Golden Spoon Investment Portfolio - Chapter 394

—————
This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
—————

394. If that is your wish, I will do as you say.

Seeing Seok-won’s reaction, Deputy Prime Minister Choi Jin-woo quickly added to his words.

“Of course, I’m not asking you to simply take on the finance companies with severe insolvency issues.”
“Please continue.”

As Seok-won spoke with a subdued gaze, Deputy Prime Minister Choi Jin-woo leaned forward and continued his explanation.

“First, the finance companies I’d like you to acquire are Shinchang, Goryeo, and Gyeongnam—three in total.”
“All three lent massive sums to large corporations that went bankrupt in succession from the beginning of the year, and they couldn’t recover the money, resulting in capital erosion.”

Hearing the sharp observation, Deputy Prime Minister Choi Jin-woo felt apologetic about dumping such a burden, so he cleared his throat unnecessarily.

“The plan is for the Bad Bank, which we’re expanding for financial sector restructuring, to acquire all 600 billion won worth of non-performing loans held by these three finance companies.”

The Bad Bank referred to an institution that acquired and processed non-performing assets from the financial sector at low prices for restructuring purposes.

“With only quality loans and assets remaining, you should be more than capable of normalizing them.”

He tried to persuade with subtly flattering words, but Seok-won was not one to be swayed so easily.
Seok-won replied with obvious reluctance.

“If things proceed as you say, the burden would certainly be reduced, but the fundamental risk factors won’t disappear, will they?”

Then, with fingers interlaced, he continued speaking while seated.

“The non-performing loans are a problem, but the biggest reason these finance companies were driven to the brink is excessive short-term foreign debt. If that remains as is, it’s useless. Especially in times like now when the exchange rate rises sharply day after day.”

Deputy Prime Minister Choi Jin-woo himself was well aware that this was frankly shameless.
But the situation now was not one with enough room to quibble over such matters, so he persuaded Seok-won as if pleading.

“So essentially, you’re asking me to process 600 billion won in non-performing loans by injecting public funds, aren’t you?”

Seok-won shook his head as if to say it was out of the question.

“Non-performing assets can be written off by raising capital, but short-term foreign debt that must be repaid within months or one to two years is entirely different. Moreover, depending on how high the exchange rate climbs, the amount owed could balloon infinitely, couldn’t it?”
“That is….”

Deputy Prime Minister Choi Jin-woo understood all too well that short-term foreign debt represented a far heavier burden, so he couldn’t muster any counterargument.

“If you’ll handle the short-term foreign debt instead of the non-performing assets, I’ll gladly take them over.”

That would render the transfer of the finance companies to Seok-won meaningless.
As Deputy Prime Minister Choi Jin-woo fell silent with an awkward expression, the conversation stalled and a heavy silence descended over the hotel room.
Seeing the Deputy Prime Minister struggling to find words, Seok-won spoke again.

“Very well. Given the nation’s difficult circumstances and our past connection, I’ll take the three finance companies as you’ve proposed.”
“You’ll really do that?”

Deputy Prime Minister Choi Jin-woo asked eagerly, his face brightening at once.

“However, I do have one condition of my own.”
“What is it?”

Watching him nod enthusiastically, Seok-won felt a smile tug at the corners of his mouth inwardly.
If he was trying to dump this headache on someone else, he certainly had to pay a commensurate price.

“Give me the Seocho-dong Intelligence Service Headquarters site.”

The Seocho-dong Intelligence Service Headquarters site was located within what would later become Seoripeul Park, spanning 176,290 square meters—approximately 53,328 pyeong.
It was considered the last prime real estate in Gangnam, surrounded by government buildings and cultural and convenience facilities including the Supreme Court, the Supreme Prosecutors’ Office, the National Central Library, and the Seoul Arts Center.
Taken aback by this unexpected demand, Deputy Prime Minister Choi Jin-woo’s brow furrowed.

“Since I’m bearing considerable risk, shouldn’t I receive some benefit in return?”
“Hmm. That’s true, but….”
“Of course, I’m not asking for it free of charge—I’ll pay market value for the land. However, I would appreciate it if you could lift the military protection zone designation and rezone it as a semi-residential area so I can develop it freely.”

