Chapter 40
Translator: Dreamscribe
The Research Team is like a guideline for a securities company.
Though it might differ depending on the company.
Usually, the Research Team gathers various pieces of information, summarizes them, and recommends stocks that are expected to rise in advance.
And analysts write reports based on the information brought into the Research Team.
There are those who perform cool-headed and realistic analyses.
But there’s always at least one guy who writes delusions like it’s a fantasy novel.
However, there was someone who could even make those delusional-report-writing analysts shake their heads in disbelief.
"Team Leader. There's a research request from the Prime Department."
It was the Department Head of the Prime Department, Jung Jin-ho.
Whenever a request came in from this department, the eyes of the team members, who had been writing reports like they were on the verge of death, would light up brightly.
“All right. What is it this time? What does he want now?”
“He asked for a detailed scenario on the UK leaving the EU, along with supporting materials.”
“What? The UK is leaving the EU?!”
How could they not look forward to this?
Just hearing about it was enough to stimulate their dopamine.
Ever since the China Shock and before major events like the Greek default, Department Head Jung Jin-ho had always requested reports on unusual topics.
Each time, the Research employees would write in the reports that such events were impossible, but the problem was that Jung Jin-ho’s predictions always turned out to be right.
Even a shaman wouldn’t be able to predict better than that.
“But the UK is leaving the EU?”
“Wasn’t that called Brexit or something?”
“That’s right. But the UK plays king inside the EU, would they really want to leave?”
There are only three countries that play a leading role in the EU.
France, Germany, and the UK.
Among them, the UK stood tall both economically and militarily.
It had the greatest influence in the EU, the loudest voice, and contributed the most in terms of financial support.
It was practically the leader.
But that very UK would leave the EU?
“And at a time like this?”
“If they suddenly go through with Brexit now, won’t there be strong backlash from the other European countries? Terrorist attacks are already happening all over Europe, and this is the time when they need to unite more than ever.”
If the EU’s leader and strongest nation suddenly announced its withdrawal, it would instantly be branded a traitor.
Moreover, the UK was more sensitive to international perception than people might think.
Isn’t there even a meme in world history, when something happens, point to the UK and you're likely to be right?
As a nation that stirred up the world in the 18th to 20th centuries, it committed every conceivable wrongdoing. Because of that, it had made many efforts to erase such negative images.
And now, that UK would withdraw at such a critical moment?
It would be no different from inviting the world to point fingers at them.
“Anyway, it doesn’t make sense, does it?”
“Of course, it doesn’t make sense.”
“Right. Would the UK be crazy enough to leave the EU?”
But the scary thing was, whenever Department Head Jung Jin-ho made such a request, something related always ended up happening.
“Come on. Still, this isn’t it.”
“If the UK leaves the EU, the economic damage would be enormous. Their economic experts aren’t fools either.”
“But talks of Brexit have been surfacing little by little, haven’t they? Especially with so much dissatisfaction about immigrants, and now this terrorist incident has added fuel to that fire.”
“Even so, the restrictions on the UK leaving the EU are many, and the aftershocks would be too severe, so it will never go that far. I could bet my entire fortune on that.”
That would probably be a normal person’s line of thinking.
Even the employee known for writing reports with unusual ideas was firmly stating that Brexit could never happen.
“What does it matter what we think? Did everyone forget? The only reason the Research Team was expanded was thanks to Department Head Jung Jin-ho. Thanks to him, we’re getting paid.”
After seeing how often Jung Jin-ho utilized the Research Team, the CEO personally gave the order to expand it.
Also, there was a directive that if Jung Jin-ho made a request, they were to prioritize it above everything else, no matter what.
“Still, the topics here are always interesting, aren’t they?”
“Yeah. It’s nice that they’re not the same old predictable stuff.”
“Then let’s all get to work quickly. CEO-nim expanded us so we could work swiftly and accurately.”
Will that man’s prediction be right again this time?
Waiting for the result was their only joy.
***
One of the most convenient things about working at our company was the Research Team.
Ever since I realized that I could get sudden flashes of intuition by gathering information and analyzing it, I had been making frequent use of the Research Team. Thanks to hyung-nim strengthening the team, the time it took for materials to arrive had become significantly faster.
“These are the materials related to Brexit, Department Head.”
“Ah, yes. Thank you.”
I quickly skimmed through the documents.
The first issue was the UK’s currency.
Countries in the EU use the euro as their basic currency.
However, the UK judged that the domestic economy and the European system operated on different principles, so they refused to adopt the euro and insisted on using the pound.
Especially since the pound was one of the four major currencies in the world, it was all the more impossible to give it up.
“But being one of the four major currencies ultimately means it’s stable. Still, if Brexit really happens, the economic uncertainty will increase drastically, so the pound’s value will inevitably fall.”
“The pound aside, the UK’s tourism industry will take a huge hit. Leaving the euro means that everything from visa issues to entry inspections will become more complicated. Even now, the UK conducts light entry inspections even for eurozone countries, and that will only get worse.”
“Many businesspeople visit the UK for European business dealings. If they suddenly leave the euro, it’ll no longer be an attractive business model.”
