Golden Spoon Investment Portfolio - Chapter 147

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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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147. Now I can only leave the outcome to fate.

[Two Securities Firm Employees Caught Using Nominee Accounts for Stock Price Manipulation
The Securities Supervisory Board identified two executives at a securities firm attempting to reap illegal gains through market manipulation and referred them for prosecution.
They are suspected of colluding with so-called “operation” syndicates and using illegal nominee accounts to artificially manipulate the stock price of specific securities through methods such as closing price intervention and high-priced purchase orders.
In fact, Boseong Communications, their target, had a capital of less than one billion won with its main products consisting merely of simple assembly and production of Japanese products, yet it was evaluated with excessively high growth potential and value, displaying abnormal stock price surges over the past several months.
Finding this suspicious, the Securities Supervisory Board carefully tracked and monitored the stock price movements, identified signs of market manipulation, and recently conducted a surprise search and seizure at Donghae Peregrine Securities.
Donghae Peregrine Securities drew a clear line, stating that this incident was purely the personal misconduct of certain employees unrelated to the company, and promised to prevent such incidents from recurring in the future….]

“So it all wrapped up this way.”

Just days after my conversation with Choi Bok-rak, the Boseong Communications stock manipulation case was pinned on Son O-seung, who was arrested, and Jo Chul-rae instead of Woo Ho-geun and his associates.
In the meantime, Boseong Communications’ stock price, which had climbed near 30,000 won, plummeted repeatedly until it finally fell below 5,000 won.
It had crashed even lower than the price before the initial stock manipulation attempt.

“All those positive developments that came out were exposed as lies, and the major shareholder is now under prosecution for complicity in stock manipulation—it’s only natural.”

Moreover, all the Boseong Communications shares that had been secured for the stock manipulation were seized, leaving Woo Ho-geun and his associates unable to recover a single won of the money they had poured in—they lost everything.
Setting down the newspaper, I leaned back in my chair and smiled faintly, thinking of Woo Ho-geun.

“He must be in quite a bit of pain right now.”

Just then, my secretary Na Seong-mi knocked and entered.

“Department Head. It’s time for the meeting.”
“Is it already that time?”

I rolled up my sleeve to check my watch and rose from my seat.
As I retrieved my jacket from the coat rack and put it on, something suddenly occurred to me.

“By the way, I’ll be taking a business trip to the United States next week, so please adjust the schedule accordingly.”
“How long are you planning to stay this time?”
“I’m thinking about two weeks for now, but it could extend depending on circumstances.”
“Understood. I’ll adjust the schedule to match your return date.”

I gave a small nod upon hearing the response.

* * *

As Seok-won entered the Conference Room, the team leaders who had arrived early, including Choi Ho-geun, rose from their seats.
Seok-won acknowledged them with a subtle nod and naturally took the seat of honor in the center.
The team leaders then returned to their respective seats.
After surveying the room, Seok-won turned his gaze toward Kim Jung-sik, the Team 1 leader on his right, and began to speak.

“Let’s start with Team 1.”
“Yes.”

Team Leader Kim Jung-sik answered briefly, then spoke while reviewing the documents spread before him.

“Given the yen’s continued strength, we anticipate significant improvements in export-oriented performance going forward. We’re planning to increase our investment allocation in electronics companies such as Sasung, TG, Hyunwoo, and Daekwang.”
“That’s a sound choice. With a stronger yen, electronics companies that compete directly with Japanese firms will see their export unit prices decline, allowing them to benefit directly.”
“While we expect increased exports in the home appliance sector, the semiconductor division’s performance is projected to improve dramatically starting this year, suggesting considerable upside potential for stock prices.”

Seok-won suddenly recalled something and continued the conversation.

“Now that I think about it, Sasung Electronics announced today that they’ve developed the world’s first 16-megabit DRAM prototype using dual-layer silicon wafer technology.”
“Yes. Not only Sasung Electronics, the industry leader, but TG, Hyunwoo, and Daekwang have also successfully developed 4-megabit DRAM, though slightly behind, and are scheduled to begin mass production in the second half of the year.”
“Considering the growing personal PC market and the increasing proportion of semiconductors in general consumer appliances, investing in semiconductor manufacturers is a solid idea.”
“Thank you.”

