Big Deal (소주전쟁)

SOUTH KOREA SEEKS IMF BAILOUT

The government has eventually decided to seek IMF bailout.

Amid ongoing financial difficulties,

Gukbo is now reportedly on the brink of bankruptcy.

Concerns are growing over the future of the beloved soju brand.

In-beom, where are you?

Almost there.

Should I just go to the Asia special task force?

No, go straight to see Mark.

He wants you to give a briefing on this.

In-beom, do not screw this up.

Follow me.

Am I even allowed to go in there, sir?

Just present your report.

And don't fuck this up.

All right.

Tell me about you.

Bachelor from Seoul National University,

MBA from University of Chicago,

three years at Bear Stearns,

three years as an associate analyst at our firm.

South Korea is facing a series of bankruptcies

following collapses of Hanbo and Sammi last spring.

In-beom?

Get to the point, we know Korea.

At least 30 corporations will be on the M&A market

following a series of bankruptcies soon.

That's why I propose establishing a branch in Seoul.

If we don't head there immediately,

all our rivals, like Lehman, JP, Deutsche,

and even small hillbilly banks like Lone Star,

will fucking swarm in to take what should be ours.

Our first target is Gukbo.

In a country that has the highest alcohol consumption in the world,

they make the best soju in Korea,

and they have

never lost money.

Amid harsh criticism of reckless expansion and management,

and under mounting pressure to repay its loans,

Gukbo has defaulted today on six of its key subsidiaries.

Gukbo defaulted after failing to cover 8.25 billion won

in promissory notes from nine financial institutions.

So, what's the president's stance?

They won't talk with us anymore

if we don't come up with a concrete recovery strategy.

They had no problem pocketing my money during the election, those fuckers.

There are reporters outside.

Rude little shits...

Chairman.

The public has started a "Save Gukbo" campaign.

Shouldn't we do something from the company's side too?

You heard, right?

We won't go down that easily.

We absolutely will not fail.

We're Korea's number one soju brand, how could we possibly go bankrupt?

But the fucking media,

they're spinning it like Gukbo's fall is coming from reckless expansions.

I don't regret the expansions.

Well, this is war now.

Get out!

- Director Pyo. - Yes, sir?

Go meet them.

It's an up-and-coming law firm, and I hear they're sharp.

They're snatching up consulting gigs from all the big ballers.

Understood, sir.

Mumyeong?

KOO YOUNG-MO

GUKBO DIRECTOR PYO JONG-ROK

If you'd invited me to your office, I'd have gladly come.

Well, yes.

I just came to watch your trial out of curiosity.

- Well, then... - Okay.

Excuse me, Mr. Koo.

May I ask your thoughts on today's verdict?

Well...

The merger of subsidiaries and the defense against foreign capital

had a favorable impact

and strengthened Taeseong Group's hold on management rights

had a favorable impact,

but it can't be considered an act aimed at succession of control.

but it can't be considered an act aimed at succession of control.

You should file for composition.

Composition?

A request to mediate a deadline extension for you to repay the debt.

Your management rights will remain 100% intact during that time.

I've never heard about this before.

It's a newly implemented system.

Gukbo would be the first to use it.

If approved, you'll only pay interest for five years

while restructuring subsidiaries

and liquidating assets, all while maintaining control.

Then, in five years, repay the principal.

And if we can't repay in five years?

Creditors could file for bankruptcy with the court.

First, file for the composition.

Then find a consulting firm to help you repay the debt.

Most creditors prefer responsible repayment

rather than dragging things through the court.

If you get us the composition,

I'll have Mumyeong handle all of Gukbo's legal affairs.

I'll give it everything I've got. You can trust me.

- I'm counting on you. - I won't let you down.

Mr. Choi In-beom?

Nice to meet you, I'm Baek Sung-bin.

I was sent by Director Gordon, head of Solquin Hong Kong.

He told me to bring you in, but there's no corporate car yet,

so I came in mine.

Where is Director Gordon now?

Macro Building in Gangnam, he said to bring you there.

Sir?

Didn't you say you start next week?

Enjoy your free time while you still can.

I can borrow your car, right?

Thanks for the time.

Now I understand why they sent you from New York,

when I insisted on bringing my team from Hong Kong.

Why is that?

Because you're a fucking Korean.

I haven't been back in ten years.

Won't be able to make deals through personal connections.

Drink?

I just closed a deal.

Use this space as your temp office.

Cheers.

I read your report.

Gukbo.

Unbelievable.

I mean, Koreans drink soju every day.

Happy, sad, bored,

they'll find any possible excuse to pour up soju, like tap water.

How can a company that literally prints cash go bankrupt?

I know.

It's time for Koreans to throw away that bitter drink, I guess.

Gukbo filed for composition yesterday.

They're gonna need a plan to pay back the debt.

They'll need a consultant.

I'll approach them right away.

Yeah, use this office.

I'm here three days a week and the rest in Hong Kong.

Oh, how was the kid who picked you up from the airport?

I thought you might need a Korean sidekick.

He flew out to Hong Kong as soon as I asked for an interview.

How do I keep you updated?

Phone, mail, messenger, whatever!

This is your turf, bud. Home-field advantage.

It's your shot.

Don't fuck it up!

I never imagined Solquin would open a consulting branch in Korea.

Timing really is everything, isn't it?

Chairman Seok, it's a great honor to have you as our first client.

It is our great honor to have you as our first client.

Thank you.

- Director Pyo. - Yes, sir.

A press release about Solquin being our consultant

should put the creditors at ease, no?

Certainly.

If you trust us, we'll deliver the outcome you're looking for.

I'm sure you've seen the data.

We would need some restructuring, right?

Yes, Chairman.

Out of the 20 subsidiaries, sell off 12, including Gukbo Distribution,

and declare bankruptcy for all non-core businesses.

Director Pyo, are you sure we showed them everything?

Yes, we shared everything we could.

Sell off 12 subsidiaries and bankrupt the rest?

We're not that far gone, are we?

We reviewed the data thoroughly.

You'll need over two trillion won to meet debt obligations in five years.

If you sign an NDA, we'll show you the rest of the data.

Chairman,

we haven't yet signed a consulting agreement with them.

It's currently under review at Solquin Hong Kong.

If your concern is about trust...

It's not that we can't trust them,

but that particular information may need more consideration.

If there's additional material, of course we'll review it thoroughly.

And as you said, you should be cautious,

but let me make one thing perfectly clear.

Chairman.

Solquin will prevent the final collapse

of Gukbo.

And we'll protect your control over the company.

I skimmed through all internal documents,

including restructuring plans, assets, financial conditions,

cash flow, marketing, and export strategy.

Here's the strategy.

First, we gobble up as much of their bonds as possible

under the name of Stone Investment.

In a few years,

this shell company will be the largest shareholder of Gukbo in Korea.

We are financing only a hundred million dollars for this project.

Like, how could we possibly control a large company like Gukbo?

What percentage of Gukbo bonds should we be securing?

The bonds are being sold dirt cheap right now.

Our goal is to buy in at 10% of the face value,

securing about 30% of Gukbo's bonds.

Are you confident we can bankrupt them with only a hundred million?

Absolutely.

Our advice for retaining management control

is the sale of stakes in overseas subsidiaries to secure liquidity.