Golden Spoon Investment Portfolio - Chapter 390

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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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390. I thought I might be able to offer some small assistance, so I reached out.

October 20, 1997.
The stock market reopened after the weekend and, as expected, began with a sharp decline.
While the massive electronic ticker boards glowed an ominous blue, financial stocks—banks and securities companies alike—plummeted far more severely than other sectors.
This was the aftermath of yesterday afternoon’s announcement: a suspension of foreign exchange operations and improvement orders for twelve finance companies.
Individual investors gathered in small clusters on the trading floor now wore expressions of utter resignation as the index fell endlessly, with no bottom in sight.

“Ilhan Bank is down again today.”

A middle-aged man clutching an economics newspaper in one hand lamented, and a man in a work jacket replied curtly.

“It’s not just Ilhan. Wooyoung and Foreign Exchange Bank, not to mention all the securities companies—every financial stock is falling like autumn leaves in the dead of winter.”

At that, a woman with a permanent wave began stamping her feet, her face contorted with distress.

“It’s not even 2,500 won anymore. I should have sold my Daehung Securities before the weekend!”

Beside the woman beating her chest in regret, the man in the work jacket spoke with worry etched across his face.

“Tsk. What if actual banks and securities firms end up closing their doors?”
“It’s never happened before, but with all the major corporations collapsing, there’s no reason banks would be spared.”

Hearing the middle-aged man’s grave response, the anxious woman’s expression suddenly hardened with resolve.

“I can’t just sit here anymore.”
“What are you going to do?”
“That money was supposed to help with my eldest son’s wedding. At this rate, I’ll lose it all. I have to sell, even at a loss!”

The man in the work jacket then spoke in a dismissive tone, as if to say that was impossible.

“Come on. Who’s going to buy in a market like this?”
“But I have to do something! I can’t just sit here and watch it all disappear!”

It was a fair point, so the man in the work jacket started to respond but simply closed his mouth instead.

“You don’t happen to hold Daehung Securities shares yourself, do you?”

When the Middle-aged Man asked, the Unknown Photographer in the jumper let out a heavy sigh.

“I thought it wouldn’t fall any further on Friday, so I even used margin to average down… I never imagined it would come to this.”

At his blunt tone, the Middle-aged Man looked up in surprise and spoke.

“Then shouldn’t you be getting out of here and cutting your losses right now?”

The Unknown Photographer scratched the back of his head and stared at the large price board in front of him with a hollow expression.

“Everyone’s just dumping their shares and nobody wants to buy. How am I supposed to sell? And even if I could, I’ve already lost the principal and just accumulated debt—I’m going to be left with nothing.”
“So what are you going to do now?”
“If you go broke in stocks, there’s only one place left to go.”

The Unknown Photographer spoke bitterly.

“Grab a bottle of soju and head to the Han River. What else?”

As the stock market plummeted, dark rumors circulated frequently, so the Middle-aged Man gazed at the Unknown Photographer with concern.

“You….”

Just as he was about to open his mouth to offer some comfort, suddenly the people clustered near the terminals began murmuring loudly.

“Hey! What’s this?”
“Did you see the announcement from Daehung Securities!”
“They’re doing a public tender offer at four thousand won per share… Is this real?”

While the two men stood bewildered by what they were hearing, the woman who had gone to the counter earlier came rushing back with an excited face.

“Did you hear the news?”
“What news?”
“Daehung Securities is buying back their own shares! And at four thousand won per share, no less!”

The two men’s eyes widened at her breathless announcement.
In particular, the Unknown Photographer, who had been wearing a grim expression just moments before, grabbed the woman urgently and asked.

“Is that really true, ma’am?”
“The teller just told me the announcement came through. Phew. If I’d sold my shares any sooner without knowing this would happen, I would’ve made a terrible mistake.”

The woman pressed her hand to her chest in relief.

“But why is Daehung Securities suddenly buying back its own shares? Could the announcement be wrong?”

The man in the jacket asked with a bewildered expression, and the woman shook her hand dismissively.

“It’s not the company—it’s the second son of the Daeheung Group chairman, the major shareholder, who’s buying the shares. What does it matter who buys them? The stock was going to fall below two thousand won anyway, so having someone buy it at a premium is good enough for me.”

