Chapter 416: The world is full of prosperity and profit

However, the golden-collar ol girl in front of her didn't care about showing her beauty to her boss. Her attention was attracted by the news that was being broadcast on TV. It was an emergency live broadcast by South Korea KBS TV station. The host was standing at the door of Daewoo Group, the second largest company in South Korea, and announced in a heartbreaking manner that the Seoul District Procuratorate of South Korea launched a comprehensive investigation into Daewoo.

Now this place has been taken over by the bankruptcy committee composed of officials sent by the South Korean government and representatives of several major creditor banks of Daewoo Group. The past accounts and debts of Daewoo Group will be cleared one by one. In addition, thousands of demonstrators gathered at the Daewoo headquarters, holding up big slogans such as "Repay my hard-earned money!" and "Thoroughly investigate the shady scenes of collusion between officials and businessmen", and strongly demanding a thorough investigation of the Daewoo Group's problems. This means that the largest bankruptcy case in South Korea's business history has entered the countdown, and Daewoo Group has no way to make a comeback and will no longer exist today.

However, this is the time for Yang Xing. At the beginning of the year, Yang Xing and Zhang Shengli made a misunderstanding of "Two Dayu" in Hong Danyang. At that time, Yang Xing no longer concealed his covetousness for South Korea's Daewoo. After a long wait, he set up a step-by-step plan in South Korea during the Asian financial storm, and now it is time to close the net and catch fish. Zhongxing Group is about to announce the acquisition of Dayu. Jiao Bailing, who is in the United States, flew back from the United States at this time, in order to prepare for the acquisition.

After hearing this news, several assistants who knew Yang Xing's plan knew that they were going to do a serious business, and they all moved into work without saying a word. After Yang Xing sent Wu Bei away, he did not politely with Jiao Bailing and asked her to sit down and talk. She worked very hard in the United States for more than half a year. Zhongxing Group can now quickly gain a foothold in the American market, which has a lot to do with the efforts of her, Wang Yiren and Guo Ying. Jiao Bailing told him straight to the point: "I have two news, one is good and one is bad, which one do you want to listen to first?"

Yang Xing pondered for a moment and said, "Fortune is unparalleled, misfortune never comes alone. I am an optimistic person. I will listen to the good news first." "Okay, I will officially notify you that after negotiations yesterday afternoon, the five major investment banks on Wall Street agreed to cooperate to provide financial support and services for our acquisition of Daewoo Group's assets. At the same time, several large manufacturing companies such as General Electric, General Motors, and Caterpillar in the United States are also willing to join forces with us to divide Daewoo's assets. It really conforms to your original analysis. An elephant fell down, and there will be no shortage of vultures flocking to grab fat meat next to you. Americans are indeed very enthusiastic about the elephant of Daewoo Group."

Yang Xing picked up the coffee without comment and took a sip. This was indeed good news, as he expected. The world is bustling for profit, and the world is bustling for profit. Americans are very practical. This time, the five major investment banks joined forces to support him. In addition to the many joint acquisitions of Japanese and Korean companies in the Asian financial crisis, he left them with great impression, mainly because Buffett's lunch party had too much temptation to short the Nasdaq futures contract. Over the past period of time, the trend of Nasdaq has gradually matched Yang Xing's prediction. The five major investment banks are all financial veterans. Knowing that joining forces with Yang Xing is of great benefit, it is normal for them to give some help in Zhongxing's acquisition of Daewoo. And once the acquisition is successful, both in terms of commission and corresponding financial returns are considerable. Of course, they will not hesitate to take action on win-win matters.

As for the ability to join in, General Electric and other companies, it is not Yang Xing's kindness, but Daewoo was known as a "universal factory" at its peak, and it operates a variety of projects. Yang Xing's corporate projects overlap with Daewoo, but a large part of them are not used. In this case, he is happy to get helpers to work together to get what they need, but he is not very kind, but has the idea of ​​"fake the power of the tiger".

Daewoo Group's core business is diesel engines, automobiles, heavy construction machinery and shipbuilding, but Yang Xing knows that for example, automobile manufacturing and shipbuilding industry involve South Korea's national defense and national dignity, it is absolutely impossible to get it with money alone. But if the Americans, a South Korean protector, came forward, the resistance would be much smaller. Yang Xing is only interested in the core patented technologies that Daewoo masters. Korean workers have always been known for being aggressive and xenophobic. After Daewoo was acquired by General Motors in his previous life, they have been troubled by local workers' strikes after they were acquired by General Motors, and finally had to go bankrupt again. Let these manufacturing companies that attempt to enter the Korean market open the way for Zhongxing Group. The non-economic pressure faced by Zhongxing Group during the acquisition will be much smaller. He is the original intention of holding the American tiger skin to make a big banner. He stayed behind to pick up spoils.

