Golden Spoon Investment Portfolio - Chapter 398

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

398. You can expect at least a double return on your investment.

Daeheung Venture Capital headquarters in Gangnam.
Manager Choi Ho-geun, who had just arrived at the office, spoke as he observed employees gathered in one corner looking at something.

“What are you all doing?”

The employees turned their heads to look at Manager Choi Ho-geun and each offered their greetings.

“Welcome.”
“Good morning, Manager.”
“Good morning!”
“Yes, yes. Good morning.”

Manager Choi Ho-geun raised one hand in a light acknowledgment of their greetings, then hung his jacket on the coat rack behind his desk and turned around.

“What? Is there something interesting going on?”
“Did you see the article about Ilhan Bank and Hansung Bank merging?”

Manager Jung Hwan-yeop, sporting a stylish Gucci tie he’d received as a holiday gift last time, held up a newspaper in one hand as he spoke. Since the radio had been broadcasting nothing but merger-related news during the entire drive to work, Manager Choi Ho-geun responded as if he’d expected as much.
Manager Choi Ho-geun answered as if he had expected as much, since merger-related news had been playing on the radio the entire drive over.

“From this morning, it’s been all over the newspapers and radio—how could I not know about it?”

Hong Jae-hee then jumped in with a flushed face.

“In a situation like this, there’s only one place that would invest such a massive sum in Korea.”
“In a situation like this, there can’t be many places in Korea worth investing such a large sum of money in.”

Yu Seok-hyun opened his mouth in admiration at the affirmative response.

“Wow. The way he just goes for it so boldly—that’s what real manhood looks like. That’s the kind of guts a true man shows!”
“Damn. Boldly going all-in like that is totally what a real man does. You’re showing us exactly what true masculine spirit looks like!”

Jung Hwan-yeop, standing beside her, kept giving thumbs up.

“Exactly. You’ve become the controlling shareholder of the largest bank in the Domestic Market.”
“The scale is completely different. Following the President out of the securities company was the best decision of my life!”

Watching Jung Hwan-yeop, who had entered full praise mode, Choi Ho-geun snorted derisively.

“You were whining about how you’d made a mistake jumping ship and ended up like a duck egg on the Nakdong River, and now you’ve forgotten all that?”
“When did I ever say that?”
“You were lamenting all about it over soju at a pojangmacha in the back alleys of Yeouido. Why, should I recite every single word you said back then so vividly that it comes rushing back?”

Choi Ho-geun was the type who could rattle off even the varieties of side dishes they’d eaten that night if he felt like it.

“You certainly have an unnecessarily good memory, don’t you.”
“What? You punk!”

As he glared with blazing eyes, Jung Hwan-yeop approached with a chuckle and kneaded his shoulder.

“Come on, don’t get all riled up. If you keep getting worked up like that, it’s bad for your blood pressure.”
“If you’d just stop being a smartass, I’d live to a ripe old age, so get lost.”

The bickering between Choi Ho-geun, who shrugged him off, and Jung Hwan-yeop, who clung persistently, continued noisily.
The employees watched the two of them banter like Tom and Jerry as always, stifling their laughter.
Just then, the phone rang with a sharp trill, and Noh Hee-won, the youngest, quickly picked up the receiver.

“Yes. Daeheung Venture Capital Fund Management Department. Ah. Yes. I’ll relay that message right away.”

After the brief call, Noh Hee-won spoke to Choi Ho-geun, who was still bickering.

“Manager Choi.”
“Hmm? What is it?”
“The President is looking for you. He says to come up right now.”
“Is that so?”

Choi Ho-geun pushed Jung Hwan-yeop’s face away and hurriedly put his jacket back on, which he’d carelessly removed.

“I’ll be back soon, so don’t slack off and say I’m not here! I’m reviewing the U.S. market trend data the New York office sent by fax yesterday.”
“That’s a cold way to put it. Anyone listening would think I don’t work and just play around all day.”
“Yeah. That’s what it looks like.”
“Manager Choi!”

