Golden Spoon Investment Portfolio - Chapter 410

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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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410. One thing is certain: the Eldorado Fund saved South Korea.

Daehung Venture Capital Headquarters, Gangnam, Seoul.

[USD/KRW : 1,730.10 (
177.42)]

Seok-won sat at his desk in the President’s Office, watching the exchange rate plummet as if the morning’s surge past 2,000 won per dollar had been nothing but a mirage. A deep smile played across his face.

“I thought they’d hold out longer. The resistance is weaker than expected.”

The way the market crumbled like a sandcastle under the relentless assault made him wonder if there might be some hidden trap lurking beneath the surface.
When his phone vibrated, Seok-won picked it up from his desk.

[It’s Landon, Boss.]
“I was about to call you. I’m seeing massive won purchases from other players too. It looks like a short squeeze has triggered, doesn’t it?”
[Haha, exactly right. Just as you said, we dumped 4 billion dollars all at once, and they folded completely.]

The strategy of pouring in a massive sum all at once to suppress the surging exchange rate and break it had worked perfectly.

“It’s good news, but I’m a bit concerned that they abandoned their positions and started covering their shorts so quickly without much resistance.”
[As I mentioned before, when they saw us flooding dollars in like dropping a nuclear bomb, they were shocked. But once they realized we’d taken the opposite position, the hedge funds panicked and fled.]

Landon spoke with a laugh in his voice.

“The hedge funds got scared of us.”

Hearing what seemed like an exaggeration, Landon’s tone turned serious.

[You’re aware that the Quantum Fund and other major players got caught in this won attack, right?]
“And?”
[There are some decent-sized funds like P&P Partners, but most of the smaller funds were shorting the won. When a massive whale appears, they’re not going to stick around.]
“Hmm.”

Seok-won leaned back in his chair, listening to what Landon had to say.

[The fund has only been established for a few years, but during that time, it has struck jackpot multiple times and grown the managed capital to hundreds of billions of dollars. At this level, you’re ranking in the top three on Wall Street.]
“That’s certainly true.”

Now that I thought about it, I had indeed grown the assets to an absurdly massive scale.

[Knowing your incredible capital mobilization capacity, when we aggressively inject tens of billions of dollars at once and charge in fearlessly, it’s only natural that they panic and retreat with their tails between their legs.]

I could sense Landon Shore chuckling on the other end of the line.

“Now that you mention it, that could very well be the case.”
[Sometimes it seems like the boss doesn’t fully realize how much influence you wield.]

Landon Shore continued enthusiastically, as if determined to make me understand it clearly this time.

[Before, people praised your achievements and gave you the nickname “The Midas Touch,” but after going through this Asian currency crisis, seeing you generate far higher returns than the Quantum Fund led by George Hamilton—the legendary hedge fund manager—people are now saying a new king has emerged.]
“Is that so?”

Hearing this for the first time, I wore an intrigued expression before letting out a soft laugh.

“It’s just idle chatter for amusement, but I can’t say it feels bad.”

I brushed it off lightly as nothing significant and steered the conversation back on track.

“In any case, if the hedge funds retreat like this, there’s nothing wrong with that.”
[The hedge funds that entered short positions are now repurchasing the Korean won they sold off, exerting strong downward pressure on the exchange rate. Shouldn’t we reduce our selling slightly?]

I stroked my cleanly shaved chin with one hand, pondering briefly before speaking again.

“No. If we reduce our selling, some hedge funds might get second thoughts. Let’s stick to the original plan and release dollars to firmly suppress the won.”
[Understood.]

Landon Shore answered immediately and naturally shifted the topic.

[And we’ve confirmed that the White House had a hand in George Hamilton and the major Wall Street players not participating in this Korean won short-betting.]

Hearing this, my eyes gleamed with interest.

“I thought something was off about this, and it turns out the White House was making moves.”
[They were trying to use the International Monetary Fund to open up the financial markets of various Asian countries. But as Korea was shaken and Japan began to falter, the crisis grew to a point they could barely manage, so they panicked.]

China had not yet experienced its rapid growth, so Japan still held the position of the world’s second-largest economy.
When Japan was caught in the crossfire of the Asian financial crisis and the collapse of the bubbles it had suppressed for so long triggered a wave of non-performing loan problems, it panicked and rushed to contain the damage.
Seok-won spoke coldly.

“It seems they’ve only just realized they were playing with fire next to a powder keg.”
[A powder keg—that’s a precise way to put it. If the sparks from Korea’s economic crisis were to cross the Korea Strait and ignite Japan, the chaos wouldn’t be confined to Asia but could spread into a global catastrophe.]
“If that happens, Japanese financial institutions will recall yen deposits scattered across the globe, just as they’re doing in Korea to survive. The United States and Wall Street would suffer tremendous shocks as well.”
[Exactly. Just the U.S. Treasury bonds held by the Japanese government and financial institutions alone are staggering. If they were to sell even a portion of them, the international financial markets would descend into outright panic.]

Seok-won adjusted his grip on the phone in his hand and asked as if confirming something.

“Japan holds over 300 billion dollars in U.S. Treasury bonds, doesn’t it?”
[That’s correct. Roughly 1.2149 trillion dollars in U.S. Treasury bonds are held overseas, and Japan’s holdings represent approximately one-quarter of that amount.]

