New Employees With an Annual Salary of 1 Trillion Won - Chapter 133

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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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Chapter 133. Spoils of War (2)

There was no need to make big demands from the start.

First, the General Manager began by presenting simple conditions that the banks couldn’t refuse.

“Just tell us what you need. We’ll provide maximum convenience.”

“Then, out of the 30 billion dollars, could we receive 20 billion in cash and the remaining 10 billion in other stocks?”

“What stocks would you like?”

“We want to purchase IT company stocks. In the short term, our current holdings might be worth much more, but looking ahead 10 or 20 years, wouldn’t IT be the most valuable asset?”

From the major banks’ perspective, this didn’t even qualify as a condition.

When they could make over 20 billion dollars immediately, there was no reason not to exchange it for stocks that would rise after 20 years.

“Of course we should accommodate such conditions. But which specific IT stocks do you want?”

“Tiger Fund has started a semiconductor business. So we want to purchase related stocks. We need stocks of Apple, Amazon, Nvidia, Qualcomm, and ASML, a core semiconductor equipment company. Especially ASML – we want to buy as much as we can secure.”

ASML was essential for growing the semiconductor business.

To receive priority equipment supply and even get the latest equipment, we had to hold ASML shares.

“ASML was originally a company created jointly by Philips and ASM, right? I understand Philips still holds about 15% of the shares. Our bank will help Tiger Fund secure even those shares held by Philips.”

“Thank you sincerely for offering such help.”

“We’ll also secure as many IT company stocks as possible for you.”

As expected, the bank representatives accepted easily.

But IT company shares were just a warm-up, and the real negotiation was starting now.

“And there’s one more thing I’d like to mention. Please don’t think of this as a proposal, just think of it as Tiger Fund having created a new financial product.”

“If it’s a financial product created by Tiger Fund, it’s worth listening to. What is it?”

No one stopped the General Manager from speaking.

Normally, they wouldn’t have looked kindly on promoting financial products during a meeting.

However, having gained enormous profits, everyone listened attentively to the General Manager’s words.

“It’s a real estate-related product. Lee Jung-hoo, the branch manager who designed and planned this product, would like to explain in detail. Would that be alright?”

“Of course that’s fine. Please go ahead.”

Finally, it was my turn.

Though they appeared to be listening, they were actually completely absorbed in stocks, so to capture their attention, I opened with a powerful first statement.

“We’ve designed a new real estate financial product that secures both stability and profitability. It’s a triple-revenue structure financial product that combines mortgage loans, rental income, and platform revenue.”

“It’s difficult to understand what you mean.”

“Tiger Fund operates a lodging platform called Everbed. This is a structure that takes even the rental income from there as collateral or interest. And we’ve maximized profitability by linking it to the Everbed platform.”

“It’s a bit complicated.”

The bank representatives were all older gentlemen.

As a result, they didn’t understand the concept of a lodging platform well, and I needed to explain it more simply.

“Let me explain simply. Just as hotels rent out rooms and receive rental fees, Everbed connects private homes worldwide to generate rental income. In other words, what we use as collateral includes not just simple real estate value, but also the steady monthly rental income cash flow.”

“That part is certainly different from existing loan products. But wouldn’t you say it’s not guaranteed to be stable?”

This was the key point.

What the financial sector pays most attention to is risk management.

“That’s why we designed a product that bundles multiple properties together. Even if income is cut off from one place due to unavoidable circumstances, other properties can sufficiently compensate. Moreover, if we bundle three assets with A-grade or higher reliability, there’s no need to doubt the stability anymore.”

“It’s similar in structure to MBS (Mortgage-Backed Securities) or CDO (Collateralized Debt Obligations).”

It was natural that it looked similar in structure.

It was a product that came from researching previous real estate loan products together with Tiger Fund’s real estate experts.

“The appearance is similar, but both stability and profitability are excellent. Revenue is designed with a triple structure, so it won’t shake even if one side collapses. AAA can expect annual returns of 6%, BBB 12%, and lower grades over 20%.”

“I’d like to hear more details about the triple structure.”

“Real estate value, rental income, and platform revenue. It has this triple structure.”

Now the bank representatives showed proper interest.

Not just pretending to listen, but carefully examining the details and pouring out questions.

“How is the platform revenue distributed?”

“When you purchase that real estate product, the brokerage fees and transaction profits generated from the platform are bundled into cash flow and securitized.”

“It’s a very ingenious model. I’ve seen various derivative products, but this is the first structure that adds platform revenue. It would have been a huge hit during the dot-com bubble heyday.”

A derivative product combining real estate and platforms.

If it had been before the IT bubble, it would have sold like hotcakes just by being created.

But it wasn’t too late now either.

“After the IT bubble, the market emphasizes profitability. We’ve materialized profits with a triple structure, and there’s also the advantage of easily recruiting loan applicants through the platform.”

“That’s right! Most people who list their homes on Everbed would need cash, so lending to them would make borrower recruitment much easier.”

“Also, with the Everbed platform backing it, not only stable rental income but also growth potential is guaranteed together.”

This wasn’t just a simple real estate loan product.

