Golden Spoon Investment Portfolio - Chapter 120

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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120. Courage without proper timing and opportunity is nothing but recklessness.

Park Tae-hong, who had naturally expected agreement, furrowed his brow at an answer completely contrary to his expectations.

“We absolutely must not acquire it?”
“That’s right.”

Seok-won spoke while meeting his gaze directly.

“If we forcefully win the bid for the Sampoong Department Store site, we’ll fall victim to the winner’s curse—one that will jeopardize not just the department store, but the entire Park Group.”

Park Tae-hong, who had intended to casually hear out his second son’s opinion because of his keen instincts, was inwardly taken aback when he opposed it so seriously.
However, he showed no sign of this outwardly and asked gravely with his arms crossed.

“The winner’s curse, you say?”
“Yes.”
“Then explain to me why we shouldn’t acquire it.”

When Park Tae-hong asked in a slightly subdued voice, Seok-won leaned forward and answered.

“There are several reasons, but the first is the poor financial condition of both the department store and the group.”
“Not just one reason, but several?”

Park Tae-hong, who had unconsciously muttered this, then looked at him as if to say continue.

“You likely understand the group’s situation better than I do, Father, but up to now, Daeheung Group has operated on a structure where we sustain our business through cash generated from our two pillars: Midopa Department Store and Daeheung Textiles.”

In fact, the money earned from textiles and the department store far exceeded the combined sales of nearly twenty affiliated subsidiaries.
Even then, only the recently acquired Securities Company was profitable, while most of the others were money-losing enterprises.

“In short, we’re siphoning cash from the profitable department store and textiles to cover the deficits of these failing subsidiaries—like pouring water into a bottomless bucket.”

At the blunt expression, Park Tae-hong’s expression hardened slightly, revealing his discomfort.
He too was aware of such problems and had tried to fix them, but things rarely went as intended, and it was giving him a headache.
Yet having it pointed out to his face was anything but pleasant.
Seok-won risked damaging their father-son relationship, but the matter was grave enough that he steeled himself and spoke.

“When our two flagship subsidiaries were earning well, there were no problems. But as you know, the business environment has undergone dramatic changes over the past few years, and this structure has begun to creak.”
“….”
“With the economic downturn in textiles and the sharp rise in wages driving up costs, Daeheung Textiles’ operating profits have plummeted. Midopa Department Store, too, is struggling to generate the same level of revenue due to intensifying competition.”

I had softened my language considerably out of respect for Park Tae-hong, but the truth was that both Daeheung Textiles and Midopa Department Store were barely managing to stay afloat.

“Even while facing these difficulties, we’ve continued to support our subsidiaries, and our debt ratio has climbed to dangerous levels.”

Most of our subsidiaries would collapse within months without financial support, so it would be more accurate to say we couldn’t withdraw even if we wanted to.

“Given that our financial situation is already precarious, taking on hundreds of billions in additional loans would be an enormous burden.”

Park Tae-hong’s voice grew heavy and resolute as he countered.

“You’re right that the group is struggling. But if we simply shrink back and retreat, we’ll fall behind in competition and ultimately become obsolete.”

Park Tae-hong spoke with unwavering conviction, his voice firm.

“In times like these, we must push forward boldly to survive.”
“Father, your words aren’t wrong, but courage without proper timing is merely recklessness.”

Park Tae-hong’s eyebrows rose with displeasure.

“Are you saying I’m being reckless right now?”

Seok-won quickly shook his head in denial.

“Of course not. What I mean is that now is not the right time to act boldly. It’s also my second reason for opposing the land acquisition.”
“The timing isn’t right?”

Park Tae-hong asked, his brow furrowed.

“What do you mean by that?”
“The United States has raised interest rates significantly.”

As confusion crossed Park Tae-hong’s face, Seok-won immediately explained why this posed a problem.

“You’re aware that the Federal Reserve has raised interest rates seven times from last year through January of this year, bringing the current U.S. benchmark rate to 6%—double what it was before.”
“Of course.”
“It’s an action to combat severe inflation within the United States, but when the Federal Reserve raises the benchmark rate like this, the liquidity that had been flowing globally gets sucked back into America, inevitably bringing side effects in its wake.”

