Golden Spoon Investment Portfolio - Chapter 158

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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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158. I shouldn’t have forgotten about this….

After a long absence, Seok-won came to the office and first went up to the Executive Office to check in with President Go Young-il.
Then he called in the team leaders from the PI (Private Investment) Department for a meeting.

“Following the stock market deregulation measures announced on the 10th of last month, the government has announced additional stimulus measures while you were away, but the current atmosphere suggests they haven’t had much effect yet.”

Seok-won, seated at the head of the table, listened intently to the briefing from Kim Jung-sik, the most senior team leader.

“The Composite Stock Price Index fell to 876.89 on the 24th of last month, marking this year’s lowest point, and since then it has struggled to break through the 900 line, showing sluggish movement.”

This presented a stark contrast to the beginning of the year, when the Composite Stock Price Index had surpassed 1,000 points and started off brightly.

“The government has announced measures twice, but why do you think the stock market still can’t gain strength?”
“As stock prices rose sharply, a massive volume of profit-taking selling emerged. On top of that, several major stock manipulation cases—including Boseong Communications, which caused quite a stir in the Securities District—have occurred this year following last year’s incidents, and this appears to have negatively impacted investor sentiment.”

When Boseong Communications was mentioned, Choi Ho-geun, the 4th team leader sitting on the left, flinched.

“The comprehensive taxation on financial income that takes effect next year must have also played a role in dampening the mood.”

At Seok-won’s words, Kim Jung-sik, the 1st team leader, nodded in agreement.

“That influence likely existed as well.”

Comprehensive taxation on financial income meant combining interest and dividend income with other income and applying taxes accordingly.
Since income tax was progressive—increasing as the amount grew—this meant people would have to pay significantly more in taxes than they had previously.
One of the attending team leaders spoke with a slightly frustrated expression.

“We expected that when comprehensive taxation on financial income is implemented, the money sitting in banks would flow into the stock market in large quantities. But instead, we’re seeing existing funds drain out as well—it’s truly disheartening.”
“Who enjoys paying taxes? Besides, even if you put money into stocks, it doesn’t exempt you from taxation, so the very idea that market funds would flow into the stock market seems fundamentally flawed.”

At Seok-won’s sharp analysis of the problem, the team leaders nodded their heads.

“This will result in major investors repeatedly selling dividend stocks at year-end to avoid taxes, which will only increase volatility in the stock market.”
“Surely it won’t go that far?”

Kim Jung-sik, the 1st team leader, showed skepticism toward what seemed like excessive concern, but Seok-won’s assessment was different.

“There’s a saying that taxes are the most frightening thing in the world. Imagine Kim Team Leader receives 100 million won in year-end dividends but has to pay 150 million won in income tax. Now suppose selling stocks at year-end, even at a slight loss, would leave him with more than 50 million won. What do you think he’d do?”

Kim Jung-sik, the Team Leader being addressed, hesitated for a moment before responding.

“I’d probably sell the stocks.”
“Exactly.”

Seok-won glanced around at the other team leaders seated on the sofa as he spoke.

“No matter what plausible justifications they dress it up with, it’s ultimately just another tool for the government to extract more taxes from its citizens.”

Indeed, once the comprehensive taxation on financial income was implemented, every year-end without fail, major investors would engage in massive sell-offs to evade taxes, causing the index to fluctuate wildly.

‘That’s exactly why the KOSPI performs well in early years but loses steam every December.’

Adding to this, Korean companies hoarding cash while distributing dividends as meagerly as possible only exacerbated the problem.

‘Why would owners and major shareholders increase dividends when the government just confiscates most of it in taxes anyway?’

Despite these various side effects, the true victims were elderly retirees who had placed their lump sums in bank deposits and lived off the interest.
Until now, one-year fixed deposit rates hovered around 8.5 percent, making it possible to live off the interest from retirement funds and accumulated savings deposited in banks—but this policy struck them like a bolt from the blue.
Seok-won brushed aside his brief reverie and opened his mouth to speak.

