CH16

[Congratulations on becoming a billionaire.]

Seok-won, sitting at an outdoor café table, smiled faintly as he spoke on the phone.

"Reinvest all the profits into stock positions."

[Will you also be using leverage?]

Cox asked, to which Seok-won replied as if it were the most obvious thing in the world.

"Of course. There shouldn't be any problem with that, right?"

[I'll need to confirm with the head, but you've already been approved to use up to 10 times leverage, so it shouldn't be an issue.]

"Then go ahead with it."

[But this will increase your position to 3 billion dollars. Wouldn't it be better to wait and see how the London stock market behaves before adding more? It might be wise to buy more when the market shows signs of rebounding after hitting rock bottom.]

Given the ongoing panic in the market, with both the pound and the London stock market plunging in tandem, it was a reasonable suggestion. Indeed, just before the ERM exit was announced, the London stock market had plummeted from 3,233.80 points to 2,582.00 points within a few days. Even now, the market was still in a downward spiral, with no sign of stabilizing.

It might seem a bit hasty to invest a large amount of money in such a situation where everyone else was busy dumping their stocks. However, Seok-won had a different perspective.

"They say you should buy when there's blood in the streets. I actually think now is the perfect time."

[True, the pound's decline could enhance the competitiveness of exporting companies, and government stimulus could breathe new life into the UK economy. But there's also the possibility things could take a turn for the worse.]

Cox's tone grew more serious as he spoke.

[There's even talk that if this continues, the UK might have to turn to the IMF for bailout funds.]

"Well, it's not entirely out of the question since they have a history of that."

Just 16 years ago, in 1976, after the first oil shock, the UK had to request emergency bailout funds from the IMF due to the economic downturn and accumulated fiscal deficits—a humiliating chapter in its history.

'On top of that, hedge funds are probably fanning the flames of chaos in the market to make a killing,' Seok-won thought.

He was in no position to criticize them, as he, too, was making huge profits amid the market's turmoil.

[If that's the case, shouldn't we be even more cautious?]

"The situation is different from back then, even though it's the same country," Seok-won said calmly, adjusting his grip on the phone.

"At that time, the UK hadn't fully recovered from the wounds of World War II. But now, even though it's not what it once was, the country has regained some of its strength."

[....]

"And most importantly, Washington wouldn't want to see the UK collapse."

Even though the Cold War had officially ended with the Soviet Union's collapse, the UK remained the most crucial ally for the U.S. to project its influence in Europe.

[When you put it that way, that does make sense.]

Cox was silent for a moment, then seemed to agree with Seok-won's assessment.

[The investment decision is ultimately yours, but I may have overstepped. My apologies.]

"No worries. Feel free to give me such advice anytime."

Seok-won responded coolly, showing no sign of being offended. Cox, sounding relieved, replied with a brighter tone.

[Thank you for understanding. I'll proceed as you requested.]

"Oh, there's one more thing I'd like to ask."

[Yes, what is it?]

"Can you send me a detailed statement of the profits from the pound investment?"

[That's no problem. Shall I send it to the address you provided when opening the account?]

"No, send it to Seoul."

After giving the address, Seok-won put down the phone.

"Who were you on the phone with for so long? Your girlfriend?"

"As if," Seok-won replied, glancing at Roy, who was casually eating French fries.

Across from him, Roy had already finished his burger and was now working his way through the fries on the plastic plate.

"Then who was it?"

"You don't need to know. Anyway, I've got a lot on my plate too."

Seok-won casually stuffed a slice of pizza into his mouth. The table was cluttered with plates and cups from the food and drinks the two had been consuming.

"You're always so secretive."

Roy was dipping his fries in ketchup when he suddenly remembered something. He rummaged through his backpack.

"Oh, I almost forgot."

"What is it?"

Seok-won asked as he chewed on his pizza, watching Roy pull out a piece of paper from his bag.

"It's some info on the opponent you'll face in the semifinals."

