CH8 - Thesis

Mapo-gu, Seoul.

A black Mercedes sedan smoothly glided to a stop in front of the towering 20-story headquarters of Daeheung Group on one side of Mapo-daero. As the car halted, Chief Secretary Gil Seong-ho quickly opened the rear door with both hands, and Chairman Park Tae-hong stepped out.

As soon as he did, the executives lined up on either side bowed their heads in greeting.

"Welcome, Chairman."

It was a scene reminiscent of a royal procession, and in truth, that description wasn't far off. As the head of Daeheung Group, ranked 30th in the business world, Park Tae-hong wielded absolute power and influence, making him practically a king within his company.

With a stern, expressionless face, Park Tae-hong walked briskly between the rows of executives, exuding charisma. Everyone held their breath, keeping their eyes lowered, as he entered the building and crossed the marble-floored lobby, accompanied by his aides. He stepped into the elevator that a security guard had already secured.

A few moments later, having reached the top floor, Park Tae-hong walked down a carpeted corridor and entered his office. The secretarial staff, busy at their desks, immediately stood and bowed their heads.

Nodding slightly in acknowledgment, Park Tae-hong headed straight into his private office, speaking to Chief Secretary Gil Seong-ho, who followed him in.

"What's on the schedule for today?"

"In the morning, there's an executive meeting, and you're scheduled for a Federation of Korean Industries (FKI) chairman's luncheon."

Park Tae-hong took off his suit jacket and handed it to a female secretary.

"Is Chairman Jo from Seho Group coming?"

"Yes, he is."

At this, Park Tae-hong grimaced slightly as he sat down in front of his large mahogany desk.

"I have to see that guy's face again. I don't know if my stomach can handle it."

His strained relationship with Jo Myeong-se, the chairman of Seho Group, known for its focus on fertilizer and food businesses, was infamous in the business world.

"Make sure to have some antacids ready."

"Understood."

The female secretary carefully laid his jacket on a hanger to avoid wrinkles, bowed silently and left the room. Once the door closed, Chief Secretary Gil Seong-ho glanced at Park Tae-hong's mood and cautiously spoke up.

"There's been a call from Chief Director Son Dong-seong in the U.S."

Park Tae-hong leaned back in his chair and looked at Gil Seong-ho.

"I've been wondering how things were going. So, did he manage everything well?"

Gil Seong-ho hesitated, a slightly troubled expression on his face.

"Well… there's been a bit of an issue."

This unexpected answer made Park Tae-hong's brows furrow.

"An issue?"

His eyes narrowed as if to urge an explanation, and Gil Seong-ho let out a quiet sigh as he spoke.

"He met with the young master, but it turns out the winnings have already been invested elsewhere."

"He's already spent the money?"

"It wasn't just spent—it was invested."

Gil Seong-ho tried to correct him, but the words seemed to go unheard by Park Tae-hong.

"Where did he spend it? An investment? Don't tell me some scam artists got to him."

Park Tae-hong raised his voice, sitting up straight and glaring.

"He invested in the pound sterling."

"Explain it in a way I can understand!"

Feeling like a criminal, even though it wasn't his fault, Gil Seong-ho hesitated before responding.

"He shorted the pound sterling in both futures and spot markets."

"What?"

For a moment, Park Tae-hong, dumbfounded, slammed his hand on the desk.

"Suk-won went into forex speculation!"

"No, it's not speculation; it's a legitimate investment in the forex market."

Gil Seong-ho hurriedly tried to defend Suk-won, but it was to little avail.

"It's the same thing!"

As Park Tae-hong shouted angrily, Gil Seong-ho considered continuing his explanation but decided to remain silent instead. There was a difference between the two, but explaining it to an already enraged Park Tae-hong would likely only make things worse.

And honestly, Gil Seong-ho understood why Park Tae-hong was so angry. Suk-won, who studied at a prestigious American university, was good-looking and had never caused any trouble or been a source of worry, was always a point of pride for Park Tae-hong. Especially on days like today, during FKI meetings, he loved to brag about his son to other chairmen, making them envious.

On the other hand, the son of Seho Group, with whom he had a notoriously bad relationship, was known as a troublemaker. Whenever the topic of children came up, Park Tae-hong would always take pleasure in saying, "My son is doing so well, but I hear your son caused more trouble after drinking again."

But now, out of the blue, the seemingly perfect second son had done something like this, and the disappointment was understandable.

'If my son had done this, I would have broken his legs on the spot.'

Moreover, there was genuine concern that his second son might suffer significant losses from a hasty investment. As these thoughts crossed his mind, Chief Secretary Gil Seong-ho quickly cleared his head when he noticed Park Tae-hong, having slightly calmed down, speak again.

