The Magician’s Memorial - Chapter 162



Only Krnovel

Episode 162 festival (1)

CL Card has finally arrived in the arms of Taewoo Group.

Taew Card, who had left home, brought his wife, also known as CL Card, with him, but the expression on Taewu Securities’ CEO Park Man-deok was not good.

“CL Card’s credit card debt scale is beyond imagination. Adding up all the hidden credit cards, it amounts to well over 2 trillion won. And the problem is the credit card. “No bank is willing to accept credit card bonds issued by credit card companies, and credit rating organizations have lowered the credit ratings of credit card bonds all at once.”

“Is there any need to issue credit card bonds? “Wouldn’t Taewoo Securities’ financial strength alone be enough to handle this?”

“The total credit cards issued by CL Card amount to 20 trillion won. “It is difficult for Taewoo Securities to cover that amount alone.”

The card company pays the amount swiped by the customer with the card to the bank instead.

And after the customer paid the card bill, they used that money to repay the credit card debt.

20 trillion won may seem like a huge amount, but it only seems big because the money is flowing around.

“Then, if you have cash assets of 20 trillion won, there is no need to issue credit card bonds.”

“That said, holding 20 trillion won in cash assets is a loss in many ways. “We are a business, not a bank.”

“I will try to solve that problem somehow. “Wouldn’t lowering the delinquency rate be a priority?”

“In fact, if the delinquency problem disappears, there will be no cash flow problem. There is no need to issue more card bonds than necessary. “But there is no way to pay for overdue payments amounting to 2 trillion won.”

It was finally time for Myeongdong to step forward.

Of course, if you use Myeongdong, you will have to pay a lot of fees.

It was expected that half of the 2 trillion won that could not be received in one’s lifetime would be recoverable.

“We are trying to resolve the issue of overdue payments by signing a contract with a new debt collection agency.”

“CL Card already tried to resolve the overdue payment problem by contracting with Korea’s most famous debt collection agency, but it failed.”

“I know the most skilled debt collection agency in Korea.”

The planning director looks puzzled.

I left him in the vice president’s office and headed to Myeongdong.

***

Gwanghwamun Bear’s Mansion.

In the pavilion, the Myeongdong trio and Lee Young-han were already drinking tea, waiting for me.

As we naturally joined the pavilion, Grandma Baek smiled and made a bitter comment.

“I’m going to get tired of waiting. “Is it okay for a young person to make old people who don’t have much time left to live wait?”

“sorry. “I’m late because I brought a nice gift.”

“What a good gift. “He must have brought a bunch of overdue payments.”

“So you don’t like it?”

“It’s okay, let’s just take it out.”

The Myeongdong trio already knew the identity of the gift.

From their perspective, it was also a great opportunity to make trillions of dollars.

It was especially good work for Lee Young-han, who had a tight grip on the Myeong-dong private loan business.

“We have already registered as a debt collection agency. “We have lined up the most famous merchants in Myeongdong.”

“The amount is over 2 trillion won. “Can we get it all from just a few private loan sharks?”

“It is possible with the help of the elderly. “I am confident that I will receive at least half of the overdue payments within a year.”

“It’s been a while since I got to show off my old man’s know-how.”

They were loan sharks with wry smiles.

Lee Young-han and the Myeongdong trio were also loan sharks, and to them, delinquent customers were enemies that had to be fought and defeated.

They were loan sharks who would even squeeze out dry towels.

Although I needed their know-how, I had no intention of leaving everything to them.

“But how do you plan to get money from someone who has no money?”

“If you look for it, you will find a way. Don’t worry too much though. Because they won’t do such ignorant things as gangsters, such as receiving a waiver form or forcibly injuring people to receive insurance money. “I can put you on a shrimp boat, but I won’t kill you.”

If you didn’t have money, all you had to do was earn it and pay it back.

Like Grandma Baek’s story, all we could do was burn a shrimp boat and make money.

So, when will you get the money to pay it back?

“At Taewoo Group, we will create decent jobs where physically fit delinquent people can work.”

“Is it possible? “There aren’t just one or two people who are delinquent, but there must be at least hundreds of thousands of people, right?”

“At Taewoo Construction, you can hire them as construction workers, and at Taewoo Electronics, you can create jobs that involve simple repetitive labor. If it’s still not enough, you can get help from a subcontractor.”

The number of Taewoo Electronics’ primary partners alone exceeded 100.

If you include secondary and tertiary partners, the number is well over 1,000.

Even though it couldn’t be called a high-quality job, it was still a job that allowed me to somehow pay off my credit card debt.

“If it’s someone who really can’t repay the money, I’ll send it to you. But I didn’t know you were such a affectionate person. “I really didn’t know that you would even think about the circumstances of customers who are delinquent.”

“It’s not about sympathy or affection. “We have to somehow collect at least one penny more in arrears, but Taewo Card can be revived.”

“Well, I’ll leave it at that. “Then can I start work today?”

“Please do me a favor.”

With this, the delinquency rate problem was solved.

Although the debt collection stage had not yet begun, the moment the matter was handed over to Myeong-dong loan sharks, it was virtually resolved.

***

next day.

I met Dimon in Captain Kang’s office.

Dimon was busy with the acquisition of Korea Exchange Bank.

“Commerzbank suddenly announced the sale of Korea Exchange Bank.”

“There are no domestic financial companies considering acquisition, so they may be thinking of selling overseas.”