Manager Choi Ho-geun let out a soft chuckle, grabbed his company diary, and stepped out of his office.

Moments later, as Manager Choi Ho-geun entered the attached office, Na Seong-mi, who had been seated at her desk, rose with a smile and spoke.

“You can go right in.”

Manager Choi Ho-geun nodded and stood before the closed door, taking a moment to straighten his appearance.
Then he knocked lightly, grasped the door handle, and stepped into the President’s Office.

“Ah, you’re here.”

Seok-won, who had been looking at something on his monitor, briefly lifted his head.

“Have a seat on the sofa over there.”
“Yes.”

Manager Choi Ho-geun bowed respectfully and straightened his posture before sitting on the sofa positioned to one side of the President’s Office, just as Seok-won had instructed.
Seok-won then rose from his seat, picked up a thin folder in his hand, came around from behind his desk, and took the central seat.
Seok-won, crossing one leg over the other, spoke first.

“The market opens soon, so I’ll keep this brief.”
“Understood.”

Manager Choi Ho-geun straightened his back and looked at him attentively.

“You’ve had a good rest, so it’s time we got back to work.”

The moment the words left his mouth, Manager Choi Ho-geun’s eyes gleamed with anticipation.

“I’ve been waiting to hear that.”

Seeing the vitality return to his face and the way he leaned forward eagerly, Seok-won smiled faintly.

“Starting today, we’ll begin gradually selling off the dollars we’ve been holding.”
“So you believe the exchange rate has reached its peak now.”

Seok-won shrugged and answered.

“I wish that were the case, but unfortunately it isn’t.”
“…?”
“Even if negotiations conclude and the International Monetary Fund provides support, the dollars will flow right back out the moment they arrive.”

Choi Ho-geun grasped the implication and responded with a slightly darkened expression.

“You’re saying that short-term foreign debt reaching hundreds of billions of dollars will become a massive drain sucking out those dollars.”
“Exactly.”

Seok-won interlaced his fingers and continued speaking with measured calm.

“While I can’t pinpoint the exact figure, the short-term foreign debt of domestic financial institutions—including the problematic finance companies—is estimated to be around 28 billion dollars.”

Despite short-term foreign debt swelling to such proportions, the government had merely stood by helplessly. Choi Ho-geun exhaled a silent sigh.

“On top of that, foreign investment capital in the domestic stock market amounts to roughly 10.6 billion dollars.”
“….”
“In other words, capital waiting to flee Korea is hovering near 40 billion dollars.”

Faced with such a bleak outlook, Choi Ho-geun attempted to counter.

“Hasn’t a substantial amount of capital already fled over the past several months?”

But Seok-won shook his head calmly.

“Even accounting for that, considerable demand for currency conversion will remain. If not, Korea would have already declared a moratorium once foreign reserves were completely depleted.”

Since Korea’s short-term foreign debt and foreign investment in the stock market far exceeded the foreign reserves it possessed, Choi Ho-geun nodded heavily in acknowledgment.

“By contrast, the International Monetary Fund can directly provide at most around 20 billion dollars in foreign currency. And that won’t arrive all at once—it will be disbursed in multiple tranches.”
“Then unless the sentiment fundamentally shifts, International Monetary Fund support will drain away entirely as it arrives. It’ll become nothing but a conduit for foreign investors to escape Korea.”
“You’ve assessed it precisely.”

Seok-won continued with a bitter expression.

“I wish my prediction were wrong, but based on how things have unfolded so far, it seems accurate to say the exchange rate still has considerable room to rise.”

Choi Ho-geun nodded slowly, his low murmur suggesting agreement.
Yet there remained something he found even more incomprehensible.

“Then wouldn’t it be more advantageous to wait a bit longer before exchanging rather than converting now?”
“Of course it would be. But even if we’re fortunate enough to sell all our dollars at the peak, the return we could expect would be only around 30% at best.”

Since a 30% gain here meant the exchange rate reaching 2,000 won per dollar, Manager Choi Ho-geun swallowed hard without realizing it.