"So how much did he invest in the pound?"

Meeting his intense gaze, Gil Seong-ho hesitated before replying.

"Well… he invested the entire winnings."

Park Tae-hong's face contorted again as his voice rose in volume.

"All of it? He put every last cent into it?"

"Yes, sir."

The anger that had just been subdued flared up again as Park Tae-hong's face turned red with rage.

"That fool! What on earth was he thinking!"

As he continued to vent his fury, Park Tae-hong suddenly yelled in frustration.

"Tell him to pull the money out immediately!"

"I'm afraid that might be difficult."

"What? Why can't he pull it out!"

Gil Seong-ho was now sweating nervously, his expression troubled.

"The contract stipulates a significant penalty for early termination."

"And how much is this penalty?"

As if interrogating him, Park Tae-hong demanded.

"Twenty percent of the investment amount."

"So we'd be looking at over $20 million."

"…Yes."

Astonished, Park Tae-hong let out a series of incredulous laughs before his face hardened.

"They say a quiet cat climbs the stove first… What was he thinking, doing something like this?"

"I should have acted sooner, my apologies."

"It's fine. Director Son said he wasn't at school when he arrived. What could you have done?"

Waving his hand dismissively, Park Tae-hong sighed. Feeling the frustration, he pulled out a cigarette, and Gil Seong-ho quickly lit it for him.

"Ugh… That damn kid."

As white smoke drifted out of his mouth, Park Tae-hong's face twisted with irritation. Watching the mood, Gil Seong-ho carefully spoke up.

"At least he invested in the pound, so it's not all bad."

"What are you talking about?"

Holding the cigarette between his fingers, Park Tae-hong looked over at him.

"The pound is part of the European Exchange Rate Mechanism (ERM), so its fluctuation is limited."

"Is that true?"

"Yes. The ERM is a quasi-fixed exchange rate system based on the Deutsche Mark, where member countries' exchange rates can only fluctuate within a certain range."

"And what's the range?"

Having researched the pound after receiving the call from the U.S., Gil Seong-ho replied promptly.

"The rate can fluctuate by 2.25% above or below the central rate."

"...."

"For member countries like the UK and Italy, considering special circumstances, a fluctuation range of up to 6% is allowed."

"So, in the worst-case scenario, the loss won't exceed 6%."

"Yes."

"Hmm."

Park Tae-hong crossed his arms and sat in deep thought for a while. Then he stubbed out his half-smoked cigarette in the crystal ashtray and spoke again.

"Six percent isn't a small amount, but if this teaches him that the world isn't so easy, maybe it's not such a bad thing."

"Then…"

With a reluctant expression, Park Tae-hong added.

"It's better than paying a 20% penalty, so just leave it as it is."

"Understood."

"Tsk. I thought he was a smart kid for getting into Harvard, but it turns out he's just another fool."

Clicking his tongue in disappointment, Park Tae-hong added.

"When the contract matures, make sure to take all the money so he can't pull a stunt like this again."

"Yes, sir."

Letting out a sigh, Park Tae-hong waved a hand dismissively, signaling the end of the conversation.

"You may go."

Though Park Tae-hong's blood pressure had risen several times during the conversation, it was a relief that it ended at this point. Bowing his head, Chief Secretary Gil Seong-ho exited the room.

Alone now, Park Tae-hong rubbed his forehead with his hand.

"They say raising kids is the hardest job. I never imagined Suk-won would pull something like this."

There were things Suk-won intentionally didn't disclose, but neither Park Tae-hong nor Chief Secretary Gil Seong-ho had any idea that he was using leverage as high as 10x. If they had known, Park Tae-hong would have flown to the U.S. himself and canceled the contract, even if it meant paying the penalty.

***

Cambridge, Massachusetts.

Suk-won was seated in the middle of a large lecture hall, focusing intently on the lecture given by an elderly professor at the front of the room. Despite having faced financial hardship that prevented him from attending university, Suk-won had always been passionate about studying, even sneaking in time to read while working as a shoeshiner. Now, experiencing campus life later in life, he found it overwhelmingly enjoyable and fulfilling.

"Here, we see an interesting perspective… Hmm, judging by the pained expressions, it looks like it's about time to end the class."

After delivering a passionate lecture, the elderly professor checked his watch.

"Let's wrap up here for today. Remember, your thesis is due by the end of the spring semester, so don't wait until the last minute to get started."

Groans echoed around the lecture hall.

The elderly professor smiled at the students' weary expressions, gathering his books and materials before leaving the room.

"Hey, what's your thesis on?"

"I don't know, I haven't even picked a topic yet."

"Wanna head to the cafeteria?"

"Okay."

As the students gathered their belongings and began to leave, Suk-won sat deep in thought, absentmindedly twirling a pen in his hand.