A revolutionary structure that guarantees not only loans but also profitability.

It was advantageous for people who needed funds and attractive for banks providing loans.

“So a return rate of at least 6 to 12% is guaranteed.”

“But we’re not forcing investment right now. Today is just to share the fact that such a product exists. And I hope you understand that the purpose of creating this product is not simple profit, but to provide real help to the travel and lodging industry.”

“Even while saying you’re helping the industry, isn’t it ultimately a structure that takes big profits?”

Finally, criticism came.

It was criticism from the Lehman Brothers bank representative.

But the timing was later than expected, and the intensity of the criticism wasn’t high, so I deflected it lightly.

“That’s a good point. Tiger Fund also gains profits. But those profits only come as a result when the industry grows. The travel and lodging industry must revive for the platform to grow, and bank loans and investor returns increase together. Ultimately, it’s a structure where everyone benefits.”

“Since you’re not forcing investment, is there really a need to criticize?”

This was the good thing about making allies.

People who defended us on their own appeared, and I could end my words on a positive note.

“If you have doubts, you can participate later when we recruit additional lead managers. However, even if this product’s profits are large, they probably won’t match the stocks we’re selling now.”

“Hmm, how could we not understand Tiger Fund’s feelings? Now, how about we move on to the next agenda item?”

It was the Goldman Sachs bank representative quickly changing the subject, worried we might cancel the sale.

I had nothing more to say either, so I sat down quietly, and the meeting continued.

***

After finishing the meeting, we returned to the fund headquarters.

But as soon as we arrived, the General Manager’s phone started ringing non-stop.

“Yes, yes, I understand. We’ll contact you first as soon as the product is launched.”

All the calls were from major banks.

They were all about wanting to participate in the real estate derivative products.

“I didn’t expect the banks to show interest this early. I thought they’d start moving in earnest only after the product launched and actual profits were generated.”

“They must have smelled money. But there are places showing no interest at all. Especially Lehman Brothers and Merrill Lynch haven’t even called to say thanks.”

These were major banks that had made enormous profits thanks to us.

Yet not having even a single contact meant they either saw Tiger Fund as a level below them, or didn’t feel grateful in the first place.

“Won’t they show interest once profits come out anyway?”

“There aren’t many financial products that can absorb the cash that major banks can move around. Since there are limits with mortgage loans or mortgage loans, they’ll have no choice but to show interest eventually.”

Around the time we finished calls with most banks.

Again, an unexpected person came to visit Tiger Fund headquarters.

“Advisor Karl Rove has come to visit.”

“Please bring him in immediately.”

Advisor Karl Rove came without any prior contact.

Since we had always met secretly at dilapidated restaurants, his visit was unusual.

“What brings you all the way here, Advisor? We welcome your visit.”

“I came today on official business. The President has highly praised Tiger Fund’s contributions. He’s sent a small gift for Tiger Fund, which took the lead more than anyone else for market stability.”

The gift was a plaque of appreciation.

Though the plaque had no material value, a plaque with the White House name engraved was more valuable than any certificate or check.

“We only did what we had to do. But thank you sincerely for going this far.”

“The plaque isn’t the end of the gifts. I heard about the meeting held at the Federal Reserve. You’re very interested in the semiconductor business?”

“It’s a business that Tiger Fund Korea Branch is focusing on. It’s also a business that Branch Manager Lee Jung-hoo is leading proactively.”

Advisor Karl Rove turned his head toward me.

Then he continued speaking with a meaningful smile.

“We’ll give you the right to participate in the EUV consortium led by ASML. It’s currently a form where only a few companies from the United States, Netherlands, and Japan are cooperating, but we’ll specially allow Daehyun Semiconductor to be the only Korean company to participate.”

“Thank you so much. I was just wondering how to establish a cooperative relationship with ASML.”

“By joining the consortium, you’ll naturally be able to interact not only with ASML, but also with major semiconductor companies from the United States and Japan. It will serve as solid groundwork for continuing your semiconductor business going forward.”

This was an unexpected gain.

I had planned to buy ASML’s Equity Shares to form a relationship.

But if I could gain the authority to participate in the consortium, I could form relationships much more easily.

“Since you’ve taken such care of us, Advisor, I will definitely produce good results.”

“Of course I should take care of you. Thanks to the rapid Market stabilization, the Government’s credibility has risen tremendously. I can promise even greater support. Please let me know whenever you need anything.”

Advisor Karl Rove’s face was flushed with excitement.

President Bush’s approval rating had broken through 90%, so it was only natural.

If even half of this current atmosphere lasted until the end of his term, reelection was guaranteed, so naturally we looked favorable to them.

“I didn’t do this expecting compensation. I simply did what needed to be done.”

“This is why I like Tiger Fund. You’re completely different from the other hyenas on Wall Street. If you ever need anything, please contact me anytime. If it’s Tiger Fund’s business, I’ll handle it with top priority.”

The biggest prize gained from this Investment wasn’t money.

It was the fact that the White House had come to completely trust Tiger Fund.

Thanks to this, throughout President Bush’s term, and even through his practically guaranteed reelection period, we would be able to carry the enormous halo of the White House on our backs.

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