Yet Deputy Prime Minister Choi Jin-woo couldn’t answer readily, his expression troubled.
Even at market price, selling off such prime real estate in the heart of Gangnam itself constituted an enormous privilege.
And lifting the military protection zone designation and changing the zoning would have been absolutely unthinkable under normal circumstances.

‘Especially since there were no plans whatsoever to relocate the Intelligence Service Headquarters outside Seoul at this time. This is an even more difficult request.’

Yet he was making such demands precisely because this was a national emergency—a time when the country teetered on the brink of default.

“Ahem. I’d like to accommodate your request if possible, but the sale of the Intelligence Service Headquarters property requires coordination with the Ministry of National Defense. More importantly, we could easily be accused of providing special favors.”

Seokwon, who had anticipated that he wouldn’t receive immediate approval, responded calmly.

“Of course. But aren’t we in a state of emergency right now?”
“?”

Watching Deputy Prime Minister Choi Jin-woo’s puzzled expression, Seokwon persuaded him with a measured tone.

“In the midst of a foreign exchange crisis where even a single dollar is precious, if we were forced to sell the Intelligence Service Headquarters property to secure hundreds of millions of dollars in foreign currency, that would provide sufficient justification.”

For a moment, Deputy Prime Minister Choi Jin-woo’s pupils wavered.

“Out of the ten billion dollars we’ve agreed to provide, after deducting the government’s equity purchase payments for the financial institutions we’re acquiring, the remainder must be borrowed in the form of foreign exchange stabilization bonds with interest. Wouldn’t it be better to reduce the debt amount, even slightly, for the sake of the future?”

When the government issued dollar-denominated bonds to stabilize exchange rates, it was called foreign exchange stabilization bonds—commonly abbreviated as such.
Since Seokwon was no philanthropist, the ten billion dollars naturally wasn’t a gift but a loan at ten percent annual interest in the form of foreign exchange stabilization bonds.
With the nation’s credit rating severely diminished, the interest rates had no choice but to be steep, yet even so, paying hundreds of millions of dollars in interest annually was an unbearable burden.
Because of this, Deputy Prime Minister Choi Jin-woo’s ears perked up at the mention of reducing interest costs.
However, since this wasn’t a decision he could make easily, he deliberated for quite some time before lifting his head to ask.

“If we hand over the Intelligence Service Headquarters property, will you really acquire all three finance companies?”
“Of course. After the acquisition, I’ll also cleanly resolve the short-term foreign debt problem.”

As Seokwon responded immediately, Deputy Prime Minister Choi Jin-woo’s expression brightened.
What the IMF delegation kept nitpicking in negotiations was precisely the handling of insolvent finance companies and excessive short-term foreign debt.
Though not all of them, if Seokwon took on Ilhan Bank, Hansung Bank, and the three finance companies with the most severe insolvency, and a fresh one hundred billion dollars in foreign exchange flowed in, breathing room would certainly open up to some degree.
Moreover, in negotiations with the IMF delegation, while he wouldn’t be able to seize the initiative, at least he wouldn’t be dragged along unilaterally.
Because of this, his desperation to close the deal with Seokwon grew even stronger.
Soon, as if having made a decision, Deputy Prime Minister Choi Jin-woo spoke with a resolute expression.

“Understood. Give me a few more days—or rather, just one more day.”
“Very well.”

Seokwon nodded readily.

***

The next morning.
Seokwon left his home as usual and headed to the office in the waiting Mercedes sedan.
Sitting in the back seat with one leg crossed, gazing out the window, Seokwon straightened his head at the news flowing from the radio.

[…Due to management difficulties from the foreign exchange crisis and unclear business prospects, many companies are canceling offers to newly hired employees or postponing final acceptance announcements.
Kichang Automobile, which filed for corporate rehabilitation, not only canceled all new recruitment plans but also sent letters of cancellation to two hundred final candidates from the second half public recruitment.
The financial sector faces the same situation—finance companies in crisis, as well as commercial banks, are reducing or canceling new recruitment due to next year’s business plans not being finalized, citing unavoidable circumstances.
With the aftermath of the foreign exchange crisis, the number of college graduates finding employment this year has significantly….]

