CH38 - LTCM I

Seoul, Mapo District, Daeheung Group Headquarters.

"Is the Chairman inside?"

As Secretary Gil Seong-ho entered the anteroom with a stern expression on his face, Manager Chu Se-yeong hastily stood up and replied.

"Yes, he is."

Hearing this, Secretary Gil quickly walked toward the inner door and knocked. Manager Chu, who had been holding his breath until Secretary Gil entered the Chairman's office, finally let out a sigh of relief as the door closed.

"Phew, something must be up. His expression didn't look good."

"Yeah, I've hardly ever seen him look that serious," Se-yeong agreed, nodding.

Assistant Manager Jeong Yoon-kyung, who had been sitting at her desk, glanced at the tightly closed office door with concern and adjusted her horn-rimmed glasses.

"It seems like something important. Let's be careful not to disturb them until they call for us."

"Yes, Assistant Manager."

The youngest in the office, Lee Chae-yeon, aware of the tense atmosphere, shrank back and remained uncharacteristically quiet.

Meanwhile, inside the spacious office, Chairman Park Tae-hong, who had been reading a document at his large mahogany desk, leaned back in his chair as he saw Secretary Gil entering.

"I have an urgent report."

Secretary Gil stepped forward, his tone grave. Sensing something serious, Chairman Park put down the document he was holding.

"What's happened for you to look like that?"

Secretary Gil's voice was somber as he delivered the news.

"This morning, Army Chief of Staff Yoon Jin-woo and Director of the Defense Security Command Do Gyeong-tak were suddenly replaced."

"…!"

The unexpected news left Chairman Park wide-eyed in shock.

"Is that true?"

So surprised that he lifted himself off the back of his chair, Chairman Park's voice carried a note of disbelief, to which Secretary Gil solemnly nodded.

"Yes, sir. I couldn't believe it at first either, so I confirmed it several times. It's true."

"This is…"

Chairman Park was unable to hide his astonishment. The ousted Army Chief of Staff Yoon Jin-woo and Director of the Defense Security Command Do Gyeong-tak were such prominent figures that their sudden dismissal was indeed shocking.

"The dismissal process has already been completed, and senior officers without ties to Hanahoe have received their appointments and taken command."

"Wow, they didn't waste any time, did they? They really went through with it, start to finish, in a flash."

"It seems they acted quickly out of concern for a backlash from Hanahoe."

Chairman Park, sharing the same thought, nodded slightly.

"Indeed. Removing those two is tantamount to the President declaring he will not recognize Hanahoe."

"That's correct. In fact, I've heard that the 30th and 33rd Guards Battalions stationed at the Blue House have been placed on high alert."

The 30th and 33rd Guards Battalions, part of the Capital Defense Command, were responsible for guarding the outer perimeter of the Blue House, as well as the surrounding areas of Bukaksan and Inwangsan. The alert status indicated the Blue House was on edge.

"They must be worried about a repeat of the December 12th Incident."

"If Hanahoe decides to rebel, it's certainly within their power to stage a military coup."

Chairman Park picked up the teacup in front of him, but when he realized it had gone cold, he set it down again.

"The commanders of the Capital Defense Command and the Special Warfare Command are both Hanahoe members, aren't they?"

"Yes, sir. And it's not just them—many of the key positions at the corps and division levels are also held by Hanahoe members. There are more than enough of them to fill two hands."

It wouldn't be an exaggeration to say Hanahoe had a stranglehold on the entire army.

"The President can't be unaware of this situation. Yet he still pushed ahead with the purge… is he that confident?"

"More likely, he's acting out of fear that if he doesn't deal with Hanahoe now, he could become their puppet."

"You're referring to the remarks made by former Defense Minister Choi Gu-chang before the inauguration."

"Yes."

Chairman Park, arms folded, leaned back and nodded gravely.

"They did overstep their bounds."

Even if he were the President, he couldn't just sit back and watch as Hanahoe openly challenged the military commander-in-chief's authority.

Letting out a low sigh, Chairman Park commented,

"Regardless of the outcome, the political landscape will be walking on thin ice for a while."

Chairman Park then recalled the conversation he had with Seok-won the other day, and his expression darkened.

"I had a feeling… things turned out just as the youngest one predicted."

Secretary Gil, remembering that conversation as well, nodded in agreement.

"The foresight of the young master is truly remarkable."

"Since he predicted Hanahoe's downfall, it's likely that the financial real-name system will be implemented soon as well."

"That's…"

Secretary Gil's expression grew serious. If the dissolution of Hanahoe was a major political event, the implementation of the financial real-name system would directly impact the group.

With Secretary Gil standing before him with a grave expression, Chairman Park tapped his fingers on the desk for a moment, deep in thought. Then he looked up and spoke.

"Remember the plan I told you to prepare last time."

"Yes, sir."

"Put it into action."

Receiving the order, Secretary Gil's expression hardened slightly as he replied.

"The situation with Hanahoe alone is already a shock. Do you really think they'll also push for the financial real-name system?"

"If they've already started dismantling Hanahoe, what can't they do? And have you forgotten what the youngest said—that this isn't just about making financial transactions more transparent?"

"You mean using it as a tool to deal with the previous regime and Hanahoe figures."

"Exactly. There's nothing as powerful and popular as the pretext of cleaning up corruption."

