Golden Spoon Investment Portfolio - Chapter 234

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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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234. What is Daheung Venture Capital supposed to do?

While everyone struggled to hide their bewilderment, Yun Ki-hun, an executive director seated on the left, adjusted his glasses and asked as if seeking confirmation.

“Are you saying that you’re not just recovering investment from two companies, but liquidating everything except the Josangbeom Virus Research Institute and Jinhyung Machinery?”

After a brief pause, I answered in a measured tone.

“That’s right. I examined the companies we’ve invested in, and most of them—except for a few—are operating soundly.”

Then Eom Tae-jun, the financial director sitting across from Yun Ki-hun, picked up the thread with a subtly proud expression.

“That’s because when we execute investments, we focus on examining the risk aspect to ensure we can properly recover profits later.”
“If you invest capital and can’t even recover the principal, it’s a complete loss, so recovery rate is crucial. From that perspective, I’d say risk management is being handled well.”

Despite my praise, Yun Ki-hun seemed even more perplexed.

“I don’t understand—you’re saying all that, yet you want us to liquidate the entire portfolio and recover the investment.”

The other two men nodded slightly, clearly sharing the same thought.
I looked at Yun Ki-hun with my hands clasped together, resting on my lap.

“What is Daheung Venture Capital supposed to do?”

Yun Ki-hun promptly answered.

“We invest capital in emerging small and medium enterprises that have potential but lack creditworthiness and collateral to secure bank loans. When those companies grow, we earn profits by capturing high capital gains.”
“You understand well. But there’s one crucial element you’re missing.”

Watching the three men’s confused expressions, I continued with a grave demeanor.

“It’s risk.”
“…?”
“Investing in ventures with high risk but promising expected returns—that’s the role of a venture capital firm. We’re literally betting on high risk, high return.”

I hardened my expression and spoke with utmost seriousness.

“However, looking at the investments Daheung Venture Capital has been making so far, the risk is low but the profitability isn’t particularly high either. What’s the difference between that and a typical loan company?”

Yun Ki-hun, an executive director, responded defensively.

“Chasing high returns is desirable, but if the results fall short of expectations, the company’s losses grow substantially. That’s why we’ve been placing greater emphasis on stability.”

The other two men nodded in agreement, lending their support to Yun Ki-hun’s words.

“And that’s exactly why the company’s performance looks like this.”

When Seok-won responded with cold derision, Yun Ki-hun and the executives fell silent like men with honey in their mouths, unable to mount any rebuttal.
Though the company had briefly seemed to improve after its stock market listing, it remained mired in losses—leaving them with nothing to say, even if they had ten mouths to speak with.
At that moment, Na Seong-mi knocked and entered, holding a tray with both hands.
Sensing the heavy atmosphere, she wordlessly set down teacups one by one on the table, then quietly closed the door behind her as she left.
Seok-won then broke the silence first and spoke again.

“Of course, I’m not trying to diminish the efforts made to minimize losses in these difficult circumstances. However, I believe we’ve reached a critical juncture where Daheung Venture Capital needs fundamental change to sustain growth and survival.”

If things continued as they were, the massive tsunami of the IMF crisis that would soon arrive would sweep them away completely, leaving them helpless and crumbling—as clear as fire itself.

‘The IMF crisis was difficult for large corporations too, but it was the small and medium-sized enterprises that took the direct hit and suffered the greatest pain and loss.’

As credit dried up in the market, cascading defaults erupted, and during the IMF crisis, tens and hundreds of small and medium enterprises collapsed every single day.
The companies that Daheung Venture Capital had invested in were no exception.

‘The fact that I don’t recognize a single company name except for the Josangbeom Virus Research Institute speaks volumes about their inability to withstand the fierce waves of the IMF.’

This wasn’t because the executives of Daheung Venture Capital were incompetent, but rather because the IMF—a national catastrophe—was too destructive and shocking to overcome.

