Golden Spoon Investment Portfolio - Chapter 382

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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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382. Are you saying the entire one billion?

September 29, 1997.
Autumn rain pattered softly against the windows as the spacious Presidential Office, carpeted in deep charcoal, settled beneath a heavy atmosphere.

“So you’re saying that U.S. Treasury Secretary Professor Frank called you and proposed arranging a meeting between you and the IMF Managing Director, who is currently touring Southeast Asia?”

President Kim Sung-gyu, seated at the head of the table, posed the question, and Deputy Prime Minister Lee Eun-hyung responded with exhaustion written across his face, as if reflecting the recent unfavorable exchange rate situation.

“Yes, sir.”

He glanced at President Kim Sung-gyu, who held a cigarette between his fingers, before continuing.

“While he called it merely a suggestion, it would be fair to interpret it as an indirect recommendation to seek IMF assistance.”

At this, President Kim Sung-gyu’s face darkened with anger.

“Just as the presidential race is about to begin, and you’re telling me to accept IMF bailout funds? That’s as good as telling me to concede this election outright!”
“If we accept IMF assistance, we would have to accept excessively harsh conditions, so I too recognize this is not an easy matter.”

Deputy Prime Minister Lee Eun-hyung, observing President Kim Sung-gyu’s expression as he held the cigarette in his mouth, hesitated for a moment before speaking with difficulty.

“However, given that it has become difficult to expect Japan’s assistance, I am ashamed to say this, but it appears the only remaining option is to request help from the IMF.”

Before he could finish, President Kim Sung-gyu struck the armrest of the sofa he was sitting on with his palm and shouted furiously.

“Didn’t you assure me right here in this very office that if you actively defended the exchange rate, we could withstand the attacks of currency speculators?”

Stung by the sharp rebuke, Deputy Prime Minister Lee Eun-hyung lowered his head in shame.
Just as President Kim Sung-gyu had pointed out, those were words that had come from his own mouth, making it difficult to offer any excuse.

“At that time, I did not anticipate the situation would deteriorate so rapidly in such an unfavorable direction.”
“That’s precisely why the Ministry of Finance and Economy exists—to predict such things in advance and handle them before crisis strikes! And that’s why I appointed you as Deputy Prime Minister in the first place!”

President Kim Sung-gyu vented his frustration in an irritated voice, his anger mounting with each word.
The Blue House and politicians from both ruling and opposition parties bore considerable responsibility for allowing the situation to deteriorate to this point—they had prioritized the presidential election over addressing the plummeting exchange rates and economic difficulties, relegating these critical issues to the background while engaging in nothing but political infighting.
For instance, the Ministry of Finance and Economy had proactively submitted a financial reform bill to the National Assembly to modernize Korea’s outdated financial system, calculating that even if Korea were forced to accept IMF bailout financing in the worst-case scenario, such reforms would position the nation to negotiate from a more advantageous position.
However, due to the ambivalent stance of both ruling and opposition parties—reluctant to touch such contentious issues ahead of the presidential election—the bill ultimately failed to pass even the subcommittee stage and was shelved entirely.
Of course, despite this, Lee Eun-hyung, the Deputy Prime Minister for Economic Affairs, had no words to offer, as the primary responsibility for failing to defend the exchange rate and mismanaging foreign debt lay squarely with him and the Ministry of Finance and Economy.
After President Kim Sung-gyu finished pouring out his anger and steadied his ragged breathing, Gu Hyung-gi, the Chief Secretary, who had been sitting across from him, interjected.

“If Your Excellency accepts IMF bailout financing as you’ve stated, the election would be pointless. Is there truly no other way?”

Deputy Prime Minister Lee Eun-hyung regarded Gu Hyung-gi with an expression of helplessness.

“The exchange rate has already surpassed one thousand won per dollar, breaking through the band, and with Japan experiencing its own crisis, the outflow of yen-denominated funds has intensified dramatically.”
“….”
“Frankly, at this point, we cannot even hope to bring the exchange rate back within the band—merely preventing it from rising above 1,100 won per dollar is beyond our capacity.”

At this confession that even maintaining the already-elevated exchange rate had become difficult, President Kim Sung-gyu’s face contorted.
Chief Secretary Gu Hyung-gi’s expression hardened as well, confronted with a situation far more dire than anticipated.
Observing this, Deputy Prime Minister Lee Eun-hyung continued in a somber tone.

