Golden Spoon Investment Portfolio - Chapter 24

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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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24. Are you graduating this year?

[Daheung Group Acquires Taesan Securities!
On the 3rd, Daheung Group officially announced that it would acquire 5.66 million shares of Taesan Securities (30.44% stake) for 114.2 billion won.
With this acquisition, Daheung Group has become the largest shareholder of Taesan Securities and plans to incorporate it as a subsidiary.
Through this acquisition, Daheung Group, which has taken its first step into the financial business, announced ambitious plans to develop securities trading as a new core business alongside its existing department store and textile operations.
Meanwhile, amid the booming stock market, many large conglomerates are acquiring securities firms…]

After reading the entire detailed article that took up considerable space in the newspaper, Seok-won lowered the paper and tilted his head in confusion.

“If I remember correctly, there was no securities firm among Daheung Group’s subsidiaries.”

I rummaged through my memories just to be sure, but the group clearly had little connection to the financial business.

“There is a venture capital company, but it’s not particularly large.”

Yet suddenly, out of nowhere, they had acquired a securities firm—it was impossible not to be surprised.

“And they invested over a hundred billion won at that. Is Father determined to develop a securities firm as the article suggests?”

With the government promoting financial market modernization, the stock market was entering a boom period, so acquiring a securities firm was not a bad choice.
Moreover, considering the dot-com bubble that would arrive a few years later, the hundred billion won acquisition cost would be far from wasteful—it would become a lucrative subsidiary that generated substantial profits.

“It’s certainly a much better choice than those money-draining subsidiaries that do nothing but consume capital after acquisition.”

Still, I felt puzzled by the sudden acquisition of a securities firm that had no previous connection to the group.

“Did this happen because of me?”

Since nothing had changed except for my existence, it was reasonable to think such thoughts.
Seok-won smacked his lips slightly and murmured softly.

“It seems Father decided to acquire a securities firm after seeing my success with the pound sterling investment.”

Regardless, acquiring a securities firm of considerable scale in just a few months was remarkable.
It was impulsive, yet at the same time, quite a bold move.

“Appearances can be deceiving. Once he sets his mind to something, he charges forward like a rhinoceros.”

Seok-won recalled the stern visage of Park Tae-hong, the chairman back in Seoul.
Looking at his robust frame and imposing presence, it was difficult to imagine such swift decisiveness lurking beneath that exterior.

“That’s precisely why he managed to elevate the inherited group to the 30th position in the business rankings.”

Of course, Park Tae-hong’s aggressive management style, coupled with the group’s rapid expansion without proper internal consolidation, would eventually become the catalyst for the conglomerate’s instability.

“External attacks delivered the final blow, but if the group had possessed a stronger foundation from the start, competitors would never have dared to challenge it in the first place.”

Under normal circumstances, the Daheung Group would have begun its sharp decline within a few years, ultimately succumbing to the fierce tide of the International Monetary Fund crisis and dissolving into the obscurity of history.

“But as long as I’m here, that will never happen.”

I made this vow to myself, then gazed once more at the newspaper article about the securities company acquisition, my eyes narrowed with determination.
Acquiring a securities firm that could become a new cash cow for the group rather than a money-draining liability might very well mark the beginning of transformation.

* * *

Daheung Textile factory in Ansan, Gyeonggi Province.
Inside the sprawling facility—larger than ten soccer fields combined—textile looms arranged in three long rows thundered relentlessly, their deafening clatter filling the air without pause.
Young female workers with bare faces, dressed in blue uniforms, stood before the looms working diligently, while a group of suited men moved through the factory floor, observing the operations.
The middle-aged factory manager, dressed in work clothes and visibly tense, kept glancing nervously at the tall man in his early thirties standing beside him.

“To meet the increased orders we’ve received recently, we’re currently operating the lines around the clock with three shifts.”

The man was Park Jin-hyung, the eldest son of Chairman Park Tae-hong and a managing director at headquarters.
Bearing his father’s striking features, he stood over six feet tall with a muscular build that gave off the impression of a solid stone wall.
Having graduated from a domestic university, Park Jin-hyung had joined the company early at his father’s behest and was steadily undergoing succession training.
Though there was a younger brother, Seok-won, everyone both inside and outside the group assumed the position of next chairman would fall to Park Jin-hyung.
This expectation made the factory manager’s demeanor toward Park Jin-hyung all the more cautious.