The middle-aged man pointed at the large stock ticker board and spoke.

“It looks like Daehung Securities really is buying shares. Look at that.”

The man in the jacket turned his head sharply toward the ticker board, and he saw Daehung Securities’ stock price, which had been falling in line with other financial stocks just moments before, now rebounding and climbing upward.

[Daehung Securities 2,950 (
+421)]

“See? I was right.”

The woman shrugged her shoulders and spoke to the two men.

“They’re not buying all the shares—it’s five million shares or so. Anyway, they’re only buying a limited quantity over four days, so hurry up and apply. I already filled out the paperwork at the counter.”
“Really?”

The man in the jacket’s face grew urgent as he glanced toward the counter.

“I need to hurry and apply too. Thank you, ma’am!”

He rushed off as if his feet were on fire.
If Daehung Securities’ stock price had continued to fall today, he would’ve received a call demanding additional margin deposits, and he would’ve had no choice but to go check the temperature of the Han River. He couldn’t afford to miss this ray of hope that had descended upon him.
The middle-aged man smacked his lips as he watched people, their faces suddenly brightened, surge toward the counter as word spread.

“If I’d known this would happen, I should’ve bought Daehung Securities instead of Ilhan Bank. What a mistake.”

While the stock market, shocked by the suspension of foreign exchange operations and improvement orders for twelve finance companies, plummeted again.
Daehung Securities alone, having announced a public acquisition, hit the daily price limit and surged dramatically to 3,900 won per share in a single day.

***

Gwanghwamun Government Complex Building 1.
Deputy Prime Minister for Economic Affairs Choi Jin-woo sat in the center of the sofa, cigarette in hand, his face taut with tension as he listened to Vice Minister Shin Seung-gi’s report.

“…They argued that excessive capital investment by conglomerates in automobiles, semiconductors, steel, and other sectors has become a major burden on the economy, and demanded structural reforms in these areas. They also strongly insisted on prioritizing the consolidation and closure of insolvent commercial banks and finance companies.”
“Hmm.”

Vice Minister Shin Seung-gi continued speaking, gauging the expression of Deputy Prime Minister Choi Jin-woo, who exhaled a low grunt while his face remained creased with concern.

“Furthermore, they included a condition for complete liberalization—allowing foreign companies and investors to acquire Korean enterprises, including financial institutions, without any restrictions.”

After hearing the full account, Deputy Prime Minister Choi Jin-woo’s eyebrows knitted sharply.

“Damn it. This is essentially telling us to strip off everything, down to our underwear.”

The Ministry of Finance and Economy officials seated around the sofa wore expressions mingling despondency with indignation.

“I told them the conditions were excessively harsh, but they’re taking a hard line—stating they won’t release a single penny of bailout funds unless we accept their demands.”
“This is outrageous. They’ve got us by the throat and demand we sign the agreement without question! It’s like being under occupation!”

Deputy Prime Minister Choi Jin-woo’s voice rose, veins bulging in his neck as his fury erupted.
Vice Minister Shin Seung-gi and the other officials were equally enraged by the IMF’s unilateral approach.
Yet with the other side holding the knife, they had no choice but to be dragged along helplessly.

“Damn.”

Deputy Prime Minister Choi Jin-woo exhaled a sigh, white cigarette smoke curling upward as he spoke.

“They set a precondition for the bailout—raising the short-term interest rate from the current 14% annually to 30%, correct?”
“Yes, sir.”

Vice Minister Shin Seung-gi nodded slightly, his eyes darting sideways to gauge Deputy Prime Minister Choi Jin-woo’s expression.

“Simultaneously, they demanded the immediate closure of twelve finance companies and the merger or sale of two insolvent banks with other banks within six months.”
“On top of that, they want us to implement austerity measures and completely open the stock and bond markets.”
“…Yes, that’s correct.”

Crack!
Deputy Prime Minister for Economic Affairs Choi Jin-woo slammed his palm against the sofa’s armrest and bellowed in fury.

“Everything you’re saying makes sense, but if we implement all of this at once, the shock will be catastrophic! Are you here to help us, or are you trying to destroy Korea’s economy entirely!”