"Hmm, a thesis… What should I write about?"

The original owner's thesis topic was already set, but it felt too bland and uninspired to him. Unlike the other students, who were dreading the thought of their thesis, Suk-won's mind was buzzing with curiosity and excitement.

Then, a flash of inspiration crossed his mind, and a wide grin spread across his face.

"Yeah, that's perfect."

What came to Suk-won's mind was the upcoming attack on the pound by hedge funds. It was an event that would shake the global forex market to its core, and since he would be directly involved in the "war" and intimately knew the circumstances inside and out, there couldn't be a better topic.

Just then, someone lightly tapped him on the shoulder.

"Suk-won."

He looked up to see an Asian man with glasses looking down at him.

"What were you thinking about that you didn't even hear me calling?"

It was Min Je-gal, the president of the Korean Students Association. His unusual surname made him memorable. As usual, there were many Korean international students at Harvard, reflecting the academic fervor of Korea, and this led to the formation of a separate Korean Students Association.

"We're having a meeting with the new Korean freshmen. Want to come?"

Detecting the overly familiar tone, Suk-won narrowed his eyes slightly.

Probably just another drinking party with the freshmen, like they did in Korea. He was likely inviting Suk-won because, as a third-generation chaebol, he wanted to secure him as a financial resource. Suk-won's background was already widely known among the Korean students at Harvard. With his striking looks and no attempt to hide his background, it was only natural.

"Sorry, I've got other plans."

"Oh, okay."

Min Je-gal awkwardly smiled as Suk-won declined immediately. Had it been anyone else, they might have shown their displeasure right away, but knowing Suk-won's status as a chaebol heir, Min Je-gal couldn't treat him as casually as others.

"Maybe next time, then."

Forcing a smile, Min Je-gal quickly made an excuse to leave. He would probably talk behind Suk-won's back, complaining about his rudeness, but so what? Suk-won wasn't concerned with making nice with them right now.

"If you want to make money, you've got to hustle."

With his backpack slung over one shoulder, filled with books and notes, Suk-won left the lecture hall and headed for a bookstore located a bit further from the main academic buildings.

[Coop Harvard Bookstore]

This bookstore, with its red brick facade and quaint exterior, was one of the oldest and largest university bookstores in the United States. It didn't just sell books but also offered salads, sandwiches, and a variety of drinks, making it a popular spot for hungry students and staff.

True to its purpose as a bookstore, it also stocked a wide array of specialized books and magazines that were hard to find elsewhere, making it the place Suk-won frequented the most on the Harvard campus after his reincarnation.

"Hey! Here again today?"

"Hi, Raphael."

"Still got some cranberry chicken sandwiches left. Want one They're popular, so they'll be gone soon."

"Maybe later."

Waving back to the friendly bookstore clerk, Suk-won walked over to a familiar display stand. Taking up almost half of one wall, the display was filled with various newspapers and magazines neatly arranged.

Among them, Suk-won pulled out a copy of The Wall Street Journal. Opening the international section, his eyes quickly found the article he had been waiting for.

[EC Finance Ministers' Meeting Ends in Failure

On September 4-5, a two-day meeting of EC (European Community) finance ministers and central bank governors was held in Bath, England. Attending member states strongly demanded that Germany ease its monetary policy to combat the recession, but Helmut Schlesinger, president of the Bundesbank, stated, "There are no plans to lower interest rates, but neither can I find a reason to raise them. We are simply fulfilling our duty as the central bank of Germany, and we will not tolerate any political pressure or interference from other countries." As a result, it has become unlikely that Germany will tolerate inflation and lower interest rates for the benefit of other member states. With this statement from Schlesinger…]

'Looks like the Bundesbank just signaled to the hedge funds where the prey is.'

After paying for the newspaper at the counter, Suk-won left the bookstore and took out his mobile phone from his backpack. Unlike smartphones with their multitude of functions, this device could only make and receive calls, and it was as bulky as a brick, but for this era, it was cutting-edge.

Its main selling points were the single-line red LED display that could show up to 10 characters at a time and its relatively lightweight 200 grams. Flipping open the phone and extending the plastic antenna, Suk-won deftly dialed a number and pressed the call button.

After a few rings, the line connected, and Cox, the Salomon Brothers trader, answered.

[Hello?]

"It's me."

Cox immediately recognized his voice.

[Ah. Are you calling to place another order?]

"Yes."

[Go ahead.]

"Sell another $100 million in pound spot and futures."

[Please hold for a moment.]

The sound of a keyboard being tapped came through the phone as the order was being processed.

[The transaction has been executed at $1.4800 per pound.]

Upon hearing those words, a broad smile spread across Suk-won's face.