“I understand we need to ship over 1,100 tons of raw yarn to China by year-end. There won’t be any issues with the shipment schedule, correct?”

The factory manager responded immediately to Park Jin-hyung’s question.

“The timeline is tight, but we won’t miss the delivery deadline.”
“Of course you won’t.”

Park Jin-hyung spoke in a firm but measured voice.

“We need to meet our delivery schedules, but that doesn’t mean we can afford defects. Don’t forget to pay close attention to quality control.”
“Yes, sir. I’ll keep that in mind.”

Listening to the factory director’s deferential response, Park Jin-hyung completed his tour of the sprawling facility with his entourage.
As the backbone of the group and a primary revenue source alongside the department store business, he made it a point to visit the textile factories in Cheongju, North Chungcheong and Ansan, Gyeonggi Province whenever his schedule permitted.
After inspecting all the production lines and encouraging the executives, Park Jin-hyung accepted the factory director’s deep bow and climbed into the sedan that had brought him, heading back to Seoul.
As the luxury sedan left the factory grounds and merged onto the main road, the man sitting in the passenger seat turned to address Park Jin-hyung in the back seat.

“I received word while you were touring the factory—the newly appointed president of the securities company we acquired has been decided.”

The man with the angular jaw and broad forehead was Oh In-hwan, Chief Secretary—Park Jin-hyung’s closest aide and right hand.
Leaning back against the plush leather seat, Park Jin-hyung showed interest and asked.

“Who got the position?”
“Choi Jin-woo, the former Vice Minister of Finance.”

Hearing this, Park Jin-hyung’s brow furrowed slightly in surprise.

“Not Jo Seung-jae, the executive director?”

Chief Secretary Oh In-hwan, receiving his gaze, nodded slightly and explained in detail.

“Yes. He left the Finance Ministry last year and is a financial expert who has held various key positions, including in the Financial Bureau. I understand he’s a college junior of Chairman Jo and they have deep personal ties.”

Jo Seung-jae, Park Jin-hyung’s maternal grandfather and former Minister of Interior, had stepped back from public service and now served as chairman of the Hangyeol Foundation, the public foundation of Daheung Group.

“It seems Chairman Jo’s recommendation played a role in selecting him as the new president.”
“I see.”

Park Jin-hyung, arms crossed as he gathered his thoughts for a moment, then spoke with a composed expression.

“It’s somewhat unexpected, but since he’s a financial expert and, more importantly, comes from the Finance Ministry, he’ll likely be quite helpful in running the company. It’s not a bad appointment.”
“The Chairman probably took those factors into consideration when making the selection.”
“Likely so.”

Regardless of his grandfather’s recommendation, Chairman Park Tae-hong was not the type to appoint just anyone to lead an important subsidiary.

‘Or perhaps Father asked Grandfather first whether there was a suitable candidate among the retired Treasury Department officials.’

Given what I knew of my maternal grandfather—who held the position of chairman of the Group’s public foundation but deliberately kept his distance from company affairs and refused to involve himself in them—this seemed quite likely.
At that moment, Oh In-hwan carefully gauged the atmosphere before speaking cautiously.

“And while nothing is certain yet, there are rumors that when the second young master returns from his studies in the United States, he will be assigned to the securities company.”
“Where did you hear that?”
“Since the information came from the chairman’s secretariat, it’s unlikely to be mere baseless gossip.”

As Park Jin-hyung sat in silence, Oh In-hwan ventured his own speculation.

“I wonder if perhaps the chairman intends to separate the securities company later as a subsidiary and hand it over to the second young master.”

It was understandable to think such a thing—assigning his younger brother to a newly acquired securities company rather than to the department store or textile operations, which were the core subsidiaries.

“Father must have his reasons.”

Park Jin-hyung replied curtly without revealing any particular emotion, then turned his gaze to the side.
A clear signal that he did not wish to discuss this matter further.
Catching the hint, Oh In-hwan fell silent and straightened his posture in his seat.
After that, only the quiet rumble of the car’s engine filled the silence as it traveled down the road.
Park Jin-hyung turned his head to gaze out the car window, his thoughts churning within.

‘Is that why Father appointed an outsider as president instead of Jo Yun-won?’

Jo Yun-won was not only a close associate of Chairman Park Tae-hong but also someone who supported him.
So if Father truly intended to give the securities company to his younger brother, having Jo Yun-won step down and establish himself there might not be a problem immediately, but could become one later.

‘A securities company….’

