Golden Spoon Investment Portfolio - Chapter 385

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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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385. Why aren’t you selling faster?

Hannam-dong, Seoul.
Late into the night, upon hearing that Deputy Prime Minister Lee Eun-hyung was holding an emergency press conference, Chairman Park Tae-hong summoned his two sons to the Park Family Residence and watched the live broadcast together in the study room.

[…Through IMF liquidity adjustment funds, an initial inflow of 5.5 billion dollars is possible, and the scale and conditions of additional support will be determined through consultations with the IMF and participating nations including the United States and Japan. I must emphasize once more that we ask for your unwavering support and trust in the government as we navigate this unexpected foreign exchange crisis together as one people and nation.]

Deputy Prime Minister Lee Eun-hyung, who had delivered the announcement with an unwavering expression throughout, stepped away from the podium and bowed deeply toward the broadcast camera positioned directly ahead.
Chairman Park Tae-hong, seated in the center position and watching the large television screen across from him, inadvertently let out a low, heavy sigh.
Park Jin-hyung, the eldest son, and Seok-won, seated on the sofas on either side, wore equally dark expressions.

“So it’s come to this after all.”

Chairman Park Tae-hong spoke in a troubled voice, glancing at his second son.
Seok-won then responded calmly.

“As I mentioned before, watching the Southeast Asian nations face foreign exchange crises while our government refused to reduce excessive short-term foreign debt and stubbornly maintained the exchange rate band—it was already a predetermined outcome.”
“Seok-won is right. The government, political circles, and the business community all responded far too complacently, and that complacency has brought us to this point.”
“The timing coinciding with the presidential election certainly didn’t help matters either.”

Chairman Park Tae-hong opened the wooden box on the table, withdrew a cigarette, and lit it with his lighter.
He then exhaled white smoke and leaned back in his chair.

“Regardless, the crisis has erupted. What matters now is how we navigate through this difficult period.”

Park Jin-hyung, the eldest son, glanced at Seok-won seated across from him and continued.

“Fortunately, thanks to Seok-won’s advice to implement strict cost-cutting measures, reduce debt as much as possible, and convert all loans to long-term arrangements, we should avoid any immediate major damage.”

Chairman Park Tae-hong nodded, cigarette held between his fingers.

“That’s right. Without my second son, we would have faced a truly catastrophic situation. If we had recklessly pushed forward with the Gangnam Branch construction and expanded the China Factory without knowing this would happen, I shudder to think what would have become of us.”
“Considering the economic downturn and the sharp decline in sales at Midopa Department Store, which has been the group’s cash cow, we might have ended up like Donghae Group, which recently requested negotiations.”
“We probably would have.”

Seok-won sat quietly, trying to hide his embarrassment at his father’s and brother’s praise.

“I had our surplus funds converted to dollars and entrusted to Seok-won, who has grown them substantially. It should prove quite beneficial to the group’s operations going forward.”

Chairman Park Tae-hong smiled faintly and spoke.

“Other chairmen say their hearts sink every time they see the exchange rate spike. But watching my won holdings appreciate effortlessly—it’s as if I’m so full I could skip meals. I can’t tell you how reassuring it feels to be holding dollars in times like these.”
“I feel the same way.”

President Park Jin-hyung chuckled in agreement.
With that satisfied expression, Chairman Park Tae-hong turned to Seok-won with a question.

“Once the IMF rescue financing comes through, the exchange rate should stabilize, so we’ll need to start converting soon, won’t we?”

But Seok-won shook his head firmly.

“No. It’s not time yet.”

Taken aback by this unexpected answer, Chairman Park Tae-hong’s expression grew puzzled.
President Park Jin-hyung also furrowed his brow, pressing for an explanation.

“Not time? You’re saying the exchange rate will keep rising even after the IMF announcement?”
“Yes. The real surge is only beginning now.”
“Hmm. Why do you think that?”

Seok-won turned to face Chairman Park Tae-hong and spoke with gravity.

“It’s simple. Yes, it’s risen sharply to 1,139 won, but that’s only because the Ministry of Finance and Economy and the Bank of Korea are releasing foreign reserves to suppress it.”
“That’s true.”
“Once we’ve applied for rescue financing, we’ll have no choice but to comply with the IMF’s conditions. They’ll definitely demand we completely lift the exchange rate band and introduce a floating exchange rate system where prices are determined freely in the foreign exchange market.”
“!”
“What happens when the hand that’s been pressing down hard on the spring finally lets go?”

Understanding the implication, Chairman Park Tae-hong let out a low exclamation.

“The restraint disappears, so the rebound force will send it shooting up dramatically.”
“For a few days, optimism might keep the exchange rate and market interest rates stable, but if negotiations with the IMF drag on, anxiety will spread far more intensely.”

At that, President Park Jin-hyung leaned back in his seat, his demeanor turning cautious.

“Conversely, couldn’t the negotiations end quickly?”
“That will absolutely never happen.”

Park Jin-hyung found himself at a loss for words at the decisive, cutting response.

“Why else would the United States force nations facing foreign exchange crises to seek support exclusively through the IMF?”
“I’m not sure.”

Park Tae-hong, seated at the head of the table, also looked at Seok-won with curiosity in his eyes.

“It’s to use this opportunity to fit Korea and other Asian nations that have achieved significant economic development into a framework they control, under the plausible pretext of global standards.”

Seok-won continued speaking as he observed the two men listening intently.

“To accomplish that, they’ll force the financial markets—which have been locked down until now—to open completely and attempt to interfere with various economic policies. No matter how dire the situation becomes, the government cannot easily accept actions that amount to domestic interference.”
“That would be difficult.”

