1979, Manager Kim is Inheriting Dictatorship! - Chapter 87



Only Krnovel

Episode 87

We also conducted a thorough inspection of existing domestic financial institutions and companies.

As time approached, all companies that could be problematic were sorted out in advance.

It was a bit excessive, but everyone seemed to understand once the true nature of the companies that had been reorganized became known.

[The Daemun Group ran a reckless business by borrowing money. They were only focused on increasing their size, without paying attention to their main business divisions. In the end, after 30 years of history, they went down the back alleys of history.]

[Daedo Financial, indefinite suspension of business. In fact, this measure should be seen as the government’s intention to dismantle Daedo Financial. The cause is irresponsible lending in violation of government policy.]

All major national projects, including so-called large-scale infrastructure projects that only cost money, have been postponed.

The export of foreign currency and gold was restricted even more strictly through revision of the law.

But despite this austerity, there were two places where money was loosened.

Japan and China, that is.

Japan and China instructed that if any company or country needed money, they should lend it as much as they wanted as long as they had proper collateral.

In this way, Japan and China, both corporate and national, continued to pile up debt to Korea.

* * *

Japan’s second largest precision machinery company, Nippon First Machinery.

As we need a large amount of funds to build a new factory, we are looking into loans from various banks.

“Director Nomura, what happened with the loan for the construction of the 4th factory?”

The chairman asks Nomura, the managing director in charge of loans.

Managing Director Nomura stands up and answers, sweating profusely.

“I’m sorry, I’m sorry. I went to every bank in Japan, but they said it would be difficult to get a loan because I have a lot of existing loans… … .”

“Sigh, this is driving me crazy. You said no to even one of those banks?”

In response to the chairman’s question, Managing Director Nomura repeatedly apologizes.

“I’m sorry. I begged them to please do it, even if it meant leaving collateral, but they all refused… … .”

Just then the door to the conference room opens and a secretary comes in.

“What’s happening all of a sudden!”

When a secretary comes in without saying anything during an executive meeting, Managing Director Nomura shouts at him.

The secretary bows her head and speaks to Managing Director Nomura.

“Sir! I just got a call from the Unification Bank in Korea saying they will give me a loan!”

“Really?”

“Yes. They said they would lend us the full amount we want if we just provided them with proper collateral!”

The chairman, who was listening to the story about collateral, asks.

“Colateral? What do you want?”

No matter how much money I needed, I had no intention of giving up stocks. If they ever talked about stocks, I would refuse them outright.

This is because the chairman was a person who valued management rights more than anything else.

But what came out of the secretary’s mouth was an unexpected answer.

“They demanded our technology patents and real estate as collateral.”

Clearly, compared to stocks, these were things that could be entrusted as collateral.

“Hmm, technology patents and real estate… … .”

The chairman thinks for a moment.

“Should I refuse?”

Managing Director Nomura looks at the chairman and asks.

The chairman shakes his head and answers.

“No. Anyway, if the factory is built as planned, we can pay it all back. Just go ahead with it.”

“Yes, I understand. Then I will convey it accordingly.”

The secretary hurriedly went outside to finish her phone call.

Japan’s many technological patents were clearly a burden even to Korea, a current technological powerhouse.

Japan’s electronics industry was virtually half-dead, so the Japanese economy was currently led by financial companies and precision machinery companies.

That is why, in order to further and more quickly destroy Japan’s economy from within, Korea has been taking away, one by one, the so-called basic physical strengths.

Japanese companies were complacent in extending loans, thinking that they would only have to repay the loans on time, but they had no idea of ​​the economic crisis that would soon come from Southeast Asia.

* * *

Development of Chinese resources.

China’s largest state-owned enterprise developing China’s underground resources.

In recent years, China has been continuously developing underground resources along with its crazy economic growth.

This state-owned enterprise was also one of the largest in China, developing a variety of underground resources, including rare earth elements, iron ore, tungsten and gold.

However, there has been one recent problem.

Although there were various underground resources buried within Chinese territory, digging them out required a large amount of capital for facility construction, and this capital was in short supply.

Although it was a state-owned enterprise, it was still fundamentally a business.

Domestic lending had its limits.

Like Japan’s Nippon First Machinery, China Resources Development is also currently struggling due to a lack of funds.

But here again, Korea appears as the solution.

“Really, are you lending me money from the Northeast Asian Bank?”

Xiaolong, a former Chinese Communist Party official who was recently appointed as the president of Zhong Hua Resources Development, is surprised when he receives the call.

It was because the Northeast Asian Bank of Korea said it would provide the loan that had been so blocked.

“Yes, sir. It is true. I just need some collateral.”

“Colateral? What is it? Just tell me.”

The Northeast Asian bank’s overseas loan officer pauses for a moment and then speaks.

“The collateral we want is the underground resource development rights held by Chunghwa Resources Development.”

“What does that mean?”

President Xiaolong asks in bewilderment at the slightly embarrassing collateral offer.

“It’s literally true. If China Resources Development fails to repay the money, we will try to recover the money by developing underground resources ourselves.”

“Hmm, but the rights to develop underground resources… … .”

This was tantamount to selling some of the country’s power overseas.

If something went wrong, it was obvious that he would be treated as a traitor.

It was clear that the criticism would be especially severe in a country like China.

But the foreign loan officer soon twists him into a three-inch tongue.

“Sir, think about it carefully. After all, it’s collateral. If you borrow money and pay it back with interest, isn’t collateral meaningless?”

That was right.

Obviously, collateral only has meaning when a debt is not repaid.

