Golden Spoon Investment Portfolio - Chapter 399

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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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399. When a harsh winter arrives, it is the common people who suffer the most.

October 30, 1997.
Despite the late hour approaching midnight, the Presidential Office at the Blue House was brightly illuminated.
Within the spacious office, enveloped in heavy silence.
President Kim Sung-gyu sat centered on an antique wooden sofa, with his close aides Secretary General Gu Hyung-gi and Economic Deputy Prime Minister Choi Jin-woo seated on either side, their expressions grave.
After intense negotiations with the IMF delegation, President Kim Sung-gyu set down the agreement document they had barely managed to draft, straightened his posture, and broke the silence.

“This reads more like a surrender document than an agreement.”

President Kim Sung-gyu turned his head toward Economic Deputy Prime Minister Choi Jin-woo, his displeasure evident, and spoke.

“Is this truly the best we could do?”

Economic Deputy Prime Minister Choi Jin-woo, anxious that the hard-won agreement might somehow be overturned, answered immediately.

“Townsend’s stance was so unyielding that we had no choice but to concede on a considerable portion of his demands.”

At this, President Kim Sung-gyu’s expression darkened with displeasure.

“Didn’t you say that if we could secure an additional ten billion dollars through this Eldorado fund or whatever it is, we could conduct the negotiations far more smoothly?”

The words rose to his throat—that thanks to that, we at least managed to avoid being completely overwhelmed and escaped the worst outcome—but he swallowed them back down.
Economic Deputy Prime Minister Choi Jin-woo, suppressing the urge to voice what would serve no purpose, lowered his head and spoke.

“While that did help us extinguish the immediate crisis, as you know, the situation in Japan has deteriorated, accelerating capital flight. We simply could not afford to delay any further.”

At that moment, Secretary General Gu Hyung-gi, seated across from them, interjected.

“The exchange rate and stock market are in their worst condition. If we continue like this, we may reach a point from which recovery becomes truly difficult. Add to that the intense pressure from the United States—I understand your reluctance, but I believe it would be better to reach an agreement at this level now.”

Yet despite the words of these two men, President Kim Sung-gyu, his brow furrowed, said nothing and simply remained silent, his arms crossed.
If he signed now, he would be recorded in history as the first president to accept harsh IMF bailout conditions, and his hand would not move readily.
However, the longer time dragged on, the more disadvantageous the situation became for Korea, so Economic Deputy Prime Minister Choi Jin-woo leaned forward and spoke.

“Your Excellency. Short-term foreign debt maturing by year-end that cannot be rolled over exceeds ten billion dollars.”
“….”
“And if we add the foreign currency needed to import essential goods like crude oil… I apologize for being blunt, but within a month, our foreign exchange reserves will be completely depleted.”

Choi Jin-woo, the Deputy Prime Minister for Economics, gazed at President Kim Sung-gyu, whose lips remained firmly sealed, and pressed his case with earnest conviction.

“Should we reach that point, we’ll have no choice but to negotiate with the IMF under even more unfavorable terms.”
“Ugh.”

President Kim Sung-gyu let out a groan of pain, and though reluctant, issued his directive with visible resignation.

“Convene a State Council meeting.”

Opening a State Council session to obtain approval was an essential procedure before signing the agreement.

“Yes. I’ll contact everyone immediately.”

Having received the answer he sought, Deputy Prime Minister Choi Jin-woo felt a weight lift from his chest and quickly rose to his feet, fearing any change of heart.
Though the hour was late, everyone had been given advance notice that an emergency State Council meeting would be held today, so they would be awaiting the call—there would be no complications.
As Deputy Prime Minister Choi Jin-woo left the office, though the ordeal was far from over, he found himself unconsciously exhaling a quiet sigh of relief at having cleared one major hurdle.

