CH417 | Heir

January 4th saw a massive crash in the Chinese stock market.

Two days had passed since then.

On January 5th and 6th, the market experienced small fluctuations, with minor rises and falls, leading many to believe that the crash was over.

But the major crash was far from finished.

The market had only been catching its breath for two days, and as soon as it reopened, the circuit breaker was triggered again—just ten minutes into trading.

“Chairman, the market has fallen 5.5% just ten minutes after opening.”

“So we’re witnessing a circuit breaker triggered within ten minutes.”

“Perhaps the lesson from the first day made them act quickly to trigger it.”

“They didn’t learn the lesson properly. They should have declared a trading halt instead of a circuit breaker.”

“Do you think the market will crash again once trading resumes?”

“Of course. That’s the natural course of events.”

Thirty minutes later, the Chinese market reopened.

Once again, within just ten minutes, the stock market plummeted at an astonishing speed.

[Waaahhh!]

The entire Financial Tower erupted in cheers.

Was it because they had rested well for two days, giving their voices extra strength?

Or was it because, in less than an hour, they had already forced a surrender, so they didn’t have to strain themselves, resulting in even louder cheers than before?

“After the circuit breaker, the market fell an additional 7%, totaling a 12.5% decline!”

“The stock prices that had been painstakingly raised in the second half of last year were wiped out in just a few days.”

“That’s correct. The market has returned to July prices of last year. Over four days, it dropped 26.5%, evaporating at least 2,300 trillion won.”

Over four days, 2,300 trillion won vanished from the Chinese stock market.

Even absorbing just a portion of this evaporated capital represented an enormous sum, and Taewoo Group along with the Financial Tower firms were able to capture a substantial portion.

“How much profit do you think the entire Financial Tower will make?”

“It’s expected to reach up to 1,000 trillion won, with Taewoo Securities and the Fintech Bank alone likely earning close to 400 trillion won. Of course, profits may decrease during the liquidation process.”

It was an almost impossible level of profit.

Yet, thanks to meticulous prior preparation, they were able to achieve such astronomical earnings.

“Thanks to your careful preparation, we were able to secure such huge profits. Good work.”

“There wasn’t really much effort involved. We had ample time to sweep up all the short-sold shares circulating in the Chinese financial sector. It’s all thanks to your early guidance, Chairman.”

In short selling, the most crucial factor was securing the volume of shares.

From the beginning of Q4 last year, when the Chinese stock market started rising, we focused on acquiring sufficient quantities.

The larger the amount, the more time the preliminary work required—and the support of China’s high-ranking officials was essential.

“As you know, part of the profits must be used to keep the Chinese officials’ mouths shut. Until we liquidate the profits and move the money out, we have to feed them, even if it feels wasteful.”

“All financial firms in the Financial Tower agreed to allocate 3–5% of their profits for lobbying funds.”

Three to five percent might seem trivial.

But for the Financial Tower, which earned nearly 1,000 trillion won over four days, even 3% amounted to a staggering 30 trillion won.

More than enough to secure the cooperation of the Chinese officials.

“That amount should suffice. Start preparing for the profit liquidation gradually. You’ll do well, but if too many shares are bought at once, the market sentiment could shift abruptly.”

“Given the scale, we plan to move very cautiously. If we start the liquidation process tomorrow, it will likely take at least two weeks.”

Because of the enormous sums involved, the liquidation would take a long time.

If the short-sold shares were repurchased all at once, the market would inevitably rise, so shares had to be acquired gently to avoid startling it.

“Tell the Financial Tower firms to begin liquidation as well. The market will continue its downward trend through January, so they can enjoy a bit more profit if they wish.”

“They’re a little overexcited at the moment. Having earned tens of trillions over just four days, they’re not thinking clearly.”

“That’s fine by us. The financial firm that liquidates last will end up with the lowest return, after all.”

We had clearly announced our intention to begin liquidation.

If others became greedy, it was their responsibility—not ours.

“Then we’ll simply encourage liquidation in a very gentle tone.”

“They’re not children—they’ll make their own decisions.”

Although the entire Financial Tower had recorded 1,000 trillion won in profits, it wasn’t yet realized, as liquidation hadn’t occurred.

During the profit realization process, those 1,000 trillion won could be halved, and the later one moved due to greed, the greater the potential loss.

“Our role is done once we’ve fed them the food and they’ve chewed it. We can’t help with digestion or excretion.”

“Indeed, we can’t manage an upset stomach either. Use the liquidated funds to start the preparatory work for the UK Brexit operations.”

“Actually, the Quantum Fund has already been warming up. After a long time, we finally get to play with European currencies again, and CEO George is extremely excited.”

CEO George, an expert in currency wars, was about to have the battlefield he desired open soon.

Notably, he hadn’t invested heavily in the January short selling, instead beginning preliminary work for targeting European currencies.

“It may not be as profitable as short selling in China, but it will yield far higher returns than most investment products.”

“The Chinese market was straightforward—just short sell, and profits followed. Brexit is much more complicated. For the UK, short selling is required, while for surrounding countries benefiting from the situation, we must secure stakes now to gain arbitrage profits and achieve high returns.”

