I Became Park Jeong-ui’s Nephew - Chapter 286



Only Krnovel

He became Park Jeong-ui’s nephew. – (286)

“International financial institutions argue that Japan should lower interest rates.”

“So how much lower do you want me to lower it?”

“Our position is that it should be lowered to around 2.5%.”

“Then lowering it by 1.5%… isn’t that too radical?”

“Well, lowering interest rates would be good for Japanese domestic demand.”

“In fact, isn’t the exchange rate the problem rather than the domestic demand? It is true that the Japanese government is doing something questionable.”

This is Japan,

Korean transportation officials gathered together to predict the future of the Japanese economy.

The world has recently been in an uproar over the currency manipulation scandal involving major banks, and those involved in the case have been suspended one after another, and now they are targeting Japan.

The reason is that Prime Minister Kakuei Tanaka is suspected of being involved in currency manipulation, which has not received much attention in Japan, but is a big problem worldwide.

Already, seven countries, including the US and South Korea, have investigated 10 of the world’s largest banks, and seven of them have been found to have engaged in currency manipulation.

So how much did the criminals gain from this process?

The average bonus for stock traders this year increased by 2%, while that forex traders saw a 13% increase.

Isn’t it strange that someone made money when stock trading volume fell by $100 million due to exchange rate fluctuations?

The basic economic structure is that when interest rates rise, the exchange rate falls, and when interest rates fall, the exchange rate rises.

If we plug this formula into Japan, we can roughly understand why international financial institutions are pressuring Japan to raise interest rates.

For example, let’s assume that the economic conditions of countries A and B are the same, but the interest rate is 5% in country A and 10% in country B.

If you were an investor, you would obviously invest in country B.

What happens if this situation repeats itself?

Country B, with its high interest rate, can import goods from Country A by spending only a small amount of money because its money is valuable. On the other hand, Country A, with its money being valuable, has to pour money into Country B.

What happens here is the exchange rate difference,

Banks are also targeting this by launching various financial products.

A financial product that purchases dollars at the exchange rate at the time of deposit and then withdraws them – converts them into won or yen at maturity.

The dollar index fell to 92 this year.

This means that the value of the dollar has fallen by 8%, and if the bond matures at this rate, investors will face a loss of 8%.

Everyone would snort if powerless ants suffered losses, but the problem is that 80% of the investors in those financial products are corporate entities.

Will corporations continue to suffer losses like this?

Naturally, we would have kept our eyes open to find out where the loss was coming from, and the answer was the Japanese government’s exchange rate manipulation.

Wasn’t Japan’s policy to lower interest rates and implement quantitative easing to boost domestic demand?

The problem is that this will cause the exchange rate to rise and the value of the yen to fall, and it has been confirmed that Prime Minister Kakuei intervened in the Bank of Japan to prevent this.

“Stop it now!! Why is the government interfering with the exchange rate?!!”

“How much did you earn from the exchange rate difference?!! If you investigate, it will all come out!!”

Corporations that caused the economy to suffer due to the Japanese government’s intervention in the exchange rate,

But the Japanese government responded that it doesn’t care.

Isn’t it the corporation that suffers the loss, not the Japanese government?

Since it came to this, it is estimated that Kakuei Tanaka and his group made a profit of about 15 billion yen by making a quick buck through foreign exchange gains.

Needless to say, the money came out of the pockets of corporate entities.

Even the US government, unable to bear it any longer, intervened in this incident, and Kakuei Tanaka clung to Korea as if nothing had happened.

The attitude that if we just hold on to Korea even if we are abandoned by the United States, there will be no problem, is actually the economic structure of Japan.

Even if they don’t export, they can survive on domestic demand, and Daehan Transportation is responsible for 30% of that domestic demand. As long as Daehan Transportation doesn’t leave, Japan will not be shaken.

This is why American investors are getting more excited.

Daehan Transportation is making huge profits in the US, but is this time they are supporting Japan and causing a commotion in the exchange rate?

In fact, this is something that Kakuei Tanaka did on his own.

This has nothing to do with the position of Daehan Transportation or the Korean government.

Anyway, the world’s financial institutions are pressuring the Japanese government to lower interest rates, and the Japanese government is holding out, so can Daehan Transportation just sit back and do nothing?

Since I was indirectly involved, I had to express my position somehow.

‘Well, is this really an issue that only Japan should make concessions on?’

Park Myeong-ui, who attended the meeting, was lost in thought.

Now that I have been promoted to branch manager of the Japanese branch of Daehan Transportation, my perspective on the world has broadened.

If you listen carefully, it seems like Japan was at fault, but the US is no different.

The fighter jets imported from the US by countries around the world are proof of this.

As the Cold War between the US and the Soviet Union intensified, everyone bought fighter jets from the US, and in the 1960s alone, about 2,600 fighter jets were sold overseas.

However, among them, 916 aircraft were judged to be defective.

A fatal flaw has been discovered that allows water to collect in some aircraft.

In this incident, 110 pilots died, 43 of the 138 aircraft introduced in the Netherlands had accidents, and 41 of the 113 aircraft in Belgium crashed or broke down.

“How can you take responsibility when the problem is this serious?”

“We don’t know.”