* * *

The next day.
In the office of Deputy Prime Minister Choi Jin-woo on the nineteenth floor of the Gwanghwamun Government Complex Building 1, he and IMF Managing Director Townsend signed the IMF financial support agreement.
While Deputy Prime Minister Choi Jin-woo inscribed his name on the agreement with a darkened expression, Townsend across the table wore a satisfied smile throughout, as though he had obtained everything he desired.
Once both had finished signing and risen from their seats to exchange the agreements and complete a brief commemorative photograph, Townsend extended his hand first with a smile.

“Now that the bailout has begun, I hope Korea will swiftly overcome this foreign exchange crisis and restore normalcy.”

Deputy Prime Minister Choi Jin-woo grasped his hand with a wry expression and responded in fluent English.

“I sincerely hope so as well.”

He then handed the agreement he held to Jung Ji-hoon, the Chief Secretary seated nearby, and turned to Townsend.

“The promised support funds will arrive today, correct?”
“Of course. Washington headquarters has already approved it, so the first tranche of 5.5 billion dollars will be transferred.”

Upon hearing the definitive answer, Minister Choi Jin-woo’s expression visibly relaxed, and Jung Ji-hoon, the Chief Secretary, carefully interjected with a message.

“The journalists are waiting in the Grand Conference Room.”

Minister Choi Jin-woo gave a subtle nod and suggested to Townsend that they move to the press conference venue.

“Shall we head to the press conference room then?”
“Yes, let’s.”

Townsend, responding with a smile, led the IMF delegation ahead, guided by Ministry of Finance and Economy staff toward the Grand Conference Room where the press conference had been prepared.

“Phew.”

Minister Choi Jin-woo exhaled softly, his demeanor that of a victor brimming with confidence, before following with heavy, deliberate steps.

The Grand Conference Room in Building 1 of the Government Complex was spacious enough to accommodate four hundred people at once.
It was typically the venue for various official ceremonies held by civil servants—opening and closing ceremonies for the workday—but today it was packed entirely with journalists.
Among the domestic press corps and numerous foreign correspondents, every Korean journalist bore a heavy, somber expression.
Mingled among these reporters were Go Dae-hong, a photographer from Hansung Daily News, and Ju Chi-do, a journalist from World Economy News.
Ju Chi-do, holding a notepad in one hand while seated, glanced around the room and spoke.

“Usually when events like this happen, all the high-ranking Ministry officials show up, but I barely see any today.”

Go Dae-hong, who had positioned his telephoto lens camera on a tripod beside him, responded curtly.

“This will be remembered as a shameful chapter in history—the moment Korea bowed to the IMF. Who would want their face immortalized in photographs at such a humiliating event?”
“Fair point. I’d feel the same way.”

Ju Chi-do smacked his lips and continued.

“Minister Choi must be absolutely miserable having to hold this press conference today.”

Go Dae-hong tested the shutter on his freshly loaded film, his voice flat and matter-of-fact.

“Compared to the grueling suffering the people will endure under the harsh IMF regime ahead, this is nothing.”
“That’s true.”

Ju Chi-do nodded in agreement.
At that moment, murmurs rippled through the room as Minister Choi Jin-woo entered the Grand Conference Room alongside Townsend, the IMF Governor.

Whoosh, whoosh! Click, click!

Camera shutters rattled from all directions as camera flashes erupted in brilliant bursts of light.
The stark contrast was unmistakable: Minister Choi, the Deputy Prime Minister for Economics, walked through the corridor cleared by Ministry of Finance and Economy staff and security guards with a rigid expression, while Townsend, the IMF Managing Director, strolled leisurely with a composed smile.

“You don’t even need to see the negotiation results to know how it went.”

Go Dae-hong lowered his camera from his face, his expression turning bitter.
As the two men took their seats side by side in the chairs prepared on the podium, the frenzied flashing of camera lights gradually subsided.
Minister Choi, the Deputy Prime Minister for Economics, then stepped forward to the lectern where multiple microphones had been installed.
Minister Choi, the Deputy Prime Minister for Economics, gazed silently for a moment at the journalists and cameras filling the space before him, his expression troubled, before finally opening his mouth.

