Golden Spoon Investment Portfolio - Chapter 459

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

459. He really said he’d pay for everything in dollars?

Inside the Presidential Office at the Blue House, where the steep rocky cliffs of Inwang Mountain were visible through the window.
President Kim Jae-chun, seated at a large desk made of solid wood, lifted his head and looked at Chief Secretary Woo Chun-il standing before him.

“So Daeheung Group is hoping to acquire the Gimpo Landfill and Korean Tongun?”
“That’s correct. They are major transactions amounting to 1.2094 trillion won and 1.5 trillion won respectively.”

Upon hearing the figures, President Kim Jae-chun’s expression showed slight surprise.

“Combined, that’s over 2.7 trillion won. Does Daeheung Group really have that kind of financial capacity?”

Then, recalling who the second son of Daeheung Group Chairman Park Tae-hong was, he shrugged his shoulders.

“Ah. Right. They’d have plenty of money.”

Chief Secretary Woo Chun-il then added with a serious expression.

“He said that if the acquisition goes through, he will deposit the entire payment in cash all at once.”
“Impressive.”

President Kim Jae-chun let out an exclamation, leaning back in his chair as he asked.

“That’s quite a sum, yet he’s so generous with it. A true heavyweight recognized on Wall Street. I assume it’s President Park of Daheung Venture Capital pushing this deal forward?”
“That’s what I understand.”
“As expected.”

President Kim Jae-chun nodded slightly, as if he’d known it all along.

“Even though we’ve weathered the worst of the crisis, the financial turmoil continues. President Park is the only one bold enough to pursue a transaction of this magnitude.”

Observing that President Kim Jae-chun maintained a notably favorable attitude toward Seok-won, Chief Secretary Woo Chun-il spoke.

“If Daeheung Group acquires the Gimpo Landfill and Korean Tongun, it will greatly assist in stabilizing the Asia-Pacific Group, which is currently undergoing workout while burdened with nearly 5 trillion won in debt.”
“Indeed.”

President Kim Jae-chun interlaced his fingers across his chest as he settled back in his chair.

“Korean Tongun is one thing, but purchasing the barren wasteland of Gimpo Landfill for over a trillion won—that’s clearly an investment predicated on development gains, isn’t it?”
“That would appear to be the case.”
“The Ministry of Agriculture has taken a hardline stance, insisting the land was designated for agricultural use and cannot be rezoned under any circumstances. I’m concerned this situation might spiral into something far more complicated down the road.”

The Asia-Pacific Group had attempted zoning changes multiple times to secure funding, only to be rebuffed each time by the Ministry of Agriculture’s staunch opposition.
If Daheung Group acquired Gimpo Landfill and zoning approval followed immediately, accusations of preferential treatment would be inevitable—as clear as day.

‘But if I refuse the zoning change, I’ve received far too much from President Park already.’

Moreover, with Russia’s moratorium declaration and the global economic downturn, another foreign exchange crisis could erupt at any moment.
This made it all the more imperative to maintain favorable relations with Seok-won, a titan of Wall Street.
Even having won the presidential election and entered the Blue House, Seok-won remained an undeniable power broker who could not be dismissed.
As his closest aide of many years, Chief Secretary Woo Chun-il immediately grasped his internal conflict and offered his thoughts.

“There is precedent for rezoning portions of Gimpo Landfill to construct a combined-cycle power plant and sewage treatment facility. So it’s hardly impossible.”
“True enough, but the opposition and media will seize on this as favoritism and use it as ammunition against us.”

As President Kim Jae-chun crossed his arms with a disgruntled expression, Chief Secretary Woo Chun-il offered a meaningful smile and presented a solution.

“Anticipating this, President Park has provided a card to silence both the opposition and the media.”
“What is it?”

President Kim Jae-chun straightened in his seat, his interest piqued, and Chief Secretary Woo Chun-il answered immediately.