“Foreign exchange reserves are depleting by hundreds of millions of dollars daily due to exchange rate defense and foreign debt repayment, while incoming dollars have been virtually nonexistent for the past several months.”

Deputy Prime Minister Lee Eun-hyung, who had hesitated to speak directly, finally forced himself to continue.

“At this rate, we will exhaust all foreign exchange reserves within a month—or perhaps even a fortnight.”
“!”

President Kim Sung-gyu and Chief Secretary Gu Hyung-gi froze, their expressions betraying shock and alarm.
In the midst of this, Deputy Prime Minister Lee Eun-hyung continued weakly.

“If that occurs, we will face a moratorium—in other words, national default.”
“Hah!”

President Kim Sung-gyu exhaled sharply as if utterly flabbergasted, while a low groan escaped from Chief Secretary Gu Hyung-gi’s lips.

“So you’re saying Korea will default? And on my watch as president?”

President Kim Sung-gyu glared at Deputy Prime Minister Lee Eun-hyung, his face flushed crimson with rage.
Deputy Prime Minister Lee Eun-hyung, unable to meet his gaze, lowered his head to escape the piercing stare and responded quietly.

“…In the worst case, that’s exactly what could happen.”
“That’s what you’re saying, isn’t it!”

President Kim Sung-gyu’s voice rose, the veins in his neck bulging as he shouted.

“We need to seek assistance from the IMF to avoid reaching a dead end.”
“Damn it! I can’t believe this is happening at the end of my term.”

President Kim Sung-gyu’s face contorted in frustration as he waved one hand dismissively.

“I’ll give this more careful consideration. In the meantime, find other possible solutions.”

If such alternatives existed, we would have tried them already.
Deputy Prime Minister Lee Eun-hyung opened his mouth to press further, then seemed to give up, rising from his seat.

“…Then I’ll take my leave.”

As the massive wooden door closed behind him, President Kim Sung-gyu irritably stubbed out his nearly finished cigarette in the ashtray, his annoyance evident.

“I truly regret entrusting the position of Deputy Prime Minister to such an incompetent person.”

In President Kim Sung-gyu’s eyes, this entire crisis appeared to stem from the incompetence of Deputy Prime Minister Lee Eun-hyung and the Ministry of Finance and Economy.
Then Chief Secretary Gu Hyung-gi leaned forward and spoke carefully.

“It appears we have no other options.”

President Kim Sung-gyu furrowed his brow, looking at Chief Secretary Gu Hyung-gi.

“Are you really suggesting we reach out to the IMF?”
“It’s not an easy choice, but surely the lesser evil is better than the worst outcome.”
“Regardless, the presidential election is right around the corner.”

Seeing President Kim Sung-gyu’s reluctance, Chief Secretary Gu Hyung-gi tried to persuade him.

“According to the Deputy Prime Minister, we won’t be able to hold out until the election ends anyway.”
“Hmm.”

President Kim Sung-gyu exhaled a heavy sigh, his arms crossed.

“Then no matter how much we delay, we won’t be able to avoid defeat in this presidential election anyway.”
“…Even if the opposition fractures and votes split, it will be difficult to win an election with the economy in ruins.”

As he seemed to accept reality with some resignation, Chief Secretary Gu Hyung-gi spoke in a subtle tone.

“For the sake of the future, wouldn’t it be far better to be remembered as a president who received IMF bailout financing rather than one who defaulted on national debt?”

President Kim Sung-gyu did not answer, his expression grave.

“Your Excellency. There isn’t much time to hesitate. You must also consider what comes after your term.”

After continued persuasion, President Kim Sung-gyu deliberated further before finally reaching a decision, nodding heavily.

“Before this matter is finalized, if word leaks out, it will cause chaos. Contact the IMF discreetly and proceed with negotiations.”
“Understood.”
“And this Vice Premier seems to lack the necessary competence, so replace him with someone else.”

