Golden Spoon Investment Portfolio - Chapter 530

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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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530. The most terrifying force in the stock market is greed itself.

“I hear the demand forecasting results came out quite well?”

Yun Ki-hun, seated on the right sofa, responded with a smile to Seok-won’s question as he crossed one leg over the other.

“Yes. Based on the demand forecasting results from institutional investors, the offering price has been set at $18 per share—the highest end of the target range of $15 to $18.”
“At $18 per share, the market capitalization would exceed approximately $960 million, wouldn’t it?”
“Precisely $967.5 million.”
“That’s a figure that could immediately rank among the top market capitalizations even if brought to the Korean Stock Market.”
“Indeed.”

Yun Ki-hun leaned forward, his demeanor brimming with optimism.

“Considering the extraordinary liquidity compared to the Korean Stock Market and the intensity of the dot-com fever, everyone anticipates the stock price will surge significantly above the offering price following the listing.”

Seok-won nodded slightly in agreement.

“In this climate where stock prices soar merely at the mention of ‘dot-com’ or ‘net’ in a company’s name, the first-day performance should be quite favorable, just as the demand forecasting results suggest.”

Yu Hyun-seok, seated on the left, interjected and continued the conversation.

“Modunnet isn’t merely a hollow company with a dot-com name—it’s a genuine internet enterprise conducting ultra-high-speed internet business domestically, so investor interest will be even greater.”
“I share the same view as you, Yu.”

Indeed, Modunnet, hailed as Korea’s AT&T, successfully debuted on NASDAQ, surging to double the offering price on its first trading day.

But regrettably, that glory would not endure.

As the dot-com bubble collapsed and competition in the domestic ultra-high-speed internet market intensified, the company hemorrhaged losses, and within merely three years, the stock price plummeted to $0.50.
Considering it had once exceeded $84 per share at its peak, the crash was truly staggering.
It was a stock chart that vividly illustrated the naked reality of the dot-com bubble—swept up in greed and madness.

“If the IPO proceeds without any significant issues, this will become the first Korean company to list directly on NASDAQ rather than on the Korean Stock Market through ADR, unlike other Korean companies listed on the New York Stock Exchange.”
“That’s correct.”

Pohang Steel and Korea Electric Power were already being traded on the New York Stock Exchange, but they were all American Depositary Receipts—ADRs—where a portion of shares listed on the Seoul Stock Exchange were deposited with the New York Exchange.

“And the ticker symbol has been set to KOREA.”

A ticker symbol was an abbreviation established to precisely identify securities during stock trading.

“To secure the KOREA ticker, they deliberately expanded the company name to Korea Modunnet when registering with NASDAQ, I hear.”

Though Yun Ki-hun spoke with pride, Seok-won, who knew how Modunnet’s story would ultimately unfold, felt a bittersweet expression settle across his features.

“If we proceed with the listing as planned, we should be able to achieve valuation gains exceeding one hundred billion won based on the offering price alone.”

At Yu Hyun-seok’s words, Seok-won leaned back and asked.

“Our stake in Modunnet was 10%, correct?”
“That’s right. In this IPO, we’ve agreed to release 18.1% of total shares to the market, including both existing and newly issued stock.”

Yun Ki-hun continued, facing Seok-won directly.

“However, following your instructions, we’ve decided not to sell a single share and to retain all of our holdings.”
“Well done. Once listed, there’s a strong possibility the stock price will surge—there’s no reason to sell cheaply at the offering price.”

At that, Yu Hyun-seok’s expression grew slightly anxious as he gauged Seok-won’s reaction.

“That’s true, but I’m somewhat concerned that if the stock price weakens during the lock-up period, we could face losses.”

The lock-up period was a restriction placed on major shareholders during IPOs to prevent them from selling their shares for a set duration, designed to enhance market stability.

“How long is the lock-up period?”
“One month from the listing date.”

At Yu Hyun-seok’s answer, Seok-won briefly searched his memory before speaking with the confidence that there was nothing to worry about.

“Given the US stock market’s sustained rally driven by the dot-com boom, the likelihood of the stock price declining in that timeframe is low. There’s no need for major concern.”

With Seok-won, who understood American equities better than anyone, speaking with such certainty, the two men abandoned their reservations and set aside their worries.

“Oh, and Modunnet has reached out requesting that you attend the opening bell ceremony on the first day of listing and ring the bell yourself.”

Yun Ki-hun opened his mouth to clear the air, speaking up.
When a newly listed company made its debut on the US stock market for the first time, company representatives or related personnel would personally ring the opening bell to signal the start of trading—this was the Opening Bell ceremony.
I set down the teacup in my hand and narrowed my eyes slightly.

“They asked me to ring the opening bell?”

Yun Ki-hun, receiving my gaze, quickly added to his explanation.

“Ah, of course you wouldn’t be doing it alone. You’d be ringing the bell together with the Modunnet CEO and several other related parties.”

Yu Hyun-seok, the department head, chimed in as well.

“While it’s largely ceremonial, the more investor attention it draws, the better it will be for the stock price. It seems they’re planning to leverage the fact that you—called the greatest investor on Wall Street—invested in this company as a promotional angle.”
“There’s definitely that intention behind it. Rather than just calling it a high-speed internet company from Korea, if they market it as an IT venture that the Chairman invested in, American investors will view it quite differently.”