Compared to the Chinese market crash, this was a more challenging project.

Moreover, the total available ‘pie’ wasn’t particularly large.

Yet it was clear that the Financial Tower as a whole could generate substantial profits.

“To allow the Financial Tower to share in the gains, we’ll need to make room for them.”

“That’s why we plan to invest only about 200 trillion won. This way, the Financial Tower firms will have room to participate.”

“Have you decided where to invest the remaining funds?”

“We haven’t decided yet. So for now, we plan to generate modest profits through dollars, gold, and bonds.”

Thanks to the enormous profits realized from the oil wars and short selling in China, even after investing 200 trillion won into Brexit, there was still more than enough left in the treasury.

“We need to spend a little money for the future of Taewoo Group.”

“How much are you thinking of?”

“In the short term, about 100 trillion won, and in the long term, we will invest much more to create new sources of revenue.”

“Not just seeking new revenue, but creating it? Just hearing that sounds like it will require an enormous sum.”

In a few years, a world I cannot yet foresee will unfold.

Once we pass the pre-reincarnation point, I will no longer be able to predict what will happen.

That’s why now is crucial, and we must maintain our current position through massive investments.

“We’ll proceed on two tracks. Track One is a short-term plan for the next five years, and Track Two is a long-term plan looking 10 to 20 years ahead.”

“Investing with a 20-year horizon—is that really possible? Ah! With your foresight, Chairman, I believe it is entirely feasible.”

Vice Chairman’s assumption was mistaken.

Even I had no idea what would happen 20 years from now, which meant there was a significant possibility of taking risks that could fail.

“Let me first explain the short-term plan. We’ll expand the Centurion factory further, invest more in developing core semiconductor materials, and increase investments in underground resources like lithium and rare earths.”

“Taewoo Group is already developing many core materials, and just the mines owned by Taewoo Trading are worth tens of trillions of won.”

“You mean we’ll expand even further. Especially, we need to focus more on developing core semiconductor materials. There are still far too many materials that depend on Japan or China.”

Semiconductors were Taewoo Group’s primary cash cow.

Not only for Taewoo Group, but this sector played a major role in the economic development of South Korea.

However, the moment foreign countries—including Japan—prohibited material exports, the industry would suffer massive damage.

To overcome this structural vulnerability, efforts had been ongoing for years.

Several key materials had already been successfully developed.

“Although Taewoo Semiconductors is making substantial profits, it’s spending huge amounts on developing core materials. Of course, I understand the importance of developing these materials domestically, but even if we develop them, we still can’t produce them in Korea, can we?”

“Even if we have the technology, regulations prevent us from manufacturing them.”

“Since the hydrofluoric acid gas leak in Gumi in 2012, environmental regulations have been tightened, making domestic production difficult.”

Most core semiconductor materials undergo hazardous chemical processes.

After several leakage incidents, strict environmental regulations were imposed.

As a result, even with the necessary technology, domestic production was not possible.

“So we’re considering negotiating with the government during this opportunity.”

“Even if the government agrees, environmental and civic organizations will rise up. If that happens, Taewoo Group’s image will suffer severe damage.”

“If the National Economic Party wins a landslide in the upcoming general election, we can negotiate from a favorable position. And the civic organizations’ opposition will be handled by other organizations, not Taewoo Group.”

“No company wants to turn civic organizations into enemies. Are you expecting the National Economic Party to fight on your behalf?”

Politicians had to be even more conscious of their public image than companies.

No politician or party wanted to make civic groups their adversaries.

Why would I risk the painstakingly built approval ratings of the National Economic Party for such a move?

“The National Economic Party will only expand the platform. The residents of the area will bear the brunt of the conflict.”

“……Does this have anything to do with the Saemangeum development project?”

“That’s right. We’ll build a large-scale core semiconductor materials factory and an R&D center in Saemangeum. And the Saemangeum project will be combined with the Gunsan shipyard project.”

“So if civic organizations oppose it, does that mean the Saemangeum development and Gunsan shipyard investment plans will be completely scrapped?”

“Isn’t that inevitable?

Taewoo Group can’t do something everyone opposes.

Even if we don’t expect a smooth path, why should Taewoo Group deliberately walk a path full of thorns?”

They had already promised massive investments in the Honam region, particularly in Jeonbuk.

Five trillion won for the Gunsan shipyard, five trillion for Saemangeum development, and if foreign companies, including chemical factories, were attracted, it would mean tens of trillions of won invested in the Jeonbuk region.

“So you mean the local residents must fight to secure the investments themselves.”

“Only by fighting for it will they feel a greater sense of attachment, won’t they?”

“This could turn into a fierce battle. Especially if a chemical factory is built in Saemangeum, those in the fishing industry may strongly resist.”

“It’s a matter that the local community must negotiate and reach a consensus on. If they fail to find a solution, Taewoo Group will completely withdraw from the Saemangeum project.”

“……It’s a terrifying and ruthless plan.”

It wasn’t really that ruthless.

If the local residents defended the civic organizations, space for dialogue would open.

And if dialogue were possible, he was confident he could persuade them logically.