Vice Minister Shin Seung-gi flinched momentarily, then responded with a rigid expression.

“It’s certainly an unreasonable demand, but to escape the foreign exchange crisis immediately, we may have no choice but to make certain concessions.”
“I understand the urgency of the situation. But if the fundamental framework of Korea’s economy collapses entirely, how can we hope to build anything after we overcome this crisis!”

Vice Minister Shin Seung-gi had no response to the angry outburst.
Deputy Prime Minister for Economic Affairs Choi Jin-woo stubbed out a cigarette burned nearly to the filter in an ashtray and asked a question.

“How much foreign exchange reserves do we have left?”

Jung Ji-hoon, the Director of Financial Policy, answered immediately.

“As of this morning, we hold 10.2 billion dollars.”

Upon hearing the figure, Deputy Prime Minister for Economic Affairs Choi Jin-woo’s brow furrowed slightly.

“We’ll drop below 10 billion dollars very soon.”

Vice Minister Shin Seung-gi then spoke with a dark expression.

“Today, a major travel company and a mid-sized cosmetics firm, unable to overcome their financial difficulties, declared final bankruptcy, and amid cascading default fears, the KOSPI closed at 363.66, marking a new record low.”
“Hmm.”
“And in the foreign exchange market, the won-dollar exchange rate rose 43.11 won from the previous day to 1,291.37.”

Vice Minister Shin Seung-gi hesitated briefly, then continued in a somber voice.

“It’s the highest rate since the market average exchange rate system was introduced in 1990.”
“Ugh.”

Deputy Prime Minister for Economic Affairs Choi Jin-woo, visibly frustrated, loosened his necktie with one hand as he responded.

“If we don’t defend the exchange rate, tomorrow it’ll break through 1,300 won.”

Vice Minister Shin Seung-gi and the other officials remained silent, unable to offer any response.

“It feels like I’m standing at the edge of a cliff with nowhere left to turn.”

Everyone in the room shared the same sentiment.
Deputy Prime Minister for Economic Affairs Choi Jin-woo pressed his forehead with his hand, lost in thought, before directing his gaze toward Vice Minister Shin Seung-gi, who was overseeing the negotiations.

“The situation is dire, but we cannot simply capitulate to all their demands. Do whatever it takes to persuade them and mitigate the conditions as much as possible.”

Vice Minister Shin Seung-gi exhaled silently at the daunting directive.
The instruction to “do whatever it takes” left him bewildered—what method could possibly work in such circumstances?
Yet for the sake of the people, he could not allow the negotiations to end as they stood, so he bit his lip firmly and replied.

“Yes. I will do my best.”

After further discussion, the meeting concluded and Vice Minister Shin Seung-gi and the other officials rose from their seats.
Left alone, Deputy Prime Minister for Economic Affairs Choi Jin-woo remained on the sofa, lit a freshly drawn cigarette, and took a drag.
Since assuming the position of Deputy Prime Minister for Economic Affairs, the only thing that had increased over the past several days was cigarette consumption under extreme stress.
He had easily smoked through two packs by today alone.

“Sigh….”

Deputy Prime Minister for Economic Affairs Choi Jin-woo drew the cigarette smoke deep into his lungs, then exhaled slowly while contemplating how to navigate the negotiations with the IMF delegation.
Yet given the overwhelmingly disadvantageous position, no clear path to resolution emerged.
Then, as his phone vibrated with a buzzing sound, Deputy Prime Minister for Economic Affairs Choi Jin-woo retrieved it from his pocket.
Checking the number displayed on the screen, he furrowed his brow in confusion before answering.
The familiar voice of Seok-won came through from the other end.

[Are you very busy?]
“No, no. I was just taking a brief rest.”

[I hope I’m not interrupting.]
“Not at all. But what brings this on so suddenly?”
[If you have time, would it be possible to meet briefly this evening?]

At the unexpected proposal, Deputy Prime Minister for Economic Affairs Choi Jin-woo narrowed his brow.

“What is this regarding?”
[I believe I may be able to offer some small assistance in the negotiations with the IMF delegation, so I’m reaching out.]

Upon hearing those words, Deputy Prime Minister for Economic Affairs Choi Jin-woo’s eyes widened.

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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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