I glanced subtly at Park Tae-hong’s expression and continued.

“The abundant liquidity that once flowed freely suddenly drains away like an ebb tide, and money dries up in an instant.”
“…!”
“Mexico and other Latin American nations currently experiencing foreign exchange crises are prime examples.”
“That’s their problem. With the strong dollar, our exports are actually increasing. It has nothing to do with us, does it?”

Indeed, while Japan struggled in the aftermath of the great earthquake, Korean export companies were enjoying a boom, riding the wave of yen appreciation and the strong dollar.

“Is that truly the case?”
“…?”
“As you say, Asian nations including Korea earn dollars through exports, so it may seem like there’s no immediate impact for now.”
“….”
“But looking at it from another angle, it also means that each country has taken on an even larger debt bomb by eagerly borrowing heavily for economic development, building factories, and investing in infrastructure.”
“Are you saying Korea could face an economic crisis like Mexico?”

I wanted to tell him that a terrible foreign exchange crisis would strike before long, but saying such things now would only earn me the label of a madman.

“We simply cannot completely rule out that possibility.”

I suppressed the itch in my mouth and responded calmly.

“Moreover, with major investments already committed to Chinese factories and duty-free shops, launching new ventures that require hundreds of billions more is unrealistic.”

Yet Park Tae-hong still wore an unconvinced expression.

“I understand the need for caution, but aren’t you being overly passive due to excessive concern? If you miss the timing, the opportunity won’t come around again.”
“It might be better to proceed slowly and steadily, even if it takes longer, rather than overextend and watch everything we’ve built collapse in an instant.”

I offered my rebuttal calmly and offered further counsel.

“Now is the time to prune the dead branches and strengthen our foundation, not to expand.”

But unfortunately, I failed to convince Park Tae-hong.

“I’ve heard your thoughts. I’ll take them into consideration, so go ahead and head back to the office.”
“….”

Observing Park Tae-hong’s indifferent demeanor, Seok-won instinctively sensed that the chairman intended to proceed with acquiring the Sampoong Department Store site as planned.
To Park Tae-hong’s eyes, everything Seok-won had said must have appeared as needless worry over problems that hadn’t even materialized yet.
Though he wanted to persuade him further, Park Tae-hong’s resolve seemed too firmly set, and Seok-won feared that attempting to block the acquisition would only damage their relationship without preventing it. So he abandoned the effort.

“Understood.”

Seok-won smacked his lips together, picked up the coat he’d set beside him, and rose to his feet.

“Then I’ll be on my way.”

As he bowed respectfully, Park Tae-hong replied in a calm tone.

“Yes. Have a good trip.”

Closing the Study Room door behind him, Seok-won stepped outside and released a quiet sigh.

“Sigh… This is going to be a headache.”

He’d thought merely preventing a hostile takeover would suffice, but he never imagined that Park Tae-hong, whom he trusted, would attempt such a massive blunder.

“Ugh.”

Seok-won groaned and continued walking, his expression clouded with worry over how to resolve this situation.

* * *

Thursday, February 23rd, 1995.
Whoosh.
Amid thunder and lightning, rain poured down fiercely as the Singapore International Monetary Exchange (SIMEX) Trading Floor bustled with traders in colorful shirts shouting at the top of their lungs, the air thick with fervent energy.

“Sell 300 contracts at 17,500!”
“Sell 250 contracts at 480!”
“Damn it! There are no buyers at all.”
“Today’s a complete disaster!”

The Nikkei, which had opened down 100 points on simultaneous quotes, plummeted like a waterfall without a single rebound.

“At this rate, we’re really going to break through 17,000.”

