Golden Spoon Investment Portfolio - Chapter 397

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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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397. My son is better than I am.

October 28, 1997, Gwanghwamun Government Complex Building 1.
Deputy Prime Minister Choi Jin-woo sat on the sofa with an anxious expression, tapping his fingers on the armrest while keeping his eyes fixed on the telephone resting on the side table.
Then he rolled up his dress shirt sleeve to check the watch on his wrist and muttered to himself.

“By now, the transfer should have gone through… I don’t understand why there’s been no contact.”

Today was the day he was supposed to wire the promised 10 billion dollars after concluding negotiations with Seok-won.
A sudden ominous thought crossed Deputy Prime Minister Choi Jin-woo’s mind, and his expression hardened.

“Surely nothing has gone wrong.”

There was good reason why Deputy Prime Minister Choi Jin-woo could scarcely wait calmly and was growing increasingly restless.
Yesterday, foreign exchange reserves had fallen below 10 billion dollars, and now national default was truly just around the corner.
If Seok-won did not inject 10 billion dollars today, there would be no choice but to surrender unconditionally to the International Monetary Fund, and his heart burned with anxiety with each passing second.
Vice Minister Shin Seung-gi, unable to bear how anxious he was, spoke up.

“There’s still about ten minutes left, so let’s wait just a bit longer.”

But Deputy Prime Minister Choi Jin-woo looked down at his wrist watch again and clicked his tongue.

“Tsk. I don’t know why time moves so slowly today.”

Then, as if his throat were parched, he picked up his teacup and took a sip of coffee before speaking in a subdued voice.

“As feared, the exchange rate broke through 1,500 won today.”
“As you know, with foreign exchange reserves depleted, we’re unable to properly defend the exchange rate. Moreover, Japanese financial institutions are indiscriminately recalling loans and pushing the exchange rate up sharply.”

Vice Minister Shin Seung-gi responded with a grim expression.

“Of all times, to have Japan causing trouble too—truly an unhelpful neighbor.”

Deputy Prime Minister Choi Jin-woo spoke with a furrowed brow, and Vice Minister Shin Seung-gi responded gravely.

“Following the bankruptcies of Takushoku Bank and Sanyo Securities, now Tokyo Citibank has collapsed as well. The atmosphere of financial institution domino bankruptcies in Japan continues to intensify.”

Tokuyo City Bank was a small regional bank that primarily operated in Miyagi Prefecture, Japan.
Though smaller than the two institutions that had previously collapsed, the failure of three financial companies within a single month sent shockwaves of panic through the Japanese archipelago—a cascade of financial institution failures.

“The non-performing loan problem that remained like a time bomb after the bubble burst is now exploding, despite the Japanese Government’s efforts to contain it.”

Deputy Prime Minister Choi Jin-woo continued, his face contorted as he clicked his tongue in frustration.

“The real question is why this is happening now, of all times.”

Vice Minister Shin Seung-gi exhaled a small, exasperated sigh.

“Indeed, sir. The situation has become truly complicated.”

Deputy Prime Minister Choi Jin-woo glanced at his wristwatch out of habit, then leaned back in his chair.

“How much outstanding debt did you say Korean companies and banks had borrowed from Japan?”
“We estimate there’s over 16 billion dollars remaining.”

Deputy Prime Minister Choi Jin-woo’s brow furrowed immediately.

“So over 7 billion dollars in foreign currency has already flowed out to Japan, and yet that much still remains?”
“Given the geographic proximity and the long history of transactions, it appears most of our short-term foreign debt was sourced through financial institutions in Japan and Hong Kong.”
“Ugh.”

Deputy Prime Minister Choi Jin-woo groaned, his expression one of deep frustration.
From the corporations’ perspective, it was naturally easier and more convenient to secure foreign currency through Japan and Hong Kong than through the United States or other Western nations.
However, the consequence was a lack of diversification in borrowing channels—the debt was concentrated excessively in specific countries. Now, as problems emerged and loans were being called in all at once, the nation faced severe liquidity depletion and skyrocketing exchange rates.

