Golden Spoon Investment Portfolio - Chapter 283

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

283. What a nuisance to have these troublesome matters clinging to me during such a critical period.

A luxury Mercedes sedan cruised along a quiet national highway cutting through the middle of a vast plain, with farmland stretching out on both sides. It gradually decelerated before coming to a stop on the roadside.
Han Ji-sung descended from the passenger seat and quickly opened the rear door, allowing Seok-won—wearing Ray-Ban sunglasses—to step out.
Walking to the end of the roadside and stopping, Han Ji-sung raised one arm and pointed across the empty farmland, which had yet to be planted with rice seedlings, toward a massive logistics warehouse in the distance.

“That’s the place.”

Seok-won removed his sunglasses and surveyed the surroundings before asking.

“You said the site area exceeds ten thousand pyeong, correct?”
“Yes.”

Han Ji-sung answered immediately and added further explanation.

“In total, it’s 42,975 square meters—approximately thirteen thousand pyeong.”
“It doesn’t look quite that large to the eye.”
“As you know, the entire surrounding area has been designated as green space, and for over a decade, regulations equivalent to development restriction zones have been applied.”

The reason the Bundang and Pangyo areas were able to be preserved as green space for so long was largely due to former President Park Jang-woo’s influence.
While returning to Seoul by helicopter after completing a field inspection, he passed through this region and issued an order: “Don’t develop this land—it will be useful in the future.” That was how the area became designated as the Southern Green Space.

“Because of that, the owner couldn’t utilize all the land and currently operates only about half of it as a logistics warehouse under temporary permit.”
“The regulations were all lifted once Bundang New City was developed, correct?”
“That’s right. For a while, there were high expectations that this area would also be designated as a residential development zone following Bundang, but for various reasons, such talk has quieted down now.”
“It’s nearly impossible to find flat green space near Seoul, so opposition would naturally be fierce.”
“Exactly.”

That’s why when I demanded cash instead, they only objected to the Seocho-dong site but paid little attention to the Pangyo logistics warehouse.

‘The Seocho-dong site is merely a smokescreen. Neither Chairman Woo Yong-gap nor the Donghae Group would ever dream that this is my true target.’

They couldn’t possibly imagine that the Pangyo development, which now seemed indefinitely postponed, would rapidly advance within just a few years once the administration changed, or that Korea’s top IT companies would flock here to transform it into a world-class global convergence R&D hub.

‘Then this land, which now appears worthless, will transform into a golden treasure in an instant.’

Once Pangyo was designated as a development zone and development discussions began in earnest, Chairman Woo Yong-gap would surely feel an excruciating sting from having surrendered the land for a pittance.

‘By then, the Donghae Group will have already collapsed under the direct impact of the IMF crisis, making the loss all the more bitter.’

It was always true that others’ rice cakes looked larger, but if that cake had originally been one’s own, I could easily imagine the regret and fury without needing to witness it.

“The appraised value was one million won per pyeong, correct?”
“Yes. Even combined with the Seocho-dong headquarters site, it doesn’t cover the full debt repayment. We had to bring in three additional real estate properties owned by the Donghae Group.”

Acquiring 13,000 pyeong of prime land in central Pangyo for merely 13 billion won was practically theft.
Moreover, the additional properties obtained were all locations where land values would skyrocket in the coming years, which made my satisfaction all the more complete.

‘I never realized the Donghae Group possessed so many premium real estate holdings beyond the Pangyo logistics center.’

I smiled contentedly and murmured to myself.
Even the training center located near the National Armed Forces Sports Complex would become a sprawling new city like Pangyo in a few years, transforming into prime real estate.
This was a handsome reward for the effort expended in defending against the hostile M&A.
With a face that seemed satisfied just from gazing at it, I admired the logistics center—now my own property—for a long while before putting my sunglasses back on and turning to leave.

“Let’s head back.”

* * *

Sumitomo Corporation Headquarters, Chuo Ward, Tokyo, Japan.
Ito Masanao, the president—in his late sixties with a lean physique and unusually tall for a Japanese man—was attending to business at a large mahogany desk when he looked up at the sound of a knock.
A female secretary in a two-piece uniform entered and announced that a visitor had arrived.

