The Magician’s Memorial - Chapter 23



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Episode 23. Audit Team (3)

$7.5 billion in derivatives.

Even George of the Quantum Fund, who had won several victories against the country, seemed like an attractive prey.

“You’re talking about exchanging equity for derivatives. “It will depend on which company it is, but first of all, I can say that I am positive.”

“Let me name one place first: Apple.”

“You mean Apple, which makes the Macintosh? “Why do I own shares in companies that are going bankrupt?”

Apple was at its worst in 1995.

It’s been 10 years since Steve Jobs was kicked out of Apple, and the company’s quarterly deficit was over $50 million.

“There is a Korean proverb that says that when a tiger dies, it leaves its skin, and when a person dies, it leaves a name. The same goes for companies. “The company is now going bankrupt, but its name value is still high.”

“Are you planning to acquire Apple?”

“I have no intention of doing that. “I just want to own a stake as an Apple fan.”

“But Apple’s stock price is only $1.50 right now. Even if you add up the market capitalization, it’s only $3 billion. “The value is too low to trade with derivatives.”

In 1995, Apple’s current price was $1.50.

In a previous life, Apple’s stock price was over $150, and Apple was a stock that could make profits more than 100 times just by holding it still.

“What percentage of Apple can you give me?”

“The shares held by the Quantum Fund are small. However, the stake held by Wall Street companies such as Vanguard and Blackrock is probably around 40 percent. “You’re not asking for the full 40 percent, are you?”

“I will only accept 20 percent.”

“20 percent is quite possible. But will it be 20 percent? “It’s only worth $600 million.”

Apple was just the beginning.

I took out my next goal.

“Then is it possible to have a stake in Ford?”

“Were you interested in cars too? That’s not difficult either. “Forty percent of Ford’s shares are owned by a foundation run by the Ford family, but it is safe to say that Wall Street owns the remaining 60 percent.”

“Then can I keep about 20 percent?”

“There’s nothing that can’t be done. But you know that the U.S. government is keeping an eye on the auto industry, right? “This means that if you own a large amount of Ford stock, you could be subject to surveillance by the U.S. government.”

He said with an uncharacteristically worried expression on his face.

I accepted his concerns with a smile.

“SAVE Investment Company made the largest donation in the U.S. presidential election. And they are also spending a huge amount of money on lobbying in the political world.”

“Nothing will happen under the current regime, but if the regime changes, it will be difficult, right?”

“That also has to be solved with money. I don’t know who will take power next, but one thing is certain. “The next U.S. president’s number one donation to campaign funds will be SAVE Investment Company.”

America is a place where money is not an issue.

As long as it does not threaten national security, most problems can be solved with money.

It’s not that I want to own Ford, but I can overcome it with the power of money by holding about 20 percent of the shares.

“If you have that much confidence, I should help you. Let’s see. Ford’s market capitalization is probably around $5 billion. “20 percent of that would be about $1 billion.”

“Is that possible?”

“It’s possible. If you know the value of the derivatives contract you created, this is a deal you have no choice but to receive. Are the conditions over now? “If you ask for more here, I might have to think about it.”

In response to George’s question, I rubbed my stomach.

As if I was full and there was no room left.

“That’s enough. “If your greed is too much, isn’t it bound to cause trouble in your stomach?”

“I heard this is why I like you. “Unlike other idiots, I am precise in my ending and ending!”

“Thank you for a good look. By the way, when do you plan to start the yen offensive?”

“We should start right away. Besides, you showed me a good method.”

A sly smile appeared on George’s face.

“Are you talking about derivatives?”

“I’m thinking of making the yen into derivatives and selling them. “It will be a very good product for Japanese companies and banks that are tight with money.”

The yen was a currency with little volatility.

Japanese banks and corporations, well aware of this, naturally purchase derivatives.

However, the moment George’s Quantum Fund moves, the fluctuation range of the yen will move beyond their imagination.

“Japan will be very noisy.”

“Money is inherently noisy. Well, I’ll be contacting you soon with very good news. ah! And soon they will start shorting the Mexican currency. Even if you follow me this time, you won’t suffer any loss.”

George left the suite with a satisfied face.

A team leader, who had been quietly listening to our conversation, then slowly approached us.

“Isn’t it a waste?”

“Team Leader Han thinks I gave too much to Wall Street, right?”

“Not necessarily. This is because a protective shield called Wall Street is created. “If SAVE Investment Company tried to use derivatives alone without Wall Street, it is clear that the Japanese government would not stand still.”

Behind Wall Street is the United States.

The power of Wall Street was essential to trigger derivatives contracts from Japanese companies and banks.

“I think I overdid it a bit. However, it is not a loss since I received 20 percent of Apple and Ford’s shares.”

“By the way, is the reason you received shares of Apple and Ford because of the Taewo Group?”

“I wouldn’t say they are completely unrelated, but the stakes in both companies are worth more than $10 billion.”

“The combined market capitalization of Apple and Ford is less than $10 billion. But is a 20 percent stake worth that much?”

“It may not be worth that much in the short term, but this is an investment we are looking at for the long term.”