“Japan’s situation won’t improve easily. If we assume at least half of the loans will be recalled, even an additional 10 billion dollars won’t sustain us for long.”
“That’s likely to be the case, sir.”

Deputy Prime Minister Choi Jin-woo wiped his face, his expression darkening.

“In the end, the only way to fundamentally resolve this is to seek a bailout from the International Monetary Fund.”

Vice Minister Shin Seung-gi nodded heavily in silent agreement.
With International Monetary Fund support, not only would foreign currency flow in, but it would also provide neighboring countries and creditors with the assurance that Korea wouldn’t exhaust its foreign reserves and fall into national default—insolvency.
This would naturally ease the panic and fear, stabilizing the exchange rate.
Deputy Prime Minister Choi Jin-woo leaned back on the sofa, muttering wearily.

“We absolutely need that 100 billion dollars to come through this time—no matter what, we have to minimize any disadvantageous terms in the negotiations.”

With frustration mounting, I reached for a cigarette and pulled one out.

Ring, ring! Ring, ring!

At last, the long-awaited phone rang.
Deputy Prime Minister Choi Jin-woo shot upright and quickly grabbed the receiver.

“Hello.”
[This is Director Jung.]

Recognizing the familiar voice of Financial Policy Director Jung Ji-hoon, Deputy Prime Minister Choi Jin-woo pressed urgently, his expression tense.

“Has the money arrived?”
[Yes. The 100 billion dollars has just been deposited into the Bank of Korea.]

Hearing the answer he’d been waiting for, Deputy Prime Minister Choi Jin-woo exhaled an involuntary sigh of relief, still holding the receiver.
His voice steadied as he spoke.

“Then proceed with distributing the press release to the media as planned.”
[Understood.]

As I hung up, Vice Minister Shin Seung-gi leaned forward eagerly and asked urgently.

“The 100 billion dollars has arrived?”
“So they say.”

As I answered with visible relief, Vice Minister Shin Seung-gi’s tense expression finally relaxed.

“That’s truly fortunate.”

“We’ve caught our breath for now, but this won’t sustain us for long. We need to seize this advantageous position and close out the negotiations by any means necessary.”

“We’ve caught our breath for now, but we won’t be able to hold out like this for long. So when we get one favorable card, we need to wrap up negotiations by any means necessary.”

Shin Seung-gi, the vice minister, then answered with a determined expression.

“I will do my best.”
“Good. I’ll be counting on you.”

* * *

[
Ilhan Bank and Hansung Bank Merger Creates Mega Bank!
As the first signal of restructuring financially troubled institutions in the aftermath of the foreign exchange crisis, the Ministry of Finance and Economy announced today the sudden merger of Ilhan Bank and Hansung Bank.
Currently, both banks have received government support totaling 1.2 trillion won, but due to management failures, independent survival is impossible.
Accordingly, the government has decided to merge the two banks into one and, combined with Shinchang and Goryeo, which are currently suspended from operations due to massive debt, and Gyeongnam Finance, will launch a mega bank with total assets reaching 100 trillion won.
The mega bank thus created will have the Eldorado Fund acquire and operate the government’s 50% stake at 800 million dollars, equivalent to 1.2 trillion won at current exchange rates.
Furthermore, the Eldorado Fund is known to conduct a paid-in capital increase of 1 billion dollars simultaneously with the acquisition to normalize the merged bank.
Vice Minister Shin Seung-gi of the Ministry of Finance and Economy stated, “This measure is intended to dispel concerns about bank failures arising from negotiations with the International Monetary Fund and to resolve financial market instability at an early stage.”
In the midst of all this….]

Chairman Park Tae-hong, sitting on the living room sofa with warm sunlight streaming in, perused the morning newspaper and let out a hollow laugh upon seeing the large article on the front page.

“Heh. This fellow actually went ahead and acquired the banks.”

