Golden Spoon Investment Portfolio - Chapter 374

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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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374. A long, dark, and painful tunnel has begun.

September 8, 1997.
Early morning.
It was the time when people were just waking up, but Na Un-hak, now in his fourth year as a foreign exchange trader, had arrived at the headquarters in Euljiro 2-ga earlier than most.

[Foreign Exchange Bank: Realizing Our Customers’ Dreams]

As I passed through the lobby where this year’s company slogan hung prominently and took the elevator to the fourth floor where the Trading Floor was located, the employees already present greeted me.

“Deputy Manager, you’re here.”
“Good morning.”

I waved my hand lightly at the voices coming from all around.

“Good morning, everyone.”

As I placed the briefcase in my hand on my desk and was hanging my jacket on the back of my chair, Seol Gyeong-sik, my junior by one year at the desk next to mine, poked his head over the low partition.

“The weather’s nice, but the market is the complete opposite.”

With that, he handed me today’s morning newspaper as if to say, “Look at this.”
As I took the morning newspaper and looked it over, a large headline printed on the front page caught my eye.

[Government Takes Hard Line Against U.S. Super 301 Provision]

Negotiations that had begun due to complaints from the U.S. government—frustrated that Korean automobile companies earned massive profits from exports to America while American automobile imports remained negligible—had collapsed just days ago.
In response, the White House immediately announced the invocation of Super 301, a powerful trade retaliation measure against Korean automobile companies.

“It looks like automobile stocks, including Hyunwoo Automobiles, will take a major beating in today’s stock market.”

At Seol Gyeong-sik’s words, delivered with a heavy sigh, I handed the newspaper back to him.

“It’s not just stocks—the exchange rate is a problem too.”
“That’s true. With banks already getting downgraded in bulk and the exchange rate unstable, I really hope we don’t see the won break through the 1,000 mark…”

Seol Gyeong-sik scratched his head and muttered anxiously.

“The government will find a way to stop it.”

Na Un-hak lifted his gaze toward the large exchange rate board displaying the won-dollar rate.

[USD/KRW : 987.12]

The exchange rate, which had surged past 990 won per dollar and seemed poised to breach the 1,000 won threshold, had retreated slightly thanks to aggressive intervention by the government and the Bank of Korea.
Just when I thought things were finally stabilizing, this massive negative news broke—it was clear as day that the exchange rate would swing wildly throughout the day.

“The bad news from the United States has completely overshadowed the Ssangbong Group’s restructuring announcement.”

Ssangbong Group was a mid-sized conglomerate that had grown substantially on the foundation of its undergarment business.
It had solidified its position as one of the nation’s leading undergarment brands under the “Ssangbong” name and maintained a remarkably sound financial structure.
However, when management passed to the second generation, the group attempted to diversify beyond its core textile industry, which led to problems and ultimately forced it to file for restructuring.

“How much debt did Ssangbong Group end up with?”
“According to the newspapers, it’s 977 billion won.”

Hearing the figure, Na Un-hak’s brow furrowed.

“That’s nearly 1 trillion won. With the banks already struggling from the collapse of major corporations, adding Ssangbong Group’s debt on top of that will be an enormous burden.”
“Exactly.”

Just then, Lee Eon-su, the manager of the Foreign Exchange Trading Department, entered the office with a rigid expression and quick steps.

“Everyone’s here.”

Lee Eon-su glanced around briefly, then spoke with authority in his voice.

“As you’re aware, the Ssangbong Group restructuring and the bad news from the United States mean the exchange rate will likely spike significantly today. The Bank of Korea has opened a 500 million dollar account for us. If the won-dollar rate exceeds 950 won, immediately buy won to prevent the rate from rising further. Everyone understands?”
“Yes.”
“Understood.”

The traders, including Na Un-hak, responded in unison. After delivering a few more instructions, Lee Eon-su returned to his desk, and Seol Gyeong-sik lowered his voice to whisper.
After conveying a few more instructions, as Manager Lee Eon-su headed back to his seat, Seol Gyeong-sik lowered his voice and whispered.

“It’s proof of how determined they are not to let it breach the 1,000 won level.”
“Isn’t that proof of how strong their determination is not to exceed the thousand-won range?”

Na Un-hak entered his personal password into the computer and pulled up the trading program, preparing to begin the day’s transactions.
With the expectation of a sharp currency spike, tension gradually permeated the Trading Floor as the opening hour drew near.
Na Un-hak also loosened his fingers lightly and checked the Sydney foreign exchange market that had already opened.
Apart from the Indonesian rupiah exchange rate plummeting following the confirmed 23 billion dollar support from the International Monetary Fund, there was nothing particularly noteworthy.
Just then, an employee announced loudly that the foreign exchange market had opened.

“Trading has commenced!”

Simultaneous with the cry, phones erupted and buy and sell orders began pouring in.

Ring! Ring!

As the telephone on the desk rang, Na Un-hak instinctively reached for the receiver, but upon seeing the won-dollar exchange rate displayed on the monitor, his body froze entirely.
The exchange rate had surged sharply upward in a single moment, breaking through the thousand-won threshold that had been considered the last line of defense.

[USD/KRW : 1,003.21 (
+16.09)]

“Uh… uh.”
“Why is this happening!”
“Over 16 won spiking at once. This has to be a program error!”