Apparently, Roy had fully embraced his role as Seok-won's manager, as he'd been bringing similar reports before every match. And today, since it was the semifinals, he seemed to have put in extra effort—the usual single sheet had grown into several pages.

"You really pour your energy into pointless things," Seok-won muttered, his reaction much less enthusiastic than Roy had hoped.

"Where do you even find this stuff?"

"I've got connections, you know," Roy replied, puffing out his chest with pride.

"I've dug up everything—from the character your opponent usually plays to the moves they prefer. Make sure you memorize it all."

"Not necessary."

"Why not!"

Seok-won swallowed the pizza he was chewing, then carefully wiped his greasy fingers with a napkin.

"Because I can win without it."

Cracking open a can of cola with a hiss, Seok-won continued confidently. Roy looked at him, first with disbelief, then with a hint of exasperation.

"You're really full of yourself, aren't you?"

"So what? It's the truth."

So far, Seok-won had fought six preliminary matches, winning each one almost effortlessly, barely giving his opponents a chance to strike back.

'I was top dog at the notoriously tough K-arcade back home. Losing to a bunch of Harvard bookworms would be weirder.'

As Seok-won smirked inwardly, Roy clicked his tongue, half-amused and half-annoyed.

"You're so cocky, but I can't even argue because you're right."

"See? Just accept it."

"Yeah, but this next guy is seriously tough, so you better read it! Got it?"

Roy, unable to let his hard work go to waste, forced the rolled-up papers into Seok-won's backpack.

"I'll read it if I have time."

"I'll check later, so make sure you at least skim through it, okay?"

"Such a pain."

"Hey!"

Only when Roy snapped at him did Seok-won finally relent.

"Fine, fine."

***

A week later, at the Daeheung Group's headquarters office in Mapo, Seoul.

Chairman Park Tae-hong sat at his mahogany desk, carefully reviewing some documents.

"Hmm."

He set down the monthly settlement report from Daeheung Textiles, the group's flagship subsidiary, and frowned in deep thought.

"Sales aren't bad, but the net profit is steadily shrinking."

With the domestic economy growing, wages and various other overhead costs were rising, so it was inevitable that profits would decline.

Park Tae-hong had anticipated this, which is why he had already started diversifying the business by acquiring department stores, hotels, golf courses, and construction equipment companies, among others. It was a wise strategy, spreading the risk across multiple industries while also expanding the group's size.

But as he glanced at the monthly reports from the other subsidiaries stacked on his desk, Park Tae-hong's expression grew more pained, as if he had swallowed something bitter.

"The group has expanded to 20 subsidiaries, and we've climbed up the ranks in the corporate world, but aside from textiles and department stores, the rest are just burning through money."

Most of the subsidiaries he had either acquired or established were still failing to meet expectations, accumulating losses.

These losses were being offset by guarantees provided by the profitable textile and department store businesses. However, with even the textile division's profits beginning to dwindle, it was becoming a frustrating situation.

"Should we consider relocating our domestic factories to China, like others have done?"

With China's reform and opening up, many domestic companies were moving their production facilities there to take advantage of cheaper labor.

Labor-intensive industries like textiles, footwear, and toys were particularly aggressive in this move.

"With wages in China being just a tenth of what they are here, it would be strange not to consider it."

In a situation where profit margins were shrinking, paying lower wages would help maintain profitability.

For this reason, Daeheung Group had already established its first overseas factory in Shenzhen, China, which was now operating smoothly.

The plant's quick ramp-up and efficient operations were making Park Tae-hong seriously consider a full relocation.

"I'd prefer to keep our production base here, but if profitability continues to decline like this, we might have to seriously consider a full shift."

With a complex expression, Park Tae-hong picked up a pack of cigarettes from one side of his desk, pulled out a cigarette, and lit it with his lighter.

Leaning back in his plush chair, he took a deep drag, the smoke filling his lungs as he fell into thought. Just then, there was a knock at the door, and Chief Secretary Gil Seong-ho entered the room.

"What is it?"

Gil Seong-ho approached the desk and placed a mail envelope on it.

"A letter from the U.S. has arrived."