Recognizing the logic, Secretary Gil, who had initially been skeptical, couldn't help but agree.

"Make sure everything is wrapped up within three months."

Secretary Gil looked at Chairman Park with a troubled expression.

"The costs involved in converting the shares and slush funds held under borrowed names are already significant. If we rush, the losses could be even greater."

"It's unfortunate, but we'll have to accept the losses if we want to finish before the storm hits."

"Do you really think they'll implement the financial real-name system within this year?"

Despite thinking it might be too soon, Chairman Park's perspective was different.

"Yes. Unlike in the U.S., where a President can serve two terms, here it's only five years. So they'll likely want to tackle all the difficult and burdensome tasks while their power is at its peak in the first year."

Speaking with conviction, Chairman Park provided another reason.

"Besides, if they want to use this as a means to purge the figures from the previous regime and Hanahoe, the sooner they implement it, the better."

"Listening to you, it does make sense."

Secretary Gil had to admit that Chairman Park's reasoning was plausible.

"So to avoid getting caught in the crossfire, it's better to take some losses now and have everything sorted out beforehand."

"Understood. I'll proceed with the plan right away."

Secretary Gil straightened up and responded firmly.

"Make sure that no issues related to the borrowed-name assets make it into the newspapers or get the group's name involved. Handle everything discreetly."

"I will."

"And keep a close watch on how the Hanahoe situation develops."

"Yes, sir."

With that, Secretary Gil promptly turned and left the Chairman's office. Alone now, Chairman Park let out a low groan, placing his hand on his forehead.

"I wish he hadn't been right about this… but once again, things are unfolding just as Seok-won predicted."

The more he thought about it, the more it made his head hurt, and he couldn't help but sigh.

"I suppose the best strategy is to lie low for a while."

Chairman Park sank into deep thought, pondering how to not only survive the impending storm but also come out ahead.

***

Cambridge, Massachusetts.

"Here's your Americano with two extra shots!"

"Thank you."

With the weather warming up in the spring air, Seok-won, dressed in a light windbreaker, took the tumbler handed to him by the female barista and sat down at an outdoor table.

March was almost over, and the sunlight was warm enough to feel slightly hot in certain spots.

"Only two months left until graduation."

Unlike others, Seok-won had already earned enough credits and was replacing his thesis with his work assisting Professor Frank, so he was feeling relaxed and carefree.

Compared to other students who were too busy preparing their theses to catch a break, this was an enormous luxury.

With only two classes left to attend, Seok-won had plenty of free time, allowing him to leisurely focus on other pursuits.

"Let's see."

Taking a sip of his Americano, Seok-won pulled out the Korean daily newspaper he had received in the mail earlier that morning and began to read.

An article on the front page immediately caught his attention.

[

Sudden Leadership Change Shocks the Army

The sudden dismissal of the Army Chief of Staff and the Director of the Defense Security Command two days ago has left the Army in shock and confusion. The dismissal was carried out so swiftly that the individuals involved were notified almost simultaneously with the Ministry of National Defense's announcement, leaving Army Headquarters completely blindsided.

Today, in his first press conference since taking office, Defense Minister Jeon Deok-jae stated that the decision to replace the Army Chief of Staff and the Director of the Defense Security Command was made after a breakfast meeting with the President at the Blue House.

He emphasized that this change was part of the current plans for military reform, including the eradication of irregularities within the military.

When asked by a reporter if this was aimed at targeting Hanahoe, Minister Jeon responded, "It's time to move beyond factionalism and conflict," avoiding a direct answer.

Meanwhile…]

"They should have known when to step down. They were far too greedy from the start."

With the military regime coming to an end and the civilian government beginning, the very idea that Hanahoe, a faction within the military, could continue to hold power was sheer arrogance.

Contrary to the nation's concerns, Hanahoe, intoxicated by long-held power and believing they were untouchable, had been purged with surprising ease.

For a moment, Seok-won felt a twinge of unease, wondering if history was veering off its original course. But he shook his head and muttered to himself.

"I haven't done much in Korea, so there's no reason for things to go differently."

Then, thinking of his father in Korea, he murmured,

"If he didn't dismiss my warnings, he should be preparing for the financial real-name system now that he's seen Hanahoe being dismantled."

Hopefully, that was the case. But if his father ignored the warnings and did nothing, he would be in for a rude awakening later on.

Just then, his phone rang, interrupting his thoughts. Seok-won took it out of his backpack and answered.

"Hello?"

[Boss, it's Landon. Is now a good time to talk?]

"It's fine. Go ahead."

[I wanted to talk to you about a potential bond investment opportunity that just came up.]

"What is it?"

Landon quickly responded to Seok-won's question.

[Several senior traders from Salomon Brothers' arbitrage team recently went independent and founded a hedge fund. They've reached out to us with an investment proposal.]

"…!"

The moment he heard this, a name flashed in Seok-won's mind, and he straightened up.

"What's the name of this new hedge fund?"

[Long-Term Capital Management.]

Upon hearing the name, Seok-won instinctively tightened his grip on the phone.

TL/n - 

Long-Term Capital Management (LTCM) was a hedge fund founded in 1994 by John Meriwether, a former bond trader at Salomon Brothers, along with a team of partners that included several Nobel Prize-winning economists.