“He intends to pay the entire acquisition price not in won, but in dollars.”
“…!”

Taken aback by this unexpected revelation, President Kim Jae-chun’s eyes widened as he pressed further.

“He’s truly paying the entire amount in dollars?”
“That is correct.”

Chief Secretary Woo Chun-il continued, his expression brimming with satisfaction.

“If the acquisition succeeds, approximately 1.764 billion dollars in foreign currency will flow into the domestic market.”

A subtle smile gradually spread across President Kim Jae-chun’s lips.

“The exchange rate is already becoming volatile again, and concerns about a recurrence of the foreign exchange crisis are growing. If that much dollar inflow comes in, it would be a tremendous help in alleviating the anxiety.”
“With such justification, the opposition party and media won’t be able to raise objections even if we provide greater preferential treatment rather than merely changing the purpose.”
“Yes, that’s right.”

President Kim Jae-chun broke into a broad smile, looking thoroughly satisfied.

“Haha. I’ve been worried about the steadily rising exchange rate. I’m receiving tremendous help from Chairman Park once again.”
“Then we’ll proceed with the sale of Gimpo Landfill and Korean Tongun to Daeheung Group.”

President Kim Jae-chun nodded and added one more thing.

“Still, to prevent any gossip later, it would be better to conduct a formal bidding process, just in case.”

President Kim Jae-chun leaned back in his chair with an unconcerned expression.

“Though realistically, no one will offer terms as favorable as Daeheung Group.”
“While someone might bid a higher price, there’s no one else who can pay it entirely in dollars.”

Chief Secretary Woo Chun-il spoke with a smile, and President Kim Jae-chun burst into hearty laughter.

“Haha! You’re absolutely right.”

* * *

September 29, 1998. New York, USA.
Seok-won sat cross-legged on the sofa in the President’s Office of Eldorado Fund, gazing out through the expansive panoramic windows at the magnificent vista beyond.
Landon Shore and Andrew occupied the seats on either side, and all three watched the large television mounted across from them, waiting for the Federal Reserve Chairman’s press conference that would begin shortly.
As Seok-won took a sip of whiskey, the ice in his glass clinked softly against the sides, and Landon Shore opened his mouth.

“It appears to be starting now.”

Looking up at the television, the side door opened, and Chairman Monroe, the Federal Reserve Chairman in his mid-sixties wearing black-framed glasses, was just making his appearance.
As always, Chairman Monroe wore an expressionless face with his mouth set firmly, holding a file containing his remarks in one hand as he walked toward the podium at the front.
In that instant, camera flashes erupted like lightning, and the gazes of the journalists filling the conference room fixed upon Chairman Monroe.
Setting down the thin file, Chairman Monroe stood before the podium emblazoned with the Federal Reserve seal and adjusted the microphone position with one arm, which was positioned slightly higher.
Then, after surveying the numerous journalists seated before him and the camera lenses once more, he uttered his opening words in a voice that was quiet yet measured and carried considerable weight.

[Good afternoon.]

In that moment, the attention of not only the journalists in the conference hall but also Wall Street and financial leaders across the globe converged upon Chairman Monroe’s every word.
It was only natural—depending on what Chairman Monroe said, financial markets worldwide would experience violent upheaval.

[I understand that many of you are expressing concern about the financial instability and signs of economic slowdown occurring in various regions recently. In response, my colleagues and I have unanimously decided at today’s Federal Open Market Committee meeting to lower the current benchmark interest rate from 5.5% annually by 0.25%.]

The journalists stirred with disappointment, having anticipated a larger rate cut.
Yet Chairman Monroe continued his announcement with unflappable composure.

[As I mentioned earlier, while surrounding conditions are pressuring economic growth, the prolonged boom that has continued since 1991 has accumulated inflationary pressures. Therefore, the Federal Reserve’s assessment is that aggressive rate cuts could actually harm the economy. Furthermore…

Landon Shore, who had been watching the press conference intently, let out a low exclamation and spoke.