Daewoo actually declared bankruptcy in August 1999. At that time, the total debt of 12 companies of Daewoo Group exceeded US$11 billion, while the total assets of the group were only US$3.2 billion. In addition, other related hidden debts combined were astronomical US$80 billion! The South Korean government considered that the scale of Daewoo Group was too large and that it would cause social unrest, so it adopted a "slow bankruptcy" approach. While negotiating with Daewoo's creditors, it injected huge sums of US$29.7 billion into Daewoo's attempt to save its fate. It seems to be a drop in the bucket. The host on the TV claimed in tears that the 29.7 billion US dollars invested by the government was only half of the US$29.7 billion left at this time. Daewoo Group's problem was a bottomless abyss, and the South Korean government and the people were completely disappointed with it.

When Daewoo first announced bankruptcy, most Korean citizens believed that Daewoo Group was hit hard by the Asian financial storm, but it was bad luck. President Kim Woo-jung was a tragic figure. Especially after it was reported that he took the initiative to donate all his $1 billion in assets in an attempt to save Daewoo, the public became more impressed. South Korean media described Kim Woo-jung as a hero who endured humiliation and took into account the overall situation. However, as the official investigation team sent to investigate Daewoo's financial situation gradually deepened, it was discovered that he had directed the number one financial shady in Korea.

Before the comprehensive search of Daewoo by the South Korean procuratorate began, the South Korean investigation team responsible for handling the bankruptcy of Daewoo Group announced a preliminary investigation report, indicating that Kim Woo-jung was suspected of embezzling more than 20 billion US dollars through counterfeiting accounts and illegal fundraising and other means from October 1997 to August 1999, and then transferred the huge amount to the "secret account" of Daewoo's overseas branch "British Financial Center" in the UK. The amount of these funds is astonishing. If the investigation is true, it can be regarded as the largest accounting fraud case in the world in recent years. As soon as this discovery was announced, South Korea was in an uproar, and Kim Woo-jung's halo of "national hero" was completely shattered, becoming a "traitor" that everyone denied!

The sign of the out-of-control situation was that in October 1999, when the investigation team was unraveling Daewoo's problems and deepening them step by step, Jin Yu-jung, who had been living in seclusion after bankruptcy, suddenly announced that he had "going abroad to handle company affairs". Due to his past impression of "workaholics" and many Koreans also regarded him as a life idol of "a poor boy struggling to reach the top", the investigation team did not stop him. But as he and several of his confidants Huang He were gone forever, he went here.

The members of the investigation team who had come back to the news realized that something was wrong and immediately notified the government to announce a wanted order for Jin Woo-jung. The news came out that the heroic image that Jin Woo-jung had accumulated for many years was completely broken. In the midst of the turmoil, the Daewoo self-rescue plan proposed by the Daewoo Group internal employees who had hope for him was fruitless. When the efforts of many parties failed to work, the choice facing the South Korean government was to make Daewoo's mess completely bankrupt.

In fact, Daewoo's tragedy has long been harboured. Since South Korea's economic takeoff in the 1950s, its domestic economy has been deeply imprinted by state capitalism. That is, the government has selected a certain number of enterprises and supported finance, policies and other aspects, forcibly catalyzed a group of large consortiums with strong businesses across various industries and have worked together in the international market. It should be said that this Korean national capitalist model, which was derived from the Japanese large consortium model, made its first contribution to South Korea's ranks in the ranks of developed countries in the early days. Moreover, under the impact of many world capitalist economic crises after the war, the Korean model also withstood the test.

However, this Asian financial crisis made South Korea feel that its past experience was invalid for the first time, and this model began to fail to work. According to past experience, even if one or two large consortiums were not well managed during the financial crisis, as long as the South Korean government came forward and transfusion and reorganization of these consortiums with national credit, it would always make the dying consortium either turn over and rise again, or transform into a government-designated consortium to take over, and would never go to a complete collapse.

However, before the financial crisis began in 1997, South Korea's domestic economy had deteriorated sharply, and a large number of foreign banks and institutional investors withdrew from the Korean market, and the South Korean foreign exchange market, stock market and export market were hit hard at the same time. In the past, South Korea's macroeconomic conditions, domestic financial institutions borrowed a large amount of overseas funds and loaned these funds to chaebol companies like Dazi, resulting in a unique enterprise capital structure like Dayu Group with debts far higher than assets. In the years of economic growth, such companies supported by the South Korean government will not have big problems. However, this "strange" corporate capital institution is destined to be unable to last long. Once a growth model that completely violates economic laws is disturbed, its harm will inevitably be magnified several times.

After the Asian financial crisis broke out, the South Korean government's revenue and expenditure situation deteriorated sharply. Relying on self-rescue, it was powerless to make a comeback and could only accept international aid. One of the harsh conditions for the International Monetary Fund, South Korea's largest aider, was to rectify the large chaebols in South Korea and completely cut off the chaebol funds chain that was in danger of being in trouble. As a result, almost overnight, Daewoo became the abandoned child of the government and financial institutions. The South Korean government, which was in danger of self-protection, could no longer be the last savior of the chaebol like in the past. Daewoo could not get a loan. At the end of his own, he could only declare bankruptcy.
Chapter completed!