Hong Kong variety show: The mastermind behind the scenes is emerging.

The next morning at 10:00 AM, at the Blue House.

The curtains in the president's office were half-drawn, and the winter sun slanted in, casting a yellowish hue on the gleaming desk.

Quan Xiaojiang sat behind his desk, pushed a document in his hand in front of Lu Chen, and spoke in a much more formal and solemn tone than last time.

"Mr. Lu, after several rounds of discussions, we can, in principle, approve Golden Harvest's investment in core industries in South Korea. Golden Harvest can participate in the investment, whether it's Samsung, Hyundai, or Daewoo. The government can even provide some assistance with administrative approvals and related procedures."

"However—" Quan Xiaojiang paused slightly, placing his hands on the table with his fingers interlaced, "there are some terms that you need to review first."

Lu Chen nodded, took the document, and opened it.

The contract wasn't long, only five or six pages. Lu Chen flipped through it page by page, his expression remaining calm throughout. After finishing the last page, Lu Chen closed the document and placed it back on the table.

"The terms are very harsh."

First, the contract restricts foreign ownership: no more than 13% for the Samsung Group and Hyundai Group, and no more than 7% for the Daewoo Group; second, there is also a cap on the investment amount. Most critically, the last clause stipulates that even if Golden Harvest joins the board of directors, it will not have any voting rights on major decisions.

In other words, this contract is clearly an attempt to get Golden Harvest's investment and brand name for free: they're willing to pay, but they won't say anything.

"I hope Mr. Lu understands." General Quan nodded slightly. "After all, Samsung, Hyundai, and Daewoo are the three pillar companies of South Korea. As the government, we must ensure that the control of these companies is in the hands of the South Koreans themselves."

"I understand..." Lu Chen picked up a cup of South Korean barley tea, took a sip, and a roasted aroma filled his mouth. "Generally speaking, I can agree. However, I'd like to discuss the shareholding ratio further."

"Mr. Lu, please speak."

Lu Chen held up one finger: "First, regarding the Dayu Group, I can reduce my shareholdings and investments, or even just make a symbolic capital injection."

Quan Xiaojiang's eyebrows twitched slightly, but he didn't interrupt.

"However," Lu Chen held up his second finger, "the shareholding ratios of Samsung and Hyundai need to be increased. I can accept 17% for Samsung Electronics, and no less than 15% for Hyundai Motor."

"Secondly, I am willing to give up my seat on the board of directors of Daewoo Group. However—I will retain my voting rights on the board of directors of Samsung Group."

The office was quiet for a moment.

Quan Xiaojiang leaned back in his chair, looking at Lu Chen with a hint of doubt in his eyes.

It's worth noting that among the current Big Three, Samsung is currently struggling with its semiconductor business, which has been losing money year after year—that bottomless pit of a chip factory is consuming a large amount of Samsung's cash flow; Hyundai, on the other hand, has lost face internationally due to a strike by its factory workers, and its production has come to a standstill.

Daewoo, on the other hand, has been thriving all the way. Daewoo Shipbuilding is receiving orders non-stop, Daewoo Motors is conquering the domestic market, and the group's total assets are snowballing... By all accounts, Daewoo has a brighter future.

But Lu Chen only wants Samsung and Hyundai, and avoids Daewoo like the plague?

However, Quan Xiaojiang wouldn't try to persuade him, or rather, he'd be happy if Lu Chen misjudged Da Yu. Da Yu was practically the apple of the South Korean government's eye, and they wouldn't want an outsider involved.

In fact, Daewoo held a very special position in the eyes of the South Korean government, and this can be traced back to the Park Ka-ka era.

From the 1970s to the 1980s, the South Korean government vigorously promoted heavy chemical industry and export expansion. In order to enhance its international competitiveness, the government decided to concentrate national resources to create several leading enterprises, which were the prototypes of South Korea's major conglomerates.

In this process, many small and medium-sized enterprises or state-owned enterprises that cannot keep up with the pace will go bankrupt. For any state-owned enterprise that cannot be restructured or any unfinished heavy industrial project, the government's first reaction is always to hand it over to Daewoo to take over.

Daewoo Shipbuilding, Daewoo Machinery, Daewoo Motors... almost all of them came about this way. And each acquisition was accompanied by massive amounts of low-interest policy loans, tax breaks, and administrative concessions.