Team Leader Kim Jung-sik’s expression became smug at the praise.
Harboring a subtle sense of rivalry with Team 4, he even cast a sidelong glance at Team Leader Choi Ho-geun with a questioning look in his eyes.

“However, rather than spreading funds across all four semiconductor companies, I think it would be better to concentrate our investment in Sasung Electronics, the industry leader.”
“Only Sasung Electronics?”

Not only Team Leader Kim Jung-sik but all the other attendees looked at him with puzzled expressions.

“That’s right. You all understand that the semiconductor industry is a capital-intensive equipment industry, don’t you?”
“Of course.”

Seok-won picked up his water glass, took a sip, and continued speaking calmly.

“You should know that Sasung Electronics is investing over 1.2 trillion won this year alone in semiconductor development and expansion of their 16-megabit DRAM production lines.”
“….”
“When the industry leader, Sasung Electronics, is pouring this much capital into semiconductors, how much money do you think TG, Hyunwoo, and Daekwang—who have only just developed 4-megabit DRAM and are beginning mass production—would need to pour in to close the widening gap?”

At the sharp observation, Kim Jung-sik, who hadn’t considered the matter that far, wore a look of sudden realization.

“The semiconductor industry will certainly boom going forward, but aside from Sasung Electronics, which is already ahead, the other three companies will have to pour all their increased revenues directly into research and development and factory expansion.”
“….”
“In other words, they’re all show with no substance.”

In reality, TG, Hyunwoo, and Daekwang Electronics endured massive losses while continuing their semiconductor operations, and during the tremendous crisis of the IMF crisis, they experienced the pain of being merged with one another or sold off elsewhere.

“Now that you mention it, I believe your assessment is correct.”

Kim Jung-sik replied with a look of understanding.

“That said, it’s not that the other companies are bad, so let’s approach Sasung Electronics as a long-term investment and the other three companies as short-term trading.”
“Understood.”

The other attendees listening to the conversation marveled once again at Seok-won’s perspective on economics and his outstanding insight.
Of course, they already knew this, but each time they witnessed it firsthand, they couldn’t help but feel a fresh sense of amazement.
If it were anyone else, they would only just be earning a deputy manager position at that age.
It was simply remarkable how such capability was possible at his age.
In any case, the meeting continued as each team reported their future investment plans, and Seok-won pointed out issues or provided guidance on areas needing improvement.
When the meeting, which had continued for over an hour, was nearly concluding, Seok-won, observing the team leaders who looked somewhat exhausted, offered one final piece of investment advice.

“The yen is showing exceptional strength, fluctuating around 79 yen per dollar, but considering that neither the Japanese government nor the United States is particularly pleased with this situation, I don’t think this current atmosphere will last very long.”
“…!”
“Are you saying the yen could shift to weakness?”

When one of the team leaders asked cautiously, Seok-won answered without the slightest hesitation, his tone brimming with conviction.

“That’s right. If that happens, it will have a rather negative impact on Korea’s export-driven economy, so keep that in mind when managing your funds.”
“…Understood.”

Given the current situation, no matter how much one thought about it, there were no signs of the yen shifting to weakness.

But since it was Seok-won speaking—who, since joining the company, had never experienced a single investment failure and was recording profit margins that left people astounded—they couldn’t simply dismiss his words.

“And separate from export stocks, increase the investment ratio in insurance stocks as well.”
“Insurance stocks, you say?”

Choi Ho-geun, the 4th Team Leader, looked up and asked.

“It’s unfortunate, but ever since the Seongsu Bridge collapse last year, we’ve seen a series of major disasters and accidents. As social anxiety has grown, many people are looking to purchase insurance as a precaution.”

Kim Jung-sik, the team leader who grasped the implication immediately, let out a low exclamation.

“If the number of policyholders increases, insurance companies’ profits will grow accordingly, so stock prices will rise too!”
“Ah, that’s what you meant.”
“That makes perfect sense.”
“When you think about it, it’s obvious—how did we miss that?”

The other team leaders chimed in with admiration, one after another.
Their expressions showed they all realized that even when looking at the same thing, perspective made all the difference.

