Chapter 55
Translator: Dreamscribe
“What? All of a sudden?”
“I’m not saying this lightly. I’m being serious. You’ve been taking company shares as your incentive for a while now.”
As I started earning money in the trillion-won range, my incentives also grew along with it.
Making money was fine, but there was one problem.
To receive the incentive, I had to withdraw the amount I was currently investing.
Even now, there were so many places where money was needed, and I had to increase my capital even more. Reducing my investment just to get my incentive was something I didn’t want.
So I had come to an agreement to receive a mix of incentives and company shares.
“But the speed at which you’re making money is really fast. So I was thinking of just creating a subsidiary for you. Not a securities company, but an investment company. But the more I thought about it, I wondered if that was even necessary. I mean, what’s the point of creating a new subsidiary? Even if you take shares in a new affiliate, in the end, the core is still this Kwangwoon Securities.”
“I’d be fine if you gave me stock in a subsidiary.”
“It’s uncomfortable for me. It feels like I’m just creating a new affiliate as some sort of goodwill gesture and patching it up with shares.”
It seemed that this was what was bothering hyung.
Not that I cared at all.
“But still, saying I’d suddenly become CEO… what would you do if I sat in that seat?”
“Me? I’d enjoy a retired life playing all the games I haven’t had time for. Hahaha!”
Hyung burst out into loud laughter.
But I know the truth.
That wasn’t his real intention.
Isn’t he someone who truly loves his work?
“Just kidding. I’m not saying I’m handing the seat over right away. Wouldn’t it still be better for you to have someone playing the role of breakwater for now?”
A department head of one division.
A CEO of a company.
The weight is different.
Up until now, hyung had been the face of Kwangwoon Securities, stepping into all public situations and playing the role of a shield.
But the moment hyung steps down from the CEO position, if something comes up like the last time and we need to hold another shareholders’ meeting, then I’ll be the one who has to go out.
“Becoming the head of a company means your level of responsibility increases. In other words, if something happens to the securities company, the person in charge has to take responsibility. It’s like in our guild, when one guild member messes up, I, the Guild Master, post an apology and say sorry.”
That was the role of someone leading a group.
To carry all the responsibility and operate the organization.
Of course, the problem is that there are a lot of people who want to play king without taking on the responsibility.
Hyung hated people like that the most.
“Right now, asking you to take on that role would be too much of a burden for you.”
The reason I can invest comfortably is thanks to hyung.
No matter what happens, he always said he would take the heat for it and that I wouldn’t be affected. How could I not feel at ease?
“But Jin-ho. Everyone has their own capacity. I’m someone whose capacity ends with being CEO of a mid-sized securities company. But you’re not. You’ll definitely be someone who leaves a big mark in the history of finance. You’re already doing that now. So you can’t just stay a department head forever.”
“Come on. Hyung, you’re incredible.”
“No. I once had big dreams and even tried building a group, but I felt deep down how small my capacity was. Especially watching you, Jin-ho, I’m realizing it even more. People who are destined to be great really are different from the very beginning.”
In the guild too.
And here at this securities company.
Hyung is like a massive wall to me.
But now, that wall was about to disappear.
“If you keep investing and increasing your profits, you’ll soon surpass the shares I own. So not right now, but be mentally prepared. All the executives have already agreed. Even if you suddenly become CEO, no one would dare oppose it. When the right time comes and my judgment feels right, I’ll hand it over immediately.”
It seemed hyung had made up his mind.
Running a securities firm without hyung now.
Already, my heart feels heavy, and there’s an emptiness on one side.
“So you’re really planning to completely step away from this line of work?”
“I told you earlier, didn’t I? I’m going to enjoy retired life. Thanks to you, I made a hefty amount of money. Don’t you think I should spend at least some of it? I’ll just enjoy a carefree life and watch how big our Jin-ho grows. Hoho.”
“From the way you’re talking… sounds like you’ve already got a detailed plan in place?”
“Yeah. Once I hand over the position to you, I’m thinking of staying abroad for a while.”
Until now, he had only gone overseas for business trips.
He said he’d barely ever traveled for personal leisure.
“Now I want to take it easy, go on trips, stay overseas for longer periods, and get a taste of life abroad.”
“Where are you thinking of going?”
“Singapore. Isn’t it called a dream country for the wealthy?”
The country of wealth, the country of finance, Singapore.
Taxes, financial infrastructure, quality of life, business, luxury housing options for high-net-worth individuals, Singapore was a country whose government was genuinely committed to attracting the wealthy.
If you just had money, it was a place where you could enjoy an abundance of benefits. That’s why it was called a dream country for the rich.
“……?”
But why was that?
The moment I heard the name Singapore, a slight shiver ran through my body.
“What’s wrong?”
“Ah. Nothing. It just feels like… you’ve really made up your mind to leave. I guess I’m feeling a bit… sad.”
“Don’t worry. Just because I’m abroad doesn’t mean I’ll neglect the game. Since you’re busy, I should manage the guild well, don’t you think?”
