Golden Spoon Investment Portfolio - Chapter 505

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

505. I’m not opposed, so just do as you see fit.

[Saseong Mulsan Distribution Division Sells Complete Management Rights to Daeheung Group]
[Daeheung Group Embraces HomeMarket Following Korean Tongun, Marches Relentlessly Toward Retail Giant Status]
[Daeheung Group Acquires HomeMarket for $310 Million]
[Daeheung Group Secures HomeMarket, Defeating British Retail Behemoth]
[Domestic Large-Scale Discount Market Undergoes Accelerating Tectonic Shift]

Seok-won sat before the desk in the Chairman’s Office, newspaper spread before him displaying yesterday’s announcement of Daeheung Group’s HomeMarket acquisition in bold headlines, as he spoke with his older brother, President Park Jin-hyung, on the phone.

“Congratulations on acquiring HomeMarket as you intended.”

Park Jin-hyung’s voice came through bright and animated, buoyed by the triumph of defeating Tesco after fierce competition to claim HomeMarket.

“I appreciate it. Without your support, I never would have beaten Tesco.”
“What did I do?”
“Tesco refused to yield until the very end, continuously raising their bid. If you hadn’t provided that crucial backing, I probably would have conceded when they pushed the acquisition price to $300 million.”

Indeed, when Tesco wagered a staggering $300 million, concerns had swelled within Daeheung Group that pushing the acquisition price any higher risked falling prey to the winner’s curse.

‘The acquisition price is already substantial, and we had to pay in dollars rather than won—such concerns were understandable.’

Yet President Park Jin-hyung, recognizing this as a critical opportunity to transform the group’s fundamental character, made a bold gambit—adding an additional $10 million to Tesco’s bid.
Such a decision would have been absolutely impossible without Seok-won standing behind him, willing to provide nearly unlimited precious dollars to support the acquisition, coupled with his unwavering determination to acquire HomeMarket.
Of course, Chairman Park Tae-hong’s trust in his eldest son and his decision to grant him full authority over the acquisition also played a crucial role.
As a result, they had surpassed Tesco in the competition and brought HomeMarket into the Daeheung Group fold.

“It’s not a gift—I’m lending it with interest, so what’s the fuss?”
“Right. I’ll make sure to pay the interest faithfully, so don’t worry.”

At the answer tinged with laughter, Seok-won let out a soft smile.

“Acquiring HomeMarket isn’t the finish line. You know that surviving in the fiercely competitive large-scale discount market means the real challenge starts now.”

Park Jin-hyung’s voice took on a notably serious tone.

“Of course. Once the management acquisition is finalized, I plan to push forward with the Bundang branch opening that was originally scheduled.”

Following Daegu and Busan, Saseong Mulsan had intended to construct a large-scale shopping complex tentatively named MegaPort in Seohyeon-dong, Bundang-gu, spanning approximately 35,800 pyeong in total floor area.
However, construction was indefinitely postponed when the IMF crisis erupted just before groundbreaking.

“Construction costs won’t be trivial. You don’t have any concerns about financing?”
“Why worry when I have the richest brother in the world?”

“What?”
“Haha! Just joking. Actually, there’s a Chinese company interested in acquiring Daeheung Textiles, which we’ve put on the market. Once the sale goes through, I plan to use those proceeds to cover the investment capital.”

Seok-won smiled faintly at the ease with which he could make light jokes.

“It would’ve been a headache if the sale dragged on, so it’s fortunate a buyer has appeared.”
“I won’t be able to repay everything, but once the sale proceeds come in, I’ll repay at least part of the loan I borrowed from you.”
“Take your time repaying my money. Focus on settling the more urgent matters first.”
“I appreciate you saying that.”
“I mean it.”
“Anyway, once things settle down a bit, let’s grab a meal together sometime.”
“Sure.”

After ending the call and setting down the receiver, Na Seong-mi, dressed in a two-piece suit, knocked and entered with perfect timing.

“Executive Director Yun Ki-hun has arrived.”
“Have him come in.”
“Yes.”

After Na Seong-mi left with a brief acknowledgment, Executive Director Yun Ki-hun soon entered, wearing gold-rimmed glasses and carrying an approval document folder in one hand.
As Executive Director Yun Ki-hun approached the desk and bowed slightly, Seok-won leaned back in his chair and asked.

“What’s the matter?”

Executive Director Yun Ki-hun then placed the approval document folder on the desk and answered.

“As you’re aware, Goldbank’s stock price exceeded 103,000 won per share last week.”
“Yes, it did.”
“They’ve inquired about our position on conducting a 1-for-10 stock split.”
“You mean splitting the shares.”

I straightened my posture and looked up, and Yun Ki-hun nodded slightly.

“That’s correct. Once the stock price exceeded 100,000 won per share, the rate of increase became noticeably smaller, and the stock has been moving sideways, hasn’t it?”

Seok-won, who immediately grasped Goldbank’s management intentions, showed a flicker of interest in his eyes and stroked his cleanly shaven chin with one hand.

“Because it’s gotten too expensive and trading has slowed down. So they’re planning to split it into tenths.”

Yun Ki-hun, receiving my gaze, nodded.

