The Magician’s Memorial - Chapter 78



Only Krnovel

Episode 78 1997 (1)

The head of the planning department was very busy.

Because I had to take care of projects for all of the group’s affiliates, I had to spend the day without even waking up.

Before we knew it, 1996 had passed and the new year of 1997 had arrived.

The foreign exchange crisis is now only a few months away.

Therefore, I welcomed the new year of 1997 by listening to the report from the Planning Director in the Planning Director’s Office.

“Taewoo Motors’ entry into China is very successful. Last year, sales in China exceeded 100,000 units. And sales in the U.S. also increased by more than 70% compared to the previous year.”

“Taewoo Motors’ growth rate is scary.”

“It is thanks to the head of the headquarters who stepped forward. “Due to the increase in sales, Taewoo Motors’ debt ratio has also dropped significantly.”

This process was by no means easy.

As unexpected profits came in from China and the United States, my grandfather naturally wanted to expand his business.

However, he was induced to invest the money in a joint venture with Aramco and a Chinese joint venture, and succeeded in locking up most of the profits.

“I would also like to hear a report on the IT business.”

“The e-commerce business is also going smoothly. “Charlotte Group launched an Internet shopping mall site before us under the name of Internet Department Store, but we have the upper hand in market share thanks to the fact that our site is much more complete.”

Who would have thought that Charlotte Group would have entered the internet shopping mall business at this point?

However, we signed an agreement with Amazon, and because Jeffrey personally visited Korea and managed it, we were able to dominate the Internet market.

“Sales aren’t coming in properly yet, right?”

“Although sales are rising rapidly every month, sales are still not that high compared to the offline market.”

“You can’t fill up after the first drink. “What is the response on the hotel site?”

The IT department didn’t just create e-commerce sites.

Before the regression, it was natural to make hotel reservations online, but in today’s era, reservations are made in person or by phone.

“The number of customers who book hotel rooms over the Internet is not yet large. However, since we are promoting it through advertising, we expect the number of site visitors to increase.”

“What is the response to the agreement between the IT department and various affiliates?”

“Perhaps because there is an IT boom in the United States, the stocks of affiliates tend to rise just by hearing rumors that they are connected to the IT department.”

Although it was an IT department that was not producing proper sales.

Because it had a huge impact on the rise of stocks, the executives, including my grandfather, were not making any efforts.

“Anyway, the exchange rate continues to rise. “It has already surpassed the 850 won mark.”

“Thanks to the higher exchange rate, Taewoo Motors and other affiliates are benefiting. “Although the price of imported raw materials increases, the price of finished products can also be higher, which is beneficial in the end.”

“If the exchange rate continues to rise like this, the value of foreign currency debt will eventually rise. “Please move the planning office to reduce debt as much as possible.”

“The director has emphasized this several times and we are planning in that direction, but the chairman is not very happy about it.”

My grandfather thought that liabilities were also assets.

He has not yet given up on the theory that a company can run properly only if it holds a certain amount of debt.

“Let me try to persuade you a little more. “I keep telling people to stay quiet until the waves calm down.”

“I will make another report and submit it to the chairman.”

The planning director’s report continued for another hour.

Summarizing the report, Korea’s economy has suffered a bit.

Taewoo Group, on the other hand, was enjoying the greatest prosperity.

Taewoo Motors, IT, and even electronic products.

The market share was growing rapidly both domestically and internationally.

I felt proud that the Taewo Group had developed during the one year I spent in the planning office.

Just a moment later, the secretary came into the general manager’s office, urgently knocking on the door.

“The chairman called. “He wants you to come to the president’s office right away.”

Grandpa is calling me?

I don’t know what happened, but my heart was beating strangely fast.

I ran up the emergency stairs to the president’s office and realized why my heart was beating so fast.

“The Bank of Japan says it will invest 2 billion yen. Hehe, Taewoo Group is doing well these days, so people are saying they will invest in each other.”

“It is not an investment, but a loan. “Aren’t you saying you want to do interest business with our company?”

Why are you offering to lend me money I don’t even ask for?

Not on Wall Street, but at the Bank of Japan.

Under the current circumstances, we should never have borrowed money from Japanese banks.

When the foreign exchange crisis hit, Japan was the one to withdraw short-term loans at once, and as a result, its foreign exchange reserves were depleted and it had to borrow from the IMF.

“With the yen also showing weakness, isn’t this a golden opportunity to borrow money at a low interest rate?”

“Taewoo Motors and Taewoo Electronics are both doing well. You can expand your business with profits alone. There must be a reason why the Bank of Japan offered to lend the loan. “You should never borrow money from a Japanese bank.”

“Uh huh, you shouldn’t put emotions into money. “Whether it’s Japanese money or American money, it’s all the same money.”

There are really only a few months left now.

However, if you borrow money from Japan now, your efforts so far will have been in vain.

“I don’t know why Taewoo Group needs money now. “Aren’t all businesses going well?”

