Golden Spoon Investment Portfolio - Chapter 412

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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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412. There’s no reason I can’t do what an American private fund did.

[Asian Development Bank (ADB) First Tranche of $2 Billion in Funding Confirmed to Arrive Tomorrow]
[World Bank (IBRD) President Promises Swift Funding Support with IMF by Weekend]
[Government Expands Foreign Investor Limit on KOSDAQ to 25% as Condition for ADB Funding Implementation]
[IMF, IBRD, and ADB to Inject $8.5 Billion in Foreign Currency into Korea by This Week]
[Exchange Rate Plummets to 1,725 Won per Dollar After Sharp Spike in Foreign Exchange Market!]
[Will the Foreign Exchange Market Find Stability Through Early Influx of Second Tranche Funding After Anxiety Peaked?]
[Government Reiterates Commitment to Implement IMF Agreement Terms as Quickly as Possible]

The crimson sunset flooded the windows as the evening deepened.
Seok-won spread out the afternoon newspapers, their ink still fresh and pungent from the press.
Across the expansive L-shaped desk sat multiple monitors displaying exchange rate graphs and complex economic indicators.
I rested my chin on my arm, clad in a white dress shirt, as I scanned through the articles on the foreign exchange market.

“They released the articles right on schedule, just as promised.”

A faint smile played at my lips as I murmured to myself.
We had pre-arranged that the moment I flooded the market with massive dollars to suppress the exchange rate, the international financial institutions including the IMF would announce their agreement to accelerate the disbursement of their pledged funds.

“They must have felt a strong temptation to announce the early support immediately when the exchange rate kept climbing, but they exercised remarkable restraint.”

Of course, even if the Ministry of Finance and Economy had disclosed the early support when the exchange rate exceeded 2,000 won in that critical situation, I was confident I could have handled the currency speculators alone.
This wasn’t mere bravado—I had secured a staggering $20 billion in funds specifically for this battle, making it entirely feasible.

“If the Quantum Fund and other major Wall Street players had been involved, it would have been a much tougher fight.”

Yet even so, I never doubted victory.

“With this development, the hedge funds that were stubbornly holding on will now rush to liquidate their positions before their losses mount further.”

As if to prove my point, the monitor showing the London Foreign Exchange Market that had just opened displayed the won-dollar exchange rate continuing its downward trend without any rebound.
I picked up my phone from the desk and dialed Landon Shore’s number.
After a few rings, Landon answered with a bright voice.

[I was actually about to call you.]
“You did an absolutely brilliant job.”

Landon Shore burst into laughter on the other end of the line.

[We were tackled right at the goal line. The Wall Street Hedge Funds are in complete chaos.]

Seok-won smiled faintly as he responded.

“That’s why we had to be careful until the very last moment to avoid a fumble. Excessive greed always leads to disaster.”
[That’s absolutely right.]

In American football, a fumble occurs when a ball carrier loses possession after being tackled.
Had they been satisfied with their initial assault on the won, forcing the Korean government to announce its IMF bailout, Seok-won would never have considered joining in.
But their insatiable greed drove the Korean government to the brink, and ultimately Seok-won could not stand idly by—a situation entirely of their own making.

[In a gamble, the one being played is the fool.]
“Continue purchasing won according to plan and drive the exchange rate down to 1,500.”
[Understood.]

Landon Shore added something as if it had just occurred to him, his voice brimming with confidence.

[Ah. And I have some news to share with you.]
“What is it?”
[Following Hokkaido Takushoku Bank, the Long-Term Credit Bank of Japan might be heading toward bankruptcy.]
“…!”

Seok-won’s brow furrowed at this unexpected revelation.

“You mean the Long-Term Credit Bank of Japan?”
[Yes, that’s correct.]
“There were no warning signs whatsoever. How did this happen?”
[Coincidentally, it’s connected to us.]

Seok-won tilted his head slightly in confusion and pressed further.

“What do you mean by that?”
[You made quite a profit buying CDS options from Japan’s Big Four Securities Firms, didn’t you?]
“That’s true.”
[What I’ve just discovered is that Nomura Securities resold some of the CDS options they sold to us to the Long-Term Credit Bank of Japan and hedged their position.]
“They hedged their position?”

Seok-won’s expression shifted to one of surprise.

[Yes. To the tune of one billion dollars.]

Since the total value of CDS options contracted with Nomura Securities was three billion dollars, they had dumped one-third of it onto the Long-Term Credit Bank of Japan.
The moment I heard those words, the puzzle pieces clicked into place in my mind.

“I always thought it was strange that when the CDS options became problematic, Nomura’s reported losses were smaller compared to other securities firms. So the Long-Term Credit Bank of Japan took the hit instead.”
[I too have finally made sense of everything.]

Landon Shore nodded in agreement and continued.

[They kept it hidden all this time, but when the Hokkaido Takushoku Bank went bankrupt recently, the truth came to light during the Ministry of Finance’s emergency inspection of commercial banks.]
“I see.”

Seok-won nodded slightly, as if understanding.
Truth be told, when I first heard the story, I wasn’t shocked because one of Japan’s largest commercial banks—the Long-Term Credit Bank—was facing bankruptcy.
Rather, I already knew that after the Hokkaido Takushoku Bank, the Long-Term Credit Bank would also fail, further deepening Japan’s financial crisis.
But the problem was supposed to surface next year, not this year. When I heard it had happened now, I was genuinely startled.

