Golden Spoon Investment Portfolio - Chapter 383

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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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383. Is this Your Excellency’s will?

[
Donghae Group’s reckless management and aggressive mergers and acquisitions lead to financial collapse
The Seoul District Court approved Donghae Group’s composition petition today, represented by “xx edible oil” and other subsidiaries.
With this approval, debt payments for all eleven affiliated companies—both large and small—including Donghae Oil, the parent company, as well as Donghae Peregrine Securities, Donghae Peregrine Investment Trust Management, and Donghae Mutual Credit Union, have been frozen.
With Donghae Group’s total debt reaching 960 billion won, Chairman Woo Yong-gap announced that he would make every effort to normalize the group swiftly while offering a public apology.
Meanwhile, the creditor consortium, with its massive debts now frozen, responded to the court’s decision by….]

After reading the Donghae Group article in the newspaper, Seok-won let out a short snort of derision.

“Hmph. As expected, not a single word about taking responsibility and relinquishing management rights.”

Unlike court receivership, where the court manages the company, when composition is approved, the existing management continues to oversee operations.
It was a system designed to allow debtors and creditors to negotiate more autonomously and adjust debts, but reality was far different.

“In fact, it’s been abused as a means to avoid temporary default during the IMF crisis while maintaining management control.”

Chairman Woo Yong-gap’s current actions were no exception.

“But this time, such tricks won’t work.”

Hanwha, Kichang Automobile, and even Daegwang Group—far larger conglomerates—would collapse in succession, triggering massive restructuring. In such a fierce storm, the chances of Donghae Group’s survival were slim.

“Even if they’re lucky enough to endure, I won’t let that happen.”

As I muttered those words with a cold expression, the vibration alert on my cell phone sitting on the desk rang.
I checked the number on the display and answered immediately.

“It must be nighttime in New York—you haven’t gone to bed yet.”
[I was planning to go to bed right after speaking with you, sir.]

At Landon Shore’s response, I chuckled lightly and leaned back against my chair.

“What’s the matter that you called without getting any sleep?”
[Ho-geun, whom you asked me to monitor, departed for Nassau today.]

Seok-won’s eyes gleamed with sudden clarity.

“Nassau means he went to the Bahamas.”
[That’s correct. And he didn’t take a commercial flight—he chartered a business jet.]
“The Bahamas… the perfect place to hide in luxury while evading the law.”
[Emerald waters, pristine white sand, and slender beauties in bikinis—truly a magnificent destination.]
“Judging by your commentary, I take it your wife isn’t nearby.”
[Ha. She retired to the bedroom first, naturally.]

Seok-won chuckled at Landon Shore’s jest.
Then, gazing at the large black-and-white photograph of Chairman Woo Yong-gap prominently displayed in the newspaper atop the desk, I spoke.

“If he was able to charter a business jet, it means he siphoned off a substantial slush fund before filing for reconciliation.”
[From what we’ve confirmed so far—thirty million dollars in soybean import funds from the Donghae Oil U.S. subsidiary account, acquisition funds for the Phuket Golf Course in Thailand, and various other assets—it totals just over eighty million dollars.]

Seok-won furrowed his brow as he spoke.

“Even facing imminent bankruptcy, he managed to squirrel away quite a sum. With that money, while he couldn’t repay all the debts, he could have negotiated with creditors and attempted a turnaround.”
[Precisely. The captain is supposed to be the last to abandon ship, yet he’s scrambling to save himself first. He’s unfit to be an owner.]

In agreement, Seok-won nodded slightly while holding the phone to his ear.

“You’ve kept surveillance on him, I assume?”
[Of course. I’ve dispatched two skilled private investigators to the Bahamas.]
“Tell them not to miss a single move. Monitor everything he does.”
[Understood.]

After ending the call and setting down the phone, Seok-won spoke in a cold, measured tone.

“He’s planning to live comfortably while leaving all the company employees destitute. That’s not going to happen.”