When Roh Tae-woo came to power this year, the government proposed the "Northern Policy" and attempted to establish diplomatic relations with socialist countries such as the Soviet Union, China, and Eastern Europe. Daewoo will be regarded as a pioneer in "government-enterprise cooperation" and will be granted exclusive or priority overseas development rights.

There's even a sarcastic saying circulating: Kim Woo-jung, the founder of Daewoo, is "the adopted son of Jeon Jung-hyun and Roh Tae-woo's government."

Lu Chen knew all of this.

But what he knew even better was that beneath Daewoo's glamorous exterior lay a hollow core.

First of all, Daewoo's entire expansion myth was built on a pathologically massive amount of bank loans.

Because the South Korean government pursued a "chaebol-led" economic policy, banks were practically ATMs for the chaebols. Daewoo, using its vast assets as collateral, continuously borrowed low-interest loans and then used those loans to acquire new assets—its scale snowballed and grew larger and larger.

On the surface, the Daewoo Empire appears to be incredibly successful; in reality, its prosperity is entirely built on the financial illusion of "borrowing new debt to pay off old debt." When the Asian financial crisis hits, the Daewoo Group's debt ratio will soar to 400 to 500 percent, with some departments even exceeding 800 percent. It appears to be a behemoth with a market capitalization exceeding 60 billion US dollars, but in reality, it is fragile and easily crumbled.

Secondly, Kim Woo-jung adhered to the principle that "size equals competitiveness." In order to seize global market share, Daewoo's automobiles, home appliances, and other products were dumped at extremely low or even loss-making prices for a long time, resulting in a pitifully low return on capital for the group. Once external financing dried up, the huge cash flow gap could not possibly be filled by its own profits.

Even more fatally, what brought them success also brought them down. The South Korean government forced or induced Daewoo to "take over" companies on the verge of bankruptcy. This "firefighter model" created a miracle of Daewoo's explosive expansion in the early stages, but ultimately turned into a poison that brought down the entire Daewoo empire.

Without exception, the companies that were acquired carried staggering debts and bloated staff. Moreover, because they were acquired, Daewoo often lacked the R&D and management capabilities to digest these complex businesses—like a person eating too much and not being able to digest it, eventually suffocating themselves.

In short, although Daewoo seems to be doing well now, it won't last much longer.

Therefore, investing is out of the question. At most, I might make a symbolic investment so that I can get a share of the profits when Daewoo goes bankrupt.

Of course, Lu Chen wouldn't say these things to Quan Xiaojiang. He simply expressed his sincerity: "Jiahe's energy is limited, while I am more optimistic about the long-term development of Samsung and Hyundai, especially in semiconductors. I believe there will be great potential in the next twenty years."

Quan Xiaojiang pondered for a moment, and finally nodded.

"Let's do as Mr. Lu wishes. We can discuss the shareholding ratios of Samsung and Hyundai further. As for Daewoo—since Mr. Lu has voluntarily relinquished his position, we won't elaborate further."

There was another reason why he agreed so readily—among the major conglomerates, Samsung was the most vocal during last year's June pro-democracy protests, and now that someone was willing to "make trouble" for Samsung, he couldn't be happier.

"The specific terms will be discussed later by our subordinates."

"That's only right," Lu Chen picked up his teacup and raised it towards Quan Douhuan, "Wishing us a pleasant collaboration."

"Haha! It's a pleasure to work with you!" Chun Doo-hwan laughed heartily and raised his glass in return.

……

When I stepped out of the Blue House, the Seoul sun was shining brightly.

Lu Chen got into the car, leaned back in the leather seat, and looked out the window at the blue rooftops that were gradually receding into the distance.

Sitting in the passenger seat, the "Overbearing Flower" turned around and asked, "Boss, how did the talks go?"

"The preliminary agreement is set," Lu Chen said. "The shareholding ratios with Samsung and Hyundai can still be negotiated. Daewoo—" He paused, "a symbolic investment is enough."

"Isn't Daewoo doing quite well?"

"Good development doesn't guarantee longevity," Lu Chen said, looking out the window. "Some things look glamorous, but their foundations are already hollow. Waiting until they collapse to buy in at a bargain price is much more profitable than being a shareholder now."

The convoy passed through Gwanghwamun Gate and merged into Seoul's traffic. Lu Chen rested his head on the headrest, slowly closed his eyes, and remained silent.