Third-Generation Chaebol

The long era of quantitative easing.

It had lasted nearly five years since the Lehman crisis.

Not just the American public, but even Wall Street had grown accustomed to quantitative easing.

Zero interest rates had become the norm.

It was taken for granted that the government would keep pumping money into the market.

Because of that, no one was prepared for its reduction.

And that was precisely the reason we were able to prepare more smoothly than others.

"Chairman, stock prices are dropping rapidly. Not only in the U.S. market, but also in Europe, Japan, and Korea—they're all falling in tandem."

"Of course. Once the tapering of quantitative easing was announced, this was inevitable. But tell me, President Han, are you really so relaxed in the middle of this?"

"I was watching the U.S. market all night. To say this to a man who hasn't even had a wink of sleep—that's cruel."

"Was there even a need to stay up all night? This operation is being handled entirely by Representative George anyway. All we have to do is pour in the money."

Representative George was a man who had made his entire fortune through operations like this.

That was why the strategy had been placed in his hands, and all Tae-woo Securities needed to do was reap the profits behind him.

"I've taken on responsibility for the Asian markets. Isn't it too wasteful to exploit only the American side?"

"And? Are you making good returns already?"

"Quite so. We've earned solid profits through short selling, and with bond prices soaring, we've already hit our initial targets."

George's plan was simple.

The moment quantitative easing was cut back—

Stock markets would fall, and bond prices would rise.

So, short the stock market for gains, secure bonds in advance, and profit once again from the bond rally.

Stocks and bonds.

Those two categories alone accounted for over fifty percent of this operation.

Beyond that, they also planned to pull in additional returns through real estate and futures.

"If you get too greedy and miss the right timing to pull out, all of your profits could vanish in an instant. The deadline is September."

"I've already made plans months in advance to close out all short positions before September and liquidate every bond we hold. Chairman, when you've already given me the answer sheet, how could I possibly fail the test?"

If it were a multiple-choice exam, having the answers would make things simple.

But quantitative easing was more like an essay exam—it required the creativity of real players in the market.

Still, with the creativity of Representative George and President Han, scoring a perfect hundred seemed virtually guaranteed.

"What about the response from the financial firms that joined this operation for the first time?"

"They're thrilled—almost ecstatic. In fact, just yesterday, some firms that couldn't participate in this operation banded together and lodged a formal protest."

Naturally.

Since many of them shared the same building and knew each other's circumstances well, it was impossible not to notice who was making money and who was left out.

While one firm was raking in cash, the other could only sit there twiddling their thumbs. Of course they would complain.

"So how did you handle it?"

"We told them, indirectly, that we only run operations with financial firms we can trust. At the same time, we assured them that the next operation would allow more participants, so they should wait for their turn."

"And you explained clearly why they had been excluded this time? Only then will they avoid repeating the same mistake."

"I said it in a roundabout way, but if they can't even understand that, then they don't deserve to be our partners in an operation like this, don't you think?"

"That's true. For this operation, even if Tae-woo Securities ends up with slightly lower returns, make sure the other firms' profit levels are raised."

Quantitative easing was only a rehearsal match.

In a practice game, you sometimes let others score to build trust among the players.

And if you later score a hat trick in the real match, wasn't that the most profitable way to play?

"Tae-woo Securities invested so heavily that the structure inevitably leaves us with the largest share. But if we measure returns relative to invested capital, the other firms will come out ahead—I designed it that way on purpose."

"They need to realize that if they just follow our lead, fortune will find them even in their sleep."

For the survival of the Financial Tower, this process was essential.

If Korea could establish itself as a true financial hub, Tae-woo Securities would reap colossal benefits.

It would help the Korean economy as a whole, and it would greatly benefit Tae-woo Securities as well. Sacrificing a bit of immediate profit was a small price to pay.

"With Quantum Fund leading the charge, they'll end up with at least a ninety-percent return. The rest of the firms won't do worse than seventy percent. Meanwhile, Tae-woo Securities may not even reach fifty percent."

"That much is more than enough."

Wall Street—the very symbol of finance.

Yet few financial firms there managed to achieve high returns year after year.

With the average hedge fund yield on Wall Street at a mere 4%, this time, experiencing returns of 70% would inevitably make their eyes light up with greed.

"I'm worried we may have offered them too much at once."

"When you look at it broadly, even hyenas could be considered part of the canine family, couldn't they? If you feed a dog well, it wags its tail. So long as we keep feeding them regularly, they'll follow loyally without ever biting. And especially, a dog that's well fed will roll onto its back and beg for affection."

Of course, technically, hyenas aren't canines.

But their behavior is similar. If you feed them right, even the hyenas of Wall Street can be trained into hunting dogs.

Looking ahead, Tae-woo Group needed to raise as many hunting dogs as possible in preparation for a future US-China trade dispute. Only then could they take the initiative.

During the month of June, we made tremendous profits from the tapering of quantitative easing.

Thanks to careful preparation, we exceeded our expected returns.

Representative George and President Han worked perfectly in sync, and the financial firms in the Financial Tower followed suit diligently.

Moreover, the tapering of quantitative easing was far from over.

The stock market kept plunging, while bond prices continued to rise.

Because of this, even more profits were to be had, and the unity within the Financial Tower only grew stronger.

After passing through June, July arrived.