"The U.S.?"

A hint of curiosity flashed across Chairman Park's face.

"Yes."

Tilting his head in confusion, Chairman Park picked up the envelope and read the English words printed on it.

"Salomon Brothers?"

Gil Seong-ho quickly provided an explanation.

"They're one of the top five investment banks in the United States, headquartered in New York."

"Do we have any dealings with them?"

"No, we don't."

Chairman Park tilted his head further in puzzlement as he heard this.

"So why would they send something like this to me?"

"Second Master made his pound investment through Salomon Brothers."

"He did?"

Chairman Park, who had been focused only on the fact that his son had invested in pounds, without paying attention to the specifics, straightened up in his seat.

He stubbed out his cigarette in the crystal ashtray before opening the envelope. Inside was a neatly folded document.

There were only a few pages, but as Chairman Park slowly read through them, his eyes gradually widened.

"Huh."

He let out a breath, his mouth hanging open as he stared at the document. Seeing Chairman Park's expression, Gil Seong-ho cautiously asked.

"What's in the document, sir?"

"This is…"

Chairman Park, still in disbelief, double-checked the contents before handing the document to Gil Seong-ho.

"Take a look for yourself."

When Gil Seong-ho carefully took the document and read it, he quickly noticed something that made him gasp.

"This is a profit statement for the investment, isn't it?"

"Look at the amount at the bottom."

As his eyes scanned down to the figures at the end, Gil Seong-ho let out a sharp breath.

[Total Profit Rate: 31.12% Profit Amount: 311,200,000 USD]

"Three… 311.2 million dollars…"

It was a staggering amount, making Gil Seong-ho snap his head up to look at Chairman Park, who had the same stunned expression.

"Didn't we estimate the profit to be around 10 million dollars?"

"The pound fell further since then, so the profit margin increased."

"But the difference is too vast."

Chairman Park stroked his chin, contemplating the numbers.

Upon closer inspection, Gil Seong-ho noticed something and let out a low exclamation.

"It seems the Second Master used leverage to make the investment."

That would explain the massive profit.

"Leverage? So he took on debt?"

"Yes."

Chairman Park's brows furrowed deeply.

"How much debt did he take on to make this kind of profit?"

"He probably used 10 times leverage."

"10 times leverage?!"

Chairman Park's mouth dropped open in shock.

Realizing that Seok-won had recklessly borrowed money to invest, Gil Seong-ho expected Chairman Park to explode in anger.

Though the gamble had paid off with a huge win, using 10 times leverage was a risk not many could afford to take.

However, contrary to Gil Seong-ho's expectations, Chairman Park broke into a wide smile and burst into laughter.

"Hahaha!"

As Chairman Park laughed heartily, shaking the room, Gil Seong-ho stood silently, blinking in confusion.

"To have made such a bold bet, he must have nerves of steel. Yes, a man should know how to take risks when he's certain. That's what it means to have guts."

Chairman Park slapped the armrests of his chair with his large hands, laughing as if all the weight had been lifted from his shoulders.

Having anticipated an outburst of anger, Gil Seong-ho was left bewildered by this unexpected reaction.

'How can he interpret it like that?'

But then again, when someone is wearing rose-colored glasses, everything the person they admire does seems good.

Chairman Park, still grinning with satisfaction, turned to look at Chief Secretary Gil Seong-ho.

"You mentioned that Taesan Securities was up for sale a while ago."

"Yes, sir."

The skyrocketing price had caused hesitation, but Chairman Park made a decisive call.

"Move forward with the acquisition."

"But the price is quite high. Are you sure it's okay?"

"When it's time to strike, you strike. Hesitate, and you'll only attract competitors and drive up the price. Do as I say!"

Sensing the firm resolve in Chairman Park's tone, Chief Secretary Gil Seong-ho bowed his head in agreement.

"Understood, sir."

After Gil Seong-ho left the room, Chairman Park sat alone, re-reading the profit statement from Salomon Brothers. A look of pride spread across his face.

"To make this much from a single investment. He's really something else."