‘As expected, my involvement has twisted the flow of events once again.’

If I hadn’t entered into CDS option contracts with Japan’s Big Four Securities Firms in the first place, the Long-Term Credit Bank would never have suffered such massive losses of one billion dollars.
Though I had prepared myself mentally, seeing the timeline I knew gradually distort one piece at a time filled me with conflicting emotions.
Then, struck by a sudden thought, my expression turned puzzled.

“One billion dollars isn’t a small sum, but this is one of the world’s largest megabanks, not just in Japan. Can bankruptcy talk really come up so easily?”
[I also don’t think it will go as far as bankruptcy, but apparently the scale of non-performing loans they’re holding is enormous.]
“How much are we talking about?”
[There’s no official announcement yet, but if the information Porter uncovered is accurate, it’s at least three trillion yen or more.]

My eyes widened, and I asked again, wondering if I’d misheard.

“Three trillion yen, you said?”
[Yes. In dollars, that comes to approximately 24 billion.]
“That’s insane.”

Seok-won shook his head slowly.
Even for a world-class megabank, losses of this magnitude couldn’t simply be overlooked.

[The problem is that this isn’t the full extent—it’s the minimum estimate.]
“Considering how aggressively they extended real estate loans during the bubble era—not just domestically in Japan, but across the United States, Australia, and Southeast Asia—there must be far more non-performing assets yet to surface.”
[I share that assessment.]

Beyond real estate financing, where they’d dramatically leveraged their operations, their core corporate lending division had also suffered devastating losses from the bubble’s collapse, accumulating substantial bad debt.

[While the non-performing asset portfolio is substantial, considering the Long-Term Credit Bank of Japan’s critical role as a vital funding source for corporations, the Japanese Government won’t simply abandon it.]
“They’ll inject public funds.”
[Precisely. Too many Japanese corporations would face immediate crisis if the Long-Term Credit Bank of Japan faltered.]

Given its function—comparable to Korea’s Industrial Bank—the probability was extraordinarily high.

‘In the original timeline, the Japanese Government poured massive public funds into it, desperately attempting to keep it afloat.’

But as the excavation continued, the mounting non-performing debt eventually forced the Japanese Government into an unavoidable nationalization.

‘If my memory serves, the public funds injected into the Long-Term Credit Bank of Japan exceeded four trillion yen.’

It was a staggering sum—yet despite pouring such astronomical amounts, they failed to achieve proper stabilization, ultimately resorting to a foreign sale.
Since they were disposing of a failed bank, it had to be sold at a pittance, and most of the injected public funds were never recovered.
The over four trillion yen that vanished into thin air became a direct burden on the Japanese people.

‘Wait… this…’

As the thought crystallized, I realized it mirrored the sequence of events Korea had experienced after the IMF crisis—processing failed financial institutions—like a perfect mirror image.
A peculiar sensation washed over me, and a sudden thought flickered across my mind, my eyes sharpening with recognition.
Straightening immediately, I gripped my phone and spoke.

“Have Porter investigate in detail which corporations hold debt with the Long-Term Credit Bank of Japan.”
[What do you intend to use that information for?]

Landon asked, puzzled by the sudden directive.

“When massive public funds are injected and banks are normalized, there will inevitably be fire sales of non-performing assets, won’t there?”

Fire sales—a term originating from the discounted sale of goods damaged by fire and difficult to dispose of—referred to the practice of selling non-performing assets at bargain prices when their true value was hard to recover.
Landon Shore, grasping the meaning immediately, let out an exclamation.

[So you’re looking to unearth hidden treasures buried within the mountains of non-performing assets being liquidated at rock-bottom prices.]
“Exactly. Since they’ve extended massive loans to numerous Japanese corporations and real estate ventures, there should be plenty of quality assets if we dig carefully enough.”
[Typically, viable assets are separated and set aside, but given the staggering volume of non-performing debt requiring disposal, there’s certainly room for oversights and missed opportunities. I’ll relay your instructions to Porter right away.]

“Have him obtain the complete inventory not just from the Long-Term Credit Bank of Japan, but from all other failed financial institutions as well. Then conduct a thorough examination to identify anything worth salvaging.”
[Understood.]

After exchanging a few more words, Seok-won ended the call and set his phone on the desk.
He leaned back in his chair, running one hand thoughtfully across his cleanly shaven jaw as he murmured to himself.

“The Long-Term Credit Bank of Japan… When it was nationalized and then resold to the private sector, I can’t quite recall the name of the acquirer, but it was likely an American private fund.”

After the acquisition, they consistently reaped substantial dividends, and years later, when they relisted the stock on the Tokyo Exchange, they achieved returns exceeding 100%.

“It’s far too easy money to simply let slip away. There’s no reason I can’t do what an American private fund accomplished.”

He’d already been considering expanding the Japanese operations anyway—this was the perfect opportunity.
Seok-won began methodically strategizing in his mind, moving beyond merely acquiring non-performing assets at bargain prices to devising a comprehensive plan for acquiring the Long-Term Credit Bank of Japan outright and maximizing profits.

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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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