“Just as you predicted, boss—they’ve settled on a 0.25% cut.”

Andrew, seated across from him, checked market reactions on the laptop resting on the table, then adjusted his wire-rimmed glasses and opened his mouth.

“The moment the 0.25% rate cut was announced, all three major indices—including the Dow—have begun falling sharply.”

Since this was already anticipated, Seok-won asked with ease.

“What about the bond market reaction?”

Andrew moved his mouse to check, then looked up again.

“The bond spreads that had narrowed due to rate cut expectations are widening again. US and German bonds have turned strong.”
“The market reaction is quite poor.”
“That means the disappointment is considerable.”

He responded calmly to Landon Shore’s remark.

“Just before the Federal Open Market Committee meeting, the Federal Reserve led a bailout package worth tens of billions of dollars to prevent LTCM’s bankruptcy. So expectations were high that they would focus on economic recession rather than inflation. Now those hopes have been dashed, so the disappointment must be severe.”

As Landon Shore spoke, Andrew added his opinion with a serious demeanor.

“This reveals that the Federal Reserve is prioritizing inflation over economic recession, contrary to market expectations. It will be difficult to anticipate further rate cuts.”
“Those additional concerns are compounding the market’s collapse.”

Seok-won’s tone remained characteristically impassive.
Then Landon Shore leaned forward and spoke carefully.

“If the Federal Reserve truly only cuts rates by 0.25% and stops the rate reductions right here, won’t the situation become quite serious?”

Andrew, who continued monitoring market conditions, wore an expression heavy with concern.

“Our profits from the short positions will certainly grow larger, but if we’re not careful, the entire market could collapse and trigger a panic.”

Seok-won set down his glass of whiskey on the table and spoke with measured calm.

“As I mentioned before, the Federal Reserve isn’t staffed exclusively by fools. After the announcement, they’ll observe the market’s reaction and realize they responded far too passively. That’s precisely why they’ll scramble to roll out additional measures and stabilize the markets.”

He murmured softly to himself.

‘This time, they’ll end up cutting rates so aggressively that they create an enormous bubble, but that’s a problem for later.’

In any case, it was quite a talent to consistently stumble from one misstep to another.
No wonder the Federal Reserve earned the mockery of being called shower-room idiots.
While Seok-won’s mind wandered momentarily, Andrew’s expression grew somewhat more reassured.

“That would be fortunate, but I’m concerned that the Federal Reserve, always moving so slowly, might miss the timing entirely.”

Landon Shore shrugged as if to say there was nothing to be done about it and looked at him.

“Regardless, the Federal Reserve has essentially created the perfect opportunity for us to liquidate our positions while maximizing profits from the lower-than-expected rate cut announcement.”
“Exactly.”

Seok-won smiled, flashing white teeth.

“Let’s proceed with unwinding the positions we’ve placed in sequence, as discussed before.”
“Understood.”
“We’ve made all necessary preparations to immediately purchase the stocks you’ve marked once the liquidation is complete.”

Seok-won gave a small nod of approval at the reassuring response.

“I trust you’ll both handle this flawlessly.”

As Seok-won displayed unwavering confidence, both men’s faces brightened with determination to live up to that trust.

“Are you returning to Korea tomorrow as planned?”
“There’s nothing more to do here, so I should head back.”

Landon smacked his lips with a soft click.

“I wish you could stay longer, but I understand you have pressing matters to attend to on your end.”

Andrew’s expression grew wistful as well, and Seok-won spoke with a warm smile.

“Even in my absence, the two of you guide the fund so capably that I can leave with complete confidence. I’m truly grateful for everything you do.”

The two men hadn’t expected such words, and their initial surprise quickly gave way to undisguised pride.
Knowing they had earned their boss’s recognition, their spines straightened and their shoulders broadened with quiet satisfaction.

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