“I’m trying to start a telecommunications business. If, as you say, the Internet is the business that will lead the future, shouldn’t we also get into the telecommunications business? Cell phone and internet. “Aren’t these two areas you emphasized?”

Are you going to start a telecommunications business?

Of course, it was clear that the telecommunications business was a very profitable business.

But not now. In just one year, many telecommunication companies will go bankrupt.

At that time, it was not too late to acquire the company at a low price and start a telecommunications business.

“Starting a telecommunications business from scratch is unreasonable. “We need to acquire a telecommunications company of a certain size and then enter the telecommunications business.”

“yes! That’s what I think too. So shouldn’t we take over a telecommunications company with borrowed money?”

“It is not too late to borrow money after the acquisition of a telecommunications company is completed. “We can obtain loans from Wall Street at lower interest rates than Japanese banks.”

“Are you saying we want to borrow money from Wall Street instead of Japan?”

What do you need to borrow money for?

First of all, it was said to prevent people from borrowing money from Japan.

“Perhaps because Taewoo Motors and Taewoo Electronics are increasing their market share in the U.S., interest from Wall Street is also increasing.”

“Thanks to establishing a joint venture with an American company, Taewoo Group’s status has increased significantly in the United States.”

“The planning office will look for a telecommunications company that can be acquired.”

First of all, we had to take the time.

When signs of a foreign exchange crisis begin to appear, there will no longer be talk of borrowing money.

“So be it. However, it has been a while since the joint venture with Aramco was created, but the establishment of the oil refinery company is still not progressing properly. How is the acquisition of SS Oil going?”

“It’s happening in a lot of places. “The acquisition of SS Oil is possible as early as the end of this year or at the latest next year.”

“You know that the money tied up in the joint venture with Aramco alone is over 5 trillion won, right? “If it is difficult to establish an oil refinery company, it would be beneficial to withdraw the money as soon as possible and invest it elsewhere.”

How can you be so impatient?

I just had to wait a few more months somehow, but that wasn’t easy.

“We will establish Korea’s largest oil refining company. “At that time, it is clear that Taewoo Group will surpass Hyeonjae Group and Samjin Group and become the No. 1 group in Korea.”

“Hehe, it’s nice just thinking about it. But keep in mind. “If things go wrong, I’ll have to step away from work for a while.”

“I will prove through my achievements that I am not in a high position just because I am my grandfather’s grandson.”

I did my best to console and comfort my grandfather.

The situation was truly exhausting, and anger rose against the Japanese bank, which suddenly brought up the topic of borrowings.

I can’t just suffer like this.

It’s time for George to attack the yen once more.

* * *

My expectations were exactly correct.

George visited Japan as soon as January 1997.

A press conference was held to attack the yen, and the value of the yen soared overnight.

I watched the press conference from Captain Kang’s office.

A team leader even provided popcorn for us.

“I received a call from Quantum Fund. “He said he would like to visit Korea and meet the representative as soon as the press conference is over.”

“Me suddenly? “If it’s about Wall Street, can I talk to Dimon?”

I delegated full authority over SAVE Investment Company to Dimon.

If the foreign exchange crisis occurs, we will have to bring him back to Korea, but since we still have a few months left, we left him at SAVE Investment Company.

“Since George is said to be secretly entering Korea, wouldn’t you have something to discuss with the CEO?”

Please contact me when you arrive in Korea. I heard that George is coming to Korea, so of course I have to meet him.”

“I’ll contact you right away.”

A team leader attempted to contact Quantum Fund via text message.

A reply arrived in less than a minute after sending the text.

“They say they have now arrived in Korea. “I’ll see you at the hotel. What do you want to do?”

“Korea and Japan are definitely close. Already arrived in Korea. Let’s leave right now. “You can’t keep busy people waiting for a long time.”

I went to the hotel with a team leader.

As we entered the suite, George was cutting up a large steak and eating it.

“You must have eaten a lot of delicious food in Japan. Are you eating like that again?”

“The yen tasted worse than I thought. “The hunger won’t go away.”

It was George who earned at least $1 billion from press conferences.

However, since my stomach has grown as much as it has, I don’t think I’m full enough.

“A person on Wall Street must always have a strong stomach. But would you be full just with steak?”

“It’s a little lacking. So, I’m thinking of getting on a plane and going to Thailand. “Isn’t there a rumor that Thai food is delicious?”

“There were a lot of bubbles in Thailand’s real estate market and financial sector. “I think it will be a very delicious meal.”

“Hehe, I thought you knew. They say they are different from hyenas who want to steal what others have eaten. “She has a sense of smell that allows her to find food on her own.”

The start of the Asian foreign exchange crisis was Thailand.

As the bubble in Thailand’s real estate market begins to burst, construction companies and financial companies begin to collapse.

In the end, Thailand requested IMF help.

The crisis spread to the Philippines, Indonesia, and Malaysia, spreading into the Asian foreign exchange crisis.

The aftermath would extend beyond Taiwan and reach Korea.