Doing business with the UK was the same as doing business with the entire eurozone.
That’s why, when starting a business in Europe, companies usually targeted France, the UK, and Germany first.
Because they were the leaders of the eurozone.
But if the UK, which stood at the top of the pack, were to leave the euro?
And at such a sensitive time?
First of all, the eurozone countries would be too offended to want to do business with the UK, and such pressure would affect businesspeople as well.
“But Department Head.”
“Yes?”
“Ah… never mind.”
I could feel the department staff watching me closely.
I knew why they were reacting that way.
“What do you all think? About Brexit.”
“Well, of course… it’s something that can’t possibly happen, right?”
“I understand there’s a strong backlash against immigrants, but no matter what, they wouldn’t make such a disastrous move.”
That was the normal response.
That’s why I had asked to bring the Brexit-related materials once more, just to double-check.
Also, I had been steadily studying investments, so I had developed an eye for reading the economy.
So I fully understood how absurd an idea Brexit was.
But what I’d come to learn from experience was this, no matter how well you understand something intellectually, real-world events do not unfold rationally.
“......”
I reached out toward the stocks that would be hit first if Brexit actually happened. My fingers trembled as I gripped the papers hard enough to tear them.
No matter how irrational it seemed, this sensation rising up from my gut was telling me:
The Brits have gone crazy.
“That’s what I believe. Whether it’s politics, business, religion, or personal relationships, whatever it may be, if humans are involved, emotion always comes before logic.”
"Huh?"
“If we sell all the stocks we’re currently holding, how much capital would we have?”
“A little over 1 trillion won.”
1 trillion won.
As defense industry stocks skyrocketed, we had once again entered the 1 trillion won club.
“Then retrieve all the remaining funds tied up in them. We’re going all-in on Brexit.”
“!?”
Everyone in the department looked at me with wide, shocked eyes.
The stocks recommended by the Research Team were all UK-related.
The FTSE 250 Index, the pound, UK banks, airlines, hotels, government bonds, and so on.
Tourism stocks, which were expected to take the biggest hit, made up the bulk, and among them was LK Group.
“Department Head. That means… really…!”
“Yes. We’re not betting on logic, we’re betting on the emotions of the British.”
Because that’s what my intuition told me.
***
Clang-!
While watching international news, Oh Jae-hyun dropped his glass.
“W-what is… what… this…”
His body trembled so much that he couldn’t even speak properly.
“Is… is there anyone outside?!”
“Yes, Chairman. Did you call for me?”
“G-get all the executives together. Now!!”
Seeing the chairman’s face turn bright red, the secretary instantly sensed that something serious had happened and rushed outside.
“Why do these things keep happening.”
Oh Jae-hyun stared blankly at the breaking news on the screen.
This was unfair beyond belief.
[United Kingdom Declares Brexit.]
The Conservative Party’s Prime Minister, Cameron, had long been dissatisfied with the EU.
As soon as he won the general election, he dropped a bombshell.
That bombshell was his declaration to leave the EU.
No matter how powerful a Prime Minister might be, he couldn’t just pull out of the EU on his own.
The UK and the EU had been intertwined for so long that there were countless things to unravel. Moreover, this was a matter serious enough to require a national referendum.
But the important point was that the current UK Prime Minister and the victorious Conservative Party had officially declared their intention to leave the EU.
Whether or not they actually withdrew, just making such a statement was enough to shake the market.
And for LK Group, which had been pouring all its energy into the UK after practically losing France in the recent terror incident, it was a bolt from the blue.
“Those fucking sons of bitches!!”
Unable to hold it in any longer, Oh Jae-hyun hurled a liquor bottle at the TV.
But the rage didn’t last long.
Because an even greater fear was starting to creep in.
“What the hell are we supposed to do now?”
Even though Brexit hadn’t been finalized, the backlash from other European countries would be massive.
According to the continuous breaking news, the President of France had come forward to publicly condemn the UK. And even though the UK hadn’t officially left the EU yet, France was threatening to introduce new regulations on tourism and exports.
That triggered a chain reaction from Germany, Spain, Italy, and so on.
Every EU country was now criticizing the UK for trying to pull out alone at such a critical time.
At this rate, the UK was bound to be shaken.
LK Group, which had staked its life on the UK and invested a massive amount in marketing, now looked poised to lose everything.
“Could it be.”
Just then, one person passed through his mind.
That shadow who still hadn’t revealed his true identity.
“Did that bastard know this was going to happen?”
Even the trusted UK had stabbed him in the back.
No one saw this coming.
Brexit?!
That the UK would leave the EU?!
Even if Brexit didn’t pass in the national referendum, the tourism industry was practically wiped out already.
Because not only the heads of state, but all European citizens now saw the UK as an untrustworthy traitor.
If that guy had truly foreseen all of this, then there was no point in even trying to fight.
It was almost like he could see the future.
“This makes tomorrow a serious problem.”
This news would soon spread throughout the financial world.
Rumors that LK Group had failed even in their UK investments.
Then promissory notes would start pouring in from everywhere.
They hadn’t made any money, but now they’d be in a situation where they had to pay off debt, the worst-case scenario.