“It will take more than two years to repair, can you wait?”

American companies have always been like this.

If there’s a problem, you should admit it and think about solving it. How can you be so shameless?

The U.S. government also backed down, saying that this was a “problem between businesses and consumers.”

Then, what if we apply that logic to this case now?

American financial companies have launched financial products in hopes of making foreign exchange profits, which is an open sign that they are trying to prey on other countries.

That’s why Japan responded with a do-or-die attitude, dropping the dollar index by 8% through active exchange rate intervention.

This incident showed Japan’s economic power, which is ranked third in the world, and showed that it will not sit back and take it even if the United States acts like a gangster like before.

In this situation, will the U.S. government’s demand to lower interest rates be accepted by Japan?

Kakuei Tanaka believes that even if the relationship between the US and Japan goes wrong, Japan will stick to Korea. Of course, if this happens, Japan’s economy will become even more dependent on Korea than before.

But that was America’s own doing, American financial firms trying to exploit Japan and getting screwed over.

Why are you accusing the Japanese government of currency manipulation?

The United States was only receiving back the same amount of backlash it had inflicted on the world, and Park had no intention of taking America’s side.

The same goes for people inside Daehan Transportation.

Are they going to blame the Japanese government for currency manipulating because American corporations are suffering losses?

That’s something they brought upon themselves,

Experts also raised their voices, saying that this incident was caused by the reckless behavior of American financial institutions.

***

“Your Majesty, it’s nice to meet you. My name is Kakuei Tanaka.”

“I am just an employee of Daehan Transportation. I am not your majesty.”

“Haha~ That’s not possible. I believe that you will achieve great things one day.”

This is Japan,

The secret meeting took place in a fairly fancy restaurant.

Those in attendance at the event included Japanese Prime Minister Kakuei Tanaka and his aides, as well as high-ranking officials from Korea Transport.

Park Myeong-ui attended the event as the branch manager of the Japanese branch, and although young, he was treated as a high-ranking official thanks to his position as the head of state’s older brother.

“I am truly grateful for this incident. Thanks to Korea, Japan was able to get out of a corner.”

“No. Strictly speaking, this is not something the US government should intervene in. Didn’t the US financial companies complain to the US government when they couldn’t get away with trying to eat Japan’s flesh? This isn’t some childish fight. What kind of business would they do? It was an unjustified act from the beginning.”

“Haha~ As expected, you are smart. Well, would a puppy come out from under a tiger? If former Prime Minister Park Jeong-ui were here, he would have said the same thing.”

Kakuei Tanaka continued his flattery.

Park Jeong-ui was once a great figure in diplomatic warfare against the United States and Japan. Although he has now fallen from power, his abilities are widely known even in Japan.

Like father, like son, this young man will one day become a great politician who will lead Korea, so Japanese politicians are lining up.

Park Myeong-ui also noticed that,

I realized that it was time to break out of the corporate mold and do politics.

Besides, Kakuei Tanaka is the number one person in Japan, so I thought it wouldn’t hurt to be close to him.

Anyway, as the conversation continued like that, the atmosphere became slightly strange as Prime Minister Tanaka mentioned someone.

“I feel so sorry for what happened to your father. He was not the type of person to fall so far….”

“He is not my father. He is a traitor who was deposed on charges of sedition.”

The Japanese officials were embarrassed.

It is true that former Prime Minister Park Chung-hee was brought down on charges of sedition, but isn’t there a need for his son to react like this?

But Park Myeong-ui’s position was clear.

“Former Prime Minister Park tried to get too close to the sun. He tried to invade the National Assembly and privatize the country to establish his own kingdom. Didn’t you all hate that and start a revolution?”

“That’s true.”

The Tanaka Kakuei faction vehemently agreed.

The Japanese political world, where people pass down their constituencies to their children, is this any different from creating their own kingdom?

For the common people who came from humble backgrounds and didn’t even graduate from high school, the political world was an area they could not dare to enter.

The Tanaka group started a revolution to break that structure.

Should such people sympathize with former Prime Minister Park, who has been accused of sedition? Park Myung-ui clearly stated his political philosophy.

“Our Lord was born into a humble family, but he rose to the position of absolute monarch with the support of the people. There is no separate lineage of the king and queen. The same goes for those here. Were they not all born into humble families but worked hard to rise to their positions?

I believe that a society in which vested interests can be overthrown at any time is a healthy society. If people with no ability but good backgrounds rise to high positions, that society will only rot and decay.

“Just like Japan in the past.”

The Tanaka clan nodded.

Now that they have driven out the Japanese vested interests, do they think they can take over their constituencies and continue to do so for generations?

That’s a shortcut to falling into the abyss. Why did the head of state of Korea push his own siblings into the lowest ranks of Daehan Transportation?

I guess he was trying to teach you that your status isn’t something you’re born with, and those brothers went on to rise through the ranks with their abilities.

Director Park Jae-ok has been active in Daehan Transportation for over 20 years and has risen to the position of executive director, and his younger brother has also risen to the position of branch manager in Japan.

Is this thanks to the support of the family?

It was proven here that that wasn’t the case.

Tanaka and his group became convinced that they must maintain good relations with young Korean talents with political sense and ability in the future.