“The index won’t fall much further from here, but it won’t experience any significant rebound either. We’ll likely see a prolonged period of sideways movement.”

At Seok-won’s market forecast, Kim Jung-sik, the Team Leader, cautiously tested the waters before gently offering a counterpoint.

“There’s a local election scheduled for next month. Don’t you think the government might announce additional stimulus measures?”

Whether in the United States or Korea, a poor stock market during elections always hurt the ruling party.
The fact that the government had announced stimulus measures twice in rapid succession within less than a month was precisely to prevent the elections from being negatively affected.

“The stimulus measures are probably the only reason the index hasn’t fallen further and is holding steady.”
“….”
“More importantly, as I mentioned before, foreign investment limits—which have a massive impact on the stock market—are already maxed out, making additional capital inflows difficult. This means the sentiment is unlikely to turn around for quite some time.”

Then one of the attendees adjusted his glasses and spoke.

“So you’re saying the index will hit bottom and rise starting in July when the foreign investment quota expansion is implemented?”
“You’ve read it correctly.”

Seok-won continued speaking while observing An Sun-hwan, the Investment Team 2 Manager who had just spoken.

“There’s no more reliable factor for index growth than capital inflow, wouldn’t you say? If my prediction is correct, we’ll consolidate the bottom through June, begin a rebound starting in July, and by September when the cool autumn breeze arrives, we might very well reclaim the 1,000-point mark.”

The team managers sitting on the sofa stirred noticeably at this.
The Composite Stock Price Index, which had been climbing to new heights, had been limply collapsing since the start of the year with little sign of recovery, so the prospect of reclaiming the 1,000-point level—which seemed to have receded forever—was certainly noteworthy.
Skepticism was written all over the participants’ faces, but Seok-won deliberately ignored it and continued speaking.

“Let’s establish that broad framework first and then develop our third-quarter operational plan accordingly.”
“Understood.”

The team managers’ true sentiment was that while an index rebound seemed possible, reclaiming 1,000 points still appeared difficult.
However, setting aside the fact that he was from the owner’s family, Seok-won had demonstrated considerable capability, so everyone followed his instructions without complaint.
Meanwhile, they privately thought that if the upward momentum proved weaker than expected, they could simply revise the plan at that point.

“What about the insurance stock investments?”

Kim Jung-sik, Team Manager 1, answered while holding the materials he had prepared.

“Just as you anticipated, while anxiety was intensifying due to the Seongsu Bridge collapse, the Daegu Metro Line 1 Construction Site gas explosion accident occurred while you were away on a business trip, causing insurance stocks to skyrocket. Our returns have exceeded 15% through today.”

The Daegu Metro Line 1 Construction Site gas explosion was a major disaster that occurred when a building construction project near the site accidentally ruptured an underground city gas pipeline, causing massive gas leakage. Workers unaware of this proceeded with welding operations, triggering an explosion that resulted in over 300 casualties.

“The timing was truly exquisite—the stock price skyrocketed right after we made massive insurance stock purchases.”

An Sun-hwan, Team Manager 2, spoke with a voice brimming with enthusiasm at the high returns, but Seok-won’s expression was not particularly bright.
Though substantial profits had been made, the cause of the stock surge was a major disaster in which countless people had died or been injured—it couldn’t be otherwise.
When Choi Ho-geun beside him nudged him with his elbow to signal discretion, An Sun-hwan, Team Manager 2, finally noticed Seok-won’s rigid expression and quickly fell silent.
As the atmosphere grew slightly subdued and the team managers exchanged glances, Seok-won deliberately relaxed his expression and smoothly changed the subject.

“Insurance stocks will remain strong through year-end, so maintain your positions as they are.”
“Yes.”
“Understood.”
“And everyone should purchase Hujeong Construction stock as much as possible by the end of this week.”

At this unexpected instruction, Choi Ho-geun, Team Manager 4, wore a puzzled expression.

“Isn’t Hujeong Construction the company whose stock price has been in terrible shape due to recent financial deterioration?”
“That’s right.”