“Director Kubori Hideyaki is here.”

President Ito set down the documents he had been reviewing and spoke.

“Show him in.”
“Yes.”

After the secretary left, Kubori Hideyaki, the financial director dressed in a gray suit, entered and gave a slight bow before straightening up.
Seeing this, President Ito gestured with his chin toward the sofa in front of him.

“Have a seat.”
“Yes.”

As Kubori Hideyaki, the CFO, settled onto the right sofa, Ito Masanao rose from his desk and took the center seat.

“What would you like to drink?”
“Anything is fine.”

Ito Masanao glanced toward the Female Secretary waiting by the door and spoke.

“Bring us two coffees.”
“Understood.”

After the Female Secretary closed the door and left, Ito Masanao leaned back in his chair, crossing one leg, and posed a question to Kubori Hideyaki.

“Did you find out what I asked you to investigate?”
“Yes.”

Kubori Hideyaki, meeting his gaze, nodded in affirmation.

“So, who’s the audacious bastard that shorted our company?”

Kubori Hideyaki’s voice grew slightly tense as he responded.

“It was the Eldorado Fund.”

Ito Masanao’s brow furrowed as he spoke.

“Eldorado? Aren’t they the ones who caused such a stir with the knock-in knock-out options last time?”
“Precisely. Before that, they attacked the yen alongside George Hamilton’s Quantum Fund, putting the Bank of Japan in serious jeopardy.”

Realizing that no small player had attached itself to his company, Ito Masanao muttered with a displeased expression.

“This is not an opponent we can simply ignore.”

Kubori Hideyaki then shifted forward in his seat, offering his counsel with gravity.

“They’re not only the hottest fund on Wall Street in recent times—so much so that George Hamilton, a legend in the hedge fund world, has personally acknowledged them—but they’re also known to command considerable financial resources. We must never lower our guard.”

At that moment, the Female Secretary knocked and entered, setting a coffee cup before each of them before withdrawing once more.
As the door closed, Kubori Hideyaki resumed the conversation that had been briefly interrupted.

“You’re well aware that major Japanese corporations like Nissan Motor, Toshiba, and Japan Steel—the pillars of our nation—fell into the traps those bastards laid and suffered considerable losses.”

It was an incident that had become major news in Japan, requiring even the cabinet to intervene in its resolution, so there was no way he could be ignorant of it.
Moreover, he knew it all too well because he had watched Kuroda, the president of Nissan Motor with whom he shared a close friendship—golfing together frequently—struggle significantly to secure reappointment as president by the board of directors due to losses from options trading.

“Tsk.”

Ito Masanao furrowed his brow and clicked his tongue.

“What do you think those bastards are after?”
“I haven’t been able to confirm that yet, but one thing is certain—judging by the volume of short-selling they’re dumping, this isn’t just a casual probe. They’re launching a full-scale, premeditated attack.”
“How much have they shorted so far?”
“By rough estimate, it exceeds one hundred billion yen.”

Ito Masanao asked back with a startled expression.

“Didn’t you say it was around sixty billion yen just a few days ago!”

Kubori Hideyaki, the financial director, responded with a hardened expression.

“They’ve been dumping massive volumes relentlessly in the interim.”
“Hmm.”

Ito Masanao let out a low groan at the figure that exceeded his expectations.
Watching him, Kubori Hideyaki spoke with an even more grave expression.

“The problem is that even after dumping over one hundred billion yen in volume, the Eldorado Fund shows no signs of losing momentum.”
“You’re saying they’ll sell more despite what they’ve already done?”
“Given that they sold tens of billions of yen today alone, it appears this will continue for some time.”

Since the Eldorado Fund’s short-selling assault began last month, Sumitomo Corporation’s stock price, which had maintained the 1,250 yen range through mid-April, had plummeted sharply and now sat below 1,000 yen.
With over one hundred billion yen in short-selling flooding the market, the stock decline was inevitable, but since Ito Masanao was a professional manager rather than an owner, he had no choice but to be mindful of the major shareholders’ sentiments.
Moreover, like Kuroda of Nissan Motor, Ito harbored ambitions to secure three consecutive reappointments and continue leading the company even after his current term ended next year, making the current stock price decline all the more uncomfortable.

