I Became Park Jeong-ui’s Nephew - Chapter 284



Only Krnovel

He became Park Jeong-ui’s nephew. – (284)

“Okay, let’s start the meeting now.”

This is the headquarters of Daehan Transportation.

Executive Director Park Jae-ok listened to what the managers had to say.

In Korea, a bank is a concept close to a public enterprise whose credit is guaranteed by the state. Because the state guarantees it, people can deposit their money in the bank with confidence.

The problem is that since the government guarantees credit, the loan requirements are also strict. So is this wrong?

A recent study found that the recovery rate at U.S. banks was only 74%.

This means that even if you lend 1 million won, you won’t get back 260,000 won. That’s why there is talk that banks will go bankrupt in the US if an economic crisis hits.

To prevent such situations, the Korean government strictly manages bank lending conditions and separately manages corporate debt through the Industrial Bank of Korea.

“No, you only lend money to corporations and not to ordinary people like us?”

“Isn’t this discriminatory?”

The problem is that in this environment, ordinary people feel a sense of relative deprivation.

The government only supports corporations while banks don’t lend money, so where are ordinary people going to get money?

The second financial sector has taken advantage of this demand, and because the loan conditions are lower compared to the first financial sector, ordinary people often knock on the doors of the second financial sector.

The problem is that they cannot do business under the sign that says ‘bank’.

The only primary financial banks in Korea are the central bank and the Industrial Bank of Korea, which manages corporate debt.

“We also want to do business with a bank sign.”

“Then the number of users will increase….”

That’s why people in the financial sector are just watching each other.

If they put up a bank sign and do business, they can create a good image among the common people, but in reality, they are just companies that make money by putting money down. Why is it that the US just folds its arms even when Silicon Valley banks collapse?

They are not public institutions guaranteed by the state, but rather private enterprises that prioritize profits.

They just spread out loans and play with interest, and then when life gets tough, they turn to the government? No country bails out companies that lend money with taxes.

Rather, the role of public power is to regulate the financial sector that is playing with money.

Recently, the US central bank has also been raising interest rates and withdrawing money.

So where will America’s financial power go?

If they had a lot of cash, they could put it in the US central bank and earn interest, but all they can do is borrow money to invest.

[The asset structure of the financial sector that went bankrupt this time confirmed that 75% of its assets were loans. Out of the $43 billion in assets, deposits were $3 billion, loans were $32 billion, and marketable securities were $8 billion.]

A kingdom literally built on debt,

The fact that the U.S. central bank has raised interest rates means that cash in circulation is flowing into banks, which is a fatal blow to financial companies that are holding on to their loans.

If they do not find a way to survive, America’s ‘banks in name only’ will surely fail one after another, and loan sharks who are in a state of panic are knocking on Korea’s door.

To them, Korea is literally a wasteland,

As China’s real estate development boom has recently taken hold, Korea’s secondary financial sector is encouraging lending to ordinary citizens.

“Do you know that apartments are going up in China right now?”

“No, I don’t know.”

“As you know, 80% of housing in Korea is public housing. In order to increase your wealth, you have to buy real estate. Wouldn’t it be better to invest in China now?”

“I don’t have that kind of money. It’s not easy to borrow money….”

“We can help you. We can lend you money.”

In this way, the secondary financial sector is jumping into real estate development using ordinary citizens as collateral.

Do you think America’s loan sharks will just let this go?

If Korean financial companies fill their stomachs, they can add a spoon to it, and the U.S. government is secretly hoping for that too.

If all those loan sharks go bankrupt, it will be a bomb exploding inside the United States, so we are pushing it out.

So what attitude will the Korean government take in this unprecedented debt feast?

What about Daehan Transportation? If they give loans to ordinary people and build buildings in China, the size of the finance will more than double in 10 years.

But as the United States has historically proven twice, it is not only the financial sector that will collapse if this happens, as it is a sand castle built on debt.

The continental economy is also in decline, but Daehan Transportation is a business, so profits come first.

So are we going to conspire with those loan sharks and take countless common people hostage?

Executive Director Park Jae-ok is at a crossroads.

‘No matter how you look at it, this is a debt feast, and it’s bound to explode at some point.’

I don’t know if the government would provide some level of guarantee, but who would go all the way on a ship with a bomb installed?

When the time comes, everyone should put on a life jacket and jump into the sea to save their lives. Just ignore the people on the boat who are screaming for help.

Are you going to stake your conscience and pretend not to know that?

Director Park Jae-ok made a decision.

“We would rather not be in this business.”

“Yes? Hmm… But sir, isn’t this just a game of making money with money? Once you start, money…”

“I know that too. But if we exploit the common people and make profits like that, can we be proud in front of the people? That doesn’t go with the purpose of the founder who founded Daehan Transportation.”

The other executive directors just watched.

It was a project that everyone could see had to be pushed forward, but an obstacle appeared, and on top of that, the opponent was the head of state’s sibling, so it was difficult to resist.

“And this is also an opportunity for Korea to clean up its insolvent financial institutions. There are too many companies that are deceiving the common people with their tongue twisters. If we leave this alone, it will become a big problem.”

“But, sir, if that happens, the Chinese market will be taken over by American companies.”