“Come to think of it, it’s the second half recruitment season—how many new employees are we hiring this year?”

Han Ji-sung, sitting in the front passenger seat, turned his head back and answered.

“I believe a total of twenty candidates, both male and female, have passed the final selection.”
“How many at Daehung Securities?”
“Ninety candidates, but as you know, given the poor conditions in the securities industry lately, they’ve canceled the recruitment plan and sent cancellation notices to all the successful candidates.”
“I see.”

Seokwon nodded slightly.
As mentioned in the radio news, with economic downturn and the foreign exchange crisis compounded by International Monetary Fund bailout, nearly all companies had entered austerity management, halting or canceling new employee recruitment.
It was understandable—when companies were on the verge of collapse and existing employees faced layoffs, there was no room to hire new staff.
Yet knowing how difficult a time the youth called the “IMF Generation” had to endure due to suddenly closed job markets and economic hardship, Seokwon’s expression darkened.
Moreover, even those fortunate enough to secure employment faced an era where lifetime employment had vanished, leaving them with unstable work lives.
To such an extent that terms like “Iljae-baek”—meaning most twenty-somethings were unemployed—”Sampal-seon”—those thirty-eight faced retirement—and “Sao-jeong”—those forty-five faced restructuring layoffs—had become fashionable.

‘During the IMF crisis, so many people lost their jobs and became self-employed that signboard shops did incredibly well.’

Still at working age yet laid off from companies, with only severance pay in hand, everyone opened shops.
But business couldn’t possibly thrive during an economic recession.
Eventually, they’d squander even their meager severance and end up buried in debt.
With the future unfolding vividly before his eyes, Seokwon closed his eyes with a bitter heart.

Shortly after arriving at the office, Seokwon took the elevator straight up to the President’s Office.

“A cup of coffee, please.”

As he handed over his jacket, Na Seong-mi responded immediately.

“Yes, understood.”

Seokwon sat at his desk and habitually moved the mouse to check the New York Stock Exchange and exchange rates, but suddenly his hand stopped.

“Hmm….”

Seokwon frowned in contemplation, let out a small sigh, and pressed the intercom button to call Na Seong-mi.

[Yes. What can I do for you, President?]
“Connect me with President Go Young-il.”
[Understood. Please hold for a moment.]

Seokwon released the button and leaned back in his chair.

“No matter how I think about it, I can’t just let this go. It bothers me too much.”

Soon the phone rang with a sharp buzz, and Seokwon picked up the receiver.

[This is Go Young-il.]

Seokwon spoke to the voice of Daehung Securities President Go Young-il.

“You’re wrapping up the public acquisition smoothly, aren’t you?”
[Yes. With the additional funds you provided, we’ve completed the purchase of all the oversubscribed shares. Your stake has increased to 71.5% in total.]
“Good work. By the way, I heard you suspended new hiring this year and notified the final candidates of the cancellation.”
[Ah, yes.]

President Go Young-il answered in a somewhat subdued tone.

[I apologize, but as you know, given the poor economic situation, we had no choice but to make that decision as part of our austerity measures.]
“I understand the reasoning. But unlike other companies, Daehung Securities isn’t in such dire straits that we can’t hire new employees, is it?”
[That’s true, but considering what lies ahead….]
“The foreign exchange crisis won’t last long. And to overcome these difficult times and make a major leap forward again, talented people are more important than anything else. Go ahead and proceed with the new hiring as planned.”

President Go Young-il, after a brief silence, spoke carefully.

[Still, wouldn’t it be better to respond with at least some caution?]
“Soon we won’t be cutting fat—we’ll reach a point where we need to hire more people because we’re short-handed. Do as I say.”

President Go Young-il, inwardly flustered, tried to say something but closed his mouth.
Seokwon’s predictions had never been wrong so far, and moreover, through this public acquisition, he had become the owner with an absolute majority stake.

“If that is your wish, I shall do as you say.”

Go Young-il accepted Seok-won’s instructions without protest.
After ending the call and setting down the receiver, Seok-won’s expression grew noticeably more at ease as he murmured to himself.

“It’s nothing special for me, but those whose job offers were rescinded will gain real hope from this.”

—————
This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
—————