‘So the best course of action would be to dispose of these investments before they become non-performing loans and wash our hands of them.’

Clearing his thoughts, Seok-won looked at the executives seated on either side and stated his resolve firmly.

“As a first step, I intend to restructure our investment portfolio.”

Yun Ki-hun’s face filled with concern as he revealed his anxiety.

“If we proceed as you suggest, the investment risk we’ll need to bear will increase significantly.”

Seok-won replied calmly, as if it were of no consequence.

“Isn’t venture capital about spotting that one percent possibility within uncertainty and investing in it?”
“….”
“And our job is to discover promising companies with foresight into the future, conduct thorough due diligence to filter out the chaff, and lower that ninety-nine percent risk as much as possible.”

When Seok-won articulated precisely what a venture capital firm should be doing, the three executives had no counterargument.
Watching these executives, Seok-won continued with a forceful tone.

“I believe it’s far better to aim for a blockbuster hit that can cover all remaining losses even if there are failures, rather than investing in ten low-profitability companies.”

Then Eom Tae-jun, the Finance Director, pointed out his concerns with a still-reluctant expression.

“If we liquidate the entire investment portfolio all at once as you suggest, we’ll have difficulty recovering the full investment amount.”

Yun Ki-hun, the Executive Director who had been gauging the atmosphere, also chimed in with his opinion.

“If that’s truly your intention, rather than rushing, wouldn’t it be better to set a longer timeline and dispose of assets gradually to minimize losses?”

Since the invested companies weren’t in such dire straits as to collapse immediately despite their low profitability, recovering funds slowly to reduce losses was not a bad approach.

‘But there simply isn’t enough time for that.’

Starting from early next year, the ominous signs of a devastating foreign exchange crisis that would sweep through Asian developing nations beginning with Thailand and Indonesia were already beginning to emerge.
To build the stamina to weather the fierce typhoon and then properly ride the wave of the IT bubble that would soon ignite brilliantly to hit the jackpot, there was little margin even with preparations beginning now.
Seok-won shook his head without the slightest hesitation.

“While the losses are regrettable, to gain greater profits, sometimes the more correct choice for the future is to boldly abandon small concerns and move forward without dwelling on them.”

Then Eom Tae-jun, the Finance Director, stepped forward once more to speak.

“We won’t know the exact figures until the liquidation is complete, but the losses could exceed tens of billions.”

Considering Daheung Venture Capital’s capital, it was no small sum.
But Seok-won continued speaking calmly without batting an eye.

“Once I complete all ongoing tender offers and finish the voluntary delisting, I plan to invest an additional one hundred billion won from personal funds.”
“…!”

The three men were startled by his unexpected words and stared at him.

“With capital reinforced to that extent, wouldn’t we have more than enough resources to cover losses and pursue new investments?”

Still reeling from the shock, Yun Ki-hun widened his eyes in disbelief as he spoke.

“Did you just say you’re investing a hundred billion won, sir?”

Seok-won leaned back against his chair and nodded with an unbothered expression.

“Yes. Why? Don’t you believe me?”

Receiving his gaze, Yun Ki-hun flustered and hastily waved his hand.

“No, no. That’s not it.”

A hundred billion won—and from personal funds, not borrowed capital—was difficult for Yun Ki-hun and the other two to accept at face value.
But when they recalled that Seok-won was the second son of Park Tae-hong, the Park Group owner, they began to wonder if it might actually be true.
If he truly injected a hundred billion won to increase capital, not only would it cover losses from portfolio adjustments, but the operating funds would expand dramatically—there was absolutely no reason to object.
As the three men’s minds raced, Seok-won added further explanation.

“The reason I established a new fund management division by bringing over employees from the securities firm where I worked until recently was precisely to efficiently manage the additional investment capital.”
“I see.”

They all nodded in understanding.
In fact, many had viewed Seok-won’s wholesale recruitment of his people from Daehung Securities to establish a separate department with some unease.
But with this explanation, it made perfect sense.
Then Eom Tae-jun, the financial director, leaned forward and asked.

