out recently myself. There was absolutely no prior contact.”
“Do you think that makes sense?! It’s an exclusive right to Russian crude oil entering Korea through a pipeline. Are you saying Russia unilaterally announced that without any prior consultation?”
Chairman Yeo Seungjin rattled off his words rapidly and slamd the table hard.
“Why doesn’t anyone else say sothing? Am I the strange one here? Or did everyone know about this except ?”
Chairman Song Chanwoo was just as shocked by the joint statent a few days earlier.
“I didn’t know, Chairman Yeo.”
At Song Chanwoo’s blunt answer, Yeo Seungjin shot him a glare.
“So, Chairman Song. You didn’t know either? You get along so well with the Joongwoo Group and you still didn’t know? Hah! Do you take for a fool?!”
“Right now, Daehyeon has all of the group’s resources focused on North Korea–related projects, so we’re in no position to look elsewhere. Daehyeon also learned about this from the joint statent, so let’s refrain from speculation.”
At the calm reply, Yeo Seungjin, who had been bristling for quite so ti, turned to Chairman Choi Woosik.
“And you, Chairman Choi?”
“I haven’t heard anything either.”
“Well, I suppose you’re busy enough with your managent control dispute......”
Thinking of the KS Group’s situation, Yeo Seungjin let his words trail off.
The managent control battle at KS Corporation, led by a private equity fund, was an issue the business world was closely watching.
“That’s not what matters right now. Chairman Kim Byungwoo, start talking. This is sothing none of us here knew about. We’ve been properly blindsided.”
Choi Woosik backed up Yeo Seungjin’s words.
“Chairman Yeo is right. Didn’t the four major refiners agree to support one another? And yet, without consulting us, all the profits go to Joongwoo Refining alone? Do you really think that’s acceptable? This is outright deception.”
From the perspective of all the refiners present, the pipeline construction itself was welco news.
With over eighty percent of imported crude oil currently coming from the Middle East, diversifying import routes had long been the refiners’ fervent wish.
But if soone were to monopolize all the resulting benefits, that was a different matter entirely.
“This has to be done together. A monopoly is out of the question.”
With everyone’s eyes on him, Kim Byungwoo spoke with a troubled expression.
“But it’s not sothing I can control.”
“If the chairman responsible for the Joongwoo Group can’t handle it, then who can?”
“......You all know, don’t you? Who the true owner of the Joongwoo Group is. This was all planned by him.”
The first to catch on to whom he ant was Chairman Choi Woosik.
“Are you talking about President Kim Muhyuk?”
“That’s right. I understand he’s been in talks with the Russian governnt for quite so ti over this pipeline project.”
At the ntion that President Kim Muhyuk was leading the effort, Choi Woosik fell silent.
At present, Choi Woosik was in no position to clash with Kim Muhyuk.
“Do you think I want to sour my relationship with the chairn here? But the decision has already been made. This isn’t sothing that can be resolved just because I step in.”
At Kim Byungwoo’s continued, aggrieved defense, Yeo Seungjin clicked his tongue.
“Tsk. You’re the chairman responsible for the Joongwoo Group. And yet you hide behind President Kim Muhyuk saying you didn’t know, that there’s nothing you can do. If that’s all you plan to say, then why are you even sitting in that chair?”
“This project was carried out secretly by President Kim Muhyuk. He only told the day before dvedev visited. I’m frustrated too. But both the Russian and Korean governnts have already reached an agreent. It can’t be overturned.”
“Then are we just supposed to take this lying down? If Joongwoo gets crude oil at a lower price and competes on price, we’ll be pushed out of the market.”
Yeo Seungjin wasn’t worried about the dostic market.
Because of fuel taxes, price differences in the dostic market couldn’t grow that large.
But the export market was a completely different story. Refiners earned more than half their profits from exports.
The Geumseong Group was in the midst of a major corporate split.
Having stepped down as honorary chairman, Yeo Seungjin was proceeding with the split to finalize the succession structure.
‘If the value of the refinery drops......’
Geumseong had started as a joint venture between Yeo Seungjin and Bu Changmin, and the Yeo and Bu families had grown the group together.
But as the group expanded and ti passed, the number of descendants in both families increased, leading Yeo Seungjin and Bu Changmin to prepare for a split.
They wanted to avoid disputes over inheritance.
Then Bu Changmin passed away first, and his son, Bu Jinsu, took over leadership of the Bu family.
Most of the split concerning the Yeo family had already been completed, and only the split for the Bu family remained.
The affiliates to be transferred to the Bu family were Geumseong Refining, Geumseong Construction, and Geumseong Distribution.
Buseong Holdings had already been established through a human-resource split, with their share of companies placed under it.
All were unlisted companies, but with news of the pipeline construction, Geumseong Refining was also thrown into ergency mode.
“Chairman Kim.”
“Yes, Chairman.”
“You know that the Yeo and Bu families are preparing for an amicable separation, don’t you?”
“Yes. I’m aware that the Geumseong Group’s split is proceeding without major disputes.”
“That’s right. The affiliates the Bu family will take have already been decided, and all that remains is approval from the Fair Trade Commission. And then this incident suddenly erupted.”
As if he sensed where Yeo Seungjin was going, a troubled look crossed Kim Byungwoo’s face.
“Among the affiliates the Bu family will take, the refinery is the largest. If its value is damaged, do you think the split will proceed smoothly? If you’d at least given us advance notice, we could’ve accelerated the split. If Geumseong Refining’s value falls while it’s still part of the Geumseong Group, do you think the Bu family will be satisfied?”
Yeo Seungjin wanted no noise until the split was complete.
