Chapter 38
Chapter 38
Translation: Godtl
"..."
This was the seat he had always dreamed of.
The sole chairman's office of LK Group.
This brown leather chair.
So this was how it felt.
He'd heard that due to his father's fastidious personality, the chair was replaced with a new one every month. Perhaps because of that, a pleasant leather scent tickled his nose.
Moreover, the high ceiling made the dragon painted above seem as though it were handing the yeouiju directly to Oh Jae-hyun.
"Chairman."
Chief Secretary Choi, now no longer a director but the head of the secretariat, wore a smile on his face.
One might argue that going from director to chief secretary was a demotion, but the weight carried by the chairman's chief secretary was entirely different.
In essence, he was the chairman's closest confidant—every order passed through the chief secretary before being executed. He was also the person the chairman trusted most.
In other words, he wielded power second only to the chairman himself.
"The chairman's seat suits you perfectly, as expected."
"It's a position I've worked hard to obtain, so I must guard it diligently."
"Ah, and this is the detailed information you requested about Gwangun Securities."
That was precisely what he had been most curious about.
Gwangun Securities—the very entity Chairman Oh Jae-hyun had been grinding his teeth over.
Know thy enemy, and you shall never be defeated—wasn't that the saying?
"They've released their earnings report, haven't they?"
"Yes. Securities firms typically announce their earnings quarterly."
Earnings.
Rumors had already been swirling in financial circles that Gwangun Securities had struck gold during LK's management battle. Some even mocked LK for only doing favors for others.
"Their earnings must be quite impressive this time. Turning 300 billion into 900 billion."
"Yes. But as you'll see upon reviewing the report, that's not all."
"Hmm?"
Chairman Oh Jae-hyun soon found himself doubting his own eyes.
"Wait. Their capital tripled? Does this figure even make sense?"
Compared to the previous quarter, their capital had increased nearly threefold. They had earned trillions in just a few months.
"An earnings surprise, indeed. Especially considering this quarter saw massive losses across all financial sectors—yet Gwangun Securities alone raked in a fortune."
Even upon a second glance, the numbers seemed almost fabricated.
Even in a booming financial market, tripling capital in a single quarter was impossible. Yet, how could such returns be possible in a quarter marked by the China Shock and an unprecedented bear market?
"That's why there's a rumor circulating now."
"A rumor?"
"Ever since the China Shock, there's been an unidentified force consistently making money. And during the Stumbagen Dieselgate scandal, that same force allegedly entered the German market and cleaned it out thoroughly."
Chairman Oh Jae-hyun had vaguely heard that rumor as well.
But since even Bafin had given up on tracking it, it remained just that—a rumor.
"You're saying Gwangun had the audacity to plunder the German market, of all places?"
"Yes. Judging by their current earnings, it's entirely plausible."
When he first heard that Gwangun held a 5% stake, he hadn't been particularly wary. After all, they weren't even part of the top three financial groups.
But the more he learned, the more mysterious they became.
Not only were they adept at psychological warfare—turning 300 billion into 900 billion—but if the rumors were true, their ability to predict the future was extraordinary.
'But the one actually running the company isn't Hwang Dae-un.'
He realized it when he met Hwang Dae-un that day.
The man was taking orders from someone.
In other words, there was someone behind Gwangun Securities.
Someone shaking up the game, both domestically and internationally!
"Chief Secretary. About our France project."
"Ah, yes."
"We need to accelerate the timeline as much as possible."
"Pardon? But there are still aspects that need refinement..."
"It just won't do. We must open a hotel in France as soon as possible to establish a foothold in Europe. That's the only way to secure funding and break free from Gwangun Securities' grasp."
Gwangun Securities.
The fact that they held collateral was beginning to unsettle him.
With no telling what they might do next, he was determined to resolve the debt issue and sever all ties with them completely.
"Inform the business division. Push the schedule forward as much as humanly possible."
