The Magician’s Memorial - Chapter 370
Only Krnovel
370. Poison apple (5)
The long era of quantitative easing.
Quantitative easing lasted for five years after the Lehman crisis.
Not only the American people but also Wall Street has become accustomed to quantitative easing.
Zero interest rates were natural.
It was taken for granted that the government would release money.
Therefore, no one was prepared for the reduction of quantitative easing.
It was also the reason why we were able to prepare more easily.
“Chairman, stock prices are falling rapidly. Not only the U.S. stock market, but also the European, Japanese, and Korean stock markets are falling together.”
“It is a natural result since the reduction of quantitative easing was announced. But is it okay for President Han to leisurely do this?”
“I was looking at the American market all night. That’s too much for someone who hasn’t slept a wink yet.”
“Do you need to stay up all night? Representative George will handle this operation anyway, so shouldn’t we just pour in the money?”
CEO George was a man who had made money this way his whole life.
That is why this operation was entrusted to CEO George, and Taewoo Securities only had to make a profit behind his back.
“I have decided to take charge of the Asian region. Wouldn’t it be a waste to just steal the American market?”
“So are you having a lot of fun?”
“We are already making significant profits through short selling, and bond prices have risen significantly, so we have achieved our initial goal.”
Representative George’s strategy was simple.
The moment the reduction in quantitative easing was announced.
Stock markets fall, bonds rise.
So, you make profits in the stock market through short selling, secure bonds in advance, and make profits again through bonds.
Stock market and bonds.
These two sports accounted for more than 50% of this operation.
The plan was to achieve additional profits through real estate and futures.
“If you have too much fun and miss the right time to quit, you could lose all your profits at once. The deadline is September.”
“We have already made plans for several months to recover all short sales and sell all bonds before September. The Chairman gave us the answer sheet in advance, so we can’t make mistakes on the exam, right?”
If it were a multiple choice question, it would be easy to solve if you knew the answer.
Because the quantitative easing problem was descriptive, it required the creativity of actual players.
However, given the creativity of CEO George and President Han, it was a given that they earned 100 points.
“What is the reaction of financial companies that joined this operation for the first time?”
“I’m so happy that I’m about to die. And yesterday, a situation occurred where financial companies that failed to participate in this operation protested as a group.”
It was natural.
Since we lived in the same building, we knew each other’s circumstances even better.
However, while the financial company next door is collecting money, they are just sucking their fingers, so how can they not protest?
“So how did you handle it?”
“We told them that we were carrying out the operation with a trustworthy financial company. We also told them to wait for the next operation as more financial companies may participate.”
“Did you properly inform us why they could not participate in this operation? That way, we will not repeat the same mistake.”
“I may have said it a little differently, but if you can’t understand that much, you’re not qualified to proceed with the operation with us, right?”
“That’s right. With this operation, even if Taewoo Securities’ rate of return is a little low, try to increase the rate of return of other financial companies.”
Quantitative easing was just a practice game.
Giving up goals in practice games is how trust between players is built.
If we do that and score a hat-trick in the game, wouldn’t it be a loss?
“Because Taewoo Securities has invested such a large amount of money, we have no choice but to take a lot of it, but in terms of return on investment, we planned to ensure that other financial companies have higher returns.”
“We need to make them realize that if they listen to us carefully, they can make rice cakes even while they sleep.”
It was a necessary process for the continuation of the financial tower.
If Korea were to establish itself as a financial hub, Taewoong Securities could make huge profits.
Since it was helpful to the Korean economy and Taewoo Securities, it was okay to give up the immediate profits.
“Quantum Fund, which took the lead in this operation, will achieve a return of at least 90%, and the rest of the financial companies will also achieve a return of more than 70%. On the other hand, Taewoo Securities’ return is less than 50%.”
“That would be more than enough.”
Wall Street, a symbol of finance.
However, there were few financial companies that achieved high returns every year.
Since the average rate of return for Wall Street hedge funds was only 4%, it was clear that it would be eye-opening to experience a return of 70% this time.
“I’m worried I might have given him too much food at once.”
“Hyenas can also be considered a ‘canine’ in a larger sense. Dogs are animals that wag their tails as long as they are fed well. So, as long as you feed them regularly, they will follow you without biting. In particular, dogs that have eaten a lot of food will lick their bellies. “They tend to turn around and fawn over it.”
Of course, hyenas are not canines.
However, it had habits similar to those of canines.
As long as you feed them well, Wall Street hyenas can be trained as hunting dogs.
Taewoo Group could take the lead only by training a large number of hunting dogs in preparation for future US-China trade disputes.
* * *
We had a lot of fun with the tapering off of quantitative easing during the month of June.
Thanks to good preparation in advance, we made more than expected profits. This was because CEO George and President Han were a good match, and the financial companies in the financial tower also followed suit.
Moreover, the reduction in quantitative easing is not yet over.
The stock market was falling further and further, and bond prices were rising.
Therefore, we were able to have more fun, and the solidarity of the financial tower became stronger.
So June passed, and July came.
On the first day of July, I received a call from an unexpected person.
“Chairman, Charlotte Group Vice Chairman Jin Dong-gu wants to meet.”
“I guess I know what the business is. Please tell me to have dinner with you tonight.”
Vice Chairman Jin Dong-gu was contacted through the Planning Director.