If only for the sake of the family he would leave behind after his death.
“So have the Joongwoo Group announce, at the group level, that although ⊛ Nоvеlιght ⊛ (Read the full story) Joongwoo Refining holds the exclusive rights, you’re looking for ways to share the benefits with dostic refiners through consultations.”
That proposal was sothing Kim Byungwoo couldn’t accept. His voice rose despite himself.
“That’s an absurd demand. What company shares its profits with another company?”
“I’m not saying you should truly share them. Just say that until the split is complete. That much you can do, can’t you?”
“I absolutely can’t. If things go wrong later, I’ll end up on bad terms with Vice Chairman Bu Jinsu. I have no intention of doing that.”
Kim Byungwoo spoke firmly. In his agitation, Yeo Seungjin’s voice naturally grew louder as well.
“Chairman Kim Byungwoo! It’s not difficult. All you have to do is tell the reporters that you’re discussing various options!”
At that mont, the door opened and Kim Muhyuk walked in.
“I could hear Chairman Yeo’s voice all the way outside. Why are you so angry, Chairman Yeo? At this rate, you’re going to collapse from high blood pressure. You’re getting on in years, so you should be careful.”
A deep smile hung at the corner of Kim Muhyuk’s lips as he spoke casually.
* * *
I headed over as soon as I heard that the stakeholders of this project were holding a eting.
“Looks like our Chairman Kim has been having a rough ti.”
I had inford Chairman Kim Byungwoo about this matter late as well.
If word leaked out in advance, all kinds of interference would have followed, so I had to minimize the number of people in the know.
Dostic refiners other than Joongwoo Refining had strategic partnerships with foreign oil companies.
I could suppress opposition from dostic companies, but if foreign oil companies started moving as well, even I would have a hard ti.
Chevron held fifty percent of Geumseong Refining’s shares, and Saudi Aramco was the second-largest shareholder of Daehyeon Refining.
Chevron wielded enormous influence in U.S. politics, and Aramco was a Saudi state-owned enterprise.
Before they could make a move, I planned to quickly announce the joint statent and then persuade North Korea.
“Boss. We’ve arrived.”
“Let’s go in.”
We arrived at the Joongwoo Group’s headquarters, the eting venue.
The mont I stepped off the elevator on the top floor where the chairman’s office was located, Chairman Yeo Seungjin’s booming voice could be heard even outside.
“For soone his age, he’s still pretty lively. What a set of lungs.”
The chief secretary, having recognized , hurried over. His face was full of distress, but he didn’t try to block my path.
“President. You’re here?”
“Everyone’s inside, right?”
“Yes.”
“Then I’ll go in.”
As I headed toward the chairman’s office, the secretaries opened the door.
“I could hear Chairman Yeo’s voice all the way outside. Why are you so angry, Chairman Yeo? At this rate, you’re going to collapse from high blood pressure. You’re getting on in years, so you should be careful.”
“President Kim! You’ve co at the right ti.”
Well, I’ll be damned. After living this long, I never thought I’d see the day Chairman Yeo Seungjin welcod .
“Looks like the sun’s going to rise in the west tomorrow. Chairman Yeo welcoming and all.”
After greeting the others as well, I took a seat.
The five of us sat around a round table.
“This must have co as a shock to all of you.”
“Don’t say that like it’s nothing! You should’ve talked to us about this. Are we only on the sa side when it’s convenient?”
“The chairn here don’t matter. But if Chevron and Aramco found out, interference was inevitable, so I had no choice.”
“Hm...... As it happens, Chevron contacted us about this. Since I didn’t know much either, they said their board mbers would be coming to Korea within a few days. I probably won’t be the one eting them—it’ll be Vice Chairman Bu Jinsu.”
Yeo Seungjin spoke in a slightly calr tone.
I nodded and turned to Chairman Song Chanwoo.
“What about Aramco, Chairman Song?”
“......There’s been nothing in particular so far.”
“As expected. Aramco probably won’t show much of a reaction.”
Aramco was the largest refiner in the world. It wasn’t a company that would panic over sothing like this.
“Daehyeon Refining should continue its business with Aramco as usual. There’s no need to try to get involved in this project.”
“I’ll convey that.”
With Daehyeon Refining settled, I turned back to Chairman Yeo Seungjin.
“You raised your voice because of the corporate split, didn’t you?”
“You noticed, did you? Yes. If a problem arises at Geumseong Refining now, disputes with the Bu family could break out. Until this split is complete, have the Joongwoo Group announce that nothing has been decided yet.”
That wasn’t possible. With how much effort had gone into this, dragging it out any longer would all but guarantee interference.
“The matter has already been settled with the Russian governnt. If the Joongwoo Group makes a separate announcent, they might find it displeasing—”
“President Kim. Didn’t I participate in every project you proposed? Even the North Korea business my family opposed—I insisted we take part. Acting like this isn’t proper etiquette.”
Yeo Seungjin cut off urgently, pushing back hard.
Watching that fussy old man squirm wasn’t entirely unpleasant.
I considered stringing him along a bit more, but seeing his face distort by the second, I pulled out the gift I had brought.
“If Geumseong Refining is the problem, then raise the value in another sector. You’re transferring Geumseong Construction to the Bu family as well, aren’t you?”
“I am, but how much can Geumseong Construction’s value really increase? The core issue is Geumseong Refining.”
“Joongwoo Construction will serve as the PM for the Korea–North Korea–Russia pipeline project. We’ll issue a disclosure stating that Geumseong Construction will participate in that project.”
“What? Joongwoo Construction is taking the PM role?”
Except for Kim Byungwoo, everyone’s eyes widened.
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