＊＊＊
After the quarterly earnings announcement, the ones most shocked by this earnings surprise were none other than Gwangun Securities' own employees.
"What? We made this much?"
"No way. Our entire department was in the red this quarter, wasn't it?"
"But where on earth did all this money come from?"
It was an earnings surprise that even the employees of Gwangun Securities couldn't comprehend.
"Well, it makes sense. Most of the profits came from this Prime Grade department."
"Not to mention, even before the Prime Department was officially established, the director made a killing in the prop trading team."
"Word's been spreading quietly, and now with this earnings surprise, everyone's aware of the Prime Grade department's profitability. HR is in chaos right now—everyone's inquiring about transferring here."
But this wasn't a place just anyone could enter.
Only those chosen by my intuition could step through these doors.
"Still, doesn't it feel a bit disappointing that our capital dropped from 1 trillion won to 700 billion all of a sudden?"
"What are you talking about? 900 billion is currently tied up with LK Group."
"But it's not like we can suddenly withdraw and use that money. Though we are receiving the interest payments faithfully, of course."
"Well, 900 billion is a huge sum, but from a conglomerate's perspective, it's not an unbearably burdensome amount. Even if their liquidity is strained right now due to the management battle and LK Tower construction, LK Group has nothing but positive developments stacking up—starting with their European hotel expansion, right?"
Chairman Oh Jae-hyun was hard at work making money.
There was a reason why LK Orient had betrayed the founding chairman and sided with Oh Jae-hyun after all.
With his sharp business acumen and resourcefulness, he was rapidly stabilizing the company.
Especially now with the European hotel business expansion—their France opening was just around the corner.
Rumors said their service evaluations were exceptionally positive.
"That's just how things work in our country, isn't it? Service and quality are a mess domestically, but somehow they excel overseas."
"Like fish in a barrel, I'd say. Haven't we all experienced domestic discrimination firsthand?"
Big corporations always claim there's no domestic discrimination, but everyone already knows the truth. Even domestically developed games undergo miraculous 180-degree service improvements when launched overseas.
"This European venture will be a huge success, right?"
"Europe aside, when LK Tower opens next year, it'll be no joke. I heard its value has already skyrocketed to 7 trillion won."
"Shame. I didn't expect LK Group to recover this quickly. I thought they'd stagger a bit longer and give us an opportunity. I heard their agreement includes an acceleration clause too."
"Still, that's unrealistic talk. Do you really think a conglomerate would just roll over?"
If LK Group were to falter, could we really swallow up LK Tower, which we hold as collateral?
Truthfully, it wouldn't be easy.
Holding collateral doesn't automatically mean you can claim it—that depends entirely on contract terms.
And securities firms always include one particular clause when taking collateral.
The acceleration clause.
Simply put, it's similar to the concept of margin.
Not actual margin deposits, but if LK Group exceeds the agreed debt ratio or suffers a credit rating downgrade, we can trigger the acceleration clause.
Then we could issue a margin call for additional collateral or demand immediate debt repayment regardless of the loan term.
When corporations stumble and get flooded with promissory notes, it's often because of this acceleration clause.
An extremely favorable term for securities firms.
If they don't like it, they shouldn't take the loan.
But Chairman Oh Jae-hyun signed this contract.
Because he was desperate.
"Desperation aside, he must have calculated that 900 billion was absolutely repayable. And since we don't know the exact contract terms, I shouldn't speak carelessly either."
The team members weren't privy to detailed contract conditions.
Of course, I knew.
Though the contract was convoluted enough to be difficult to parse, I only needed to understand the crucial points—like a three-line summary.
"From what I understand, the director included both payment in kind and a call option clause."
"Wow, a call option too? That's downright ruthless."
"Chairman Oh Jae-hyun must have been truly desperate. To make that kind of agreement involving LK Tower, of all things."
The team's surprise was warranted.
Normally, when providing loans against collateral, if the borrower defaults, the lender can't simply seize the collateral.
By law, the collateral must go through auction procedures.