“My fellow citizens, I stand here today as the Deputy Prime Minister for Economics, responsible for overseeing our nation’s economic policy, with a sincere heart of apology to you all.”

Minister Choi’s voice trembled slightly as he continued.

“Burdened by excessive debt, major conglomerates have faced cascading defaults, financial institutions have accumulated non-performing assets, and compounded by financial instability in Southeast Asian nations, we have failed to wisely manage Korea’s financial and foreign exchange crisis and have been forced to seek emergency financial support from the IMF. For this, I express my deepest regrets to the people, along with all staff from the economic ministries, particularly the Ministry of Finance and Economy. The government has been working with the IMF….”
The government has been working with the IMF….”

All citizens watched Minister Choi’s announcement of the IMF agreement with heavy hearts as his deep voice continued.

* * *

[… 21 billion dollars in US currency will be provided to Korea as a standby loan with a three-year maturity. Of this, 5.5 billion dollars will be transferred to the Korean government by the end of today. Additionally, the IBRD has completed preparations to provide 10 billion dollars to support Korea’s specific structural reform programs, and the ADB President has also pledged to provide 4 billion dollars. Furthermore, the United States, Japan, Australia, Canada, France, and Germany have committed to providing 20 billion dollars in additional financial support should further funds be needed.
Fulfilling the conditions agreed upon in this agreement is essential to overcoming this historic economic crisis….]

Seok-won, who stood with his arms folded and listened to the statement from IMF President Townsend in front of reporters followed by Deputy Prime Minister for Economic Affairs Choi Jin-woo on the television installed in the president’s office, had a bitter look on his face.

“An agreement has finally been reached.”

The market, which had been struggling until the last minute and was trembling with anxiety over whether negotiations with the IMF might break down and lead to national bankruptcy, was able to take a breather with this.

“But the crisis is not completely over yet.”

The details of the agreement will soon be known, but if the harsh demands are met, such as raising the call interest rate by 25% per year, allowing hostile takeovers by foreigners and foreign financial companies to take over domestic financial companies, and suspending the operations of insolvent comprehensive financial companies, the Korean economy and people will once again have to endure great pain.

“In the end, when the harsh winter comes, it is the common people who suffer the most.”

As many companies went bankrupt due to the foreign exchange crisis, the streets were flooded with unemployed people who lost their jobs.
As the foreign exchange crisis ravaged the nation, countless corporations collapsed in succession, and the streets overflowed with the unemployed who had lost their livelihoods.
The mass unemployment crisis spiraled into family devastation, and even after the entire nation united to overcome the International Monetary Fund crisis, it left behind massive economic and social aftereffects.

“You won’t be able to avoid facing a cold winter, but you won’t be able to sweep away valuable companies and assets like you shop for whatever you want.”

Seokwon walked to the desk and picked up the key phone receiver placed on top.
Seok-won walked to his desk and picked up the telephone receiver resting on top of it.

“How is the market atmosphere?”

Then Manager Ho-Geun Choi recognized the voice and answered right away.

[As soon as the announcement of the conclusion of negotiations was announced, it hit bottom and is now turning upward.]

It was natural for investors to cheer as this was the first good news in a long time, after a series of corporate bankruptcies and a surge in exchange rates and interest rates.

“How far has the purchase process progressed?”
“How much progress has been made on the acquisition operations?”

Manager Choi Ho-geun responded with a keen sense of humor, but Seok-won did not specifically reprimand him.

“I guess that’s because it hasn’t been long since I gave the order.”

Seokwon continued as he checked the stock index on the monitor installed on his desk.

“For now, stop buying for a moment.”
“Pause the acquisitions for now.”

When I asked in a curious voice, Seokwon answered calmly.

“That’s right. Right now, there will be a big rebound due to good news for the first time in a while, but there will be fluctuations soon, so let’s buy again then.”

Only then did Manager Ho-Geun Choi understand what he meant and answered with understanding.

[yes. All right.]

Seokwon put down the receiver and muttered softly as he looked at the stock index rising red.

“Unfortunately, this rise is a fake rebound.”

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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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