On the very first day of July, I received an unexpected message from an unfamiliar figure.

"Chairman, Vice Chairman Jin Dong-gu of the Charlotte Group wishes to meet with you."

"I have a general idea of the purpose. Tell him to join me for dinner tonight."

Vice Chairman Jin Dong-gu contacted me through the planning director.

The succession battle at the Charlotte Group was nearing, so he must be feeling the pressure.

That explained why he had not contacted me all this time but was now hurriedly reaching out.

"I've already made a reservation at the Korean traditional restaurant you usually visit."

"He's already called? Seems like he's been waiting to make contact."

No one should be left waiting when they're this anxious.

I wrapped up my tasks and headed to the restaurant.

Before the dinner hour, Vice Chairman Jin hadn't arrived yet. Captain Kang personally came out to greet me and escorted me to the annex.

"You've been very busy lately, haven't you? You no longer handle the restaurant yourself."

"I've completely stepped away from the restaurant business. But on days when the Chairman comes, I still have to manage it myself, don't I?"

"Are things going well with your work?"

"Things are going so well it's almost scary. The taxi, rental, and shared mobility businesses are all running extremely smoothly."

Captain Kang was undoubtedly a capable man.

Though his management skills were somewhat lacking, he possessed strong leadership.

Talented individuals who had followed him during his military service covered his managerial shortcomings.

Because of that, he was able to steer various businesses well.

His enterprise had even grown to generate higher revenue than many mid-sized companies.

"You're someone others call 'Chairman' wherever you go. How about handing over security operations too?"

"That's absolutely out of the question. When a person loses their original intention, they're bound to fall apart. My original intention is to serve the Chairman!"

Kang's loyalty remained unwavering.

From the day he first joined Tae-woo Group until now, it was no exaggeration to say that his steadfast loyalty made it possible for me to reach this position comfortably.

"Captain Kang, feel free to keep some pocket money for yourself; I'll turn a blind eye."

"No, sir! Even my official salary is more than twenty times what I earned during my military days. It's enough for me and my children to live comfortably for life."

"That's good to hear. When you retire someday, I'll take care of your old age."

"As long as my legs still work, I intend to serve the Chairman for life. So there's no need to worry about my retirement."

I had a long talk with Captain Kang after a while.

I pointed out some areas for improvement in his managed businesses and talked about what new ventures might be launched.

Time passed quickly, and then Vice Chairman Jin Dong-gu of the Charlotte Group arrived at the restaurant annex.

"Chairman Kim, it's good to see you. It's been far too long. We should meet more often, but we've both been busy."

"I should have contacted you first. I apologize for making you be the one to reach out first."

"Ha ha, don't worry. Isn't it typical for entrepreneurs to hear about each other's news through newspapers and broadcasts? Let me offer you a drink first."

Vice Chairman Jin immediately sought alcohol.

That showed how anxious he was. Rather than expensive, strong liquor, I cooled his nerves with some cold beer.

"You seem to have many worries lately. Your complexion doesn't look well."

"...As Chairman Kim said, Vice Chairman Jin Dong-o's China business is suffering huge losses."

The China expansion originally fell under Jin Dong-gu's responsibility.

But his eldest son, Jin Dong-o, practically seized control and took over the China business for himself.

At that time, I had told Vice Chairman Jin Dong-gu not to worry because the Charlotte Group's China expansion was destined to fail.

"Isn't this a situation that actually works in your favor? The eldest son failed at the China venture, which the group invested heavily in, but the second son is achieving great success in Japan. It seems Vice Chairman Jin is one step closer to becoming the next heir."

"That's what I thought too. But my father is still pushing for the eldest son."

Primogeniture succession could be considered a universal principle.

Not only in Korea, but in the United States and Europe as well, eldest sons were often expected to inherit businesses.

And for a company like the Charlotte Group, the situation was relatively mild.

"I understand that the employees of the Charlotte Group support Vice Chairman Jin Dong-gu more. How could anyone dismiss a person who has the backing of the staff?"

"My father and Jin Dong-o are more than capable of handling things. That's why I requested this meeting today—to seek Chairman Kim's advice."

Vice Chairman Jin Dong-gu and I had made a deal. I secured the site for a new headquarters from the Charlotte Group, and Vice Chairman Jin would receive support to become the official successor of the group.

Just by forcing the China market expansion onto Jin Dong-o, I could say I had done my part.

But although I succeeded in obtaining the Charlotte Group site,

Vice Chairman Jin Dong-gu had not yet become the official heir.

As a matter of follow-up service, I could at least offer some advice.

"You are aware that the Charlotte Group and Hyundai Motor Company are competing for the THAAD site, right?"

"Yes, I know well. My father is risking everything to secure the U.S. military base site."

"Stop that. More precisely, only pretend to stop it as much as possible. Then, go meet the executives and actively oppose it; a way forward will become clear."

Vice Chairman Jin Dong-gu looked puzzled, as if not quite understanding my meaning.

His reaction stemmed from not knowing that the THAAD deployment would subject the Charlotte Group to sanctions severe enough to force them out of the Chinese market.

No one in the Charlotte Group knew that providing the THAAD site was like handing over a poisoned apple.

However, if Vice Chairman Jin alone recognized it as a poisoned apple and tried to stop it, his influence would naturally grow stronger.