Team leader Han was lost in thought for a moment, and then nodded.

“I will not doubt it as it is the CEO’s decision.”

“Team Leader Han, now fly to the United States and get the final contract signed by Wall Street.”

“All right. “Then, can we start activating derivatives contracts signed with Japanese companies together with Wall Street?”

“There is nothing good about us making the first move. “Move with Wall Street.”

“I’m going back to America right now. “It seems like we spend more time in the sky than on the ground these days.”

“If this job goes well, I’ll give you a hefty bonus, so please work hard.”

A team leader smiled bitterly at the mention of the bonus.

The bonus he received was already considerable, but what would he do then?

I don’t have time to spend money.

* * *

Monday morning.

I wore a new suit and went to work at Taewoo Group’s headquarters.

When I went up to the 20th floor of the Taewo Center Building, the entire audit team was waiting for me in front of the elevator.

[Congratulations on your first day of work, Manager.]

About 100 people bowed their heads at the same time.

It was a scene where the power of the audit team was felt.

Moreover, the 100 people in the audit team were not all.

Each affiliate had its own audit office, and they were also part of the headquarters audit team.

“Nice to meet you. “This is Director Kim Min-jae.”

I shook hands with the entire audit team of about 100 people.

The audit team members all had a sharp impression.

In fact, if you are part of the audit team, you are reluctant to eat together even if you are classmates.

The audit team is a profession that must always be suspicious of its colleagues.

So it was inevitable that I would be lonely, and everyone would become sharp.

“I will call a team leaders meeting in 10 minutes. “Please gather in the headquarters director’s office.”

I was guided by the secretary and headed to the general manager’s office.

Before I could even drink a cup of coffee, five team leaders arrived at the general manager’s office.

But why are your eyes like that?

The young, pale head of the headquarters.

The chairman’s grandson flew in by parachute as the third generation of a chaebol.

I could feel the team leaders’ eyes subconsciously ignoring me.

“Come on, sit down.”

“I have made a brief report. “I will brief you on the work processes and ongoing issues of the headquarters audit team.”

Audit Team 1 leader Jeong Soo-cheol came forward.

He even laid down a considerable amount of data in front of me, probably having prepared it before I even took office.

“for a moment. When did I ask for a briefing?”

“… … “These materials have been prepared to inform you of the work of the audit team.”

“So why should I see that?”

“This is essential information to lead an audit team.”

“Are you telling me, as the head of the division, to work along with the audit team?”

“… … .”

Everyone closed their mouths and looked at me.

They didn’t understand what I meant at all.

“Why should I align myself with the audit team? “The audit team has to adjust to me.”

“The audit team has over 20 years of experience. “In order to effectively audit the entire group, we must follow the audit team’s processes.”

“If there is such a good process, why couldn’t they uncover the corruption at the Changwon parts factory? “The factory manager even created a company and was committing embezzlement.”

Did you touch Yeokrin?

All the team leaders stared at me at the same time.

“The audit team must audit Taewo Group’s 41 affiliates and over 350 overseas subsidiaries. In the case of the Changwon parts factory, it was scheduled to be audited through the audit team’s process.”

“Do you mean that if we had started the audit, we would have discovered the embezzlement?”

“That’s right. “Our audit team is made up of only the best talent from Taewo Group, and several employees have not only worked for the National Tax Service but also hold accountant’s licenses.”

These are audit team leaders who are immersed in an elitist mentality.

Since I was being ostracized by my colleagues, I would have been able to survive if I had at least a sense of elitism.

Elite consciousness that they are in a special position.

That’s not a bad mindset.

However, if one slips a foot, the sense of privilege can slip into corruption.

“Then let me ask you one more thing. When was the last inspection of the Changwon parts factory?”

“It was two years ago.”

“From what I found, the alleged embezzlement at the Changwon parts factory spans at least five years. Even though the audit was conducted, it was not found out? This means they are either incompetent or turning a blind eye. Which one?”

“Your words are too harsh!”

Manager Jeong Soo-cheol, head of Team 1, raised his voice as a representative.

Although they were all the same team leader, Manager Jeong Su-cheol, who had the longest experience, was the actual head of the audit team.

“Then, produce the results and bring them to me. Isn’t the corruption at the Changwon parts factory a structure that factory manager Seo Woo-tae can’t commit alone? There must be someone higher up involved. “Find out who that person is and bring along evidence that can’t be escaped.”

“All right.”

“Everyone, please go out.”

Five team leaders left the general manager’s office angry.

As I looked at the door they left through, I remembered the personal information sheet.

In particular, I was quite interested in the unusual details written in Manager Jeong Soo-cheol’s personal information.

[Special information: Executive Director Lee Jun-su and classmates from elementary, middle, and high school]

It’s like a relationship with a loan shark’s cousin.

I don’t just suspect that they are classmates from school.

The team led by Captain Kang has already begun an investigation into the audit team leader and has made various reports.

House, car, even bank account balance.

But where did Manager Jeong get the money to own three apartments?

It was like leaving a fish to a cat.