He seemed to already know the company’s situation wasn’t good without needing to be told.
Choi Ho-geun, the Team 4 leader, pondered for a moment why he would recommend buying the stock, then suddenly leaned forward as a thought flashed through his mind.

“Is it possible you know about some positive development we’re unaware of?”

The other attendees’ eyes brightened as they looked toward Seok-won.

“Around next week, news will break that they’re selling off a high-rise building under construction in Seoul.”
“If they sell the building, the proceeds will come in, making it positive news.”

Choi Ho-geun, the Team 4 leader, wore an expression of vindication.
Kim Jung-sik, the Team 1 leader sitting across from him, also chimed in as if it were good news.

“Whether it will completely resolve their financial pressure remains to be seen, but the stock will definitely respond.”

The team leaders were curious how he knew such crucial insider information, but they couldn’t bring themselves to ask Seok-won directly.
Without Manager Oh, who had visited the Shoe Repair Shop so frequently before Seok-won took an interest in stocks—practically stamping his attendance there daily—sharing all sorts of stories, Seok-won would never have known.
Seok-won closed the document folder in front of him and spoke to the team leaders.

“Then let’s wrap up today’s meeting here. Everyone, you’re dismissed.”
“Yes.”

The team leaders answered briefly and rose one by one, leaving the room.
Shortly after, Seok-won, now alone, stood from the sofa and moved to his desk.
Then, as his eyes fell upon a morning newspaper set aside, he picked it up and opened to the social section.

[Daegu Disaster: Over 80 Injured Still Enduring Days of Suffering
More than two weeks have passed since the Daegu Metro city gas explosion occurred, and over 80 injured remain undergoing difficult treatment in hospitals.
Most are critical patients requiring treatment for over six months, and some remain uncertain about their recovery prospects, deepening the sense of tragedy.
The disaster resulted in 101 deaths and 202 injuries, with approximately 150 nearby buildings and vehicles destroyed.
According to the Accident Recovery Task Force, donations received so far total 690 cases amounting to 9.7 billion won, and countless citizens have voluntarily participated in blood drives, donating 3,315,000 milliliters of blood.
The government has also approved emergency funding of 40 billion won for swift compensation to victims, but given the massive number of casualties and the scale of damage….]

In terms of scale, it was a catastrophe no less severe than the Seongsu Bridge collapse—perhaps even greater.
But perhaps because it occurred in Daegu, a provincial city, rather than Seoul.
Unlike the Seongsu Bridge collapse, which had been broadcast live from the disaster site all day long, the Daegu Metro Line 1 Construction Site gas explosion was covered only through news tickers and brief special reports.
And then, mere months later, the Sampoong Department Store collapse occurred, burying the incident further and pushing it from public consciousness.

‘No matter what, I shouldn’t have forgotten about this….’

Seok-won had also completely forgotten about it until he heard the news of the accident while in the United States for Netscape’s listing.
But by then, it was far too late.
Of course, even if I had remembered, there was no guarantee I could have prevented the catastrophe like I had with Sampoong Department Store, but I still couldn’t shake the guilt.
As I stared at the newspaper article with a troubled expression, Na Seong-mi knocked and entered, clearing the empty teacup from the table and tidying up the surface.

‘Even though I couldn’t prevent the catastrophe, I should at least do something to help the victims.’

If I did nothing, this uncomfortable feeling would linger in a corner of my heart forever.
Having made this resolve, I lifted my head and spoke.

“Na Seong-mi.”
“Yes, Director.”

Na Seong-mi, who had been about to leave with the tray holding the empty teacup, stopped in her tracks.

“You know about the Daegu gas explosion incident, right? Please contact the Accident Recovery Task Force there and get a list of the victims and their contact information.”
“Understood. But if I may ask, what will you be using that for….”

Na Seong-mi tilted her head with a puzzled expression.

“I’d like to provide personal assistance to those affected by the accident.”
“Ah, yes. I’m not sure if they’ll release personal information, but I’ll try to contact them.”
“Thank you.”

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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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