Golden Spoon Investment Portfolio - Chapter 381

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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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381. Not a bad feeling at all.

The next day.
The moment the foreign exchange market opened, a massive wave of Korean won selling orders flooded in, and the won-dollar exchange rate surged past 1,000 won in an instant.
All the efforts the government and the Bank of Korea had poured into their foreign exchange reserves to barely suppress the rate were rendered completely meaningless.
Amid the cacophony of ringing phones throughout the Foreign Exchange Bank Trading Floor, traders gripped their handsets and bellowed at the top of their lungs—it was nothing short of a war zone.

“1.9 at 14 sold!”
“What? Say that again!”
“1.9 at 14!”
“Okay. Done!”

[USD/KRW : 1,001.9 ((
5.7)]

Lee Eon-su, his white shirt sleeves rolled up, stared intently at the large electronic board mounted on the opposite wall displaying the won-dollar exchange rate, a cigarette dangling from his lips and his expression hardened into stone.
The moment the market opened and the rate spiked, he immediately began selling the dollars entrusted to him by the Bank of Korea in response, but the surging rate showed no signs of relenting.

“This is maddening.”

As Lee Eon-su scratched the back of his head and clicked his tongue in frustration, Na Un-hak, seated in his chair, turned and shouted loudly.

“Manager! Daekwang Group is asking us to buy 20 million dollars. What should we do?”

Lee Eon-su’s brow furrowed sharply.

“Don’t you know the government has restricted currency exchanges? The rate is already skyrocketing, and you want to fan the flames on a burning house right now?”
“They say it’s funds to repay a loan borrowed from the Bank of Japan.”

Lee Eon-su, irritated and ready to explode, let out a groan and pressed his forehead with his hand.

“Are you certain about this?”
“They say they’ve submitted a certificate to the Ministry of Finance and Economy and received confirmation.”

Lee Eon-su exhaled deeply and wore an uneasy expression.

“Then there’s no choice. Process it.”
“Understood.”

With that acknowledgment, Na Un-hak immediately picked up the receiver and placed the order.
Lee Eon-su remained standing, his gaze fixed on the monitor mounted atop his desk.
As numbers flickered chaotically by the second, the trading screen was inundated with won-selling orders, and the exchange rate continued its relentless upward surge.
While the currency speculators’ assault was fierce, what truly drove today’s rate higher was the explosive surge in domestic corporations’ demand for dollar purchases.
Shocked by Yamaichi Securities’ bankruptcy filing yesterday, Japanese banks and financial institutions scrambled desperately to recover debts and secure cash.
This direct hit devastated domestic companies that had borrowed heavily in low-interest foreign currency loans from Japan.

“Something about this doesn’t feel right….”

Lee Eon-su’s expression darkened as he watched the exchange rate, which showed no sign of falling.

* * *

At the same moment.
Seok-won sat alone in his spacious President’s Office, watching the won-dollar exchange rate chart displayed on his monitor while speaking on his mobile phone with John Porter, the Japan branch manager of Eldorado Fund.

[There’s talk that the Japanese cabinet will provide special financing worth hundreds of billions of yen to revive Yamaichi Securities.]

Seok-won spoke with a look of surprise.

“They’re going to use public funds to save them? Even though their accounting fraud concealed massive losses, and the losses from the CDS option contract with us weren’t insignificant?”
[Given the already deteriorating stock market and economic conditions, it appears they’re trying to patch things up at all costs out of concern for the shockwave Yamaichi Securities’ bankruptcy would cause.]

Seok-won nodded slightly in understanding.

“You’re right. As one of Japan’s Big Four Securities Firms holding assets worth up to one trillion yen, its collapse would certainly create significant turmoil.”
[Exactly. Already, in the aftermath of the bankruptcy filing, Japanese banks and securities firms are urgently recovering claims and securing cash, which is severely contracting liquidity in the market. So the Japanese cabinet had no choice but to act with even greater urgency.]

Since the repercussions were already reaching Korea, Seok-won’s expression turned bitter.

“If the special financing actually comes through, at least we won’t have to worry about Yamaichi Securities defaulting on what they owe us.”
[Following the boss’s instructions, we placed liens on the Tokyo headquarters and other real estate holdings before the bankruptcy filing, so even if it proceeds to liquidation, we shouldn’t suffer losses. Of course, it will take some time.]

Seok-won leaned back in his chair, phone pressed to his ear, and spoke.

“Still, wouldn’t it be far better to receive the payment cleanly without wasting time on complicated legal procedures?”
[That’s true.]
“Did Nomura Securities and Daiwa Securities pay out their profits?”
[Yes. One billion dollars each has been deposited.]
“Good to hear. Then let’s have it transferred to the New York Headquarters account like last time.”
[Understood.]

Seok-won glanced sideways at the exchange rate chart still showing strength and asked a question.

“What’s the Nikkei futures trading at right now?”

Porter paused briefly as he checked the futures index before responding.

[It’s trading at 16,551.06.]
“It’s dropped quite a bit already.”
[It’s plummeted 18% from where we took our position, so that’s a massive decline.]

Porter chuckled lightly over the phone.

“The bottom is still far off, so let’s keep holding.”
[I’ll do that. From what I can see, given the current situation, I expect the decline to go even deeper.]