And there was even a chance they wouldn’t be able to hold on to LK Tower.
“No. No matter what, I have to protect that.”
Whether he had to use political connections, bow his head at the bank, or even sell off affiliates.
Even if it meant losing all limbs, LK Tower must be protected.
Because that was the final stronghold of LK Group.
***
The feared Brexit had finally happened.
And it happened not long after we had gone aggressive with our short positions.
As expected, Brexit was far more shocking than the China Shock or the Greek Default, and the market was shaking intensely.
“Ugh… my head.”
That day, I had stayed at the company late into the night, hammering away at quick trades so hard that my brain felt like it was going to melt, and I returned home with a pounding headache.
I couldn't just leave money sitting still during such rare big events.
I had pushed the engine hard for the first time in a while, and now I needed rest.
“Oppa oppa oppa!!”
But surprisingly, my younger sister was at home today.
“Huh? It’s not even the weekend, what brings you here?”
“Well, I was just really curious about something. But I couldn’t just call you at work out of nowhere.”
She soon laid out some expensive bread and snacks in front of me.
“Dear brother. You worked hard again today~.”
“Why are you acting all scary and weird? I’m just going to go wash up.”
“Hey, sit down. This is really expensive bread. It’s a collaboration between some famous overseas chef and our hotel. It’s super pricey. Isn’t it enough of a bribe?”
“What’s this about?”
She glanced around for no reason, then whispered to me.
“You know LK Tower? I heard your company is about to take it. Is it true?”
“Is that something you need to lower your voice for?”
“Anyway! Is it true?”
“Yeah. But it’s not confirmed yet. What’s certain is that it’s currently pledged as collateral to us.”
I already knew hyung-nim was having a massive headache over this.
With Brexit breaking out, rumors of LK Group being in crisis had spread throughout the financial sector, and as a result, promissory notes were bouncing around everywhere.
Not just the money they owed us, they were having to cover every loan taken from elsewhere too.
But it seemed they were determined to protect LK Tower at all costs. They were putting political pressure on Kwangwoon Securities, painting a slow and deliberate strategy.
Their stance seemed to be that even if they lost everything else, LK Tower could not be lost.
And even if Kwangwoon Securities really did end up acquiring it, there was another problem.
That was the fact that LK Tower had originally been built to operate a hotel.
But Kwangwoon Securities wasn’t in the business of running hotels, so they couldn’t just overhaul the space completely, it was a rather awkward situation.
“But you came all the way here just to ask that?”
“No. I work at Baekje Hotel, remember? It’s the hotel that’s always competing with LK Hotel for first place. And now that LK Hotel is about to open LK Tower, we were all nervous that they’d solidify the top spot. But with these kinds of rumors going around, the employees are losing their minds wondering if it’s true or fake news.”
Baekje Hotel is a subsidiary of Kangseong Group, the number one conglomerate in Korea.
And with that pride of being number one, Baekje Hotel always fought for the top position against LK Hotel.
Then LK Hotel went and built a crazy tower like LK Tower, they must have thought they’d be surrendering the throne for good.
“Since LK Group is desperate to keep LK Tower, I doubt it’ll be easy.”
“Really? That’s a shame. Ugh. So now LK Hotel might manage to hold onto the tower, bounce back, and secure the number one spot forever. And we’ll have to keep struggling day and night to take it from them? Ugh, this is driving me nuts.”
I chuckled at my sister’s complaints.
Now that her oppa was making a lot of money, I had told her to quit her job and go do what she really wanted, but she said her dream was to build a career at her current company.
She probably had her own goals and dreams.
Even though she’s my little sister, she’s admirable.
“If LK Tower officially opens, it’ll be hard to take back the number one spot.”
If LK Group truly managed to hold on and protect LK Tower, they’d probably be able to recover somehow.
I picked up a fork.
I wanted to try a bit of the bread and snacks she had brought.
“Exactly. I wonder how much more pressure is going to come down from above. If we knew this was going to happen, should we have built something like LK Tower ourselves?”
One thing I’d realized while talking with my sister, when you talk to women, just agreeing with them is enough.
I nodded while enjoying the bread.
“True. You guys should’ve built something. Kangseong Group’s got tons of money anyway.”
She said it was a collaboration with a famous chef.
No wonder it was expensive, it all made sense now.
“Exactly! Our whole family’s about to go into LK Tower soon, but of all places, it’s the rival company’s hotel? If only that hotel had been Baekje instead of LK!”
“Well, that’s- hngk-!”
“Hey, oppa. What’s wrong? Did it get stuck? Hold on, I’ll get you some milk.”
“Ah, th-thanks…”
I almost choked on the bread.
Thankfully, I got it down with the milk, but I definitely felt something.
“Some kind of signal…”
“Huh? Signal? What signal?”
I looked back and forth between my sister and the bread we were eating.
“You said this was made in collaboration with a famous chef, right?”
“Yeah, was it so good that you choked on it?”
And right then, I felt it again, enough for the fork to shake in my hand.
Collaboration.
That’s what struck me.
Kwangwoon and Baekje.
Could it be… a crazy collaboration between the two?