“I still don’t want to let you go yet, hyung……”
“Sorry, but you probably don’t have any excuse to stop me, right? Haha.”
If hyung’s not at the company, I think I’ll feel incredibly empty.
“If a reason comes up… would you stay?”
“Well… would there be such a reason?”
But how could I forcibly hold on to someone who, without a shred of greed, was cleanly handing over both his shares and the CEO position to me?
I should just let him go, as he wishes.
So he can enjoy his retirement comfortably.
So he won’t have to worry about anything.
That would be the right thing to do.
‘But still… why did I get that feeling from Singapore?’
***
There’s a saying: Leave while they’re still clapping.
CEO Hwang felt that now was exactly that time.
Jin-ho was continuously growing, increasing capital with an astounding investment ability.
No matter how much the company supported him, the position of department head would always come with limitations.
‘Besides, Jin-ho has the potential to become the world’s greatest investor.’
So he wanted to create an opportunity for him to jump even higher.
To be honest, if he were greedy, it would have been easy to act otherwise.
‘I could’ve just spun off a subsidiary and told him to take shares from that……’
Most others probably would have chosen that route.
But Hwang Dae-woon couldn’t do that.
He couldn’t exploit the younger brother he cherished most in such a way.
And when one era ends, a new one begins.
To prevent stagnation, it was time to step aside.
‘So let me stay just until then.’
For Jin-ho, who is still growing, until the day that kid spreads his wings wide and soars even higher.
He would remain in place and shield him from the storms.
***
OPEC had achieved their goal.
The price of crude oil had finally reached 60 dollars.
Whether that was perceived as the high point or not, my intuition immediately reacted, and we liquidated our position without delay.
A 2 trillion won investment turning into 3 trillion won in an instant, like magic.
It was only a shame that, due to the massive scale, we couldn’t use leverage.
“Department Head. The report is ready. It’s about Singapore.”
After drinking with hyung last night, I couldn’t shake the feeling I had, so I’d asked the Research Team to look into it.
Currently, the Research Team was operating 24 hours a day so they could immediately gather and organize information whenever I requested it.
“Anything unusual?”
“Doesn’t seem like there’s anything out of the ordinary.”
Singapore is a city of trade.
It holds one of the world’s most active ports, and the trade industry is its mainstay.
For that reason, it’s said that the banks in Singapore have invested the most money into offshore plants.
They provide large loans and also hold a significant amount of bonds from the companies involved.
In particular, they hold bonds from Geumwoo Shipbuilding & Offshore, which is the second-largest company in that industry in Korea.
“Isn’t Geumwoo going through a lot of crisis rumors lately? Pretty much the entire shipbuilding industry is like that right now. Even Daekwang is struggling to stay afloat. From what I’ve heard, Geumwoo Shipbuilding can’t even get loans domestically anymore.”
Unable to secure domestic financing, perhaps they turned overseas instead.
It looked like Geumwoo Shipbuilding had also received loans from there.
“……!”
That was it.
It felt like a hook had suddenly caught onto something.
“Manager, can you look into Geumwoo Shipbuilding for me? I want to know how widely their bonds are spread out too.”
“Yes. I’ll get on that right away. Oh! And the folks over at Kwangwoon Shipping are asking for your advice again.”
Lately, every time something happens, CEO Kim Doo-young sends a formal request asking to hear my opinion.
“This time, didn’t Kwangwoon Shipping hit the jackpot? Seems like they’re piling up capital fast and are wondering what to do with it……”
In truth, there are plenty of places Kwangwoon Shipping could use the money right now.
There are areas that have been creaking since the days of Hanjong and need capital injected to be fixed.
Above all, they can’t keep up with the flood of new contracts, so there are more than just one or two places that need investment.
[Investment?]
So I wrote that word in my notebook and waited to see if I’d feel anything, but there was no reaction.
I tried jotting down several other key ideas too, but it was the same.
[Holding?]
“!”
That’s where the feeling struck.
Wait. You’re telling me not to spend anything?
Even when there are so many places that need funding?
“……Tell them to hold onto the cash for now and not spend it anywhere.”
***
Jung Jin-ho.
To Kim Doo-young, Jung Jin-ho’s words were practically divine.
You could call it cult-like devotion, but anyone who had personally witnessed the miracles Jin-ho created couldn’t help but believe.
Why else would Kwangwoon Securities’ policy be: “Always follow Department Head Jung Jin-ho’s will”?
“Ah, CEO Kim. Sorry I’m a bit late.”
“No worries. It’s about Geumwoo Shipbuilding & Offshore, right?”
“Yeah. I mean, how the hell did they manipulate things for three years? I can’t believe the Financial Supervisory Service didn’t catch it.”
A major incident had just hit Geumwoo Shipbuilding & Offshore, which was already surrounded by crisis rumors.
It was revealed that the management had been engaging in accounting fraud for as long as three years.
“The scale alone is 5 trillion won. They’re crazy. If this goes to trial, they’ll be looking at a minimum of 10 years.”
“Luckily, it seems Kwangwoon Securities didn’t hold any of their stock.”
