Episode 158
Son Jung-pil exclaimed, “Chunha Group?!”
The vice president of Chunha Group, the public enemy of all used car dealers, the very reason for the formation of the Korea Used Car Association, was here to buy his cars?
‘What’s going on?’ His eyes darted around, trying to understand the situation. He asked Maru cautiously, “Are you… really from Chunha Group?”
“Yes.”
“The Chunha Group that entered the used car market?”
Maru nodded impassively, and Son Jung-pil’s confusion deepened. “Are you aware that I’m a member of the Korea Used Car Association?”
“I wasn’t aware. I just came to the first office I saw. Does it matter?”
“Does it matter…?!”
The Korea Used Car Association was formed to oppose Chunha Group’s entry into the market, and he was a member.
They were enemies. He felt insulted by Maru’s dismissive attitude.
“We’re just customers here to buy used cars, and you’re a used car dealer. That’s all there is to it.”
Son Jung-pil suppressed his anger. “Is that all? Do you know what Chunha Group has done to us?”
“You’re struggling because of the competition.”
“You know that, and yet you’re treating me like just another customer?”
Maru took a sip of his coffee. “So you’re not selling?”
“Of course not!”
“Then I’ll offer you a 20% premium.”
Son Jung-pil, who had been about to tell him to leave, hesitated. “2-20%?”
“Yes, 20%.”
10% had already been a generous offer, but 20%? The average profit margin for a used car was 10%, so a 20% premium meant he would be making three times his usual profit.
“That’s a substantial amount,” Maru said, looking at his stunned expression.
“B-but I’m a member of the association… I can’t do business with Chunha Group…”
Maru scratched the back of his head. “Sigh, I’m good at breaking things, not at persuasion…”
Son Jung-pil flinched at the word “breaking,” and Maru, lost in thought, suddenly said, “Wait a minute.”
He took out his phone and made a call.
“Hello? Yes, it’s me. I think I’ve almost got him… but I’m not good with words. Yes, I offered him 20%. Yes, he’s a member of the association. How about you talk to him yourself? Alright.”
He handed the phone to Son Jung-pil. “Here, talk to him.”
Son Jung-pil cautiously put the phone to his ear. “…Hello?”
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Greetings. This is Park Sol, chairman of Chunha Group.
“Gasp!”
The vice president had already been a surprise, but now he was talking to the chairman himself.
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What’s your name?
“S-Son Jung-pil Used Cars. It’s an honor to meet you, Chairman!”
He had badmouthed Chunha Group and its CEO, but he was still the chairman of a top 20 conglomerate.
He couldn’t help but be nervous.
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Nice to meet you too. I hear you’re a member of the association.
“Th-that’s right, sir.”
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I’m curious why that matters.
“W-well, sir, we’re united against Chunha Group’s entry into the used car market. It would be a betrayal of the association if I did business with you.”
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Betrayal, you say…
A chuckle came from the other end of the line.
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A businessman should be willing to deal with the devil himself for profit. And… has the association ever helped you financially?
“Well, that’s…”
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They’ve probably just been pressuring you to lower your prices. Mr. Son, do you have any loyalty to uphold to the association? They don’t care about small-time dealers like you. They just needed numbers to fight us.
“…” He was speechless.
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The association is probably controlled by the larger used car companies, the ones with established businesses. Do you think they care about a small fry like you, selling a few cars a month? And let’s say the association wins this fight against us. What do you gain? You’ll just go back to how things were before, or maybe even worse, controlled by the powerful association. Isn’t that right? Let’s be honest, this used car market is full of scammers, isn’t it?
Son Jung-pil nodded unconsciously. He had been thinking the same thing. The association was already pressuring them to lower their prices. It would only get worse. He had nothing to gain from this fight.
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I also started from the bottom. Let me give you a valuable tip.
“A t-tip, sir?”
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Small fry like you should only focus on one thing: making money. Just ride the wave and profit from the power struggles. Principles, the future of the industry… What do they matter? The most important thing is your own wallet. And now, you have an opportunity.
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You’re not naive enough to prioritize loyalty, are you? I’m offering you a 20% premium. And if you can persuade other dealers, I’ll give you a 5% commission. Why not make a fortune and leave this industry?
A mass exodus of dealers.
The Korea Used Car Association, which had considered itself the representative of all used car dealers and had been preparing for a war against Chunha Used Cars, was caught off guard. The dealers were selling their entire inventory to Chunha.