It was obvious to anyone that the Nikkei had entered a major downtrend.

“With this Yamaichi Securities crisis, all the hidden problems in Japan’s financial sector are surfacing, and they’ll face difficult times ahead. Let’s short Sanyo, Marusho Securities, Takushoku Bank, and Tokyou City Bank.”
[I understand about the others, but Takushoku Bank is one of Japan’s largest regional banks. Are you saying you expect the stock price to fall enough to warrant shorting it?]

Takushoku Bank, based in Hokkaido and operating nationwide as a city bank, ranked tenth among Japanese financial institutions by assets—a major player in the industry.

“Takushoku is the prime example of a bank that grew rapidly by expanding aggressively during the bubble years. That also means they issued massive loans for real estate whenever money could be made.”
[Ah. Then….]

Porter let out a low exclamation, understanding the implication.

“When the bubble burst, all those recklessly issued real estate loans became non-performing assets. With non-performing loans at 13.4%—the highest among Japan’s city banks—you can see just how dire their financial condition is.”
[However, I understand the Ministry of Finance is leading a merger between Takushoku Bank and Hokkaido Bank. Wouldn’t that allow them to write off a significant portion of the bad debt?]

Seok-won replied as though it didn’t matter.

“Two banks in the same region that have competed fiercely for so long don’t easily merge. Especially not when one of them is burdened with massive non-performing loans.”
[…So you believe the merger will fall through.]
“That’s right. When it does, disappointment will send the stock price plummeting.”
[I understand what you’re saying.]

Porter nodded in agreement after hearing the explanation.

“Once the special financing for Yamaichi Securities is announced, the market will breathe easier and those financial stocks that have crashed will bounce back temporarily. Don’t miss that opportunity—execute the short selling then.”
[I’ll do that.]

After issuing a few more instructions, Seok-won ended the call and set his phone on the desk, then glanced at the monitor.
Despite the government’s aggressive defense efforts, the exchange rate showed no sign of falling.
Watching it teeter precariously on the edge of a cliff, Seok-won muttered quietly to himself.

“Japan was our only breakthrough, but that’s no longer an option. Now the only path left is the IMF. Honestly, I’m skeptical whether the government can make a bold decision before it’s too late.”

Just as his brow was beginning to furrow, a knock sounded from outside.

“Come in.”

Han Ji-sung opened the door and approached the desk, then spoke.

“I have news to report.”
“What is it?”
“Just now, Donghae Group filed for composition with the Seoul District Court.”

I had already learned through my informant Lee Chul-gyun that Donghae Group’s insolvency was imminent, but hearing that they had actually filed for composition stirred complex emotions within me.
Originally, both groups were locked in fierce competition over Midopa Department Store, destined to perish together in the violent waves of the IMF crisis.
But once I intervened, the path diverged into one of victor and vanquished, making the feeling all the more peculiar.
I nodded calmly and spoke.

“Understood. You can go.”

Han Ji-sung bowed slightly and turned to leave.
As the door closed, I recalled Chairman Woo Yong-gap and Woo Ho-geun, whose fierce glares had been the last thing I saw from them.
Both were greedy and skilled at underhanded schemes—they were father and son in every sense.

“They should have known that excessive greed invites disaster.”

Had Park Tae-hong not harbored designs on swallowing Midopa Department Store whole, the fate of Donghae Group might have unfolded entirely differently.
Just then, as the vibration alert buzzed, Seok-won picked up his mobile phone and answered the call.

[It’s me.]

Hearing a slight tremor in Park Tae-hong’s voice—unusual for him—Seok-won straightened in his seat.

“Yes, Father.”
[Have you heard about Donghae Group?]
“I just heard about it a moment ago.”

Park Tae-hong fell silent for a moment before speaking in a measured tone.

[Thank you.]

Seok-won, taken aback, couldn’t muster a response before Park Tae-hong continued.

[Without you, I wouldn’t have been able to thwart Donghae Group’s scheme to seize Midopa Department Store. And with the economy freezing over and everyone struggling with liquidity issues, I certainly couldn’t have remained idle myself.]
“Even without me, Father, you would have navigated through it well.”

At that, Park Tae-hong let out a light laugh.

[I know my own limits better than anyone. I might have found a way to protect Midopa Department Store, but I wouldn’t have survived the crisis that followed—I would have ended up abandoning the company like Chairman Woo did.]

Seok-won didn’t know what to say, so he simply listened.
Then Park Tae-hong spoke to him in a voice brimming with pride.

[The best thing I’ve ever done is raise a son like you. I’m sure you’ll continue to excel, but keep doing exactly as you have been.]
“Yes, Father.”
[I’m sorry to have taken your time when you must be busy. Let’s save the rest for later and end the call here.]
“Of course. Go ahead.”

After pulling the phone from his ear, Seok-won wore a slightly dazed expression.

“I never thought Father would praise me this much.”

It was the first time the usually stern and taciturn Park Tae-hong had expressed his true feelings so openly. Though somewhat flustered, the realization that he had earned his father’s recognition brought an unbidden smile to his lips.

“Not a bad feeling at all.”

It was an emotion I had never experienced in my previous life, which made my heart swell even more intensely.

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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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