If you repay your debts properly, collateral doesn’t really matter.

‘Yeah. Anyway, there’s no other place to get a loan… … .’

“Okay, let’s do that.”

“Haha. As expected, it’s President Xiaolong. Then I’ll send our person in charge right away.”

There are more than ten Chinese state-owned enterprises that have provided collateral in this way.

In this way, China’s underground resources were also being transferred to Korea one by one.

* * *

It wasn’t just loans to businesses.

It also continued to provide direct loans to Japan and China.

Until 1996, they supported as many ministers as they wanted.

And in both Japan and China, financial dependence on Korea has grown.

In particular, Japan’s economic difficulties have become even greater because exports to the US and Europe have been virtually completely blocked due to Korean products, which is different from its original history.

And so December 1996 arrived.

Beginning with Thailand, the Southeast Asian economy is slowly entering a crisis.

The biggest reason is that the value of the Thai baht, which is currently fixed at 25 baht to 1 dollar, is overvalued.

A currency that is set at such an excessively high value will inevitably become prey to international speculative capital.

International speculative capital began targeting and attacking the Thai baht.

In the original history, the Thai government had fended off these attacks several times until July 1997.

Rather, the hedge funds whose attacks initially failed suffered the greatest losses.

But this time, the story was a little different.

This is because President Kim Jong-guk decided that there was no need to wait until then and that he could attack directly.

“Okay, from today onwards we will focus on targeting Thai Baht.”

I speak to a team of vice presidents from Korea’s top hedge funds.

This hedge fund was the largest in Korea, but in reality, in terms of internal ratio, it was almost like a semi-state-owned enterprise.

And this hedge fund tried to attack the Thai baht in line with the attacks by the American hedge funds.

It’s been a week since the attempted attack on the Thai baht.

There have already been considerable losses.

One of the team leaders asks the vice president about the continued losses.

“Vice President, how long will this continue… … .”

Even though it was a semi-state-owned enterprise, this was a huge sum of money that could have caused the company to go bankrupt if something went wrong.

But the vice president was firm.

“Until Thailand abandons the fixed exchange rate system, don’t worry about anything else. If there is a shortage of funds, the government has promised to make up for it. Don’t worry and keep attacking!”

The ongoing attacks on the Thai baht.

It was an attack that cost more than three times the amount of money that had been spent in the original attack in December 1996.

The Thai government’s defenses were also gradually losing strength.

* * *

“It is impossible to defend anymore! Attacks from Korean capital continue!”

Thailand, which had tried to stop it somehow, began to slowly collapse.

We tried to cooperate with neighboring countries, but we could not stop the mad onslaught of Korean capital.

The Thai finance minister throws the glass he is holding at the wall and shouts.

-Tingle!!

Broken glass scatters in all directions.

“What on earth does Korea have against Thailand to do this!!”

American hedge funds have always been like that, so I understand, but Korean hedge funds have never had any relationship with them up until now.

But then suddenly they started to attack endlessly as if they were trying to ruin Thailand.

“How much longer can you endure… … .”

The minister looks at his staff and asks:

The field worker speaks with a half-resigned expression.

“Two days at most.”

There was no way now.

If they really wanted to stop it, it had to come from one place that had more money than any other company in Thailand.

But there was no way I could get out of there.

“No word from the royal family?”

The minister looks at his secretary and asks, just in case.

But the answer I got back was no different.

“yes…….”

“Damn it! What are you doing, royal family! If you do this, Thailand will really die!”

He made remarks that could have been punishable as lese majeste, but no one said anything.

The reason is that right now, everyone within the Treasury Department was sympathizing with that statement.

If it were royal property, it might be possible to prevent this attack.

But there was no response from the Thai royal family.

They paid no attention to the Thai economy and the Thai royal family’s economy, as if they were separate issues.

In this way, one of the stars of Asia was slowly setting.

* * *

“Mr. President, tomorrow, Thailand will probably announce its surrender. According to our calculations, Thailand is no longer capable of defending itself.”

Relentless attacks on the Thai baht.

And the attack was successful.

The chief economic adviser comes to me urgently to report.

A month after the attacks on the Thai baht began.

Starting with the attacks by American hedge funds, Korean hedge funds with our government behind them joined in.

The American hedge funds seemed to have come in just to make a quick jabs this time, but they were surprised by our hedge funds’ stronger attack than they had expected and poured all the money they had into continuing their attack on the baht.

And as a result, by tomorrow, the Thai government’s defense capabilities will be gone.

Perhaps tomorrow, Thailand will abandon its fixed exchange rate system and the value of the Thai baht will fall into the abyss.

I said, patting the economic chief on the shoulder.

“Okay, this is where it starts. Tell everyone to prepare thoroughly.”

“all right.”

The chief economic adviser bows his head and goes out.

The current chief economic advisor originally came from an American hedge fund.

He was the best talent in this field.

Now, in about a month, the Thai economy will literally be in a state of shock.

‘I feel a little sorry… … .’

I felt sorry for the innocent Thai people, but that was only for a moment, and there were more important things to do at the moment.

Sometimes I wondered if it was strange that I cared so little about what happened to other countries besides my own people, but I constantly reminded myself that it was natural for a president to do so.

* * *

[Thailand abandons fixed exchange rate system! Foreign currency exhausted in 4 days after introduction of floating exchange rate system!]

[Thailand’s foreign exchange crisis begins to spread to other Southeast Asian countries!]

[Both Indonesia and the Philippines are running out of foreign currency.]

That is how the Asian economic crisis began in Southeast Asia in January 1997.