It must be heartbreaking because the succession battle at Charlotte Group is just around the corner.
So, he had never contacted me before, but now he contacted me urgently.
“I made a reservation at a Korean restaurant that the Chairman usually goes to.”
“Have I already contacted you? I guess I was waiting for you to contact me.”
You can’t make someone who is anxious wait.
I finished my work and headed to the restaurant.
Since it was still before dinner time, Vice Chairman Jin Dong-gu had not arrived, and Captain Kang personally met him and guided him to the annex.
“You’re very busy these days, aren’t you? I no longer leave the restaurant work to someone below me.”
“I have completely stepped away from restaurant work. But shouldn’t I take care of it myself on the days when the chairman comes?”
“What you’re doing is going well, right?”
“It’s doing so well that I’m scared. Taxi, rental, and shared mobility businesses are all doing so well.”
Captain Kang was certainly a capable person.
Of course, his management skills were somewhat poor, but he was a person with strong leadership skills.
The talented people who followed him during his military days were making up for his lack of management skills.
That’s why I was able to lead several businesses well.
We were able to grow into a company that generates greater sales than most mid-sized companies.
“Wherever you go, you are the one who listens to the chairman, so why don’t you hand over the security duties as well?”
“That is absolutely not possible. When a person loses his original intention, he is bound to fail. My original intention is to assist the Chairman!”
Captain Kang’s loyalty remained the same.
From when I first joined Taewo Group until now.
It is no exaggeration to say that he was able to rise to this position comfortably thanks to Captain Kang’s unwavering loyalty.
“Captain Kang will especially turn a blind eye to your back pockets, so take care of yourself.”
“No! The amount of money I receive as a salary alone is more than 20 times that of when I was in the military. It is enough money to support not only me but also my children for the rest of their lives.”
“Then that’s a good thing. If you retire later, I’ll take responsibility for your retirement.”
“I plan to assist the Chairman for the rest of my life as long as my legs can move normally. So, you don’t have to worry about me in my old age.”
It’s been a while since I had a long conversation with Captain Kang.
He pointed out the points of improvement in the business he was running and also told him what kind of new business he would start in the future.
As a result, time passed quickly.
Jin Dong-gu, Vice Chairman of Charlotte Group, arrived at the restaurant annex.
“Nice to meet you, Chairman Kim. It’s been a long time, hasn’t it? We should have seen each other often, but we were busy so we neglected it.”
“I should have contacted you first, but I’m just sorry for making Vice Chairman Jin contact me first.”
“Hehe, don’t worry about it. Don’t you normally hear news about entrepreneurs through newspapers and news? Please get a drink first.”
It was Vice Chairman Jindong-gu who was looking for alcohol first.
It meant that his stomach was burning, and instead of expensive and strong alcohol, he cooled his stomach with cold beer.
“You seem to be having a lot of worries these days. Your complexion is very damaged.”
“······As Chairman Kim said, the Chinese business run by Vice Chairman Jin Dong-oh is suffering a large deficit.”
Entering China was originally the responsibility of Vice Chairman Jin Dong-gu.
However, the eldest son, Vice Chairman Jin Jin-oh, almost took over and took over the Chinese market for himself.
And at that time, I told Vice Chairman Jin Dong-gu not to worry because Charlotte Group’s expansion into China would fail.
“There’s nothing bad about it from the Vice Chairman’s point of view, right? The eldest son failed to advance into China, in which the group invested heavily, and the second son is seeing great results in Japan. It appears that Vice Chairman Jin Dong-gu has taken a step forward as the next successor. ”
“I knew it would happen, too. But my father is still pushing his eldest son.”
The primogeniture succession could be seen as universal.
Not only in Korea but also in the U.S. and Europe, there were many cases where the eldest son wanted to take over the company, and Charlotte Group could be considered to be at least better.
“I understand that the executives and employees of Charlotte Group are more supportive of Vice Chairman Jin Dong-gu. How can you kick out someone who is supported by the executives and employees?”
“My father and Vice Chairman Jin Jin-oh have done more than enough. So, I requested today’s meeting to ask Chairman Kim for advice.”
Vice Chairman Jin Dong-gu and I made a deal.
I obtained the land for the new headquarters from Charlotte Group.
Vice Chairman Jin Dong-gu agreed to help each other become the official successor to Charlotte Group.
I could see that I had done everything I had to do just by handing over the entry into the Chinese market to Vice Chairman Jin Dong-oh.
However, I succeeded in obtaining the Charlotte Group site.
Vice Chairman Jin Dong-gu has not yet become the official successor.
There’s nothing I can’t give you at least as advice at the A/S level.
“Did you know that Charlotte Group and Hyundai Motor Company are competing for the THAAD site?”
“I know very well. My father is risking his life to take over the US military base site.”
“Stop it. To be precise, just pretend to block it as much as possible. And if you meet with executives and actively oppose it, you will find a way.”
It was Vice Chairman Jin Dong-gu who was squinting as if he didn’t understand what I meant.
This was a reaction that came about because they did not know that the Charlotte Group would be subject to sanctions to the point of withdrawing from Chinese business due to the deployment of THAAD.
No one at the Charlotte Group knew that the provision of the THAAD site was a poisonous apple.
However, if only Vice Chairman Jin Dong-gu recognizes that it is a poisonous apple and attempts to stop it, his influence will naturally become stronger.
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