“As the decline continues, even the investors who initially accepted the short-selling volumes are beginning to suspect something is amiss, and market anxiety is growing.”

Ito Masanao frowned and looked at Kubori Hideyaki.

“Are you saying the stock price could fall even further?”

Kubori Hideyaki, the financial director, wore an expression of considerable discomfort under that gaze.

“If the low-price buying support that has been propping up the floor disappears while the Eldorado Fund’s short selling continues unabated… we could temporarily see the 900 yen level break.”

The moment Ito Masanao heard this, his face contorted sharply.

“Did you just say 900 yen!”

As Ito Masanao raised his voice, Kubori Hideyaki quickly added in an apologetic tone.

“Since the decline is purely from short selling without other adverse factors, once selling pressure diminishes, the price will quickly stabilize and recover.”

Yet Ito Masanao maintained his stern expression, pressing forward relentlessly.

“Didn’t you just say the Eldorado Fund hasn’t stopped its short selling!”
“That is true, but their financial resources are not unlimited, so they will eventually cease their selling.”

Though Kubori Hideyaki tried to reassure him, Ito Masanao fixed him with a sharp stare.

“What if the Eldorado Fund has more ammunition than we anticipated! And you know as well as I do that the stock market runs on sentiment. If investors gripped by anxiety from the continued decline start cutting their losses, the situation will spiral beyond control. What the Eldorado Fund is aiming for with their short selling is precisely to trigger such panic!”

Ito Masanao snapped irritably, his voice rising sharply.
The words rose to Kubori Hideyaki’s throat—that retail investors might waver, but institutional investors holding substantial stakes would not—yet seeing Ito Masanao’s rigid expression, he could not bring himself to speak them aloud.
Kubori Hideyaki understood all too well why Ito Masanao was being so sensitive.
Ito Masanao straightened his upper body and asked.

“How much surplus cash do we have available immediately?”

Kubori Hideyaki immediately grasped Ito Masanao’s intention and lifted his head to look at him.

“You intend to defend the stock price by purchasing treasury shares.”
“With the stock price falling like this and shareholders suffering losses, shouldn’t the company naturally step in?”

‘Stock price support for extending his term, not for shareholders,’ Kubori Hideyaki thought.

He swallowed the sardonic remark that rose within him.
Yet if Ito Masanao succeeded in securing a third consecutive term, it would benefit Kubori Hideyaki as a member of the same faction, and since Sumitomo Corporation was a profitable enterprise generating over 200 million dollars in net profit annually, spending money on treasury share purchases posed no significant burden.
Kubori Hideyaki quickly ran the numbers in his head and responded immediately.

“We can mobilize approximately 2 billion yen immediately.”

At this, President Ito Masanao’s brow furrowed.

“The opposition is deploying over 10 billion yen, and you think 2 billion will make any difference? Increase it to 5 billion yen and begin treasury stock acquisitions at once.”

Kubori Hideyaki, the financial director, wore a slightly startled expression.

“Five billion yen, sir?”
“Yes. And if we issue a public statement declaring this action is to protect our shareholders against malicious short-selling attacks, we can simultaneously drive up the stock price while securing shareholder support.”

Kubori Hideyaki inwardly admired President Ito Masanao’s cunning strategy—using the short-selling assault as a stepping stone to solidify his third consecutive term while pursuing two objectives at once.

“I understand perfectly, sir.”

After discussing matters further for some time, Kubori Hideyaki bowed and departed. President Ito Masanao then withdrew a cigarette from the wooden box resting on his desk and placed it between his lips.
He lit it with a lighter and exhaled white smoke, muttering to himself.

“Troublesome pests appearing at such a critical moment.”

Then, a thought suddenly crossed his mind, and President Ito Masanao’s brow creased.

“Could they possibly be short-selling because of the recent decline in copper prices?”

President Ito Masanao stared at the ceiling, his expression darkening, but soon shook his head.

“No. It’s true our company holds a significant position in the copper market, but even if prices drop slightly, it only reduces operating profit marginally. There’s no way this is about that.”

President Ito Masanao let out a hollow laugh and cleanly erased the possibility that had momentarily surfaced from his mind.

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