“The feeling is completely different between a stock priced over 100,000 won per share and one at 10,000 won. The recent slowdown in gains is partly due to profit-taking by those who’ve made substantial gains, but the price point being difficult to readily purchase at has certainly had an impact as well.”
“True, the current stock price is at a burdensome level.”

If a stock split were executed, shares that had exceeded 100,000 won would plummet to 10,000 won, making them feel dramatically cheaper.
But that was merely an optical illusion, nothing more.
As the stock price dropped, the number of shares in circulation would increase substantially.

‘But ordinary investors don’t think about such things—they only look at the lower stock price.’

I opened the approval document and slowly reviewed the stock split plan sent by Goldbank.
After a moment, I looked up again and leaned back against the chair, speaking.

“By using a stock split rather than a rights offering that would face strong opposition, they’re securing support from existing shareholders while simultaneously reducing the stock price burden and increasing the number of shares in circulation to encourage retail investors to buy more Goldbank stock and sustain the upward momentum. That’s quite clever.”
“With a stock split, the number of shares held increases, so there’s no real loss, and the stock price could rise further. I think it’s not a bad plan.”

I crossed my arms and thought for a moment, then showed a positive attitude toward Yun Ki-hun’s opinion.

“It’s not that people don’t want to buy because it’s too expensive—buying pressure is still stronger than selling pressure. A stock split could definitely serve as a catalyst to reignite the stagnant stock price.”

Goldbank, founded with the catchphrase “Click the advertisement on our homepage and we’ll give you money,” had gained tremendous popularity among netizens and attracted over 390,000 subscribers within two years of its founding, emerging as a so-called star venture company.
Benefiting from the government’s venture company development policies at just the right time, Goldbank, now with wings, pursued aggressive expansion, diversifying its services into cyber PCS agencies, travel agencies, and online shopping malls.

‘But beneath that glittering exterior, if you open the accounting books and examine the substance even slightly, you can quickly see that the current stock price is utterly unreasonable bubble.’

Last year, they posted 1.246 billion won in revenue but suffered a loss of 586 million won instead of profit.
This year was no different—first quarter revenue was only around 360 million won, showing far less growth compared to the previous year.

‘Compared to fellow internet companies like Daum Communications or InterPlaza, the growth rate is embarrassingly low.’

Yet despite this, the stock price soared absurdly because investors blinded by greed, seeing nothing but the endless upward trajectory of rising stock prices, kept scraping together their money and pouring it in without bothering to ask what the company actually did or whether it was generating any real profits.

‘But a sandcastle built on a crumbling foundation, no matter how dazzling it appears on the surface, will inevitably collapse.’

The moment the stock soared endlessly toward the sky, the upward momentum broke, and there were no more investors willing to buy—that would be the day Goldbank’s sandcastle crumbled.
The instant greed seized those desperate to make a killing and they began to see what had been invisible before, that would be when Goldbank’s house of cards came tumbling down.

‘Like Icarus’s wings, where the wax binding the feathers melted as he flew intoxicated toward the sun, only to plummet helplessly to earth.’

No one understood better than Goldbank’s management that the current stock price was abnormal.
That’s why they were desperately trying to prevent the bubble from bursting by recklessly expanding their business and splitting stocks to continuously capture investors’ attention.
But no matter how much they thrashed about, it would only delay the inevitable—the bubble would burst eventually, like a game of hot potato that must end.

‘Looking at it this way, stocks themselves seem identical to a game of chicken where prices rise until someone is willing to pay more, and ultimately the person who bought at the peak bears all the losses.’

Watching investors play squid game in the stock market, holding bombs in their hands while hoping for a windfall despite knowing the danger, left a bitter taste in my mouth.
Dismissing my thoughts, I closed the approval document and handed it back to Yun Ki-hun, who stood before my desk.

“Tell them I’m not opposed—they can proceed as they see fit.”
“Understood. I’ll convey that message.”

Yun Ki-hun bowed briefly, then turned and left the office.
Once the door closed and I was alone again, I sat in my chair, tapping my fingers lightly on the desk while muttering to myself.

“The stock price has climbed up to shoulder level now. It’s time to start withdrawing before the seawater rises above my face and I suffocate.”

Since Daheung Venture Capital held a full 55% stake in Goldbank, if I got greedy trying to squeeze every last drop, I risked getting trapped and unable to exit in time.
If rumors spread that the major shareholder was selling at the peak, it could trigger investor panic and potentially spark a crash.
So gradually reducing my stock holdings from now on was the wisest approach.
Moreover, when Goldbank’s true nature eventually revealed itself and the bubble burst, causing the stock to plummet, it was better to exit early to avoid baseless suspicions and accusations of stock manipulation.

“Excessive greed always invites disaster.”

Of course, even with this strategy, having made enormous profits from the Goldbank investment meant I couldn’t completely escape scrutiny.

“But I can’t just stand by and watch when a golden opportunity is right in front of me.”

Even without my involvement, Goldbank was destined to soar amid the KOSDAQ frenzy, and it made far more sense to capitalize on it than to sit idle twiddling my thumbs.
Even if Goldbank collapsed, the KOSDAQ fever that had ignited would not extinguish—it would burn even more fiercely in the days ahead.

“Having tasted success with Goldbank, greed makes people lose their reason, thinking other stocks could do the same.”

In that moment, the KOSDAQ market transformed into a massive gambling den.

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