But this too can be altered through contract terms.
By including payment in kind and call option clauses, we secured the right to purchase the collateral first at the call option's specified price if the borrower defaults.
"But even if it's called a call option, is that really feasible? LK would desperately block that much at least."
"Well, true. It's an extremely favorable contract for us, but honestly, LK settling its debts is only a matter of time. That's probably why the other shareholders approved such a contract in the first place."
It meant they couldn't just take it outright—it was like a rice cake painted beautifully just for show.
My brother must have stuffed in every possible clause he could, since it wasn't something he could actually claim anyway.
"We just need to keep doing our job. If they repay quickly, we'll have an additional 900 billion in capital, which means we can make even bigger investments—that's good for us. Even if they can't repay immediately, we're still earning quite a high interest rate."
Still, it was a bit disappointing that the initial 1 trillion won in capital had shrunk back down to 700 billion.
Even though we were set to receive 900 billion from LK Group, disappointment was still disappointment.
"Shall we begin the meeting?"
"Ah, yes. We've gone off on a tangent today. Thanks to the U.S. finally ending its zero interest rate policy, the dollar's value has been gradually rising. Conversely, the euro has dipped slightly."
The U.S. had at last abandoned the zero interest rate policy it had stubbornly maintained for so long.
They had kept it in place to stabilize an economy teetering from the 2008 Subprime Mortgage Crisis.
But now, with the economy showing signs of recovery, they had decided to raise interest rates again.
"..."
I casually brought my pen to hover over the U.S. dollar and yen figures in the documents.
The sensation came, just as expected.
But while using this ability, I had learned one thing—there were varying degrees of intensity to these feelings.
Just as pain had its levels, so did this.
Of course, gauging the intensity of that sensation relied solely on my own perception.
I do get a feeling from the dollar and yen, but it's not an overwhelmingly strong one.
Still, I knew buying into them would definitely be beneficial.
"Ah, and Chief. I've also brought the research materials you requested regarding Europe."
I quickly skimmed through the documents.
Last time, when I was casually having a drink with my brother, just the word "France" had triggered an unpleasant sensation.
So I had been compiling and reviewing European-related issues.
"Right now, Europe is a bit turbulent because of the U.K. It's not yet a major issue, but economic difficulties are gradually mounting."
The U.K. was causing some noise in relation to the EU.
But my focus wasn't on the U.K. at the moment.
'Despite controversies over its involvement in the Syrian civil war, France is currently one of the top revenue-generating countries in Europe through tourism and is actively seeking foreign investment to further boost tourism income.'
France was currently one of the most prosperous countries in Europe.
Its aggressive acceptance of foreign investment to expand its tourism industry had been a key factor in its success.
That was also why LK Group was focusing so heavily on France.
With the French government welcoming them with open arms and offering policy support, LK had no reason not to dive in.
"Ugh."
But why was it?
Every time I looked through the France documents, I felt nauseous.
The unpleasant sensation was exactly the same as before.
"Chief, are you alright?"
"Ah, yes. Could you bring me other materials? Research covering various sectors."
I didn't know why I was feeling this way, but in the end, I ended up closing the documents midway.
I should avoid looking at anything related to France for a while.
"Like France, Europe has been pushing tourism aggressively lately, and East Asian countries are also expanding their tourism businesses, so many predict stock prices in that sector will rise."
But the sensation flowing into me was faint.
Maybe I should just invest in the dollar and yen and ignore everything else.
As I was reviewing various sectors—
"...?"
My gaze fixed on one particular sector.
None other than defense.
"Between France's involvement in the Syrian civil war and Saudi Arabia declaring war on IS, it's only natural for defense stocks to rise when war breaks out. However, the scale is small, so the rise doesn't seem significant. Plus, there's no sign of the conflict escalating further."
Overall, the defense sector had only been fluctuating—rising slightly, then dipping again.
But right there, the intensity of the sensation suddenly spiked upward.
"..."