“So the fund management division will handle all retained earnings?”

Since that had been his responsibility as financial director, he seemed sensitive about losing authority.
Seok-won shook his head reassuringly.

“Retained earnings management will continue under Director Eom as before. However, simply keeping them in bonds or deposits yields low returns, so the fund management division will take a portion of liquid assets and invest in stocks and foreign exchange to grow the capital.”
“So you’ll be directly controlling the fund management division, sir?”

When Eom Tae-jun asked carefully, he answered decisively.

“That’s what will happen.”

I deliberately drew a firmer line to prevent anyone else from getting any ideas about interfering.
Eom Tae-jun, the Finance Director, wore a slightly disappointed expression at my uncompromising stance, but seemed satisfied that he’d retained his original duties and authority, so he quietly closed his mouth.
A few more directives followed, but perhaps because everyone had been so shaken by the initial impact, they all proceeded without any significant objections.
After concluding that intense first meeting, the three men who left my office couldn’t hide their heavy and complicated expressions.
Yu Hyun-seok, the Department Head with the lowest rank among the three, glanced at the other two men’s faces and cautiously opened his mouth.

“It’s good that our new president is full of enthusiasm, but I’m concerned that he’s pushing things too hastily.”

Then Eom Tae-jun, the Finance Director, also nodded his head and expressed his concern.

“Whether it’s because he’s young or not, his boldness that doesn’t fear risk is unsettling.”

The gazes of the two men who had each spoken their piece turned toward Yun Ki-hun, the Executive Director.
It was a look subtly seeking his agreement, as if asking whether he shared the same thoughts.
However, Yun Ki-hun recalled that a few days ago he had met with Gil Seong-ho, the Chief Secretary at Headquarters, at a Japanese restaurant and been asked to support Seok-won well, so he tried to reassure the two men.

“I’m not without my own concerns, but since he’s already proven his abilities and achieved great results at Daehung Securities, let’s just wait and see for now.”
“I’ve heard those rumors too, but stock investment and venture capital work are quite different, so that’s the thing.”

Eom Tae-jun, the Finance Director, spoke with lingering worry.
Yu Hyun-seok, the Department Head, also sighed and wore a dark expression.

“It’s not just one or two companies—thinking about having to explain the situation to all the invested companies and recover the investment funds at fair value. My head’s already starting to throb.”

Yun Ki-hun, the Executive Director, also felt his chest tighten when thinking about the work that lay ahead.
But he deliberately didn’t show it and spoke calmly.

“Still, it’s not like he’s demanding immediate recovery of the investment funds—he gave us six months, so that’s something to be grateful for, isn’t it?”
“That’s true.”

Yu Hyun-seok, the Department Head, managed a bitter smile and nodded.
Then Eom Tae-jun, the Finance Director, looked around and spoke in a low voice.

“After seeing the public acquisition and voluntary delisting announcement, rumors spread in the stock market that he was trying to merge Daehung Securities. But seeing how he’s investing hundreds of billions of won to increase capital, it doesn’t seem to be the case.”
“I’ve heard those stories too.”

Rumors swirled through the domestic securities market following the announcement of a tender offer and voluntary delisting—a rarity in these circles. Among them was speculation that Daehung Securities intended to absorb Daheung Venture Capital through a merger.
The fact that Chairman Park Tae-hong had transferred all his shares in Daheung Venture Capital to Seok-won, combined with longstanding talk that the Group would eventually spin off its financial subsidiaries as the second son’s inheritance, lent considerable credibility to the rumor.

Yun Ki-hun, despite harboring similar suspicions, kept his thoughts to himself and silenced the two men.

“Whatever happens, that’s for the higher-ups to decide. Don’t waste energy worrying about it—let’s focus on the fire right in front of us.”
“Understood.”
“Yes.”

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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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