* * *

October 6, 1997, Gimpo International Airport.
Lee Eun-hyung, the Deputy Prime Minister for Economic Affairs, emerged through the VIP corridor looking exhausted after attending the KOPE conference held in Bangkok, Thailand, and Jung Ji-hoon, the Director of Financial Policy, who had come to greet him, quickly stepped forward and bowed respectfully.

“Welcome back, sir.”
“Ah, yes.”
“I’ve arranged a car outside. Shall we proceed?”

Lee Eun-hyung, the Deputy Prime Minister, gave a small nod and glanced subtly around before following Jung Ji-hoon’s guidance toward the exit.
Since his arrival time had been kept secret, not a single journalist was visible as he stepped outside the building, where two black Equus and Sonata sedans were parked side by side.
Once Lee Eun-hyung and his entourage were distributed among the vehicles, they immediately departed the airport grounds and headed toward downtown Seoul.
Jung Ji-hoon, seated in the front passenger seat, turned his head to look at Lee Eun-hyung sitting behind him and spoke.

“The Blue House has instructed you to report the results of the talks immediately upon arrival.”

Though exhausted from the long flight and the talks with Paul Townsend, the IMF Managing Director, Lee Eun-hyung let out a quiet sigh at the mention of the President’s summons and replied.

“Understood.”

Noticing from his dark expression that the talks had not been particularly satisfactory, Jung Ji-hoon fell silent and kept his gaze fixed ahead.
In the silence broken only by the engine’s hum, Lee Eun-hyung sank into the plush leather seat, turned his head toward the window, and gazed out with a worried expression.
Shortly after arriving at the Blue House, Lee Eun-hyung stepped out of the car and entered the main building with Jung Ji-hoon.
After passing through a corridor lined with thick carpet and entering the Attached Office, a familiar staff member from the secretariat immediately relayed a message.

“The President said to come in immediately upon your arrival.”

Lee Eun-hyung nodded and turned back to Jung Ji-hoon, speaking.

“You wait here.”
“Yes.”

After straightening his disheveled appearance from the flight, he gave a light knock and opened the large wooden door, stepping inside.
In the spacious office, President Kim Sung-gyu sat on the sofa with Chief Secretary Gu Hyung-gi.
As Lee Eun-hyung approached and bowed respectfully, President Kim Sung-gyu, seated in the place of honor, turned his head to look at him.

“You came straight from the airport?”
“Yes, sir.”

President Kim Sung-gyu gestured with his chin toward the empty sofa on the left and spoke.

“Sit there.”
“Yes.”

After waiting for him to be seated, President Kim Sung-gyu, with one leg crossed, asked.

“What did Managing Director Townsend have to say?”

Lee Eun-hyung, the Deputy Prime Minister, responded with a dark expression.

“I’ve stated that the only way for Korea to escape its current crisis is to apply for IMF bailout financing as soon as possible.”
“Hmph. That’s what those bastards think.”

As expected, the lukewarm response made Deputy Prime Minister Lee Eun-hyung sigh inwardly before speaking.

“I’m not thrilled about going to the IMF either, but since both the United States and Japan have drawn a line saying they cannot help us directly without going through the IMF, there’s no other solution.”
“Tsk… If we receive bailout financing, how much support can we get?”

President Kim Sung-gyu clicked his tongue and reluctantly asked. Deputy Prime Minister Lee Eun-hyung answered immediately.

“Korea’s quota at the IMF is 1.1 billion dollars. However, based on the precedent of Mexico, Thailand, and Indonesia, which received bailouts earlier, we should be able to secure support up to 500% without difficulty.”

Then Chief Secretary Gu Hyung-gi furrowed his brows and interjected.

“That’s only 5.5 billion dollars at best, isn’t it?”

President Kim Sung-gyu also made no effort to hide his disappointment at the amount being less than expected.

“That’s the minimum amount. If additional support comes separately from the Asian Development Bank and the International Bank for Reconstruction and Development alongside the IMF, we should be able to secure over 20 billion dollars in foreign exchange.”

Only then did President Kim Sung-gyu’s expression relax slightly as he cautiously asked.