Yun Ki-hun nodded in agreement.
I was a titan of Wall Street, known by the nickname the Midas Touch, and every IT venture I had invested in so far—Netscape, Yahoo, and others—had struck it big and achieved tremendous success.
If I were to stand at the opening bell ceremony, it would certainly draw considerable attention.
The Modunnet executives were well aware of my influence, which is why they had emphasized during the NASDAQ listing review that I held a major stake of 10 percent.
Honestly, going to New York and standing at the opening bell ceremony once wasn’t that difficult.

‘But the problem is that they listed on NASDAQ with the ticker symbol “KOREA” full of enthusiasm, only to see that glory fade quickly, and then face the worst possible outcome—delisting—when the dot-com bubble collapsed.’

If I attended the opening bell ceremony and rang the listing bell, I would be cited for years to come as an example of NASDAQ listing failure, becoming a dark chapter in my history. I couldn’t accept so carelessly.

“When did you say the listing date was scheduled for?”
“The exact date hasn’t been confirmed yet, but we’re anticipating around the third week of November.”

At Yun Ki-hun’s response, I deliberately put on a regretful expression.

“Since it’s a historic event—the first direct listing of a Korean company on NASDAQ—I’d really like to attend, but unfortunately I have other important matters to attend to around that time, so it will be difficult for me to be there.”
“Ah, is that so?”

To Yun Ki-hun’s knowledge, there were no particularly important schedules the week Modunnet was scheduled to list.
He felt a sense of puzzlement inwardly, but since he couldn’t pry into what might be going on, he bowed his head and responded.

“I understand. Then I’ll convey to the Modunnet side that it seems difficult for you to attend.”
“Make sure to tell them in a way that doesn’t disappoint them.”
“I will do so.”

Yun Ki-hun lifted his head and smoothly steered the conversation in a new direction.

“Furthermore, thanks to the government’s Cyber 21 initiative—a nationwide PC distribution program implemented since late last year—Hancom Innovation’s stock price hit the daily limit yesterday, breaking through the 10,000 won per share mark and setting a new record high.”

Hancom Innovation was Korea’s leading software development company, having unveiled Hangul 1.0, a Korean-language word processor, in 1989 and been established in October 1990.
When co-founders spun off independently to establish ventures like MC Soft and achieved tremendous success, the company became the cradle of Korea’s venture industry.
While Microsoft, which had released Windows 3.1, dominated the global word processor market, Hancom Innovation alone held its ground in Korea, preventing the company from facing complete obsolescence.
However, even Hancom Innovation found itself in grave crisis, battered by the fierce wave of the IMF and Microsoft’s relentless assault with Office.
Driven to the brink of collapse by deteriorating management, Hancom Innovation was forced to contemplate selling the source code of its foundational Hangul word processor—its lifeblood—to rival Microsoft as a last resort.
It was at that critical moment when, under Seok-won’s directive, Daeheung Venture Capital invested a massive sum, allowing Hancom Innovation to preserve its Hangul word processor and narrowly achieve a miraculous turnaround.

“The stock price surge was driven by a dramatic increase in sales after Hancom Innovation was selected as the software supplier for the hundreds of thousands of affordable PCs that would be distributed.”

With his report complete, Yun Ki-hun gazed at Seok-won with admiring eyes.

“Once again, Chairman, your foresight has proven perfectly accurate.”

Seok-won, however, replied with a composed expression.

“Given that this is a massive national policy project, it’s only natural that domestic companies be prioritized for both hardware and software procurement, wouldn’t you say? If that’s the case, Hancom Innovation is the only domestic company with a product capable of competing against Microsoft, so its selection as a key supplier was essentially predetermined.”
“That’s absolutely right.”

As Yun Ki-hun nodded in agreement, Yu Hyun-seok, seated on the sofa to the left, chuckled and spoke.

“I was puzzled when you invested such an enormous sum—10 billion won—into Hancom Innovation when it was in crisis. To think you were already seeing this far ahead… truly remarkable foresight.”

At that moment, Yun Ki-hun ventured a cautious opinion.

“The stock has surged 25-fold, from 400 won per share at the beginning of the year to over 10,000 won. Wouldn’t it be prudent to sell off a portion of our holdings?”

Given the precedent of Goldbank and the risk that such a policy-driven surge could reverse just as sharply, his suggestion was to realize some profits and take protective measures.
But Seok-won shook his head.

“As the internet becomes more active, PC distribution will only accelerate, so Hancom Innovation’s stock price will continue its upward momentum for some time. Therefore, let’s hold onto it without selling through this year.”
“You’re saying it will climb even higher despite already surging 25-fold?”

Yun Ki-hun asked, his expression one of astonishment.
Yu Hyun-seok, also present, regarded Seok-won with a skeptical gaze.
Observing both their reactions, Seok-won broke into a broad smile, flashing his teeth.

“That’s right. If my predictions hold true, the stock price will easily break through 50,000 won per share and climb even higher.”

At my confident assertion, Yun Ki-hun’s eyes widened in disbelief.

“If that happens, it would surge more than a hundredfold from the early year prices. Surely it won’t rise that dramatically?”
“The most terrifying force in the stock market is greed. When it reaches its peak, it shatters all market logic and sends stock prices soaring to the heavens.”

I lowered my voice and spoke with grave certainty.

“KOSDAQ is in precisely that state right now.”
“That… that kind of…”

Yun Ki-hun and Yu Hyun-seok swallowed hard, an inexplicable dread washing over them.

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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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