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CH391 | GSI
🕑 Added 2025-05-28 12:30:01 +0000 UTCTwo days later, at the Government Complex Building No. 1 in Gwanghwamun.
Deputy Prime Minister Choi Jin-woo laid the report in his hands down on the reception table, unable to hide his surprise.
“Is this really true?”
Sitting on the sofa to his left, Vice Minister Shin Seung-gi met his gaze and replied,
“Yes, sir. I was just as shocked when I received the report.”
He had ordered an investigation into whether Park Seok-won could actually provide the proposed $10 billion, and this was the result.
Deputy Prime Minister Choi stared down at the report on the table, still dazed.
“Wow… I knew he was doing some business in the U.S., but I had no idea he was managing a family office worth tens of billions. That’s astonishing.”
Then, looking up at Vice Minister Shin, he asked,
“This isn’t money from Chairman Park Tae-hong’s family, but something President Park built on his own, right?”
“That’s correct.”
Shin Seung-gi gave a slight nod.
“That’s actually what surprised me the most. They say he massively increased his fund size after scoring jackpot after jackpot—starting with the yen attacks by hedge funds a few years ago. Even George Soros, the legendary hedge fund manager, reportedly praised him as being better at investing than himself.”
“George Soros said that?”
“Yes. And apparently, he's never had a single failed investment to date. On Wall Street, they call him ‘the Midas Touch.’”
“The Midas Touch… Incredible.”
The fact that none other than George Soros—the major Wall Street player widely considered responsible for triggering the Asian Financial Crisis—had acknowledged Park made Choi feel oddly proud, even though it wasn’t his own accomplishment.
He recalled the achievements Seok-won had made back when he was president of Daeheung Securities and murmured as if it all made sense.
“President Park… That young man always did have a natural talent for investing.”
Leaning forward slightly, Vice Minister Shin spoke in a voice tinged with anticipation.
“Judging from the investigation, he should have no trouble paying the $10 billion he proposed.”
“Hmm, is that so…”
Choi leaned back, arms crossed, clearly deep in thought. Sensing his frustration, Vice Minister Shin added urgently,
“If $10 billion in foreign reserves comes in, it won’t just buy us time before a possible moratorium—we’ll also have much more breathing room in negotiations with the IMF.”
“It really would be a godsend in the middle of a drought…”
Nodding in agreement, Deputy Prime Minister Choi still couldn’t bring himself to decide right away.
“The problem is… it’s not free.”
“Both Ilhan and Hansung Bank have already received over 1.1 trillion won in public funds, yet they’re still beyond recovery. They’ll either have to be shut down or merged with other banks. If Eldorado Fund is willing to take them on, it would actually lift a huge burden off our shoulders. It could be a net benefit.”
“Are there any legal issues?”
In response to Deputy Prime Minister Choi Jin-woo’s question, Vice Minister Shin Seung-gi answered promptly.
“Since the public funds injected to meet the BIS ratio have been converted into equity, the government now owns over 60% of both banks. So, there shouldn’t be any major issues with selling them. Also, one of the IMF’s strongest demands is the complete removal of regulations preventing foreign financial institutions from acquiring Korean ones. This move could naturally address that as well.”
Deputy Prime Minister Choi hadn’t expected that the IMF’s tough preconditions for financial aid would end up being helpful in this way, and he couldn’t help but let out a faint, bitter smile.
Cautiously gauging Choi’s mood, Vice Minister Shin added carefully,
“What if we bundle in a few investment trust companies along with the two banks?”
“Investment trust companies?”
Choi furrowed his brow and asked again.
“As you know, the IMF is demanding that all twelve of them be shut down immediately.”
“That’s right.”
“If we follow through with that, it’ll have a serious negative impact on the financial system and on ordinary citizens.”
One of the issues causing Deputy Prime Minister Choi the most stress during the negotiations had been the matter of handling the investment trust companies.
Seeing Choi’s scowl, Shin continued,
“If the Eldorado Fund—which has ample financial resources and access to dollars—were to acquire them, it could smooth things over significantly.”
“Hmm…”
Choi listened with growing interest, clearly intrigued.
“If the government were to write off a large chunk of the bad debt, this wouldn't be such a bad deal for Eldorado Fund—or for President Park, for that matter.”
“Hm.”
“This approach would also help silence any accusations of favoritism. And it could soften the blow from the business suspension orders for the investment trust companies that are about to be announced.”
Just a few days earlier, the foreign exchange operations of eight failing investment trust companies had been suspended. Following IMF demands, full business suspension orders were expected to be issued soon.
Deputy Prime Minister Choi rubbed his chin with one hand and asked in a subdued tone,
“I heard the exchange rate rose sharply again today?”
“It closed at 1,386 won. At this rate, we’ll be breaking through 1,400 in no time.”
Choi replied with a bitter expression,
“We’re not in a position to weigh pros and cons anymore.”
Having reached a decision, he turned to Vice Minister Shin and said,
“Contact the Blue House and tell them I have something urgent to discuss with the President.”
“Understood.”
Vice Minister Shin responded with clear relief and bowed his head.