“Right. When the shipbuilding business started going downhill, we sold everything off back in the day.”
Geumwoo Shipbuilding, with a market cap of 1.6 trillion won.
But after the scandal broke, its already-devastated stock price was now trying to dig into the ground.
“Singapore’s already in chaos, and now this incident is going to shake things up even more.”
“Huh? Why are you suddenly bringing up Singapore?”
“You know, don’t you? That the main investment target of Singaporean banks is offshore plants.”
Singapore, the center of maritime logistics.
As the region playing the biggest hub role, banks there primarily lend to and invest in offshore plant companies.
“The problem is that our Kwangwoon Shipping just swept up all the contracts this time, right? Because of that, other shipping companies are completely dried up.”
“Yeah, I heard. The contracts we landed are enormous.”
“Yes. It’s so overwhelming that it’s become a problem. We clearly need to inject more capital and scale up operations, but Department Head Jung said not to spend any of the money yet.”
“Jin-ho did? Even when its in urgent need?”
“Yes. At first, I couldn’t understand why… but now it all makes sense. He had a plan all along.”
Hwang Dae-woon tilted his head.
“What do you mean?”
“Thanks to us sweeping up the contracts, several overseas offshore companies are now facing bankruptcy. China’s a mess too. If they can hang in there a little longer, they might barely survive, but right now the banks in Singapore are either liquidating bad debts or refusing to extend loans.”
“All of a sudden? Don’t they usually grant extensions?”
“Yes. But there’s a reason Singaporean banks can’t afford to do that now. If those loans aren’t repaid quickly, they’re looking at a possible bank run.”
A bank run.
It means everyone is pulling their money out of the banks.
“You know, I’ve been in this field for quite some time now. So I’ve got a general sense of how things work around here. In the case of Singaporean banks, they tend to spread money into offshore plants, and for risk management, they usually hedge by investing in oil.”
While the futures market is often used by individuals for pure speculation, large financial institutions like banks use it for risk management rather than speculation.
The hedge that Singaporean banks primarily used was oil.
“Looks like they anticipated a drop in oil prices and took out a large short position. It was the natural move at the time. Everyone was expecting oil prices to fall back then.”
“Then they must’ve taken a massive loss this time?”
“Yes. It’s hard to say exactly how much, but considering the banks were leveraging together, it’s certain the damage is significant.”
Only then did it make sense why a bank run was happening.
Singapore is a globally renowned financial hub.
So once rumors started to spread that the banks had taken heavy losses, it would’ve moved fast.
“They’re not going to shut down banks, are they?”
“That would be a disaster. The government over there will do whatever it takes to stop that from happening. If the banks go down, it’ll be total chaos. That’s why both the government and the banks are desperately trying to scrape together all the cash they can. They’re selling off bonds at bargain prices and pressuring borrowers to repay loans.”
That domino effect was now spreading to countless offshore companies.
“By the way, I heard Department Head Jung is currently sweeping up Geumwoo Shipbuilding bonds.”
“What? That company is collapsing!”
“Yes. And he’s buying them dirt cheap. The banks are dumping them in a hurry. Honestly, the bonds are basically worthless now since the company is about to go bankrupt. But… what if, just if, we ended up taking over Geumwoo Shipbuilding?”
CEO Hwang Dae-woon blinked a few times.
“Then… all the debt we’d have to repay in the future would vanish, bought up at a fraction of the cost?”
“Yes. And remember, Department Head Jung told me not to spend any money and to hold onto it? I think… Department Head Jung is drawing up a massive blueprint right now.”
“A blueprint?”
“Because of Kwangwoon Shipping, all the offshore companies are crawling at rock bottom. They’re selling off everything they have to repay debt. Their stock prices are basically turning into toilet paper.”
In other words, because they couldn’t meet the demand, this was practically a mega-sale shopping spree for Kwangwoon Shipping, who needed expanded infrastructure.
They were already drowning in orders, to the point they were outsourcing to other companies for a fee. But if they selectively acquired offshore companies that could actually help, even ones currently at rock-bottom prices, they could fully handle the overwhelming demand.
At that moment, even Hwang Dae-woon started to see the blueprint Kim Doo-young was talking about.
“W-wait a second. This is really the picture Jin-ho’s been painting?”
“Yes. Isn’t it amazing? I don’t know where or when he started drawing up something like this, but one thing’s clear, it’s all unfolding exactly the way Department Head Jung intended.”
However, there was a problem.
If they added too many affiliates, it would trigger a violation of the Financial Holding Company Act.
A securities firm cannot own more than one affiliate.
Unlike other countries, in Korea, the law requires public disclosure when acquiring an affiliate, and all the information must be made public.
What does that mean?
“It means we’ll inevitably have to establish a holding company and create Kwangwoon Group.”
Kwangwoon Group!
That was an essential step to complete this blueprint.
That punk Jin-ho.
He mentioned something about having a reason to stay the other day.
Could it be, that was what he meant?
“I think Department Head Jung is trying to make you Chairman, sir.”