“Then we can escape the foreign exchange crisis?”
“Considering the scale of external debt we need to repay, it’s still insufficient. However, we’re facing difficulties due to a sudden blockage in foreign exchange procurement—not because of fundamental problems with Korea’s economic fundamentals. If the IMF’s support is confirmed and we instill confidence that we can secure necessary foreign exchange at any time, the panic will subside and the market will stabilize.”

The foreign exchange crisis had struck due to an excessive amount of short-term external debt and exchange rate instability causing a sudden liquidity crunch—not because Korea’s economy had fatal structural problems.
It was as if Korea’s economy had suddenly suffered a stroke when blood circulation was cut off, collapsing without warning.

“Nothing in this world is free, so the IMF must want something in return for providing bailout financing. What is it?”

In response to President Kim Sung-gyu’s question, Deputy Prime Minister Lee Eun-hyung hesitated for a moment before speaking with difficulty.

“The specifics will have to be determined after we apply for bailout financing and negotiate with the IMF, but there’s a strong possibility they’ll demand large-scale restructuring and financial market liberalization, including the abolition of the fixed exchange rate system, under the pretext of transforming Korea’s developing-nation-type economic structure into a developed-nation-type one.”

Chief Secretary Gu Hyung-gi then hardened his expression and revealed his displeasure.

“That’s essentially demanding direct interference in state affairs!”
“I understand the demands are excessive, but as the party receiving assistance, we’ll have to accept at least some of them.”

President Kim Sung-gyu, listening to this exchange, let out a heavy sigh.

“Hmm.”
“The situation has become so urgent that we can no longer stand alone without external support. We don’t have the luxury of hesitation.”

Vice President Lee Eun-hyung, witnessing this, laid bare the dire circumstances with the expression of someone facing imminent crisis.
President Kim Sung-gyu, who had been silent with his arms crossed, finally forced his lips apart and spoke.

“There’s no choice. We must prevent national default at all costs. Have them request a bailout from the IMF.”

Vice President Lee Eun-hyung, who had been anxiously worried that the President might not grasp the situation and stubbornly refuse, released an inward sigh of relief and bowed his head.

“I will proceed accordingly.”

After discussing further countermeasures, as Vice President Lee Eun-hyung walked down the corridor after leaving the office, he heard a voice calling from behind.

“Wait. I’d like a word with you.”

He stopped and turned to see Chief Secretary Gu Hyung-gi approaching.

“If you’re not too busy, would you spare a moment to speak with me?”
“…?”

Though puzzled, the fact that he’d been chased down like this clearly indicated something important was at hand.
Noticing this, Vice President Lee Eun-hyung gave a subtle nod to Jung Ji-hoon, the director who had accompanied him.

“Go ahead to the car.”
“Yes.”

Once Jung Ji-hoon tactfully withdrew, Chief Secretary Gu Hyung-gi glanced around to confirm no one else was present, then spoke in a grave tone.

“If we receive an IMF bailout for the first time since the nation’s founding, the shock to the people will be considerable, won’t it?”
“Of course it will, but to prevent the situation from deteriorating further, we must endure the pain and push through.”
“However, to make the people understand that this is an unavoidable choice and to soothe their anger even slightly, someone will have to take responsibility for allowing the situation to reach the point where a bailout became necessary.”

Gu Hyung-gi, the Chief Secretary, gazed quietly at Deputy Prime Minister Lee Eun-hyung as he spoke.
In that moment, Deputy Prime Minister Lee Eun-hyung, grasping the implication, stiffened his face and asked in return.

“…Are you saying I should take responsibility and resign?”

At that, Chief Secretary Gu Hyung-gi nodded his head.

“I know this is difficult to say, but I hope you’ll make a decision with the understanding that this is for the nation’s sake.”
“…Is this His Excellency’s will?”
“It is.”

Realizing that the President intended to use him as a scapegoat to cover up the misgovernance that had triggered the foreign exchange crisis, Deputy Prime Minister Lee Eun-hyung felt the world spin before his eyes as an uncontrollable sense of betrayal washed over him.

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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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