As he listened, Deputy Prime Minister Choi leaned back into the sofa and sighed deeply. In a voice tinged with fatigue, he muttered,
“I hope this will give us a bit of breathing room.”
* * *
“Let’s proceed with it as is.”
“Yes, sir.”
After receiving the approval folder, Finance Director Um Tae-joon bowed slightly and exited the room. Seok-won picked up the teacup on his desk, took a sip of coffee, and set it back down.
Just as he was about to open a report he had set aside, Na Seong-mi’s voice came through the intercom speaker.
[It’s President Ko Young-il from Daeheung Securities.]
“Put him through.”
[Yes, sir.]
Moments later, the phone rang. Seok-won picked up the receiver.
[This is Ko Young-il, sir.]
“What’s the matter?”
[It’s about the public tender offer. A bit of an issue has come up, which is why I’m calling.]
“An issue?”
Seok-won slightly furrowed his brow.
[Yes, nothing too serious, but it looks like we’ll need to stop accepting purchase applications by the end of today.]
Seok-won looked puzzled.
“Didn’t we agree to accept applications for three days, through tomorrow?”
[That’s right. But the number of shares applied for has already exceeded 5.4 million.]
“Oh, really.”
[With the KOSPI still tumbling today and everything looking grim, once word got out that we’re buying shares at a premium, retail investors rushed in en masse to sell.]
Understandable. If he were in their shoes and had the chance to escape a market in freefall, he’d likely want to unload his holdings as well.
[Since we’ve already filled our intended buy volume, there’s no point in continuing. We’d like to close early.]
Holding the receiver to his ear, Seok-won paused to think, then spoke.
“There are still many small shareholders hoping to sell, right?”
[Yes. Even today, some waited all day but didn’t make it in time to fill out the application before closing hours.]
“Then keep accepting buy applications through tomorrow as originally announced.”
[Sir? But we’ve already reached our buy limit.]
Ko Young-il sounded startled.
“I know. But if we cut it short after saying we’d accept applications for three days, some people may end up unfairly disadvantaged.”
[That’s true, but we’ve already reached our buy capacity. Even if we accept more applications, we can’t buy any more shares.]
“Then increase the number of shares we’re buying.”
[Excuse me?]
From the other end of the line, Ko Young-il let out a stunned sound.
Seok-won’s words were that unexpected.
“If you tell me how much more is needed, I’ll arrange for it to be sent immediately.”
Ko Young-il was silent for a moment, seemingly unsure what to say, then cautiously asked,
[Are you perhaps considering delisting the company?]
With Seok-won’s stake expected to rise to 60% through this tender offer, it was understandable to think that way.
“I don’t intend to do that for now, though I can’t say about later.”
[...I see.]
His ambiguous answer made Ko Young-il think that Seok-won might actually delist Daeheung Securities.
Since he already had majority control and given his demonstrated financial power, it honestly wasn’t impossible.
[Understood. Tomorrow, we’ll extend the deadline as much as possible to buy up as many shares as we can.]
Seok-won was about to say that wouldn’t be necessary but held back.
“Contact me again when the final tally of buy applications is ready.”
[Will do.]
After ending the call and putting down the receiver, his phone vibrated almost immediately.
Seeing Landon’s number on the screen, Seok-won answered promptly and asked,
“Did the deal go well?”
[Yes. I just signed the contract.]
Landon’s voice was bright and congratulatory.
[Congratulations on becoming a Lamborghini owner, boss.]
Just as in his previous memories, when the severe Asian financial crisis hit, the Indonesian president’s son’s sports car brand, Lamborghini, came onto the market.
Landon had been sent to negotiate the acquisition, and today they signed the final contract.
[The purchase price was as I told you, 112 million dollars. You said last time that waiting might get you a better deal, and you really saved nearly 40 million.]
Seok-won smiled.
“You kept the current management, right?”
[Yes. As you suggested, they all agreed to stay on with a salary increase.]
“Good work. Since they’re turning around a chronically loss-making company, there’s no need to shake up the management just for change’s sake.”
[Agreed.]
Leaning back in his chair, Seok-won gripped his phone and asked,
“You’re heading straight back to New York, right?”
[Honestly, I’d love to lie on a sunbed at a beach in Bali, sipping a mojito and watching beautiful women, but unfortunately, I have too much work to handle, so I’m planning to leave soon on a private jet.]
Landon’s voice was tinged with regret, and Seok-won chuckled softly.
“Before you leave, order yourself a Diablo in the color you like.”
[Oh? The boss is buying me one?]
“Yes. Consider it a bonus for successfully closing the deal.”
[Well then, I won’t refuse. Thanks a lot.]
Landon answered cheerfully.
“Talk to you again later then.”
[Yes. Congratulations again on becoming a Lamborghini owner.]
“Thanks.”
After hanging up, Seok-won muttered to himself, “The Murciélago comes out in 2001, so they must be designing it right about now.”
Thinking about placing the first order as the company owner and receiving the very first car brought a smile to his lips naturally.
Comments
JL
Tftc!