Park Jin-hyung narrowed his eyes and fell into deep contemplation, trying to fathom the intentions of his father, Chairman Park Tae-hong.

* * *

Cambridge, Massachusetts.
Seok-won came to a stop in front of a building constructed with charming red brick after cycling across the expansive campus.
Dismounting from the saddle, I skillfully locked the front wheel with my gloved hands, then straightened my back—my cheeks flushed crimson from the biting wind.

“It’s getting so cold now that I won’t be able to ride my bike much longer.”

As the year drew to a close, the temperature had plummeted below freezing, and my breath emerged in white clouds—a stark reminder of winter’s bite.
If this cold persisted much longer, I imagined snow would soon begin falling from the sky in thick, heavy flakes.

“I’ll be heading back to Korea next week, so let’s just endure it until then.”

I wrapped my scarf tightly around my neck and stepped into the building.
As I entered the heated interior, my body began to thaw, and I finally felt as though I might survive the day.
After walking down the corridor for some time, I stopped in front of the office bearing the nameplate of Professor Frank.

Knock, knock.

I raised one hand and knocked lightly, and an answer came immediately from within.

“Come in.”

As I opened the door and stepped inside, Professor Frank, who had been seated at his desk, looked up and greeted me warmly.

“Ah, welcome.”

Professor Frank was dressed casually in cotton trousers and a navy knit vest.

“You asked to see me, so I came.”
“Have a seat, and we can talk.”

Professor Frank rose with a smile and moved toward the shelf where the coffee pot sat.

“Would you like some coffee?”
“Yes, please.”

I unwound my scarf and held it in my hand while surveying the meticulously organized office around me.
Books lined the shelves with military precision, their spines aligned to exact heights, and not a single item lay out of place—a reflection of his fastidious nature.
Professor Frank spooned instant coffee from a glass jar into a mug, poured hot water over it, and set the cup before me.

“Go ahead and drink.”
“Thank you.”
“I can’t vouch for the taste, but it should be passable enough.”

Professor Frank settled onto the sofa across from me and offered a light quip.
I smiled faintly, took a sip of the coffee, and set the mug down before asking quietly.

“But I’m curious what you wanted to see me about….”
“It’s nothing else—I read through your exam answers from this test, and I found them quite fascinating. Ah, of course, in a positive way.”

Professor Frank cradled his mug in both hands and crossed one leg over the other.

“Many scholars attribute the cause of Black Monday in ’87 to the instability of portfolio insurance and computer program trading, but you wrote that investor psychology and anxiety were actually the decisive factors.”

Since the event had such a profound impact on economic history, I had sought out and read books published by many scholars beyond what Manager Oh had told me, so I had developed my own perspective on the matter.
With that confidence, I answered Professor Frank’s question without hesitation or confusion.

“It’s certainly true that portfolio insurance and program trading—safety mechanisms designed to hedge risk—became catalysts that actually amplified the decline once the stock price collapse began.”

Professor Frank leaned back against the sofa and listened with an intrigued expression.

“However, even considering that portfolio insurance and automated program trading volumes are far greater than before, when you think about the total value of transactions on the New York Stock Exchange each day, it’s absolutely impossible for them alone to drive stock prices down 22.6% in a single day.”

Professor Frank’s eyes gleamed with interest as he straightened up and asked.

“So you’re saying that portfolio insurance and automated program trading were only secondary factors, and the real core was that investors panic-sold their stocks as prices collapsed.”
“Exactly. To add to that, I believe the accumulated twin deficits in America, the tax reform proposals, and most importantly, investors’ anxiety about when the excessively inflated market would crash—all of these were the triggers that caused Black Monday.”

I glanced at Professor Frank, who was listening intently, and continued.

“When everyone was at the critical point, just watching each other’s moves, the moment stock prices began falling, investors rushed to dump their holdings like passengers abandoning a sinking ship. That triggered the portfolio insurance and automated program trading mechanisms, which then unleashed a torrent of selling that created a vicious cycle—that’s my analysis.”

Professor Frank slapped his knee and responded.

“A death spiral—where selling begets even greater selling.”
“Precisely.”
“Yes, your explanation makes considerable sense. It’s a very interesting perspective.”

Professor Frank, stroking his chin with one hand, suddenly fixed me with a penetrating gaze.

“You’re graduating this year, aren’t you?”
“Yes, I am.”

Professor Frank’s eyes grew even more intense.

“Would you consider pursuing your doctorate under my supervision?”
“…!”

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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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