Though I had heard about it beforehand, the fact that he purchased two of the five major commercial banks at once made it difficult to feel real even while reading the acquisition article.

“To be the owner of a mega bank with over 100 trillion in assets….”

I knew my second son was no ordinary vessel, but I never imagined he would undertake something of this magnitude.
Without receiving any help and having become a major figure who surpassed me on his own, Chairman Park Tae-hong gazed down at the newspaper article with a satisfied expression.

“My son has surpassed me.”

Then his wife, Jo Deok-rye, approached from behind and asked.

“What are you looking at so intently?”

Chairman Park Tae-hong looked up and replied to his wife as she sat on the sofa across from him.

“An article about my second son came out.”
“My goodness. What article? Let me see it too.”

Jo Deok-rye, holding her teacup with both hands, spoke with eyes sparkling brightly.
When Chairman Park Tae-hong handed over the newspaper he was holding, Jo Deok-rye flipped through it for a while, and finding no mention of her son’s name no matter how hard she looked, her expression became puzzled.

“Where did you see an article about Seok-won?”
“It’s right there on the front page, in big letters.”
“There’s only the bank merger article.”

Chairman Park Tae-hong chuckled at Jo Deok-rye’s tilted head and confused expression.

“You have eyes but cannot see—truly, you’re hopeless.”
“What?”
“That thing on the front page. That one.”

Jo Deok-rye furrowed her smooth, perfectly maintained forehead without a single wrinkle, examined the article once more, and finally lost her patience.

“You’re joking with me. Our son’s name isn’t mentioned anywhere!”
“No, no, I’m serious. You know how much trouble I’d be in with you if I were joking.”
“Then what are you talking about?”
“It says that Ilhan Bank and Hansung Bank are merging to create a super bank, doesn’t it?”
“Yes, it does.”

Seeing her half-pouting face, Chairman Park Tae-hong smiled and spoke in a soothing tone.

“The person who acquired this super bank created from the merger is our second son.”

Jo Deok-rye’s eyes widened as a question mark appeared on her face.

“What do you mean?”
“The article says that the Eldorado Fund is acquiring the bank’s shares.”
“So?”

Chairman Park Tae-hong watched his bewildered wife’s reaction with amusement and blurted out.

“The owner of the Eldorado Fund is Seok-won.”
“Is that really true?”

Jo Deok-rye responded with disbelief, and Chairman Park Tae-hong replied.

“Do I look like someone who would joke about something like this?”
“No, of course not.”

Jo Deok-rye gasped repeatedly, her eyes widening at the newspaper as she exclaimed in astonishment.
Park Tae-hong found amusement in his wife’s surprise and spoke of the matter as though it were nothing remarkable.

“We bought Gucci before, so why are you making such a fuss about this?”

Jo Deok-rye, her mouth still agape, quickly shot him a sideways glance.

“How is this the same as that?”

Acquiring a luxury brand and acquiring a bank—especially a megabank with assets exceeding one hundred trillion won—were indeed entirely different matters.

“Well, the scale is somewhat different, I suppose.”
“It’s vastly different.”

Jo Deok-rye read through the article she had already thoroughly examined, exclaiming in wonder once more.

“Goodness. What an extraordinary thing this is.”

Watching her reaction, Park Tae-hong spoke with satisfaction.

“I knew he was exceptional from the moment he got into Harvard University, that difficult place. It wasn’t some ordinary donation-based admission—he got in purely through his own merit.”

Jo Deok-rye’s face broke into a broad smile.

“That’s right. Your late father-in-law said he had a prophetic dream of a great golden carp coming into his wife’s skirts, and that Seok-won was born with tremendous fortune.”
“He did indeed.”

Park Tae-hong closed his eyes for a moment, thinking of his father who was no longer in this world.

“If only he had lived a little longer, he would have seen Seok-won and been so very pleased. Why did he have to leave so soon?”

As he murmured with a wistful expression, Jo Deok-rye offered her husband comfort.

“Your father must be looking down from heaven and rejoicing.”
“I’m sure he is.”

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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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