Park Jin-hyung responded stiffly, his face tense.

“Which is why the negotiations will inevitably drag on.”

Park Tae-hong stubbed out his half-burned cigarette in the crystal ashtray on the table and spoke.

“So they could intentionally worsen the situation to pressure the Korean government.”
“Exactly. And with the band disappearing and the ceiling wide open, currency speculators will launch their attacks. If that happens, the unleashed exchange rate will skyrocket beyond imagination.”

Park Tae-hong’s brow furrowed as he fully grasped the situation.

“If things unfold as you say, the rate could genuinely reach two thousand won per dollar.”

Park Jin-hyung swallowed hard, his face drained of color at the strained tone.

“We’re already in chaos with the rate exceeding one thousand won, and now two thousand? The very thought is horrifying.”

Park Tae-hong exhaled softly.

“Fear will push the exchange rate through the ceiling, but once an agreement with the IMF is reached and rescue financing begins in earnest, stability will quickly return.”

But despite Seok-won’s words, the two men’s expressions remained tense and unrelieved.
They could easily imagine that even if the exchange rate stabilized someday, enduring until then would feel like a nightmare.

“We don’t need cash immediately anyway. Seok-won, convert the dollars when you think the timing is best.”

When Chairman Park Tae-hong entrusted the matter entirely to him, Seok-won nodded as if he had expected nothing less.

“Yes, I will.”
“Still, thanks to our advance preparations, we won’t face major problems. But I’m worried about what will happen to Korea going forward.”

Seok-won answered in a somewhat subdued voice.

“For a while, we’ll endure a painful period unlike anything we’ve experienced before. But if we overcome it, our economy will become stronger and healthier for having suffered through it.”
“I hope we weather it well, just as you say.”

Chairman Park Tae-hong’s expression grew heavy with concern as he contemplated what lay ahead.

* * *

The next day.
The morning sun rose and daylight broke as it always did, yet overnight the world had transformed completely.

[Government Officially Requests IMF Bailout of 20 Billion Dollars]
[Possibility of Record-Breaking Bailout Scale]
[Concerns of Compound Recession if IMF Demands Severe Austerity]
[Business Community Expects Inevitable Downsizing Next Year with IMF Support]

Newspapers displayed at bus and subway station kiosks were dominated by articles about the IMF bailout request, and anxiety about the future filled people’s faces.
And at every Securities Trading Floor across the nation, investors crowded in from early morning.
All of them were willing to accept losses and sell their stocks to salvage whatever money they could.

“Why won’t you open the doors!”
“Open up, hurry!”
Bang bang bang!!

Investors of all ages and genders—from elderly men in fedoras to middle-aged women carrying infants swaddled on their backs—pounded on the glass doors of the Securities Trading Floor, creating an uproar.

“Everyone, please calm down. We haven’t opened yet. Please wait a moment.”

Securities Company employees rushed out trying to calm the crowd, but it was futile.

“My entire fortune is about to turn into worthless paper—that’s the problem! Open the doors so we can at least fill out sell orders in advance!”

A Middle-aged Man with a booming voice shouted, and the investors around him joined in with their own cries of desperation.

“If we can’t sell our stocks and end up completely broke, you’ll be responsible for it!”
“Open it now, you bastards!”
“Open up! Do it now!”

As the crowd gathered together and shouted with such fury that they seemed ready to smash through the Trading Floor doors at any moment, the pressure was unbearable.

“W-what do we do?”

A terrified employee asked, backing away.
Everyone was breaking into cold sweat trying to calm the people down, but when it proved ineffective, the Securities Company employees had no choice but to open the Trading Floor doors earlier than usual.
Then the investors, now a unified mass, surged through the entrance and rushed straight to the counters, shouting.

“Sell all the stocks in my account!”
“Hey, stop pushing!”
“I was here first!”
“Get out of the way!”

In the midst of chaos where investors were even coming to blows trying to place sell orders even slightly ahead of one another, the Securities Company employees attempted to maintain order, but it was completely useless.
As panic sell orders flooded in demanding sales even at the daily limit down, the counter staff handling the orders, experiencing this situation for the first time, turned pale and stood frozen in confusion.
Then, as trading opened, all eyes turned to the large electronic board mounted on one wall.
As the numbers began to move, every sector recorded the daily limit down, flashing entirely in blue, and the investors fell into even deeper panic.

“This can’t be happening!”
“This is insane.”
“My… my money!”

Faced with the shocking sight of their fortunes evaporating before their eyes, investors either denied reality or lost consciousness entirely, collapsing to the Trading Floor in despair.
And as panic intensified, the more desperate investors grabbed the counter staff, their faces twisted with rage, veins bulging in their necks as they urged them to sell faster.

“I told you to sell it quickly—what are you doing!”
“The stock price keeps dropping right now!”
“Sell it now!”

Shouts erupted from all directions as Securities Company employees broke into cold sweat, frantically hammering away at their computer keyboards.

“Hey! What’s happening!”
“That… well…”

The employee whose hands had frozen over the keyboard hesitated before finally opening his mouth.

“I’m sorry, but the transaction won’t go through…”
“What do you mean it won’t go through!”

The middle-aged man slammed his clenched fist down on the counter.

“Everyone is dumping their stocks, and nobody is buying anything.”
“I don’t care about that—just sell them already!”

But with the market gripped by overwhelming panic, no one was willing to buy stocks. Even as the Securities Company employees continued to enter orders, nothing was being executed at all.
The louder the crowd at the counter grew, the worse the selling pressure became. Less than ten minutes after the market opened, the circuit breaker triggered and trading halted entirely.

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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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