Of the 300 billion dollars in U.S. Treasury bonds Japan held, about one-third were in private hands—banks, securities firms, and insurance companies.

“Even if the Japanese government doesn’t sell, if the private sector alone dumps the bonds they’re holding, it would be nothing short of catastrophic.”
[The very thought of it is horrifying.]

What would occur was a kind of yen carry trade liquidation—yen funds that had gone abroad flowing back into Japan.

“That’s why George Hamilton and the other major players on Wall Street didn’t resist the White House’s intervention and complied without protest.”
[True enough. No matter how much the White House flexes its muscles, these aren’t the types to cooperate willingly when money is at stake.]
“In any case, one thing has become clear from all this.”
[What would that be?]
“There won’t be any further explosive surges in the exchange rate.”

Landon Shore immediately grasped the implication and responded.

[With the United States and Japan actively stepping in to prevent the crisis from spreading, that’s exactly what will happen.]

It was bitter that these two heavyweight nations had to intervene for the situation to be barely contained, but that was the reality.

“The biggest obstacle—the issue of the next government—has also been resolved, since the presidential candidates have publicly reaffirmed their commitment to honoring the terms agreed upon with the International Monetary Fund.”
[I see. Then I’ll continue purchasing won as instructed.]
“Since we can’t predict what might happen next, don’t let your guard down until the very end. If any changes occur, contact me immediately.”
[Understood.]

After ending the call, Seok-won set down his phone and gazed intently at the exchange rate graph displayed on the monitor.

“The exchange rate has plummeted far more steeply than anticipated, so the losses for the hedge funds that shorted the won must be substantial.”

Seok-won pictured the hedge funds that had entered hoping to hit the jackpot, only to watch their profits evaporate before their eyes in an instant, and his lips curled upward into a smile.

* * *

Korea Exchange Bank Main Branch, Euljiro, Seoul.
The moment the foreign exchange market opened and the exchange rate surged past the 2,000 won per dollar mark—a threshold many believed would never be breached—the Foreign Exchange Bank Trading Floor filled with despair and sighs.
The exchange rate, which had hovered around 890 won per dollar at the start of the year, had skyrocketed by over 124 percent, and rightfully so.
While a higher exchange rate favored exports, there were limits to such benefits.
South Korea, a resource-poor nation dependent on imports for nearly all raw materials from crude oil onward, faced nothing short of catastrophe when the exchange rate climbed this precipitously.
Moreover, with foreign exchange reserves depleted by the currency crisis—the very cushion needed to weather such elevated rates—the nation had been driven to the brink of the abyss.
Everyone despaired as the specter of a moratorium, a word too delicate even to speak aloud, drew near.
But then, in that very moment, a miracle unfolded.
The exchange rate, which had surged past 2,000 won per dollar, suddenly broke and began plummeting sharply.

“Wh… what…?”
“Everyone, look at that!”
“2,030 won. 2,000. 1,995… the… the exchange rate…?”
“It’s falling. The exchange rate is dropping!”

Na Un-hak, his stubbled face unshaven, stared at the won-dollar exchange rate displayed on the massive electronic board, his eyes wide as saucers, his mouth hanging open in disbelief.
Then, as despair drained from his face, joy and elation surged in its place.
Seol Gyeong-seok, standing beside him, rose to his feet, his expression vacant as he stammered while watching the board.

“Am… am I seeing things right now?”
“That’s what I’d like to know.”
“How is this even possible?”
“That’s exactly what I’m asking.”

Na Un-hak couldn’t make sense of the situation either.
The outflow of foreign investment, the indiscriminate recall of short-term foreign debt, combined with attacks from currency speculators—it had all painted a picture of hopelessness.
Yet suddenly, as if someone had swung a hammer down, a deluge of won-buying orders had broken the exchange rate’s trajectory. It could only be called a miracle.
Had he not witnessed it with his own eyes in real time, he would never have believed it.

“Do you think the government intervened?”

Na Un-hak paused briefly in thought, then shook his head.

“That can’t be it.”

If they’d had the resources, they would have mounted a defense long before the exchange rate broke through 2,000 won.
Seol Gyeong-sik stared at the massive electronic board with an expression of burning curiosity, still mesmerized by the numbers.

“The buying volume coming in is absolutely staggering. Who on earth is doing this?”
“I’m wondering the same thing.”

Just then, one of the traders shot to his feet and shouted loudly.

“I figured it out!”
“What?”
“Where? Who’s behind this?”

As everyone murmured in confusion, the trader who had first cried out raised his voice again.

“It’s the Eldorado Fund! The one dumping massive amounts of dollars right now is the Eldorado Fund!”
“What? The Eldorado Fund?!”
“If it’s them, they’re the Wall Street heavyweight that just acquired Ilhan Bank and Hansung Bank.”
“What’s their angle all of a sudden?”

Once the identity of whoever was pulling down the soaring won-dollar exchange rate became clear, the Foreign Exchange Bank traders grew even more bewildered, unable to fathom their intentions.

“The Eldorado Fund, huh….”

Na Un-hak exhaled slowly, as if he hadn’t anticipated this either.

“Could it be that Wall Street players are fighting each other over Korean won?”
“Who knows.”

Na Un-hak swept back his disheveled hair with one hand, then let out a long sigh, his gaze fixed on the plummeting exchange rate.

“One thing’s for certain—the Eldorado Fund has saved South Korea from the brink of the cliff.”

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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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