“Who is the US arbitrarily taking over the Chinese market? China is Korea’s territory. It is not an area for the US to interfere.”

Director Park Jae-ok’s remarks even influenced Korean government policy.

The situation is such that they have nailed down that they will not advance into China unless the government reorganizes insolvent companies and guarantees the rights of investors.

If this happens, American companies cannot help but become nervous.

China is currently under the influence of Korea, so how can it conduct business without worrying about Korea’s feelings?

The loan sharks, who were in dire straits, spent a huge amount of money lobbying Daehan Transportation.

“Director, please spare me just this once. If things go well, I will definitely repay you.”

“I’ll pretend I didn’t hear it.”

Park Jae-ok refused the lobbying.

An incident that showed why the head of state did not recognize the second financial sector as a ‘bank’. How can those guys do business with a bank sign?

However, the secondary financial sector continued its lobbying targeting the government this time.

***

“This is a matter that affects Korea’s development. The Prime Minister must make the decision.”

“I can’t just relax the regulations as I please.”

“No, why can’t the Prime Minister do that as he pleases?”

“Because the debt created by real estate will eat away at the country.”

This is the Daedeok County official residence.

Prime Minister Lee Myung-bak rejected the officials’ demands.

Since I am from a business background, many of the bureaucrats around me are also from business backgrounds, and they are all excellent people, but the problem is that they prioritize profits.

Recently, the real estate supply in Korea reached 107%,

Because the head of state has steadily supplied public housing for the past 40 years, there has been no increase in housing prices.

Compared to five years ago, house prices have actually fallen by 7%. In such a country, can the financial sector expand its business and pursue business through real estate?

As such, the financial sector is also looking for new markets, and China has caught their eye.

China’s only legitimate government, Lianxiang, plans to join hands with Korean companies to promote real estate business.

Isn’t this a good business for both the sister and brother-in-law?

The problem is where this money will come from. The secondary financial sector intends to do business using the pockets of ordinary Korean people as collateral.

Korea has a population of 120 million, and their average income is comparable to that of the United States.

How much money would a company make if it used these as collateral?

But if the construction company collapses later and the company becomes poorly managed, who will be responsible for the aftermath? If neither the government nor the company takes responsibility, where will the resentment go?

Prime Minister Lee Myung-bak knew that, so he rejected the bureaucrats’ proposal.

However, the pressure from bureaucrats who would stop at nothing for money has intensified.

“Why are you doing this when you have already been the president of Hyundai? This is a business that can more than double the Korean economy. Don’t you want to leave your name in history?”

“The general election is next year. Do you know how much votes the financial sector has?”

“We should take this opportunity to allow the secondary financial sector to put up a bank sign. Only then will lending become more active and the financial sector expand.”

“Then, you guys should be the prime minister and do that? Instead of harassing me, how about kicking me out of here? Don’t you have the courage to do that? Do you care about your enemy’s feelings?”

Lee Byeong-bak held on until the end.

General elections? That kind of thing is already meaningless.

Korean voters who gave their head of state extra-legal powers,

Lee Myung-bak himself was able to sit in this position thanks to the support of the head of state of Korea. But what kind of nerve do these bureaucrats have to pressure the prime minister by talking about general elections?

Park Jae-ok, the director of Daehan Transportation, also expressed his opposition, and Lee Myung-bak responded by drawing his sword to clean up the insolvent financial sector.

This is why economic officials are making their last desperate move. Since they have already read the situation, there is no reason to be dragged around by officials.

In this way, the Korean government began a project to clean up bad loans.

They cracked down on all companies with a debt ratio of over 70%. The problem was the aftermath: people who invested in insolvent companies and suffered huge losses rebelled.

“I invested because the government guaranteed it?!!”

“What the heck is going on?!!”

“Our government has never made such a promise. The only banks that the government guarantees are the Central Bank and the Industrial Bank, and the companies you have invested in are companies that lend money at high interest rates.”

Literally a bolt from the blue,

People who lost money took to the streets and protested, demanding their money back.

We are paying the price for being deceived by the sweet talk of loan sharks and the immediate profits without properly investigating. So should the government guarantee this?

In that case, we should give the government the authority to control the secondary financial sector.

But companies are in an uproar, saying that this is just strengthening regulations.

If I gain, it is my fault, if I lose, it is the country’s fault. This is how Lee Myung-bak’s approval rating fell from 69% to below 50%.

‘I have nothing to fear and I have done nothing wrong.’

But Lee Myung-bak was confident.

As the insolvent financial institutions were reorganized, real estate prices in Korea stabilized, and as a result, prices were held down. It wasn’t like the US where there was a loan feast and money was released into the market like crazy. What on earth did I do wrong?

Although he was criticized for not being able to see beyond an inch ahead, he never bowed his head to any pressure.

“The price of oil is strange. Check the price of oil nationwide.”

The unstoppable pace did not stop there.

The government even stepped in to control market prices, and officials tried to ignore this directive, but the news that the head of state would soon appear made their hair stand on end.

If the Prime Minister shows an uncooperative attitude here, who will be the one to be divided?

Since their lives depended on it, they investigated oil prices across the country, and in this way, the Korean government chose a state-led economy, departing from pro-market policies.