During the foreign exchange crisis, Korea Exchange Bank was sold to Germany’s Commerzbank.

However, Commerzbank eventually decided to sell after facing a series of difficulties, including the current construction bankruptcy and credit card crisis.

“The problem is that none of the overseas banks are interested in Korea Exchange Bank.”

“Even if banks don’t show interest, Wall Street private equity funds will show interest. “If you acquire it at a low price and take good care of it, you will be able to see several times the profit.”

“It’s not that I didn’t think about that, but Korea’s banking law prohibits private equity funds from taking over banks.”

“I understand there is an exception clause?”

“There is an exception clause that allows insolvent banks with a BIS ratio of 8% or less to be sold, but Korea Exchange Bank is not that insolvent bank.”

Dimon had already researched a lot.

However, contrary to his expectations, Korea Exchange Bank was sold to Longstar, a private equity fund.

It was a long star that bought Korea Exchange Bank at a very low price by forcefully activating an exception clause.

“Captain Kang! “Do we have someone at the Financial Supervisory Service?”

“You can think of our people as being in every ministry in Korea. “One high-ranking official and three working-level staff members of the Financial Supervisory Service are ours.”

“Soon, the president of Korea Exchange Bank will submit the BIS ratio data to the Financial Supervisory Service. Get that data. We would definitely have brought the BIS ratio below 8%.”

“I will give you instructions right away.”

Dimon, who was listening quietly, looked like he didn’t understand.

“CEO, is there any reason for the bank president to make Korea Exchange Bank an insolvent financial company? Of course, in order to sell to a private equity fund, the company must become an insolvent financial company, but then the sale price will be reduced by more than half. Not even half. “You get almost 20% of the price.”

“If Korea Exchange Bank is labeled as an insolvent financial company, it will probably be able to be acquired for around 1 trillion won. And if the private equity fund handles it well, it will be able to sell it at a price of 6 trillion won. This creates a profit of 5 trillion won. “Then wouldn’t the Congo water fall in many places?”

I did not know the details of whether the bank president intentionally adjusted the BIS ratio.

I understand that the bank president was arrested and investigated, but was released as not guilty.

I have been eating bank food for decades, so of course I would have adjusted the BIS ratio in a way that would not be subject to the law.

Or maybe Korea Exchange Bank really was an insolvent financial company.

Honestly, it didn’t matter.

It was important to me that Korea Exchange Bank was currently undervalued, and that I could make several times the profit just by acquiring Korea Exchange Bank.

“Would it be okay for us to eat what Longstar has been so eagerly spreading?”

“Isn’t Wall Street always like that?”

“Why would you call Wall Street a hyena for no reason? “Isn’t it called a hyena because it often steals the prey that other wild beasts hunt?”

It was Dimon who raised his eyebrows.

It was a smile that proved that he was also a Wall Street figure.

From our perspective, Longstar was something we were truly thankful for.

It does illegal work for you and even lowers the price at the Korea Exchange Bank.

Of course, it must be assumed that we can intercept Korea Exchange Bank in the middle.

“It won’t be easy. Longstar has already created many sides for himself through the lobby. “We have to cut off their link once and for all before we can intercept them.”

“I will plan a good plan. Longstar seems confident that they can take over Korea Exchange Bank as long as they adjust the BIS ratio. It’s full of loopholes, perhaps because we let our guard down because there are no competitors. “I think we can intercept it without much difficulty if we use the CEO’s line.”

Dimon was confident.

He was fluent in not only Wall Street methods but also Korean methods.

Dimon was able to immediately recognize the loopholes in Longstar thanks to his personal understanding of Korea’s financial structure in Myeong-dong.

“If necessary, you can also use Myeongdong’s power. “The behind-the-scenes work is something that people in Myeong-dong do just like eating.”

“We will proceed with the work in consultation with CEO Lee Young-han. However, once the operation I have planned is implemented, many public officials and Financial Supervisory Service employees will take off their clothes.”

“Longstar will take care of that matter. If you need it, won’t you give us a place at Longstar? And it’s even better because if there’s an empty seat, I get a chance to put my people in it.”

Why should I worry about people working with private equity funds?

They were also people who had a way to make a living even if they had to take off their clothes.

***

A few days later.

Taewoo Securities CEO Park Man-deok visited the vice president’s office.

“The recovery rate of overdue payments is suddenly increasing!”

“It looks like the debt collection agency is working hard.”

“That said, the funding liquidity issue is still not completely resolved.”

“If that’s your problem, don’t worry. There will soon be a bank that will allow you to trade card bonds at low prices. “First, try to survive with Taewoo Securities’ funds.”

If only Korea Exchange Bank is acquired, the problem of issuing credit card bonds will disappear.

On the surface, Dimon may pretend to be taking over Korea Exchange Bank, but the actual owner will be me.

“Have you discussed this with the bank? As expected, you are the vice president. “It’s truly amazing that you solved the credit card problem that even Samjin Card couldn’t solve.”

“I heard that Samjin Card is in a better situation than other credit card companies. What do you think?”

“I think we prepared six months before the CL card incident occurred. Card issuance conditions have been increased and cash advance amounts have been lowered. And the credit cards were perfectly managed.”

Should we call it Samjin Group?

Most credit card companies were reeling, but Samjin Card suffered minimal damage.

But they will never achieve first place in the card industry.

Taewoo Card is number one in the industry.