Just in case, I hovered my pen over each listed stock one by one.
"!?"
The precise intensity varied for each, but all of them maintained a high level, feeding back to me.
The pen trembled so violently over one stock that it nearly tore through the paper.
'Why is this making me so uneasy?'
And of all things, it had to be the defense industry.
What does a rise in defense stocks signify?
War.
There could be no other reason.
I swallowed dryly.
Was a major war really about to break out somewhere?
Please, I prayed, let it not be another Korean War.
＊＊＊
Friday evening.
The most vibrant time of the week, when everyone enjoys dining out or cultural activities in anticipation of the weekend.
Paris, France, was no exception.
The most romantic city in Europe, teeming with countless tourists.
None of those admiring its beautiful nightscape could have foreseen it.
BOOM—!!
That their blissful Friday night would become a battlefield stained with bombs and bullets.
＊＊＊
"R-report it. W-what's the casualty count looking like?"
Chairman Oh Jae-hyun's hands trembled so badly he couldn't even take a proper sip of water.
"They're saying casualties have already surpassed 1,000. France has deployed troops across Paris and declared a state of emergency, sealing all borders. Flights are being forced to turn back as we speak."
"Ah—damn these lunatics...!"
A large-scale terrorist attack—not just anywhere, but in Paris, France, of all places.
IS, which had been condemning France for its involvement in the Syrian civil war, had turned parts of Paris into a wasteland with suicide bombings and indiscriminate gunfire.
The shockwaves reverberated globally.
In terms of severity, it was no different from 9/11 in the U.S.
Because this time, it was France—one of Europe's most advanced nations—that had been struck by mass terrorism.
"IS officially claimed responsibility for the attack, so the French president declared all-out war and requested military support from other EU nations. Other countries have already pledged active assistance."
This year had been horrific from the start.
Terrorist attacks had occurred sporadically since early this year, and now, even a nation renowned for its tight security had fallen victim to a large-scale attack.
IS had turned all of Europe into its enemy.
Europe could no longer afford to stand idly by.
The terror of "If it happened to France, it could happen to us at any moment" had been seared into their minds.
The problem was, with France closing its borders, the fire had now reached LK Group's doorstep.
"What about our hotel? It's supposed to open tomorrow!"
"...That's likely impossible. With the borders sealed, there's no way in or out right now."
His vision swam.
LK Group had already been hemorrhaging funds, and to keep liquidity flowing, they'd pushed recklessly ahead with their French hotel venture.
All they needed was to open and stabilize cash flow—but fate had cruelly intervened just one day prior.
"This... border closure. It'll lift soon, right?"
"They likely won't reopen until every terrorist in France is apprehended. They still need to investigate who collaborated and how weapons were smuggled in. They'll try to reopen as soon as possible, though."
But even if the borders reopened, the damage was done.
Paris, France—of all places—had been attacked.
The tourism industry would collapse under the fear that nowhere was safe from terrorism.
France and the rest of Europe had already begun refusing all tourists to overhaul security, fearing terrorists might hide among them.
And what did that mean?
LK Group's long-cherished dream of expanding into Europe's tourism industry had crumbled in an instant.
"..."
No one in the conference room dared speak.
Because there was no solution.
How could they possibly force France to reopen borders closed due to terrorism?
"Chairman, the immediate problem is what comes next. We rely on overseas capital inflows to cover domestic expenses, but with Europe locked down, our internal funds alone won't suffice."
Chairman Oh's temper flared.
"Then take out a loan to cover it!"
"That would increase our debt ratio. Per your urgent agreement with Gwangun Securities, if the debt ratio rises beyond a certain threshold, we'll face a margin call."
"...!?"
He'd forgotten.
He'd never dreamed such a situation would arise.
His mind snapped awake.
"S-so what happens then?"
"Gwangun Securities could demand repayment at any moment. And if we fail to repay..."
The executive delivering the report shut his eyes tightly.
"...LK Tower will be handed over to Gwangun Securities as-is."