They tried to take action, but there was nothing they could do.
The newly formed association had no clear regulations or enforcement power.
The dealers could have survived if they had just sold their individual inventories, but most of them, tempted by the 20% premium, started persuading other dealers to join them.
Some even started using Chunha Used Cars as a supplier, buying cars at a higher price from other dealers and then selling them to Chunha at an even higher price, profiting from the margin. The dealers who had remained loyal to the association were losing money.
And all this was possible because of Chunha Used Cars’ aggressive acquisition strategy, willing to incur losses to secure inventory.
“Those bastards! We formed this association to fight them!” The chairman of the Korea Used Car Association slammed his fist on the table. “How many cars have they acquired?”
A director said with a hollow voice, “It’s difficult to estimate the exact number of dealers involved, but we estimate about 20,000 vehicles.”
“20,000?! That’s insane.”
The Korea Used Car Association had 200,000 used cars in its inventory, practically 98% of the entire market.
And 10% of that had gone to Chunha Used Cars.
“Are they crazy?! A 20% premium on 20,000 cars! How much did they lose?”
“…Close to 100 billion won, I think.”
“100 billion won isn’t pocket change! How can they run a business like that?! Does Chunha Group have that much money to burn?”
Just a year ago, countless large corporations had gone bankrupt because of a mere 10 billion won.
And now, Chunha Group was building massive car lots across the country and buying up used cars at a loss.
It was absurd.
“They established Chunha Used Cars, offered a 20% premium, and acquired 20,000 cars… Where are they getting all this money?”
“We’re not sure…”
“Sigh.” A director raised his hand. “Even Chunha Group’s resources are limited. They can’t keep paying premiums forever. We just have to wait until they run out of money…”
Another director countered, “That won’t work. Chunha Group’s financial resources are unmatched among Korean corporations.”
“What?”
“Didn’t you see what happened with the Daehoo acquisition? That small company contributed 2.5 trillion won. Of course, they’ve spent a lot since then, acquiring Daehoo Electronics, Daehoo Energy, securing the US military contract, and building car lots. But they must still have at least 1 trillion won left.”
The chairman said with a dejected expression, “They still have over a trillion won?”
Just a year ago, large corporations had been collapsing due to a mere 10 billion won. Even Saseong Group, the number one conglomerate, didn’t have that much cash on hand. Chunha Group’s financial strength was astonishing.
“We can’t beat them with money.”
The directors murmured among themselves at his words.
“But we have our own methods, don’t we?”
“What methods?” the chairman asked.
The director smiled. “Physical force.”
The directors’ eyes gleamed.
There were 30 of them, all CEOs of leading used car companies.
And in the used car industry, just like in the entertainment industry, connections with organized crime were essential. They all had ties to gangs, either through protection rackets or direct ownership.
“We mobilize our men and prevent the dealers from selling to Chunha Used Cars. It’s our specialty.”
“Hmm,” the chairman said, pondering the idea. “Under normal circumstances, I would agree without hesitation, but… they’re a large corporation. They won’t just sit back and do nothing.”
Even the most powerful gangs wouldn’t dare to challenge a large corporation with political connections.
But the director said confidently, “Chunha Group is a newly formed company, less than six months old. They don’t have strong ties with other corporations or the government. And their chairman is Park Sol, the softie who keeps donating his money. What’s there to be afraid of? And we’re not attacking Chunha Group directly. We’re just disciplining our own members who are betraying us or planning to betray us.”
The other directors murmured in agreement, and the director, encouraged by their support, continued, “We have to act quickly and contain the situation.”
The chairman nodded. “Alright, then let’s discuss the details.”
They started discussing the number of men they would mobilize and how to share the costs.
But one of the directors, sitting at the far end of the table, muttered with a worried expression,
“The Park Sol I met wasn’t a softie.”
It was the used car dealer who had initially approached Park Sol with the US military auction proposal.
“You’re all underestimating him…” He had kept quiet, unable to reveal his involvement, but he knew that Park Sol wasn’t as naive as his public image suggested.
He had also been deceived by Park Sol’s seemingly gentle demeanor and had learned his lesson the hard way.
‘A softie? You’re kidding me. The Park Sol I met was a ruthless businessman.’
He bit his lip, and another director, noticing his expression, asked,
“Choi, what’s wrong?”
He forced a smile. “N-nothing. I was just thinking about something else.”