As sell orders flooded in at the opening bell, traders holding long positions desperately scrambled to offload their positions.
But with the index bleeding lower by the minute, no one was willing to buy the Nikkei.
Growing more frantic, traders began dumping massive volumes at lower prices, absorbing losses just to exit their positions, and the market spiraled deeper into the abyss.
In one corner of the Trading Floor—a cacophony of despair, shock, and traders’ anguished cries that made the air itself seem to vibrate.
Brad Cooper, standing at the Barings Bank pit, stared blankly at the massive price board with the hollow expression of a man whose soul had left his body.
The Nikkei had plummeted over 300 points by mid-morning alone, crystallizing losses exceeding 30 million pounds.
To compound matters, the Japanese government bonds he’d wagered to recover those losses had moved in the opposite direction, swelling his losses further.
The losses hidden in the 88888 account had ballooned like a rolling snowball—I was now terrified to even open it and see the total.
Even as my mind drifted for a moment, the Nikkei index showed no mercy, continuing its descent.
At this pace, the decline would easily exceed 400 points for the day.
But whether by fortune or misfortune, it finally halted at a 380-point drop as the closing bell rang.
While traders who’d lost money sighed at the plummeting Nikkei or cradled their heads in their hands, Brad Cooper tapped the calculator on his pit desk to tally today’s results.

[-42,000,000]

I’d lost 42 million pounds in a single day.
In the past, such a figure would have sent my hands trembling, but with far greater sums already buried in the 88888 account, I felt nothing anymore.
It was as if none of this was real.
Then the bespectacled Accounting Staff from the pit approached cautiously, gauging my mood.

“Brad. Are you alright?”

Brad Cooper snapped back to attention and forced an unbothered expression.

“Just been unlucky these past few days. But that’s how it goes—good days and bad days.”

The Accounting Staff, reassured, relaxed his expression and spoke.

“The London headquarters called and said they need to discuss the additional funding request. They want you to call them back.”

The Accounting Staff handed me a memo with the contact person’s name and phone number.
Brad Cooper’s eye twitched slightly as I nonchalantly took the memo and crumpled it into my pants pocket.

“Got it. I’ll handle that myself. Compile today’s trading records and leave them on my office desk before you go.”
“Yes, sir.”

As the Accounting Staff responded, Brad Cooper turned on his heel and exited the Trading Floor, which had descended into chaos as the market closed.
The moment he received the memo, Brad Cooper realized that the time had come to end this hellish situation.
Having lost another massive sum today, he needed to deposit additional margin with the exchange.

“The London headquarters is already casting suspicious glances at the ever-increasing wire transfer requests. If I ask them to send another few million pounds, there’s no way they’ll believe it.”

Moreover, the audit team sent from headquarters was already in Singapore.
He had been driven into the final corner—there was nowhere left to run.
The moment he resolved to set down everything that had been tormenting him, he felt oddly liberated.
Intoxicated by this strange sense of release, Brad Cooper pulled out his mobile phone from his inner jacket pocket and called his wife, who would be at the apartment.

“Hello?”
“I’m heading to the apartment now, so pack a light bag and wait for me.”
“Pack a bag? What are you talking about?”
“You said you wanted to go to Bali. Swimming until you get hungry, then dining at a charming Restaurant, and in the evening, just the two of us sipping wine at a private pool villa resort before drifting to sleep. That’s the kind of vacation you wanted, remember?”
“I did say that, but…”
“Let’s go today. We’re getting on a plane right now.”
“Just like that? What about the company!”
“I’ve taken leave. I’ll be there in ten minutes, so come downstairs when I call again.”

Brad Cooper glanced down at the Rolex watch on his wrist and spoke.

“How am I supposed to pack everything in ten minutes? Is something wrong?”

Concern had crept into his wife’s voice.
It was understandable—she had been nagging him to see a doctor about his prolonged insomnia and increasingly severe alcohol dependence.

“I’ll explain the details when we meet. Anyway, there’s no time, so just grab what’s absolutely necessary.”
“Honey…”
“I love you.”

Brad Cooper pressed the call-end button without listening to his wife’s response.
Then he shoved the phone into his pocket, walked to his car in the parking lot, opened the door, and climbed into the driver’s seat.

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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