President Kim Sung-gyu issued the order with a cold expression.
At his command to change the economic chief during a crisis—and with less than six months remaining in his presidential term—Chief Secretary Gu Hyung-gi hesitated.
Honestly, the drawbacks seemed to outweigh the benefits, but President Kim Sung-gyu’s resolve appeared so firm that he could not bring himself to dissuade him. Instead, he asked:

“Do you have someone in mind as his successor?”
“Minister Choi, who currently heads the Ministry of Commerce, Industry and Energy, was originally from the Ministry of Finance before it merged with the Ministry of Finance and Economy, I believe.”
“That’s correct. I understand he served as director of the Finance Bureau and even as vice minister.”
“Since he also worked at the IMF, he would be the perfect talent for a crisis situation like this.”
“That does seem to be the case, listening to you.”

President Kim Sung-gyu leaned back and pressed his temples wearily with one hand as he spoke.

“First, sound out his intentions, and if he agrees, appoint Minister Choi as Deputy Prime Minister for Economic Affairs.”
“Understood. Then I will meet with him and discuss it.”
“Do that.”

* * *

Seok-won, sitting before his broad desk reading a report, noticed something and his eyes gleamed with interest.
He then extended one arm to press the intercom button, and Na Seong-mi’s voice immediately came through the speaker.

[Yes. Please go ahead, sir.]
“Contact Yu Hyun-seok and tell him to come to my office right now if he’s available.”
[Understood.]

After hearing the response, Seok-won picked up the report he’d been reviewing moments earlier, his expression turning thoughtful as he spoke to himself.

“Come to think of it, InterPlaza was spun off from LineComm around this time, wasn’t it.”

InterPlaza was one of the most representative homegrown internet shopping malls that had once boasted considerable market share.
Not only did it open Korea’s first internet shopping mall, but within a few years it was listed on KOSDAQ and rapidly expanded its services into internet bookstores, ticket reservations, and travel, experiencing explosive growth.

“Of course, it didn’t end well, but it was one of those stocks that reaped tremendous benefits from the internet era and saw astronomical gains.”

In other words, it was the kind of company where investing would turn a profit.
As I recalled these memories from before my regression, a knock sounded at the door, and I cleared my thoughts to speak.

“Come in.”

Yu Hyun-seok, dressed in a gray suit, opened the door and entered, approaching my desk before offering a respectful bow.

“You called for me?”
“Yes. I was reviewing the report and saw that InterPlaza, the internet shopping mall, is planning a paid-in capital increase.”

Yu Hyun-seok responded immediately.

“That’s correct. It originally started as an in-house venture under LineComm, but as it becomes an independent entity this time, we’re recruiting investors to participate in the paid-in capital increase.”
“The scale of the paid-in capital increase is one billion won, correct?”
“Yes. LineComm has already invested one billion as establishment capital, and we’re raising an additional one billion.”
“So that makes the shareholding split 50-50 between LineComm and the investors.”
“For now, yes. However, as noted in the report, a second round of paid-in capital increase is planned for next year, so LineComm’s shareholding will be diluted accordingly.”

I nodded slightly.

“That makes sense—the internet shopping mall business itself is still in the market-pioneering phase, so it would require substantial investment.”
“Exactly. Because of that, losses are inevitable for the coming years, which is why LineComm decided to separate it entirely and establish it as an independent entity.”
“The investor recruitment seems to be going well?”

Yu Hyun-seok’s eyes showed a hint of wondering why I’d ask such a thing, but he answered faithfully nonetheless.

“As you’re well aware, given the current economic situation, we’ve been sending out numerous letters of intent for investments here and there, but the response hasn’t been particularly encouraging.”
“With liquidity dried up like this, it’s only natural that people would shy away from new investments.”

Even the major conglomerates ranking among the top tier of the business world were tightening their belts and stumbling through this period.
So it was only natural that new business investments would garner no response.
Yu Seok-hyun, the department head, cautiously probed Seok-won’s expression before asking.

“Are you perhaps looking to invest in InterPlaza?”

At that, Seok-won flashed a broad smile.

“Exactly. It’s a goldmine of a company with extremely bright growth potential, and I can’t pass up the opportunity to invest in it. We’re prepared to invest the entire 1 billion won they’re raising through capital increase on our end.”

Yu Seok-hyun, visibly startled, widened his eyes in astonishment.

“The entire 1 billion won, sir?”
“That’s right.”

Seok-won nodded lightly, his face still wearing a smile.

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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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