‘The cries of despair are already echoing from all sides, and if the exchange rate hits 2,000 won…’

The mere thought of it was truly horrifying.
And yet another thought crossed my mind.

‘Even on Wall Street, where they’ve gathered only the most brilliant talents, achieving a 20-30% annual return is considered remarkable. And yet he’s saying 30% profit is insufficient.’

Manager Choi Ho-geun shook his head inwardly.
Had anyone else said such a thing, he would have cursed them outright, but coming from Seok-won’s mouth, it actually made sense.
This was someone who routinely generated returns exceeding 100% or 200%—naturally, such modest figures wouldn’t satisfy him.
Then Seok-won curled up one corner of his mouth and smiled.

“But unlike the exchange rate, the stock market has fallen all the way to the bottom. If we carefully pick up stocks that will bounce sharply when the market rebounds, we can expect at least double returns or more.”

Seeing the two fingers Seok-won raised, Manager Choi Ho-geun’s eyes sparkled.

“The market has certainly fallen excessively due to the shock. Even if it merely returns to normal levels, we should easily capture over 100% gains.”

Seok-won wore an inwardly satisfied expression as he observed Manager Choi Ho-geun displaying enthusiasm with an animated face.
Had he shown reluctance about the certain currency arbitrage rather than embracing the riskier trading that promised far greater rewards, Seok-won would have been deeply disappointed.

“You really do understand me well, Manager Choi.”

With a smile on his face, Seok-won pushed the thin folder resting on the table toward Manager Choi Ho-geun.

“Take a look.”

Manager Choi Ho-geun then opened the folder and quickly scanned its contents with his eyes.

[ ST Telecom $200 million
Millennium Computer $100 million
Dao Technology $100 million
Dusol CSN $50 million
ST Securities $100 million
Geumoh Chemical $100 million]
.
.
.

As Choi Ho-geun lifted his head again, a glimmer of curiosity flickered across his eyes.

“Is this a purchase list?”
“You catch on quick, don’t you? That’s right. We’ll accumulate the stocks listed there according to the amounts next to them.”

Choi Ho-geun examined the list once more, slowly this time, and his brow furrowed slightly when he noticed that several securities companies were included.
Then he turned to Seok-won and asked cautiously.

“Setting aside the other stocks, securities companies have taken a heavy blow from this market crash and carry restructuring risks. Are you certain it’s wise to purchase them?”

Though Choi Ho-geun expressed skepticism, Seok-won remained unperturbed.
In fact, he preferred this—when someone offered their own judgment rather than blindly following orders—far more than mindless compliance.
So without the slightest hint of displeasure, he explained why securities companies were included as acquisition targets.

“It’s true that securities companies, like other financial institutions, are in dire straits. But consider the flip side—the steeper the fall, the higher they’ll bounce when they rebound.”
“That may be true, but if they go bankrupt or become restructuring targets before that happens, we could suffer significant losses.”

Unlike Choi Ho-geun, who voiced his concerns, Seok-won remained composed.

“That’s precisely why I’ve narrowed it down to just three securities companies—ones that can survive without being swept away by the aftermath of the foreign exchange crisis.”

Then Seok-won flashed a slight smile, his teeth gleaming.

“Once the panic subsides and investment capital flows back in, reviving the market, securities companies will be the first sector to benefit—and benefit enormously.”

That’s when Choi Ho-geun grasped what he’d overlooked, and his mouth fell open in admiration.

“As trading volume increases, custodial fees will rise proportionally. Their earnings will certainly improve dramatically.”
“Exactly. Think about how much trading will occur as the market rebounds and climbs. All of that becomes securities company revenue. It’s not hard to imagine that their net profits, currently in the red, will skyrocket.”

Seok-won lifted the corners of his mouth into a smile as he spoke.

“There’s a saying that in gambling establishments, it’s not the gamblers who make money—it’s the casino.”
“I see.”

Manager Choi Ho-geun returned the smile while thinking to himself that his perspective was indeed different from most.
I could never tire of marveling at such exceptional foresight, seeing several moves ahead as if reading the future itself.

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