Everyone had anticipated heavy won selling due to the announcement of America’s Super 301 provision and the Ssangbong Group’s request for settlement negotiations.
However, the exchange rate spike far exceeded expectations, and above all, the one-thousand-won-per-dollar psychological barrier that had been considered the Maginot Line crumbled far too easily, leaving them unable to hide their shock and astonishment.
Na Un-hak himself felt as though struck hard on the back of the head with a hammer, his face drained of color as he stared blankly ahead.

!

Then, realizing this was no time to remain frozen, Na Un-hak quickly turned his head.
Sure enough, his junior colleague Seol Gyeong-sik was also frozen in a daze.
Na Un-hak deliberately shouted loudly so that the other traders would hear as well.

“The exchange rate has broken past 950 won. Why aren’t you placing buy orders!”
“Ah. Yes!”

Then, snapping back to his senses belatedly, Seol Gyeong-sik frantically typed on the keyboard to place his order.
Na Un-hak also confirmed the flood of won-selling orders and quickly moved to defend the exchange rate by purchasing won using the dollars provided by the Bank of Korea.
The other traders likewise regained their composure and began moving swiftly.

“10 bought at 3.2!”
“16 buy orders at 3.2!”
“Okay. Done!”

Dozens of traders, including Na Un-hak Deputy Manager, kept their eyes glued to the four monitors in front of them, placing orders as they tracked exchange rates and trading volumes that fluctuated by the second.

Tap, tap!
Beep! Beep!

The noise filling the expansive Trading Floor was deafening.
Yet despite frantically buying won, the exchange rate that had broken through 1,000 won barely managed to slow its ascent, showing no signs of declining.
Witnessing this situation, Na Un-hak Deputy Manager entered another buy order on his keyboard, then blurted out in frustration.

“Damn it. Why won’t this come down!”

* * *

At the same moment, Daehung Venture Capital Fund at Gangnam Yeoksam Station.

[USD/KRW : 1,003.15 (
15.49)]

Seok-won sat with his arms crossed before a wide wooden desk. As the government’s currency defense measures took effect, the upward momentum slowed ever so slightly, yet the exchange rate remained above 1,000 won. He exhaled a low, contemplative sound.

“The 1,000 won barrier has finally broken.”

He then shifted his gaze to the monitor on his left to check foreign exchange trading volumes.
Despite the government releasing its foreign reserves to purchase won, sell orders showed no signs of diminishing—they continued accumulating steadily.
Even accounting for two major catastrophic events hitting simultaneously, this extraordinary situation made Seok-won instinctively sense that currency speculators had finally launched their assault on the won.

“They’re pushing hard from the start, as if they planned this all along.”

It seemed they had learned from their failure in Hong Kong and were determined to end this battle decisively before the White House intervened again.

“If things continue like this, the Korean government’s chances of repelling the attack will diminish even further.”

Seok-won’s expression turned bitter as he stared at the monitor.
Though I knew the outcome, I finally abandoned even the last glimmer of hope I’d been clinging to.
Just then, the telephone on the desk rang. I immediately reached out and picked up the receiver.

[Chairman, the won-dollar exchange rate has surpassed 1,000 won!]
“I’m watching it now.”

Seok-won replied calmly to Ho-geun’s urgent voice.

“It’s something we anticipated anyway, so there’s no need to be alarmed. More importantly, how is the stock market situation?”

Ho-geun’s voice came through somewhat more composed than before.

[Ssangbong Group, which has requested a composition agreement, along with Hyunwoo Automobiles and other automotive stocks are plummeting. The index has broken through 500 and is now recording its lowest level in five years.]

Seok-won moved his mouse to check the KOSPI index.

“Both the exchange rate and stock market are only beginning to feel the shock now. As I mentioned before, don’t panic and calmly monitor the situation.”

The situation was already horrifying, and I couldn’t even fathom how much worse it would become.
Ho-geun felt a chill run down his spine and unconsciously swallowed hard.

“The Malaysia index futures have all been liquidated, correct?”

As Seok-won changed the subject, Ho-geun answered immediately.

[Yes. As I reported earlier, we achieved a 37.6% profit margin, and the final net profit after expenses is 86.5 million dollars.]
“So combined with the principal, that comes to 111.5 million dollars.”
[That’s correct.]
“Like the profits we made from the Hong Kong futures last time, hold it in the Eldorado Fund account for now.”
[Understood.]

After giving the necessary instructions and hanging up, my mobile phone vibrated as if it had been waiting.

“Hello.”
[Are you available to talk?]

At the familiar weighty voice of Lee Chul-gyun, Seok-won leaned back in his chair and asked.

“What is it?”
[It appears that within the next two to three days, Hanni Department Store in Gwangju will be unable to stop the bills coming back from its transaction bank and will likely file for a composition agreement with the Gwangju District Court.]
“…!”

Hanni Department Store was Gwangju’s first department store and a flagship local enterprise representing the region.

“You’re certain of this?”
[Yes. Combined debt across all primary and secondary financial institutions in the Gwangju region totals 112 billion won, and their liquid cash reserves are completely depleted. Bills due within a week alone exceed 8 billion won, and they have no funds to settle them. There’s simply no other option.]
“A department store that deals in cash transactions has no money. Well, Taehwa Shopping in Busan went bankrupt too, so it’s not entirely surprising.”
[Internally, they’ve already decided to file for composition proceedings.]
“That’s the only way to prevent bankruptcy. I understand.”
[If I receive any other information, I’ll contact you again.]
“All right.”

Setting down my phone, I watched the KOSPI chart on my monitor plummet like a cliff face, plunging toward the abyss, and muttered to myself.

“A long, dark, and painful tunnel has begun.”

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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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