“And telecommunications stocks look promising too, so let’s increase our investments in that sector.”
“Yes.”

The team leaders responded in unison, eagerly jotting down Seok-won’s words in the notebooks before them.

* * *

The Chairman’s Office at Mapo Daeheung Group Headquarters.
In the heavy atmosphere, Park Tae-hong sat in the place of honor, with his eldest son Park Jin-hyung, Chief Secretary Gil Seong-ho, and Min Pil-gi, the president of Midopa Department Store, seated on either side.
Park Tae-hong set down the bid document in his hand and spoke in a grave voice.

“The acquisition team has determined the bid amount to be 220 billion won.”

Min Pil-gi, who had been gauging the mood, quickly responded.

“That’s correct. It’s 70 billion won higher than the minimum bid price of 150 billion won announced by Seoul City.”

Park Jin-hyung looked toward his father seated at the head and spoke.

“In my view, it seems like a reasonable amount.”
“With a premium of over 40%, I believe it’s certainly worth attempting.”

Chief Secretary Gil Seong-ho added his opinion, but Park Tae-hong seemed dissatisfied with the bid price, his expression clouded.

“Our competitors are Lotte and Utopia. They’ll undoubtedly come prepared to win this contract. Can we really win with this amount?”

He fixed Min Pil-gi, seated on the left sofa, with a piercing gaze.

“Can you guarantee to me, right here and now, that you can acquire the Sampoong Department Store Site for 220 billion won?”
“That is….”

Min Pil-gi trailed off hesitantly, his words dissolving into uncertainty.
Park Tae-hong clicked his tongue audibly at the sight of him unable to meet his gaze directly.

“Look at this. Even the man who brought the figure can’t commit to it.”
“But if we increase the amount here, the burden becomes too great.”

Park Jin-hyung was followed by Gil Seong-ho in expressing their concerns.

“Precisely. Winning the bid for the site isn’t the end of it—when you factor in the construction costs for the department store itself, we risk accumulating debt beyond what we can manage.”
“And what, we’re just going to hand the Sampoong Department Store Site over to Lotte and Utopia?”

Park Tae-hong’s eyes blazed with determination as he spoke, and the three men found themselves unable to respond.
They all understood that the Sampoong Department Store Site was essential if we were to hold our ground in the increasingly fierce department store wars.

“This isn’t a competition where losing is acceptable—this is a matter of life and death for the entire group.”

Park Tae-hong spoke with unwavering resolve, then paused briefly before reaching for the fountain pen resting on the corner of the table.
He struck through the amount written on the bid with two decisive lines and wrote a new figure directly below it.

[￦ 250,000,000,000]
“…!”

Min Pil-gi’s eyes widened in shock at the figure, and Gil Seong-ho made no attempt to hide his astonishment.

“250 billion won? Are you serious, sir?”

Park Jin-hyung asked with a rigid expression.
I had known he was willing to stake everything on acquiring the Sampoong Department Store Site, but I never anticipated he would be prepared to commit such an enormous sum.

“To decisively defeat the competition, this level of bet is necessary, wouldn’t you say?”

Park Tae-hong set down the fountain pen as he spoke.

“If we lose even after this, then that land simply wasn’t meant for our group.”

It was a staggering one hundred billion won above the minimum bid—an unmistakable overpay.
Knowing full well that the Group’s financial situation was precarious, I, Park Tae-hong, would never have dared to offer such a price without the substantial funds Seok-won had provided.

“Submit the bid at this price.”

At my instruction, Min Pil-gi looked across at the two men seated opposite him, his expression bewildered.
His eyes seemed to ask whether this was truly acceptable.
Park Jin-hyung and Gil Seong-ho exchanged glances before nodding slightly in unison.
Seeing my unwavering resolve, it was clear that any attempt to dissuade me would be futile.
Min Pil-gi then swallowed hard and picked up the bid document.

“Understood.”

I leaned back against the sofa with a sense of relief and asked.

“The results come out tomorrow afternoon, correct?”
“Yes. The announcement will be made at 1 p.m.”
“We’ve done all we can. Now we must leave the outcome to fate.”

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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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